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VOL 7 / NO 1 / 2019

WM RM8.40 / EM RM10.60


Winning Initiatives in Driving Sustainability Promoting Opportunities in Renewable Energy Fresh perspectives on renewable energy for long-term

In-depth View on Water & Procurement Issues Market reports on specific topics & recommendations

Sustainability, Way Forward for Palm Oil Industry

Symposium keeps discussion doors open on production of crop




EU-Malaysia Chamber of Commerce & Industry (EUMCCI) Suite 10.01, 10th Floor, Menara Atlan, 161B, Jalan Ampang, 50450 Kuala Lumpur, Malaysia. Tel: +603-2162 6298 Fax: +603-2162 6198 E-mail: eumcci@eumcci.com Website: www.eumcci.com CEO Roberto Benetello EUMCCI BOARD DEPUTY CHAIRPERSON Alexandra Herbel BOARD OF DIRECTORS

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From the CEO


Green Winners Make the World a Better Place


Europa Awards for Sustainability 2018, Winning Initiatives in Driving Sustainability


Business Community Hopes for Revival of FTA Talks


EU-Malaysia Trade Facilitation Committee Kicks Off with First Meeting


Trade & Investment Forum 2018, Malaysia’s Decisive Role in ASEAN


IGEM 2018: Green Solutions & Products at EU Pavilion


Sustainability, the Way Forward for Palm Oil Industry


Trade Mission Opens Doors for Irish, Malaysian Businesses


Promoting Opportunities in Renewable Energy


Workshops Shed Light on General Data Protection Regulation


Future of Healthcare 2018: ASEAN-EU Trends & Opportunities


EUMCCI Trade Issue and Recommendations: In-depth View on Water & Procurement Issues


Corporate Partner News


New Corporate Partners




VOL 7 / NO 1 / 2019

From The CEO Dear EUMCCI Members and Review Readers,


After an energic 2019 kick-off, it gives me great pleasure to take a few minutes to review some of the main milestones and achievements of 2018 and, through the publication of this issue of the Review magazine, thank all our members, partners and stakeholders for some of the accomplishments of last year. This is also the perfect opportunity to thank our former Chairperson, Tan Sri Dr. Rebecca Fatima Sta Maria who ended her mandate at the end of December 2018. During her tenure Tan Sri Rebecca was instrumental in helping reposition EUMCCI as one of the most prominent interlocutors for government engagement which contributed enormously in strengthening the advocacy role of the Chamber, our primary mission as the European Chamber of Chambers in Malaysia. In 2018, EUMCCI carried out approximately 100 engagements with government and government agencies, bringing to the attention to the right policy makers business relevant issues that, if dealt with effectively, could lead to a more conducive business environment to the advantage of not only the European Business community in Malaysia, but to all companies operating in the country. EUMCCI has strengthened its advocacy secretariat support team introducing two new positions namely a Sector Committee Manager and a Public Policy And Government Relations Manager. This will allow a more effective functioning of the twelve sector committees currently operating under the EUMCCI’s purview and at the same time fostering relations with relevant stakeholders, whilst staying constantly up-to-date on the current state of affairs. Moving forward we will continue to engage with key government officials through our well tested format “In Conversation With” series striving to turn these events into opportunities for our sector committees to drill down into specific issues and recommendations. In 2018, we had the second edition of the Europa Awards for Sustainability program which solidified the Chamber commitment towards promoting business sustainability and the pursuit of Sustainable Development Goals (SDGs). Over the last two years, through Europa Awards for Sustainability, EUMCCI has had the opportunity and the privilege to identify over two hundred companies that have demonstrated excellence in sustainability. Showcasing these champions is not only important to praise good behaviour; it is fundamental for sharing good practices and stimulates adoption, hoping to trigger a virtuous cycle. In 2018, EUMCCI’s commitment to sustainability and green technologies was further demonstrated with our participation at the International Green Tech and Eco Product Exhibition (IGEM) with a large EU pavilion which hosted companies from Europe showcasing their green solutions. At IGEM, EMCCI also held the second edition of the Palm Oil Sustainability Conference which signified our continued effort in creating an independent and unbiased dialogue platform for the industry players to find common ground. The calendar for 2019 is packed with events and activities that the EU-Malaysia Chamber of Commerce and industry will strive to execute professionally and to the benefit to its members and stakeholders. I thank you for your support and I look forward to seeing you at our events.




GREEN WINNERS MAKE THE WORLD A BETTER PLACE The annual Europa Awards for Sustainability 2018 identifies and celebrates companies and individuals that have demonstrated extraordinary performance in the field of sustainability.


Winners and VIPs with YB Yeo Bee Yin, Minister of Energy, Science, Technology, Environment and Climate Change.


UMCCI’s flagship event, Europa Awards for Sustainability, held in November 2018 at the Four Seasons Hotel, Kuala Lumpur, celebrated people, projects and companies that work towards sustainability for the good of all. It was an inspiring evening as the winners came forward to receive their awards. Prior to this Tan Sri Dr Rebecca Sta Maria, Chairperson, EUMCCI, in her welcoming remarks, said businesses must make sustainability part of their DNA. HE Maria Castillo Fernandez, in her address, said the new government has scored well in its mid-year review and has rolled out good policies where sustainability is concerned. Yet sustainability is not merely the task of the government but businesses as well. “EUMCCI received 140 nominations. While only nine were selected as winners, all are champions in the move towards sustainability, and the awards is a platform to share success stories.” The event returned this year with a new and comprehensive range of awards consistent with the European Union’s sustainable development values. There were nine featured categories, including Best Sustainability Reporting, Best Innovation in Sustainability, Best Social Impact, Best Environmental Impact, Best Sustainability Leader, Best Innovation in Sustainability and Best


Sustainable Palm Oil Leader. The latter was a new category for the awards. Guest of honour YB Yeo Bee Yin, Minister of Energy, Science, Technology, Environment and Climate Change reminded that by 2050, with 10 billion people in the world, the earth could be facing many kinds of crises such as climate change, food security, energy, water shortage and waste. “We are not giving much thought to waste. The Chinese word for “crisis”, wei ji is a combination of the words “danger” and “opportunity”. There are opportunities in a crisis. There are opportunities to create jobs and even opportunities for a small country like Malaysia,” she said. The Ministry has set a target of 20% of the country’s electricity to be generated from renewable sources by 2030, an increase from 2% currently. “Besides this we are looking at energy efficiency in commercial buildings, and to reduce the use of single-use plastics. We want to find alternatives to plastic for packaging, such as bioplastic and biopolymers. As such, research and development is slated to be carried out in 2019.” While the country has made big strides in progress, she said that much still needs to be done. “We don’t want sustainability to merely sound cool and sexy, we want to make a strong business case for it,” she said offering an example from the UK.

YB Yeo Bee Yin

Tan Sri Datuk Dr Rebecca Sta Maria

Token of Appreciation to YB Yeo Bee Yin.

Encore Melaka gave a dazzling performance.

Quality performances capture the attention of the guests.

Ms Alexandra Herbel

Ning Baizura

EUMCCI CEO Roberto Benetello with guests.

Guests enjoying their drinks and the conversations during cocktail.

All smiles for the camera.




Guests catch up during cocktail.

The Europa awards gather friends from across the industries.

The UK’s Office of National Statistics, early this year, confirmed that businesses can grow in a low carbon economy. Low carbon and renewable energy economy grew 5% in 2016 outpacing the 1.8% growth of the country’s wider economy. She commended the winners as well as those who did not win, and urged all to push themselves further, to do more for the environment and to achieve greater heights in sustainability.


Guests catch up during cocktail.

EUMCCI CEO Roberto Benetello and Alexandra Herbel, Managing Director of TUV Rheinland Malaysia, in briefing the floor on the nomination process, concurred that the move towards sustainability will indeed create an advantage for companies. Herbel said TUV Rheinland devised the award categories and evaluation criteria. It also provided the skills and manpower to carry out the evaluation of shortlisted award candidate companies and nominate the winners.


Looking all chic in their dinner wear.

Fashion show from Rumah Gareh. The Pua Kumbu community project offers exquisite handwoven pua kumbu textile in various colours.



The Europa Awards for Sustainability 2018 also featured an entertainment component to reinforce the organisation’s sustainability initiative. Encore Melaka opened the event with a dance performance. Later in the evening, guests were entertained by a performance from Ruman Gareh, the Pua Kumbu Community Project. Ning Baizura, Malaysia’s pop and R&B singer, also performed a number of popular songs including two in French.


Best Environment Impact (large company) – Bahru Stainless Sdn Bhd

Best Sustainability Leader – Raj Ridvan Singh.

Best Social Impact (large company) – University Sabah Malaysia.

Best Sustainability Palm Oil Leader – Sime Darby Plantation Bhd.

Best Innovation in Sustainability – Pakar Go Green Sdn Bhd.

Best Sustainability Reporting – United Plantations Bhd.

Best Social Impact (large company) – ONE Tech.

Best Social Impact (SME) – Cenviro Sdn Bhd.



Cover Story

WINNING INITIATIVES IN DRIVING SUSTAINABILITY Seven winners of Europa Awards for Sustainability 2018 share their ideas in driving sustainability and creating innovative ideas to address challenges.


he EU-Malaysia Chamber of Commerce & Industry (EUMCCI), in collaboration with the Malaysian Dutch Business Council (MDBC), recently brought together the winners of the Europa Awards for Sustainability 2018 to share their stories and how they have impacted the community and industry with their innovative and sustainable business models. The presentations covered Best Innovation in Sustainability, Best Social Impact, Best Environment Impact, Best Sustainable Palm Oil Leader, and Best Sustainability Leader. Attended by The presentations were followed by a luncheon with the Deputy Director 1 of Environmental



Economy & Natural Resources Division of the Ministry of Economic Affairs. Later, guests attended a roundtable session to personally discuss the sustainable projects of each winner. Roberto Benetello, Chief Executive Officer of EUMCCI, said that sustainability has until recently been about compliance or responding to market shifts to increase competitive positioning. “A move to a secular economy will ensure the value of products and materials are retained in the economy as long as possible and waste generation is minimised,� he said. Ambassador and Head of EU Delegation to Malaysia,

H. E. Maria Castillo Fernandez who was present at the event applauded the winners for their remarkable efforts. “You are examples of how things can be done,” she told the winners, adding that their projects as market leaders are game changing. “We need your help to see how we can spread this. We must work together, brainstorm and help each other move forward,” she added. There was also a lively session with Sunita Devi, a sustainability communication consultant and trainer with Devcom Trends.

BEST SUSTAINABLE PALM OIL LEADER: SIME DARBY PLANTATION BERHAD Sime Darby Plantation Berhad plays a leading role in the development and promotion of sustainable practices in the palm oil sector. They are a founding member of the Roundtable on Sustainable Palm Oil (RSPO) and seek to advance the production, procurement and use of sustainable oil palm products. “We appreciate that the journey to achieve sustainability is not something we can undertake on our own and thus we actively engage with all our stakeholders in order to help us achieve our targets for sustainable development,” said Rashyid Redza Anwarudin, the Principal Sustainability Officer of Sime Darby Plantation Berhad. The company works closely with their business partners who are as committed to sustainability and social responsibility. By certifying almost all their estates, the RSPO badge has become a key differentiator of Sime Darby palm oil products and is sought after in all markets; for quality and sustainability.

“The RSPO has enabled us to ensure that our plantations and palm oil mills are run to exacting standards in terms of community development, safety and health standards, and sustainable agro-management practices which limit the use of chemicals and provide controls against excessive carbon emissions. “Over 95% of our Upstream operations have been RSPO-Certified, with our Malaysian, Papua New Guinea and Solomon Islands operations achieving 100% certification while our Indonesian operations have achieved 96% certification. 100% of our downstream business units have received the RSPO Supply Chain Certification Standards (RSPO SCCS) certification and are capable of delivering RSPO mass balance and/or segregated products,” he said. Sime Darby intends to certify all their smallholders’ scheme under RSPO Smallholder Certification Scheme by 2019. To date, 25,000Ha of their total area for smallholders’ scheme are certified. “Everything that we do around sustainability is in line with the sustainable development goals (SDG) 2030 and is guided by our sustainability purpose,” said Rashyid. He said in the last few years there

has been a shift from an interest in the palm oil sector’s environmental issues to social issues. “There is more interest in how Sime Darby is performing in human rights, sexual harassment and management of foreign workers. For us, implementing good and responsible practices has been a priority since the 80s,” he said, adding that they were the first company to introduce a zero burning replanting system which has now been adopted as an industry best practice. Sime Darby is also looking into being certified by Rainforest Alliance, a stringent environmental, social, and economic sustainability standard.

Rashyid Redza Anwarudin.



Cover Story BEST SOCIAL IMPACT: CENVIRO SDN BHD (SME) Cenviro Sdn Bhd is a leading integrated environmental waste management solutions provider. Through its subsidiary, Kualiti Alam Sdn Bhd, Cenviro has been operating Malaysia’s first integrated waste management centre in Negeri Sembilan since 1998. It is also involved in municipal solid waste management and public cleansing. Cenviro provides innovative and sustainable waste management and renewable energy solutions through its Environmental Preservation and Innovation Centre (EPIC), Scheduled Waste-to-Energy Plant, Secured Vertical Landfill and Recycle for Life Programme. Winning the award for the Recycle for Life Programme (RFL), Cenviro representative, Wan Imiriah Othman, explained the unique process that rewards cash via smart card. “We give a smart card we give to schoolchildren to get them to bring their recyclables to schools. When we collect the items, we top up their cards with cash. The cash in their cards will allow them to buy books, canteen food and other things," she said. Cenviro conceived the idea of the RFL concept, together with MyKasih Foundation. “It is an initiative to reduce our dependence on landfills in the country and encourage the 4R programme (reduce, reuse, recycle & recover),” she said, adding that

the programme is also in line with their objective of enhancing public practice in recycling activities as well as to support the Government in the Separation at Source initiatives. Cenviro runs RFL initiatives in schools. “Besides creating more awareness among the student population on the importance of recycling and the zero-waste concept, the programme is also aimed at training them to become entrepreneurs through the use of the RFL smart card,” Wan said. The programme includes a buyback system where the students can collect selected recyclables such as steel, paper, plastic, aluminium and electronic waste and sell them to the programme initiators. The cash value of the recyclables will be credited into their smart card based on the current market prices of the items. The buyback system is also a self-sustaining activity for schools, where the funds raised from the sale of recyclables can be used to fund their activities. “We are trying to change people by making them think that this (recycling) is really a critical core for the future. And yes, we give an incentive, but the lesson here is safeguarding the environment,” she added. “This system will definitely motivate and engage the students to lead local recycling efforts and become a champion in their communities.”

BEST INNOVATION IN SUSTAINABILITY: PAKAR GO GREEN SDN BHD Pakar Go Green Sdn Bhd (PGG) supports the principle of zero waste concept through vast research and development of various technologies. Started in 2010, PGG has since developed into a specialist consultant, ready to undertake greater challenges in their core business which are engineering, environmental and green technology services. PGG produces biochar as



Wan Imiriah Othman.

In Malaysia, an average of 37,000 tonnes of waste is generated every day, with most of it piled up at landfills. An average of 20,000 tonnes of rubbish is collected annually from the Klang River, including plastic bottles, cans and other forms of domestic waste that can be recycled. Although much efforts have been put in to encourage Malaysians to practice the habit of recycling, only five per cent of the garbage produced in this country end up being recycled. Currently, the RFL smart card is only distributed to school students because the programme organisers feel that youths are not only easier to educate but are also likely to disseminate information on recycling to their parents, friends and others through social media.

the green alternative to fossil fuel and fertilizer. Deemed the Biomass Microwave Carboniser (BMC), it adopts innovative green technology using microwave energy to burn biomass waste and agricultural waste, generating a high-grade bio-charcoal called biochar. PGG Chief Executive Officer, Atiyyah Ameenah Azni, said that the biochar produced is a charcoallike material giving off less smoke and has a high calorific value, lower volatile content, high fixed carbon content and high surface area. “It is

a sustainable solid fuel with lower emission suitable for high energy demand sectors,” she added. There are three types of solid waste: municipal solid waste which amounts to 25,000 tonnes per day; industrial waste such as biomass from oil palm in the form of empty fruit bunches (EFB) that amounts to seven million tonnes per year; and biosolids or human waste of five million tonnes per year. A palm oil processing factory generates 200 tonnes of EFB per day and there are more than 400 factories in the country. “The waste

BEST SOCIAL IMPACT: UNIVERSITI MALAYSIA SABAH (LARGE COMPANY) Universiti Malaysia Sabah (UMS) is working towards levelling the aquaculture industry in Sabah to compete with developed countries through the role, activities and efforts of the Borneo Marine Research Institute (BMRI). “We are working hard to ensure that the aquaculture industry in the state is returning and help improve the state and Malaysia's economy through ongoing aquaculture research projects,” said BMRI Director Prof Dr Rossita Shapawi.

BMRI Director Prof Dr Rossita Shapawi.

is an industrial problem, which can be solved by making biochar using a method called microwave-assisted pyrolysis where microwave energy in a chamber is used as a means of heating mechanism in the absence of oxygen.” There is a trend of using biochar in powder form in agriculture in Europe where the biochar is mixed with soil and fertiliser, enabling crop yield to double. “Biochar has properties as a holder for fertiliser and moisture, and it provides the ecosystem with bacteria to help enrich it.” Biochar produced from the BMC

Launched in 2015, Rakan Akuakultur UMS under BMRI works with local communities through training, dialogue and stock enhancement of fisheries resources. “The positive feedback we have been receiving motivated us to develop a platform that we have termed as Rakan Akuakultur UMS. The exchange of knowledge that will take place through a sustained program of interaction will help us better understand the practical problems, limitations of traditional knowledge and relevance of scientific knowledge. It will help us shape the nature of research which is of direct benefit to the fish farming community,” she said. “The benefits of collaboration among scientists and farmers will popularize knowledge-based fish farming which will help in transitioning of small-scale enterprises into medium-scale enterprises and lead the latter to grow further.” Academics will also gain by way of getting insights into traditional practices, and be able to appreciate their compatibility with the environment, and incorporate some elements into sustainable farming systems. “In the tides of this aquaculture industry and the excitement of producing various types of fish, they also care about the environmental impact of the

in the form of briquettes is targeted at the energy sector as a heating source. Consumers include boiler users, the food service industry such as catering companies, restaurants and hotels as well as retail market for barbecue application. Atiyyah is involved in the business side of Pakar Go Green, listening to potential investors, customers and partners to come up with products with the right market fit. “Pakar Go Green aims to be a market leader in innovative green solutions, especially for biochar products in the agriculture and energy sectors.

industry. “We want to do it responsibly so that 50 years to come we can still enjoy the same resources and as a whole we have to follow all the necessary disciplines,” she added. Currently, BMRI offers postgraduate programs at Master’s and PhD levels in the fields of Aquaculture, Marine Science, Marine Biotechnology, Fisheries Science, and Coastal and Marine Management. “We also utilize the excellent infrastructure for handling two undergraduate programs of aquaculture and marine science, and training.” The two on-campus hatcheries for finfish and shellfish, a strategic location at the seafront, with a jetty to the sea, berthing facilities for research boats, well-equipped laboratories for specialized investigations, and an attractive marine aquarium and museum are among the advantages for a coherent functioning of the institute and efficient output. “Our academic staff is specialized for providing hands-on training and capable supervision, and leading research projects in all the above disciplines. We make special efforts to work with the community for transfer of knowhow. We are open to working with the industry for commercialization of research and contributing to the knowledge-based economy.”

Atiyyah Ameenah Azni.



Cover Story BEST SUSTAINABILITY LEADER RAJ RIDVAN SINGH Raj Ridvan Singh owns SOLS 24/7, a humanitarian organisation, committed to serve, educate, and empower poor and underserved communities throughout the Southeast Asia region with their programmes. Founded in Cambodia in 2000, SOLS 24/7 quickly grew into one of the largest non-formal education providers in the country at that time. Following their success in Cambodia, Raj went to Timor-Leste in 2005 to set up SOLS 24/7 TimorLeste during a period where civil unrest was at its peak. It came to a point where his team was forced to evacuate the country, but they returned in 2006 to open the first main training centre in the capital city Dili. He then returned to his hometown in Malacca to set up SOLS 24/7 Foundation in 2007, before moving the first SOLS Academy of Innovation (then known as Youth Development Centre) and headquarters to Kuala Lumpur in 2010. The organisation was founded by Raj with his father and brother in 2000. SOLS 24/7’s programmes cover 4 main pillars: education, renewable energy, mental health, and technology.

“Rather than focussing on a particular cause, we’ve diversified across different causes,” he said adding that when a solution is found, they will attempt to implement it. To the communities we serve, we provide the opportunity to rise above their circumstances and take control of their lives through education,” he said. To our team members, we provide the opportunity to be the best version of themselves, and to our partners and donors, we provide the opportunity to exercise their conscience.” He also started a social enterprise a few years ago to help sustain the organisation. The team currently has multiple projects that they’re working on, but Raj’s current focus is on Education and Renewable Energy which is spearheaded by their English Movement initiative, while SOLS Energy grows to become the main player for renewable energy in the Malaysian market. “With B2B and B2C models in place for our different offerings such as solar installations (SOLS Energy) and business English courses for professionals (SOLS smart/ English Movement), we are taking the steps we need to monetise the services we offer,” he said. SOLS Energy is currently the largest residential solar power systems installer in the country. They have plans to build on it and grow

Raj Ridvan Singh.

exponentially this year by securing more commercial and residential clients, taking steps towards their vision of having solar panels on every Malaysian roof. And although they get funding from large corporations they still channel 80% of the profits from their social enterprise back to the non-profit programmes to sustain the organisation. “We want to be self-sustainable with our own income, so we can ensure the work we are doing with our programmes does not end when funding ends,” said Raj.


Angel Javier Mielgo Benavides.



Bahru Stainless Sdn Bhd is a subsidiary of Acerinox Group, one of the biggest stainless-steel manufacturers in Spain. Since 2012, Bahru Stainless has operated a 20-high mill in Malaysia. The plant is integrated into the new cold strip complex in Johor Bahru. Bahru is the first and only Malaysian producer of stainless steel and represents the efforts of the group to consolidate its presence in the Asian market. It currently performs cold rolling, for which its sources products

from the other factories within the company. Angel Javier Mielgo Benavides said Acerinox has operations in 85 countries, cementing them as one of the most competitive companies in the world. “We have four factories in four countries. All of them recycle to produce new steel. We are basically a recycling company,” Benavides said in jest, adding that their processes are almost waste-free. “Any material loss is sent back for recycling.” The plant includes an integral stainless-steel mill with one million tonnes of production capacity annually. Bahru Stainless supplies a wide range of high-quality stainless-steel types and finishes, with Malaysia and the ASEAN countries being their main markets.

Luncheon with Ahmad Rizal, Deputy Director 1, Environmental Economy & Natural Resources Division of the Ministry of Economic Affairs Harith Ridzuan.

BEST ENVIRONMENT IMPACT: ONE-TECH (M) SDN BHD (SME) One-Tech (M) Sdn Bhd specialises in “green” furniture as well as interior fit-out and decor items. Founded in 1993, One-Tech started as a small furniture manufacturer supplying wooden furniture to government schools and offices. Within a decade, it evolved into an interior fit-out company, specialising in the production of high-end custom wood products and interior design works for local government agencies, universities, private corporations and public listed companies. “Today, One-Tech specialises in the manufacturing of ‘green’ furniture as well as interior fit out and décor items. To tackle current environmental challenges, we understand the need to produce sustainable wood products and have spearheaded Malaysia’s ‘green’ interior solutions since 2013,” said Harith Ridzuan, second generation owner of the company. “This is in line with our company’s vision to establish ourselves as a world-class ‘green’ lifestyle solutions provider as well as meeting our mission to delight our customers with products and solutions that are ‘green’, functional, reliable and aesthetically pleasing,” he added. From an early age, Harith has had a first-hand look at the running of his parents’ furniture factory. “I realise how that simple exposure changed my whole perspective,” said the director of the family company and founder of Harith Green Carpenter (HGC). He developed HGC’s core values, which include sustainability as its main priority. HGC works with recycled wood to create unique pieces. Harith goes dumpster diving to retrieve wood pallets, old crates and other materials that can be repurposed. “Many people do recycled furniture, but we focus more on a fine finish, so we process recycled wood to look like new wood. It is a labour-intensive process that includes disassembling pieces and making sure the wood is strong enough.” He has worked on over 1000 designs and sold 10,000 pieces of furniture since taking over the business in 2013. Since the business took on a new route, Harith has led to the procurement of more non-government projects, which makes up over 60 per cent of the company's revenue stream.

EUMCCI hosted Ahmad Rizal, the Deputy Director 1 of the Environmental Economy & Natural Resources Division at the Ministry of Economic Affairs to a luncheon during the event. In his address on the current implementation of Sustainable Development Goals (SDGs) in Malaysia, Ahmad Rizal discussed the future of sustainability in the country. “Current consumption and production trends are the main causes of environmental degradation and resource depletion in Malaysia. Malaysia needs an economy that is able to grow and benefit people without increasing negative environmental impacts and pressures on natural resources,” he said. He shared examples on the lack of sustainability in many areas in the country which needs to be addressed and improved. The ministry is working to improve these areas. He noted that sustainability is uncommon in Malaysia and there is a lack of awareness. The Sustainable Consumption and Production (SCP) is emphasized in Malaysia’s 11th five-year development plan as one of the focus areas that will help Malaysia to achieve green growth and transition towards a more inclusive development trajectory. The project entitled “Implementing the National Sustainable Consumption and Production Blueprint through Government Green Procurement (SCP-GGP)” is a 2.5year project that supports Malaysia in the development and implementation of SCP as a means of achieving green growth. The project focuses on the role of the government as a key catalyst to create a green market for products and services. The project will strengthen the enabling policy environment by providing more support to the full adoption and implementation of the Blueprint. It also aims to assist Malaysia in achieving its target of 20% of selected groups of products and services in government procurement to be green procurement by the year 2020.




BUSINESS COMMUNITY HOPES FOR REVIVAL OF FTA TALKS During the EUMCCI’s VIP Luncheon series, Datuk Ignatius Darell Leiking, Minister of International Trade and Industry, immediately tackled the stalled EU-Malaysia FTA. The issue, he said bluntly, hinged on the palm oil trade between Malaysia and the EU nations.


alaysian exports, supported by the influx of foreign direct investments (FDI), have been one of the most important factors driving the country’s GDP growth in recent years. “Free Trade Agreement (FTA) bilaterals and multilaterals are indeed important. This government is looking into the stalled EU-Malaysia FTA. We must push this to the next level as the FTA can provide a competitive advantage to Malaysia”. The EU is Malaysia’s third largest partner in terms of trade volume after China and Singapore. Exports in 2017 to the continent rose 15.3% year-on-year (y-o-y) to a record RM79.75 billion, while imports rose 19.4% y-o-y to another record RM95.29 billion. The Edge Markets reported that total Malaysia-EU trade increased 25.1% on-year last April to RM16.15 billion, accounting for 10.4% of Malaysia's total trade in the period. With 2,000 companies residing in Malaysia, the EU



is also the second largest FDI here, and the second largest recipient of Malaysian investment. For the first quarter of 2018, the EU recorded total FDIs of RM107 billion into Malaysia, while Malaysia has invested RM59 billion in the EU – of which services sector investment accounted for RM35.3 billion.

CONCERNS The matter, however, hinges upon Malaysia’s palm oil production. The notion that the production of the commodity is unsustainable and causes environmental disaster is unfair, Datuk Darell said. The European Commission recently said that it plans to limit the use of palm oil and eventually ban its use. This is part of the EU’s climate goals. Taking Sabah as an example, Datuk Darell said greed was the reason for the deforestation in the state. Hence, new industries were created to support the people living off the land. “I believe in free trade agreements and multilaterals

but we must also be fair. Palm oil is definitely on the table in any EU-Malaysia FTA talks,” he stressed. In response to a question from the floor on sustainable cultivation and certification as a way forward for the industry, he said certification is indeed necessary. Malaysia is moving in the direction of getting its producers certified but he conceded that much of the campaign on the commodity is not really on certification. “Downstream producers must campaign more and address allegations that it is unhealthy. The orangutans are being nurtured and are well-taken care of,” he added.

ADVANTAGE Moving on, the business community was keen to know what Malaysia had to offer companies who are looking to relocate out of China due to the current trade war between the country and the US. “Investors have a compendium of countries to look at within ASEAN. Many countries in the region offer ease of doing business but how does Malaysia stand out? The drive to make a real difference in business is evidenced in the change of government. I have been engaging with some companies that have left Malaysia. We want them to return and open up the production plants they have closed.” To a question from the floor on greenhouses and agriculture, Datuk Darell said the country prioritises planting and the replanting of fruits and vegetables as food security is a major concern. The agriculture industry in Malaysia is open to new technology including logistics for faster delivery. One person from the audience touched on IP rights and emerging technology adoption. He said one way forward is to de-risk the adoption of new information technology in order to accelerate the development of businesses. “I agree. We definitely need to go the way you mentioned. We need to reach out and have dialogue with individual players. IP rights are important. We are seeing that cloud computing will be an asset to Malaysia. We are working with companies so cloud computing can move to the forefront even in the financial industry. However, we have to remove fears and perceived threats that these solutions can be hacked.” He added that Malaysia is open for business. “I will try my best to ensure that your entry into the Malaysian business scene is good.” EUMCCI REVIEW



EU-MALAYSIA TRADE FACILITATION COMMITTEE KICKS OFF WITH FIRST MEETING Within ASEAN, the EU has already formed Free Trade Agreements (FTAs) with Vietnam and Singapore, and discussions are ongoing with Indonesia and the Philippines.


n Malaysia, negotiations were launched in 2010 but were put on hold two years later after both parties were unable to find a compromise. A Malaysia-EU FTA could be an opportunity to ease access to Malaysia’s third largest trading partner. Also, within the framework of ASEAN, Malaysia is seen as the missing link and likely a key pillar to smoother regionto-region trade. As such the EU is hopeful trade talks would resume soon. Getting down to business, the EUMCCI together with industry leaders launched the first EU-Malaysia Trade Facilitation Committee (EUMTFC) meeting in May 2018. The committee is a platform for EU companies in Malaysia to provide feedback and recommendations to the EU and Malaysia so that FTA talks between the two countries will hasten. The committee members will have the opportunity to discuss and provide strategic input to facilitate the free movement of goods, services and investment between Malaysia and the EU. One area of concern within the field of improving trade relations is in non-tariff measures (NTMs). According to UNCTAD, there are 669 NTMs that impact EU-Malaysia trade. This could cause prices to increase between 11.7% and 58.5%. With Malaysia being a hub for trade to the rest of ASEAN, NTMs could hamper greater EU ASEAN trade. To further discussions in this area, the committee proposes the creation of a horizontal committee that involves all sectors of trade between the EU and Malaysia.



Number of NTMs by sector in Malaysia

Due to the large scale of NTMs the committee’s proposal suggests a focus on the following sectors:

Alcohol 37 Animals 35 Artificial Foods 39 Beverage 71 Canned Food 24 Chemicals 34 Defence 11 Fish 37 Food 233 Green Building 31 Healthcare 31 Manufacturing 10 Media 1 Plant 16 Poison 5 Seeds 5 Spices 45 Tobacco 6







Following are the action plans the committee has decided to pursue:

1. To organise several technical meetings (minimum four meetings a year) to discuss issues related to FTA so that relevant input can be given to the two negotiation parties. 2. To generate good understanding, increase knowledge sharing and encourage dialogue between industry and government by taking concerns on issues related to FTA negotiations. 3. To propose for the simplification or removal of unnecessary Tariff and NTMs in order to promote deeper or greater trading relationships between Malaysia and EU. 4. To examine tariff and NTMs between EU and Malaysia both ways, and analyse its real impact to trade and investment as well as services.

In order to materialise the action plan for item 3 and 4, the Heads of Committees in EUMCCI need to assist the committee to conduct preliminary ground discussion to: • Dissect the problems of their sectors or industries by examining the scope of supplies that are affected by the trade barriers.

• Recognise any licences, regulations and standards that are impacting the trade and investment as well as services.

• Inform the committee members who are responsible which

ministries or government departments are imposing regulations or standards.

1. Aerospace 2. Business Integrity 3. Green Building 4. Research and Innovation 5. Wine and Spirits 6. Automotive 7. Healthcare 8. Logistic Services 9. IPR 10. IoT (Digital Trade) 11. Human Resources, Education and Professional Services 12. Agriculture (Raw material, animals, fisheries and timber) 13. Palm Oil 14. Food and Beverages 15. Manufacturing (Machines and ship buildings) 16. Textiles and Fashion


TRADE AND INVESTMENT FORUM 2018 MALAYSIA’S DECISIVE ROLE IN ASEAN Malaysia counts the EU not just as a strategic partner but a crucial one in trade and investment. The country also sees a role for itself in enhancing ASEANEU economic relations, says Dato Seri Mohamed Azmin bin Ali, Minister of Economic Affairs, at the EU-Malaysia Trade and Investment Forum 2018.

L-R: Ambassador of Austria HE Dr. Michael Postl, Ambassador of Italy Cristiano Maggipinto, Ambassador and Head of the EU Delegation to Malaysia, Minister of Economic Affairs YB Dato Seri Mohamed Azmin Ali, EUMCCI Chairperson Tan Sri Rebecca Sta Maria, Ambassador of the Netherlands HE Karin Mössenlechner and EUMCCI CEO Roberto Benetello.


he EU-Malaysia Trade and Investment Forum 2018 took place slightly more than two months after Malaysia’s peaceful and unprecedented transition of power to a brand new government after six decades of one-party rule. Guest of honour, Dato Seri Mohamed Azmin bin Ali, Minister of Economic Affairs, said the victory for the new government will come to nothing if it reneges on its pledges to the people who expect good governance, transparency, accountability and zero tolerance for corruption. “Under the leadership of Prime Minister Tun Dr Mahathir Mohamad, institutional reforms are being implemented and new economic directions and imperatives are being initiated,” he told participants in his keynote address. “My presence here today signifies the special relationship between the EU and Malaysia. We cherish this partnership which has grown from strength to strength over the years. “As the second largest investor in Malaysia, and the second largest destination for Malaysian investment abroad, the EU counts not just as a strategic partner but an absolutely crucial one in trade and investment,” he said. In the first quarter of 2018, the EU recorded a total FDI of RM107 billion into Malaysia, while Malaysia invested RM59 billion in the EU. Total Malaysia-EU trade increased 25.1% on-year in April 2018 to RM16.15 billion, accounting for 10.4% of Malaysia’s total trade in the period. Exports

registered a total of RM8.93 billion, a growth of 19.5%, and imports grew by 32.8% to RM7.22 billion. “In our drive to diversify our economy, Malaysia will intensify efforts to attract more quality foreign direct investments, particularly greenfield investments that contribute to real value creation that spur productivity, innovation and complement our business ecosystems. “We want to see the establishment of production plants and factories. We also want to see the transfer of technology, generation of employment opportunities and local small and medium enterprises moving up the value chain,” he said. Malaysia’s role in fostering economic integration within the ASEAN region and its support for the establishment of the ASEAN Economic Community have encouraged many European companies to establish regional hubs in the country. “Malaysia’s solid infrastructure, political stability and a ready pool of knowledge workers make us an attractive destination for investors looking for an affordable and strategically-placed base in ASEAN. We are committed to reinforcing Malaysia’s role in ASEAN integration. Like the EU countries we recognise that we are better together, that our common future lies in greater unity, integration and beneficial trade and commerce,” he said. ASEAN integration also values the concept of ZOPFAN (Zone of Peace, Freedom and Neutrality). He said the region should be a Zone of Peace, Freedom and Neutrality. “ASEAN nations do not reject engagement with the rest of the world, instead we embrace it, but this must be founded upon respect for our sovereignty and our people’s aspirations for peace, security and development.” While competition is important, fairness and mutual respect in dealings among nations are equally important. “The EU was established on the firm foundation of the rule of law. But I believe an even greater rule is the categorical imperative expounded by the German philosopher Immanuel Kant, a principle that transcends economics and trade dealings striking at the very heart of international relations. “Yes, there is no nation in this world which is not comprised of humanity. And if humanity is our end, I am convinced that, as people proper in trade and commerce, they will form stronger bonds of friendship and their nations will build ties of comity for lasting mutual peace and prosperity.” EUMCCI REVIEW



Back row from left, Siemans Malaysia President and CEO Indranil Lahiri and Belgian Ambassador HE Pascal Grégoire. Front row from left, Roberto Benetello, Netherlands Ambassador HE Karin Mössenlechner, YB Teresa Kok, YB Yeo Bee Yin, Head of EU Delegation to Malaysia HE Maria Castillo Fernandez and MESTECC Deputy Minister YB Isnaraissah Munirah Majilis.

GREEN SOLUTIONS & PRODUCTS AT EU PAVILION At the International Greentech and Eco Products Exhibition, or IGEM 2018, the spotlight was on the EU Pavilion which made its appearance for the eighth consecutive year.


he exhibitors were Arcedis, Biotec International, CMI Environment, Elia Grid International SA, Embassy of Belgium, Embassy of The Kingdom of The Netherlands, Husqvarna Group, Menart, Roundtable On Sustainable Palm Oil (RSPO) and Solvay. The exhibitors not only showcased their latest products and green technologies in various disciplines but also offered consulting services and solutions for a greener world. The EU Pavilion was launched by Minister of Primary Industries YB Teresa Kok and CEO of EUMCCI Roberto Benetello. Also at the launch were Minister of Energy, Science, Technology, Environment & Climate Change, YB Yeo Bee Yin who had earlier officially launched IGEM



2018, Ambassador and Head of the Delegation of the EU to Malaysia, HE Maria Castillo Fernandez, Ambassador of the Netherlands to Malaysia, HE Karin Mossenlechner, other VIPs, officials from the ministries, exhibitors and guests. EU has been a strong supporter of IGEM since its inception nine years ago. Themed ‘Green Economy & Industry 4.0: Achieving Sustainable Development Goals’, the three-day IGEM 2018 showcased innvovations in five key sectors of green technology, encompassing Renewable Energy, Energy Efficiency, Waste Technology & Management and Green Manufacturing, while exploring frontiers in technology such as the Internet of Things, system integration, cyber security and Big Data, all aimed at achieving sustainable development goals for various industries.



“This is a window of opportunity for local authorities and major developers to consider how their cities can best adapt now to exploit the potential benefits of driverless technology in the future.” The latest Citizens in Motion report from Arcadis explores the disruptive influence that Connected and Autonomous Vehicles (CAV) will have on cities and their inhabitants around the world. Arcadis estimates that a CAV revolution could allow for the reclamation of up to 80% of space currently allocated to car parking in every city.

“The company offers sustainable opportunities for the biomass industry. It creates solutions and optimises processes in the oil palm mills for better results using technology roadmaps. Technology roadmaps to plan for development and implementation of new technology and innovation can help industries accelerate the overall process. This opens the door to a lot of innovation that can come into the mills.”



“We are a Swedish company that sells outdoor powered equipment such as chainsaw, bush cutters, trimmers, tractors and blowers, which can be used in forestry and garden maintenance. The machines are lightweight with low sound and vibrations levels as well as a lower cost of ownership. The battery and automated products mean less pollution and noise but with the same output in terms of efficiencies.”


Sime Darby Industrial Sdn Bhd is the sole dealer for Menart. The company provides equipment for composting. “We have many tools for this specialisation, including grinders to turners and screeners. It can take between 30-60 days for composting to happen. This is a sustainable process as biogas gives back to nature.”

“We are a multistakeholder organisation. We are here to create awareness. Sustainability is a big part of our work. Besides awareness, we also need room to collaborate with all our stakeholders, namely growers, finance people, consumer groups and retailers, so that the industry can become more sustainable. “The overall concept of RSPO is shared responsibility. The burden is not just on the growers. Everyone in the palm oil supply chain is involved, from sourcing to purchasing and the consumers.”


Headquartered in Malaysia for the Southeast Asia region, the Belgian company offers consulting services for the waste water industry in tropical cultures. Since 2005 the company has been offering biotech solutions for the palm oil industry. It has six projects in Malaysia, all of which focus on the palm oil industry. “We are technology providers, we manage the entire cycle of organic matters from building plants and operating them for one year to prove that our technology works.”




Minister YB Yeo stops to take pictures at the booths. From left, HE Maria Castillo Fernandez, YB Teresa Kok, YB Yeo Bee Yin, and YB Isnaraissah Munirah Majilis.

Guests of honour catch up during a break.

At the cocktail session participants had time to mingle.

This year’s event saw the participation of more than 250 exhibitors and 30,000 visitors from over 35 countries and targeted business leads of RM2.5 billion. GEM 2018 also hosted a series of conferences which featured over 40 panel speakers from renowned organisations including the EUMCCI which organised the 2nd Palm Oil Sustainability EU-Malaysia International Discourse. Organised by the Ministry of Energy, Science, Technology, Environment and Climate Change via GreenTech Malaysia, IGEM is the region’s biggest green technology business and innovation platform for key industry players to showcase the latest breakthroughs in green technology. The Green agenda features strongly in the 11th Malaysia Plan highlighting the country’s keen interest in realising its pledge to the environment and long-term sustainability. This is also in line with the European Commission’s 7th Environment Action Plan 2013-202, aimed at creating resourceefficient and competitive low-carbon economies. Later in the evening, local corporate leaders in the Green industry mingled with EU exhibitors at a cocktail and networking session at the EU Pavilion.



Visitors at the Belgian Trade Commission booth.

Networking session.


YB Teresa Kok, Minister of Primary Industries, with ambassadors of EU countries. On her immediate right is HE Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia, and on her immediate left is Roberto Benetello, CEO of EUMCCI.


The 2nd Palm Oil Sustainability EU-Malaysia International Discourse keeps the discussion doors open on the production of the crop. Working together and engaging with Malaysian stakeholders can help the local industry reach greater heights.


alm oil production plays an important role in the Malaysian economy, and it must be addressed in a balanced manner. “The EU and its member states will continue to support Malaysia’s efforts to minimise the environmental impact that palm oil cultivation can have in order to enhance sustainable production of this commodity,” HE Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia said, setting the stage for a fruitful discussion on the topic at the 2nd Palm Oil Sustainability EU-Malaysia International Discourse. The event was part of EUMCCI’s 2018 Europa Awards on Sustainability initiative and held in conjunction with the 9th International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM 2018). It was organised by the EUMCCI at the KL Convention Centre in October and among the guests were several EU ambassadors representing their respective countries. This discourse comes at a pivotal moment in the trade of palm oil. Early this year, the European Parliament voted

to ban the use of palm oil for the production of biofuels in the EU. In June, EU negotiators said the use of palm oil will be capped at 2019 levels until 2023, and reduced to zero by 2030. The aim is to stop deforestation of rainforests mainly in Malaysia and Indonesia. HE Maria said it was important to continue discussing and sharing on the topic and, to signal the importance of the discourse, she noted that the EU ambassadors have turned up for the event in force. “Palm oil is a crucial commodity where food security is concerned. It is also key for the local economy as it helps eradicate rural poverty. Besides this we see a lot of business opportunities and occasions to share technology from the EU with producers in Malaysia. “Our goal is to produce palm oil in a sustainable manner. We would like to see the commodity in Malaysia branding itself as a premium and sustainable product,” she said. Officiating the event was guest of honour YB Teresa Kok, Minister of Primary Industries who iterated that Malaysia, as a world leader in sustainable palm oil EUMCCI REVIEW



Distinguished guests at the conference.

From left, Ambassador and EU Delegation Head HE Maria Castillo Fernandez, Minister of Primary Industries YB Teresa Kok and EUMCCI CEO Roberto Benetello.

production, has put in place various environmental measures while successfully uplifting the lives of rural communities through palm oil cultivation. “This proves that the palm oil industry contributes towards achieving the UN Sustainable Development Goals (SDGs). As a nation we have already expressed our SDGs commitments from climate change, poverty eradication to women empowerment. These goals are intricately woven with our palm oil industry.” The EU is the largest market for Malaysian palm oil and palm-based products. In 2017, exports of Malaysian palm oil and palm-based products to the region were valued at RM11.03 billion, accounting for 14.2% of Malaysia’s global exports. “As such the implication of the European Renewable Energy Directive II (EU RED II) is important to Malaysia as a country and more importantly to the livelihood of its people,” she said. Among others, the EU RED II sets a target of 32% energy from renewable sources at EU level by 2030 and to phase out the use of palm oil in transport by 2030. In October the Ministry of Primary Industries organised



a palm oil mission to the EU countries and Switzerland. During this trip, YB Teresa Kok said Malaysia will nominate its experts to sit in the European Commission’s Expert Panel on Indirect Land Use Change (ILUC). This, she added, could impact the future use of palm oil as part of the biofuel mix within the EU RED II directive. “This consultation process is important as we do not want our palm oil to be discriminated against. This is also important for the EU expert panel to get a first-hand account of Malaysian palm oil cultivation and processing practices so they could appreciate the various operations executed to produce sustainable palm oil in Malaysia.” In the area of certification, she said that Malaysia accounts for nearly 42% of global production of certified palm oil. “We are moving towards mandatory certification of our entire palm oil supply chain by end 2019 using Malaysian Sustainable Palm Oil (MSPO) certification as our national standard. Beginning 2020 we will ensure that all palm oil exports to the global markets meet the criteria and principles for Certified Sustainable Palm Oil under the framework of the MSPO scheme,” she said. The industry, she stated, is committed towards reducing its overall carbon footprint via the adoption of methane capture technology. A total of 92 methane capture facilities have been completed and over 150 are in the planning or construction stage. The Malaysian palm oil industry is also focused on improving productivity and yields instead of expanding land. The total oil palm planted area in Malaysia now stands at 5.81 million hectares which accounts for only 0.11% of the total global agricultural areas, she said. “Malaysia reiterated its commitment made at the Rio summit in 1992 to retain at least 50% of the land area under forest cover. The government will continue to work with the relevant stakeholders, locally and internationally, for the long-term resilience of the industry. Thus, I urge the European Union members to recognise our efforts and to work together with us in achieving the UN SDGs,” she said. Alongside the IGEM 2018, the EU Biomass + Biogas Symposium was also held to address the potential of biomass and biogas utilisation, and its opportunities in Malaysia. This is in line with the new government’s aspirations to focus on renewable energy sources. Robert Benetello, Chief Executive Officer of EUMCCI, said biomass development had still not been optimised with only a fraction of biomass from oil palm is currently being processed to generate biogas. However, there has been growing interest from Putrajaya to develop and encourage biogas utilisation nationwide. “Malaysia has 447 palm oil mills with abundant biomass resources that can be converted into alternative energy and eco-products. With 17,376 biogas plants currently in operation in Europe, this symposium hopes to bring European experience to Malaysia, in generating energy and electricity out of biomass resources, more specifically in plant design, building operations as well as servicing plants,” he said, adding that an increase in biomass and biogas utilisation will add value to the Malaysian economy through its products and energy supply.



The event saw two panel discussions that were moderated by Thomas Brandt, General Manager of Malaysia-German Chamber of Commerce and Industry, and Roberto Benetello, Chief Executive Officer of EUMCCI. The discourse featured international and local industry experts as panellists.

PANEL DISCUSSION 1 Topic: The role of the palm oil industry in realising the SDGs Panellists

• Dr Sanath Kumaran, Acting Chief Executive Officer, Malaysian Palm Oil Certification Council • Dato’ Carl Bek-Nielsen, Chief Executive Director, United Plantations Bhd • Khor Yu Leng, Research Director Southeast Asia, Segi Enam Advisors Pte Ltd • Jose Angel Olivero, Sales Director, Lípidos Santiga

Dato’ Carl Bek-Nielsen • The Malaysian palm oil

industry has contributed immensely to the UN SDGs, especially in areas such as poverty, job creation and better social amenities. Workers are seeing average daily earnings of around USD16 a day, this is better than 71% of the world population who earn USD10 a day. Workers also receive free housing, water and medical benefits. • No one likes to see jungles being cleared and orang utans displaced, but painting the entire industry with the same brush does not help. There is a lot of room for improvement and those on the opposite side of the fence must offer constructive criticism. • Every year 195 million ha of forests are cleared but not more than 4% comes from palm oil expansion. • Boycotting the industry is a kneejerk reaction that can present bigger damage to the environment. • Roundtable on Sustainable Palm Oil (RSPO) Standard and Malaysian Palm Oil Standard (MSPO) have common goals. MSPO may not be the gold standard of the RSPO but it is effective and not too intimidating for small holders. The EU should also be accepting of the MSPO certification. • Big and medium-sized players must try and adopt RSPO standards. • On the issue of yields, average yields have stagnated to between 3.65 and 3.7 tonnes of crude palm oil per hectare per year. We must stop talking about 8 and 9 tonnes per ha per year. Instead, we should target 4.5 tonnes per ha per year. • The industry must adopt aggressive replanting schemes. More than 25% of the trees are 20 years old and older. • The industry must use high yielding seeds which have the potential to yield 5 to 5.5 tonnes of CPO per year. • Solid management is needed via a good team of employees. We are producing a perishable crop, yields are low because of acute labour shortage. The country is heavily dependent on guest workers. This is why we have not looked at mechanising and raised the bar.

Jose Angel Olivero • Through miscommunica-

tion, the story of palm oil is not communicated to Europe, leading them to have a negative perception of the industry. • There is a gap of information in EU countries. It is necessary that we rectify this. We cannot afford to replace palm oil. • Promotion is good for the industry. Make the investment to promote the industry.

Khor Yu Leng • Producing countries

are not making enough use of statistics and data. The industry has not published enough material and literature while the data that we have is not updated. For example, the income of Felda settlers in the 1980s was RM300 a month, today it is RM3,000 a month. Poverty eradication is not communicated. • We do not have a culture of research. Looking at social media ratings, in Instagram and Twitter, for instance, women’s opinion on palm oil is 20% lower than men. • Despite palm oil prices coming down, snack food producers are moving away from palm oil to its alternatives.

Dr Sanath Kumaran • The palm oil industry

celebrated its 100th anniversary in 2017. The past 100 years has proved to be very profitable. It is a rewarding crop, and to better this is to pursue sustainability. • The industry also has to combat unfair accusations and communicate the headways we are making to the world. It is unfair for other countries to say what is good for Malaysia. It is unfair to have one finishing line. • Now is the time to raise the bar on knowledge, and to disseminate facts and figures.




PANEL DISCUSSION 2 Topic: Responsible financing and sustainable practices in palm oil industry Panellists • Tuan Haji Adzmi Hassan, Secretary General, National Association of Small Holders (NASH) • Stefano Savi, Global Outreach and Engagement Director, RSPO • Dr Petra Meekers, Global Head Sustainable Procurement of Unilever, Singapore • Cynthia Ong, Chief Executive Facilitator, Forever Sabah • Dr Keith Lee, Sustainable Finance Engagement Manager, WWF-Malaysia


Tuan Haji Adzmi Hassan • NASH has 180,000 members made up

of organised and independent farmers. The organised members have financial assistance, they aim for certification. Awareness among independent farmers is low, with only 2-3% being certified. Despite this, we tell the smallholders that certification is important. • To provide a balanced view is to not equate palm oil and orangutans. It hurts the industry.

Dr Petra Meekers • Unilever purchases only 3% of the global

supply of palm oil. We want to interact with smallholders and have them integrated into the supply chain. • Perception is important. Facts and figures need to be put forth more clearly but we seem to forget it is not palm in isolation. At the end of the day, we are looking at a balance in opinion.

Dr Keith Lee • Investors

and banks are relooking their practices. Banks are coming under fire for financing companies that are linked to deforestation. This includes producers, refiners and traders. • Companies that do not comply with the No Deforestation, No Peat, No Exploitation (NDPE) policy are being cut out of the supply chain. We are trying to get banks to nurture and support those in the value chain. • About 3% of financing goes into “climate finance”, or finance for climate change related activities. We need more private investment in this sector. • Where financing is concerned, do not divest. Instead, engage with producers.



Stefano Savi • The RSPO is a global

Cynthia Ong • In Sabah, about 80%

of the local indigenous communities now plant oil palm and have stopped planting their food crop. They now bring in about RM1,500 per month. About 60% of them however, do not have land tenure. • Forests are replaced by plantations and people are displaced while big companies come with legal tenure. • The industry has inherited a legacy of colonisation.

certification scheme formed in 2004 to set the standard for sustainable palm oil. The first tonne of sustainable palm oil was sold in 2009. Up to now only 20% of farmers are certified. We are working to get the small holders to connect with people on the other side of the business. • Banks are starting to realise that sustainability is profitable, that if you invest in RSPO it can be worth it. • We need to show impact. About 300,000 football field size of forests producing 2 million tonnes of carbon dioxide emission is saved because of the RSPO. • With good sustainability practices, Malaysia has an advantage in the international market. The local palm oil industry is ahead in terms of sustainability. When we compared commodity and location, palm oil is the best answer. • While a call for action is good, we must also reward good action.


The EUMCCI also organised a minisymposium. The session kicked off with Thomas Brandt, General Manager, Malaysia-German Chamber of Commerce and Industry, who gave the floor an Overview of Oil Palm Biomass and Biogas Potential in Malaysia. There is tremendous potential in the biomass sector from Malaysia’s palm oil industry, its wood industry and its municipal waste resources. In the palm oil industry alone, a biomass potential of up to 80 million tons a year provides opportunities for the production of storable bio-energy in the form of pellets and briquettes. The Government has also given priority in this area with its “National Biomass Strategy 2020” initiative launched in 2011.

Thomas Brandt, General Manager, Malaysia-German Chamber of Commerce and Industry.

Levinus de Legé, Managing Director, ECN, China • ECN is a consortium

of Dutch enterprises with a mission to develop sustainable solutions for Malaysian palm oil residues. The Palmares consortium of Dutch companies aims to build partnerships with Malaysian counterparts. • It offers a wide variety of products that can be produced from wastes coming out from crude palm oil mills, such as black fuel pellets, CNG, LNG, steam, fuel and chemicals.

Ir Kees Kwant, Senior Expert Bioenergy and Biobased Economy of the Netherlands Enterprise Agency, Ministry of Economic Affairs, the Netherlands • Waste is now a resource.

The goal of the Circular Economy is to move into a competitive and low carbon economy by 2050. • Government intervention is important to respond to societal dynamics. Collaboration with all stakeholders is crucial in achieving this aim. • In Malaysia we have a lot of resources that can be used for biogas production.

Dr Ir PAM Claassen, Senior Scientist and Vice Chair AFSG Works Council of Wageningen Food and Biobased Research • Dr Claassen’s work

looks at plant production systems, and food and biobased research. • The programme has a collaboration with University Putra Malaysia. • The research looks at the application of mesocarp fibres from natural residues.

Harmen Dekker, Advisory Board, World Biogas Association & Manager Business Development, DMT Environment Technology • The association was

founded in 2016. Its main goals are on climate change, labour and energy needs. • The association records the annual global temperature dating back to 1880. Global temperatures are heading for a 2-degree increase. The use of fossil fuel is still the main way to produce energy. • Managing food wastes sustainably can reduce greenhouse gas emission by up to 518 million tonnes. • By digesting wastes and producing biogas, we can make big savings on greenhouse emissions. • There is potential for the use of biogas as transport fuel. • Palm oil biomass can create wealth from waste. • Biogas can be cleaned and upgraded to natural gas standards – when it becomes bio-methane. This can be done at the palm oil mills. • Bio-methane LNG can give carbon dioxide savings. It is also cost-effective.




TRADE MISSION OPENS DOORS FOR IRISH, MALAYSIAN BUSINESSES The EUMCCI together with the Irish Food Board (Bord Bia) organised an Irish Ministerial Trade Mission to Malaysia. The two-day event saw a seminar on dairy, a vibrant B2B session and a visit to retail outlets.


bout 80 vibrant business-to-business meetings were held recently between seven of Ireland’s largest dairy products and ingredients companies, and Malaysia’s leading dairy buyers, importers, distributers, manufacturers and retailers in Kuala Lumpur. These discussions were part of an Irish Ministerial Trade Mission to Malaysia organised by the EUMCCI together with the Irish Food Board (Bord Bia). The two-day event also saw a seminar on Malaysia-Ireland Sustainable Dairy Ingredients, and visits to a wet market and to leading retailers in Malaysia. The main objective of the mission was to build trade relationships between the two nations. Ambassador of Ireland HE Eamon Hickey opened the proceedings and welcomed the participants to the seminar. The Irish Minister for Agriculture, Food and the Marine, Michael Creed TD, provided delegates with an insight into Ireland’s openness for international business. “In the next five years Ireland is poised to become one of the world’s fastest growing dairy producer. Irish dairy, which benefits from sustainable farming methods, is committed to strengthening trade with global consumers,” he said. Ahmad Khairuddin Abdul Rahim, Executive Director

Manufacturing Development (Resources) of MIDA, presented on Malaysia’s food production and certification scheme. He said food processing in the country is growing, and currently consists of 10% of the country’s manufacturing output. “Maintaining consistency in production, achieving plant efficiency and meeting growing demands are some of the challenges the industry is facing,” he said. Among the food trends captured in the country is the rise in demand for functional food ingredients and natural additives and flavourings. Besides this there is growing opportunity in the halal category. “Irish companies can take advantage of opportunities in the halal category. Irish firms have the technological capabilities that we seek. We welcome Irish investment in our food industry. Consider having a presence in the country and we will see that your business needs are met.” EUMCCI CEO Roberto Benetello said the organisation creates many opportunities for trade and investment throughout the year. “The seminar, B2B networking and field trips are opportunities for both Irish and Malaysian companies. These are occasions for trade opportunities and opportunities to provide technical expertise for food manufacturing and processing plants,” he said.

En Ahmad Khairuddin Abdul Rahim, Executive Director Manufacturing Development (Resources) of MIDA. Michael Creed TD, the Irish Minister for Agriculture, Food and the Marine. From left: CEO of Bord Bia, Ms. Tara McCarthy, Irish Minister, Mr. Michael Creed TD and Ambassador of Ireland, H.E. Eamon Hikey with speakers and participants.





Bord Bia, or Irish Food Board, opened its regional office in Singapore in 2016. Padraig Brennan, Director of Markets and Business Conversion, Bord Bia, acknowledged that Board Bia is a latecomer in the food business in the region. Despite this he sees potential growth for Irish players. “We have to create awareness of Ireland as a source of high quality products,” he said when met on the sidelines of the MalaysiaIreland Sustainable Dairy Ingredients seminar. “We have Australia, New Zealand and the US to contend with – all of whom have made headways in the region where dairy and meat is concerned. We asked ourselves, how do we differentiate ourselves? By our quality products.” He said the Board is working hard to build and understand the markets, the consumers and the region, and are learning about certification and customs. It is also inviting stakeholders to Ireland to see its dairy farms.

Market leaders, cooperatives and 100-year old organisations were part the Irish trade mission to Kuala Lumpur. Malaysian retailers, food producers and dairy buyers had the opportunity to talk business with representatives from these organisations.

• Arrabawn • Dairy Industry Ireland • Dairygold • Glenstal Foods

• LacPatrick Dairies • Ornua • Glanbia Consumer Foods


“Our farms are family-based and our animals go through a grass-fed production system. This combination speaks of naturalness and high animal welfare standards.”


exports to over 180 countries

worldwide. The value of its agri-food exports has reached almost



(2017 figures).


Food Wise 2025 provides

a clear road-map for the development of the sector and its aim is to increase the value of Irish agri-food exports to

19 billion by 2025.

Malaysia is seen as offering potential for growth through Bord Bia’s Prioritising Markets study. It ranks in the

top five markets for both meat and dairy

due to its expanding middle class and the consequential

growing demand for consumer foods

The Bord Bia’s Prioritising Markets study examined the

potential attractiveness of Malaysia along with an assessment of the potential for Ireland to supply to these countries based on

anticipated growth in meat and dairy markets.

made from quality ingredients.




PROMOTING OPPORTUNITIES IN RENEWABLE ENERGY YB Yeo Bee Yin, Minister of Energy, Science, Technology, Environment and Climate Change offers fresh perspectives from the newly restructured ministry, on renewable energy as the solution for long-term energy security.


he Minister expressed confidence that Malaysia will achieve a 20% renewable energy (excluding hydro) contribution to the nation’s electricity generation mix by 2025 from the current level of 2%. This will introduce about 4GW of renewable energy into the country’s grid in the next seven years, marking the first milestone in the country’s renewable energy transition roadmap. The country is heavily dependent on coal-fired power plants. Coal is mostly produced outside the country. Renewable energy must be further developed to mitigate this risk and to improve sustainability, YB Yeo Bee Yin said during a luncheon talk organised by EUMCCI recently. Meanwhile Malaysia’s Sustainable Energy Development Authority (SEDA) has revoked non-performing Feed-in Tariff (FiT) projects totalling 155.7256 MW. This has freed up a total quota of 114.5682 MW which is eligible for applicants to apply. “The small hydro category will have a quota of 74.5682MW for applications expected to achieve commercial operations by 2020 and 2021. The quota allocated for biogas is 30MW and for biomass is 10MW.

These quotas are for applications achieving commercial operations by 2021,” she announced. Two policies will be introduced by the government to promote the generation of solar power in the renewable energy mix. It will allow the creation of large-scale projects and secondly, a net energy metering (NEM) scheme. “The government will open for tender 500MW of electricity to be produced via solar power. This is part of the Large Scale Solar Programme where three projects worth RM2 billion will be conducted through open tender in January 2019.” For domestic, commercial and industrial use, the government will improve the NEM system by allowing the additional energy generated to be exported back to the grid. “This means every 1kWh exported back to the grid will be offset against 1kWh consumed from the grid, instead of at the displaced costs previously,” she said. Under the Supply Agreement for Renewable Energy method, the cost for the purchase and installation of solar photovoltaic (PV) panels, electricity generation revenue and electricity tariff will be agreed to by three parties, namely the customers, investors/owners and the utility company. “This means customers need not to pay upfront as most

L-R: Melvin Saw (Montello SPA), Henrik Pryter (ElQuator), Luciano Pezzotta (IMBA), Indranil Lahiri (Siemens Malaysia), Daniel Bernbeck (MGCC), YB Yeo Bee Yin, Oliver Roche (ICCM), Jari Niemi (MFBC), Martin Rushworth (Novozymes), Eng-Leong Goh (BASF), Gregers Reinmann (IEN Consultants).




of the cost will be borne by the investors for installing these PVs,” she said. Another green initiative from MESTECC will see all government buildings in Putrajaya being retrofitted with energy efficient lightings and appliances in early 2019. This will provide savings of about RM47 billion over the next 15 years, YB Yeo said. Under the contract, she said energy service companies will fund works to retrofit the government buildings with energy efficient chillers and LED lighting. The amount of savings on electric bills would be shared between companies and the government. Recognising that bureaucracy can dampen initiatives especially among investors, she said SEDA Malaysia will now also act as a one-stop centre to quickly sort out all matters related to renewable energy. Meanwhile, Daniel Bernbeck from the Malaysian German Chamber of Commerce, said the development of renewable energy will have long-term benefits for society and economy. “It is our task to promote bilateral trade. Environment-friendly policies will only stimulate networking between EU and Malaysian companies.” EUMCCI REVIEW




In May 2018, the EU replaced its 1995 Data Protection Directive with General Data Protection Regulation (GDPR which standardises data protection law across all 28 EU countries and imposes strict new rules on controlling and processing personally identifiable information.


n light of this, between June and August 2018, the EUMCCI provided complementary training on the principles surrounding both Malaysia’s Personal Data Protection Act (PDPA) 2010 and the EU’s GDPR. Jointly organised by EUMCCI and SEA IPR SME Helpdesk, a webinar on June 21 showed participants how the new ruling will impact their businesses when dealing with the EU and how they can comply with these regulations. The one-hour event entitled EU General Data Protection Regulation Webinar saw presentations by Alvin Toh from Straits Interactive and Amira Nabila Budiyano from the Southeast Asia IPR SME Helpdesk. The webinar also saw a fruitful question and answer session. In July, a half-day workshop entitled General Data Protection Regulation and Data Protection Advisory was held at Pullman Kuala Lumpur, in a joint collaboration between Straits Interactive, Micro Focus and EUMCCI. The event highlighted the latest developments in data protection in Malaysia and the world, the operational and legal aspects of the new ruling, how to plan and get ready to comply with local and international privacy laws, and cybersecurity management and data protection management platforms.



EUMCCI also conducted a workshop on the PDPA and the GDPR in August 2018, together with Straits Interactive and Fire Eye. The workshop shed light on the principles surrounding the PDPA and the GDPR, how both these laws would impact businesses when dealing with EU companies. It also looked at compliance and tools businesses can use to fulfil the requirements of the laws. Meanwhile, on the local front, Malaysia’s Communications and Multimedia Minister Gobind Singh Deo, referring to the GDPR, said that the country must review the PDPA from time to time to ensure that it is aligned with new developments. According to Malaysia’s national news agency Bernama, Gobind Singh said reviewing the PDPA from time to time was needed as Malaysia too was part of the new borderless economy, and had to take into consideration data protection frameworks such as the GDPR. “Malaysia also needs to be on par with global legislation on data protection because Malaysians are not exposed to just local retailers and other parties seeking to use their data for a variety of purposes," he said.


◆ The GDPR will have a global impact on all ◆ companies that process the digital data of the European citizens. ◆ Local and regional companies that deal ◆ with EU consumers or employees will have to comply or risk running into hefty fines. ◆ Organisations that fail to comply will be ◆ subject to a fine of up to 4% of global turnover, or EUR 20 million, whichever is greater Mr. Alfonso Pino Maeso, Attaché – Trade Section of the Delegation of the European Union to Malaysia gives his opening remarks.

WHAT TYPES OF PRIVACY DATA DOES THE GDPR PROTECT? ◆ Basic identity information such as name, ◆ address and ID numbers ◆ Web data such as location, IP address, ◆ cookie data and RFID tags ◆ Health and genetic data ◆ ◆ Biometric data ◆ ◆ Racial or ethnic data ◆ ◆ Political opinions ◆ ◆ Sexual orientation ◆

Mr. Alvin Toh, CMO & Head of International Operations Straits Interactive spoke on Bridging the Privacy Gap: Privacy Operation and Management Best Practices – Why Malaysia sWhy MalaysiaBusinesses Businessesmust mustcare careabout aboutthe theGDPR. GDPR.

(Source: CSOonline.com)



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

Pro-Business Government

Young, Trainable and Educated Labour Force

Liberal Business & Investment Environment

Sound Banking System

Political and Economic Stability

Quality of Life

IP Protection

Well-Developed Infrastructure/ Connectivity

Good Track Record





“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)



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



“Digital Readiness among Developing Asian Economies” (UNCTAD’s Business to Consumer, B2C, E-Commerce Index)

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The conference offers vital information for businesses operating, importing and exporting products and services in the Southeast Asian and ASEAN healthcare markets.


ith healthcare as one of the main economic drivers in ASEAN, governments are facing challenges managing rising costs in healthcare and the demand for greater capacity as well as capabilities. In line with this demand, governments are embarking on collaborations with the private sector and nongovernmental organisations (NGOs) to expand and deliver more effective and efficient healthcare services. Under that scenario, there are opportunities for private healthcare companies to tap on, coupled with the growing middle class who are willing to spend more on better quality healthcare services. In line with that, the EUMCCI and the Malaysia Finnish Business Council in November 2018 hosted an international healthcare conference aimed at creating dialogue on the ASEAN-EU healthcare industry trends, policies, regulations and business opportunities, in Kuala Lumpur.

L-R: Jari Niemi, Dato’ Seri Dr Chen Chaw Min, HE Maria Castillo Fernandez and Roberto Benetello.



Attended by about 100 delegates from various multinational companies, government agencies and industry partners, the conference was aimed at supporting new businesses in Southeast Asia’s healthcare sector and highlighted the new direction of healthcare in Malaysia and ASEAN by the Ministry of Health Malaysia, the current and new business opportunities and infrastructure projects in the region, as well as regulations and regulators of healthcare services and equipment. Roberto Benetello, Chief Executive Officer of EUMCCI, in his address said, “It is with expansion and improvement of healthcare and its most efficient practices that we can see long-term benefits for the society and for the economy.” Her Excellency Maria Castillo Fernandez, Ambassador and Head of the European Union Delegation in Malaysia pointed out that there is a strong commitment from governments about providing healthcare. “There is also strong commitment to putting investment into the private sector. There is a rise in demand for healthcare systems in all countries. This conference offers an excellent opportunity to learn more about the diversity of healthcare systems.” In his keynote address, Dato’ Seri Dr Chen Chaw Min, Secretary General of the Ministry of Health Malaysia (MoH), said that Malaysia’s healthcare system has been internationally recognised as a successful, modern and government-regulated system that provides effective services. He also added that the MoH is keen on forming collaborations with the private sector and NGOs in driving a more robust and effective healthcare system in the country. MoH is embarking on the National Health Policy (NHP) which will prescribe the direction of the healthcare sector in line with the global aspirations of the World Health Organisation (WHO). The NHP will focus on health population, he sustainability of the system and care of the industry. The policy aims to facilitate ways of cooperation among the government, people and organisations, in directing a wholesome healthcare sector. “During the recent budget announcement, the

Dr Lee Boon Chye at the VIP table.

government announced a programme for the B40 group, providing health screening for the poor at government hospitals and private clinics as well as providing financial assistance for those who need medical equipment and transportation.” He also said there are on-going efforts to introduce social health insurance. Jari Niemi, Chairman of EUMCCI Healthcare Committee, explained that the MoH had made significant contributions towards the development of Malaysia and its current position in the region. “This also raises expectations for Malaysia to be in the leading front of development. Healthcare is one of the largest challenges we face in the coming decades, especially with spiralling costs. Jari also added that the need for public and private sector partnerships will only grow especially when building tomorrow’s healthcare infrastructure. Technology will also play an important role in making the healthcare sector more efficient in its delivery and provide more quality. “New innovations such as 3D printing have revolutionised manufacturing and provide possibilities in healthcare.” This international conference provided a platform for industry players to explore relevant megatrends in ASEAN’s emerging markets. The conference featured a host of local and international speakers who expounded on the business opportunities in healthcare in the region; ASEAN medical standards and regulatory framework; and digital healthcare and its effects on healthcare delivery models. Later, at the luncheon, which was graced by Dr Lee Boon Chye, Deputy Minister of Health, Malaysia, he explained that the MoH is committed to increasing spending for health over the next five years. The Ministry, he said, is placing great emphasis in strengthening primary care and will focus more on noncommunicable diseases, as well as look at various models for providing better care for patients. Dr Lee stressed that Malaysia is aligned with the United Nations Sustainable Development Goals for health which is the need for quality healthcare services without causing financial hardship.

DATO’ SERI DR CHEN HIGHLIGHTED THE ISSUES AND CHALLENGES FACED BY THE MOH IN MALAYSIA AS FOLLOWS: • The changing demographics and disease spectrum – double disease spectrum. • Rising healthcare costs and higher public expectations on the delivery of services. • Scarcity of resources and human capital development. • Increasing inequality of access to healthcare. • Growth and competitiveness in the healthcare market and • Intensifying inter and intra-sectoral collaborative efforts in healthcare. He stressed that there needs to be greater synergy between the public and private sector in ensuring that Malaysians have access to good quality and reliable healthcare services and solutions. EUMCCI REVIEW




TOPIC: ASEAN STANDARDS IN HEALTH INFORMATION TECHNOLOGY SPEAKER: Roderick Frazer, Managing Director, Siemens Healthcare Sdn Bhd

• Healthcare digitalisation is premised on expanding precision medicine, transforming care delivery and improving patient experience. • Big data is crucial in providing patient information. Data needs to be curated so that it remains relevant and aids in managing the healthcare system. • Data pool provides better disease management capabilities. • Artificial intelligence is used to support the healthcare system to be more efficient and effective.

TOPIC: ASEAN PROJECTS & BUSINESS OPPORTUNITIES SPEAKER: Micheal Wong, Managing Director, Fresenius Medical Care Malaysia Sdn Bhd

• Healthcare demand is rapidly increasing driven by ageing population, growing incidences of chronic diseases, and rising incomes and expanding middle-class. • Healthcare spending is estimated to increase by 70% over the next 20 years to reach USD740 billion by 2025. • The changing landscape presents significant growth opportunities for the private sector to fill the gap. • Some hospitals in the region were built decades ago, equipped with medical devices and software which are outdated. • There is a need to strengthen capabilities, transform health systems and develop innovative solutions to respond effectively. • Strategic partnerships can help address the growing healthcare demand while containing costs. • Medical tourism can contribute to raise the standards of care and boost demand for cutting-edge equipment; IT and AI (artificial intelligence) technology solutions; branded pharmaceutical products; high-end medical procedures; and quality healthcare infrastructure and services. TOPIC: CAN TELEMEDICINE AUGMENT THE STANDARD OF MEDICAL CARE IN REMOTE LOCATIONS? SPEAKER: Dr David Teo, Regional Medical Director, Asia International SOS

• Telemedicine is premised on four key elements – tele-collaborations, tele-treatment/ tele-consultation, tele-monitoring and tele-support. • There are no international telemedicine regulations. • Telemedicine defined by the Ministry of Health Singapore refers to “systematic provision of healthcare services over physically separate environments via information and communication technology and distinguishes between 4 main domains of telemedicine”. • Telemedicine defined by the Ministry of Health Malaysia means “medicine at a distance” – referring to the provision of healthcare and health-related services using telecommunications, information and multimedia technologies to link the participants in the healthcare system. • Telemedicine offers financial savings of costly diversions, avoidance of emergency diversion and early consultation and treatment. • The advantages of telemedicine includes increased level of medical expertise to remote site patients; reduced medical complications; reduced MEDEVACS; reduction in expensive medical staffing; and lesser morbidity and mortality rates.


• A patent is an exclusive right granted for an invention which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. • Pharmaceutical products are usually protected by filing a patent application. • Licensing from the Malaysian government is necessary to be able to sell products. • In Malaysia, there is a centralised online application platform to file patent applications for medical devices and products. • Patent specifications are necessary to describe the product. 34


TOPIC: OVERVIEW OF ASEAN MEDICAL STANDARDS SPEAKER: Joanna Koh, Principal Advisor in Regulatory Affairs, MDNet. Regulatory Consultants, TUV Rheinland

TOPIC: CYBER SECURITY, CONFIDENTIALITY AND DATA PROTECTION SPEAKER: Calvin Gan, Manager, Anti-Malware Unit, F-Secure Corporation (M) Sdn Bhd

• Digitalisation has

transformed the business landscape and any platform that is connected to the internet is vulnerable to cyber attacks or security breaches. • Cloud-computing is enabled by the internet which is fuelling the data spectrum. • Public WiFi’s can lead to the data theft due to lack of security features. • Hacks affect large corporations as well as individuals. • Medical records, medical history and personal information can be subject to hacking.

TOPIC: PRESENT & FUTURE TRENDS IN ASEAN SPEAKER: Dinesh S. R., Vice President & Business Unit Leader, Transformational Health, Frost & Sullivan

• ASEAN’s economic output is USD2.4 trillion, the 7th largest in the world and above India, and will become the 4th largest economy by 2050. • The middle-class growth: 22% to 62% by 2030. • Valued at more than USD4.6 billion in 2013, the region’s medical device market is projected to reach USD9 billion by 2019, led by Thailand, Indonesia and Malaysia. • ASEAN Medical Device Directive (AMDD) was formed by the ASEAN Economic Ministers as mandated by the ASEAN Trade in Goods Agreement. It is an agreement between the 10 ASEAN member states to regulate medical devices through registration of devices marketed in member states; dealers licensing; implementation of post market controls; and to conduct clinical investigations in accordance with the Helsinki Declaration. • The AMDD establishes the minimum standards of safety, quality and performance for medical devices across ASEAN. • Key elements involved in a medical device regulatory framework include pre-market registration, postmarket and medical device establishments. • Standards used in ASEAN for medical devices include international references such as WTO, EU, AHWP Playbook, ASEAN, GHTF, IMDRF and ISO/IEC.

• There is disparity between healthcare services across the region, in line with the level of development in each country. • Singapore currently has ASEAN’s most advanced healthcare system, followed by Malaysia. • Implementation of numerous healthcare policies in ASEAN nations to supplement AEC catalysed integration. • Healthcare revenue growth predicted to grow with an average CAGR of 6% as a result of population growth and expansion of middle class. • The private hospital services market is expected to grow the highest in Indonesia, followed by Thailand. • Healthcare opportunities in ASEAN lies in the growth of remote patient monitoring services, healthcare IT, aged care and medical services.

TOPIC: HEALTH TOURISM – ONCOLOGY SPEAKER: Dr Aminudin Rahman Mohd Mydin, Consultant Clinical & Radiation Oncologist KPJ

• Lung cancer is commonly associated with smokers, however not all lung cancer patients are smokers. • Cancer treatment and prevention in the public health perspective. • Lung cancer is the No. 1 killer in males in the ASEAN region, predominantly because of tobacco smoking. • Success rates of lung cancer treatment is low because cases are presented at a later stage when the cancer is more advanced. • The goal is to achieve prevention, early diagnosis and early treatment. TOPIC: INFLUENCE OF 3D PRINTING IN THE MEDICAL INDUSTRY SPEAKER: San San Woo, Managing Director, Materialise

• This is a technology that builds a product layer by layer until a complete product is created. 2D images can be transformed into 3D representations of human body parts. • Materialise has printed more than 250,000 patient-specific products and objects. • More than 5 million patient scans have been analysed more accurately with Materialise’ medical software. • 3D printing is an enabler for surgeons and hospitals to make better decisions and provide higher quality healthcare services.




IN-DEPTH VIEW ON WATER AND PROCUREMENT ISSUES Besides insightful trends recommendations, the annual EUMCCI Trade Issue and Recommendation, also featured the much-awaited SEBSEAMMalaysia market reports on specific topics. These reports are used as reference for EU firms seeking information on investment and business opportunities in multicultural Malaysia.

ACHIEVING WATER SECURITY Malaysia aims to meet its future water needs and to ensure a desirable water scenario in the country. One way it can achieve this is by leveraging on EU’s lead in sustainability, its demand-driven innovation on collaborative solutions around allocation and water stewardship. The nation’s demand for freshwater is growing, influenced by population growth, urbanisation, food and energy security policies, and macro-economic processes. The report suggested that familiarity of the following can help Malaysia meet its water demand: • Unless the balance between demand and finite supplies is restored, the nation will face an increasing water deficit; • The competition for water − between water ‘uses’ and water ‘users’: � Increases the risk of localised conflicts and continued inequities in access to services, with significant impact on local economies and societal well-being; � Impose difficult allocation decisions and limit the expansion of sectors critical to sustainable development, in particular, food production and energy. • Unsustainable development pathways impacting the quality and availability of water resources, compromising their capacity to generate social and economic benefits – due to: � Oversight in the disruption of the nation’s stream-flow ecosystems and her hydrological regimes through unabated urbanisation, inappropriate



agricultural practices, deforestation and pollution are among factors impacting the environment’s capacity to provide clean water; � Over-abstraction, the result of out-dated models of natural resource use and governance, where the use of resources for economic growth is under-regulated and undertaken without appropriate controls. The report underscores the importance of significant planning of the nation’s water resources in order to accommodate changes in the country’s future water balances. It said the way forward is for development to be at a level commensurate with the carrying capacity of the nation’s river basins, while protecting and restoring the environment. These being: � To address knowledge gaps by strengthening methods and practices to ensure water resources are not just managed in an integrated manner but geared towards sustainable development and use; � To create an enabling environment, to collectively advance: � A balanced development between “water as a resource” and “water for livelihood” – to counter the urbanisation impacts and the “twin dilemma of cities” via the provision of safe, clean water and adequate sanitation as policies for water and sewerage provision are invariably outpaced by rapid and unplanned urbanisation, which contributes to water resource pollution; � The symbiotic relationship

between land and water – to ensure the pivotal role of water in economic development and as integral to the water-energy-food nexus, through continued R&D on hydro-climate projection, vulnerability assessment and innovative adaptation measures as these interventions reconcile the continuous increase in water use with the need to preserve critical environmental assets on which the provision of water and the economy depends; � Sustainable techniques and methods in mitigating, non-point source pollution, and water use to reduce non-revenue water (NRW) and demand consumption; � The identification and processing techniques of alternative and nonconventional water resources to diverse water resources options as well as to meet potable water demand; � The development of inter-state and inter-basin water transfers to address water shortage and uneven distribution of water resources in the country by mainstreaming climate change adaptation options into planning and development; � Consumer education to achieve public awareness on climate change impacts in an ever-changing environment as consumers can be the source and also the solution to unsustainable consumption of natural resources. The report identified Penang, Selangor and Johor as states the EU can look at as it plans to participate in the value-chain of Malaysia’s water-related economy.


The procurement model used in the construction of the Sg Buloh-Kajang and Sg Buloh-Serdang-Putrajaya MRT lines is based on the use of a project development partner (PDP). The procurement is further divided into main and minor works packages. The PDP helps in devising specifications, in managing the procurement and in supervising the works in return for a fee (6% of total cost if at or below targeted cost and less if above). Allocation of main works packages is made to foreign companies, domestic companies and consortiums/JVs of foreign and domestic companies. Procurement model in the construction of the Circle Line will see the adoption of the turnkey model in preference to the PDP model, with one main tender and the selected contractor sub-contracting a significant number of works, supervising the entire project, and ensuring its timely completion. The procurement model in the construction of the ongoing LRT3 Line saw the adoption of the PDP model with the project divided into main and minor works packages, each allocated through a separate tender. Priority was given to contract awards to domestic companies, and when it is not feasible to consortiums/JVs of foreign and domestic companies. The project also saw the use of green technology for the first time in rail procurement.

� PROCUREMENT IN RURAL INFRASTRUCTURE DEVELOPMENT There are different sectors of the rural infrastructure which require development and upgrading through procurement such as rural electrification, provision of clean and treated water, low-cost housing, and rural and village road building and upgrading. The types of procurement undertaken in rural infrastructure development include international tenders, domestic tenders, requests for proposals and Bumiputera set-asides. The process of procurement in rural infrastructure development includes

involvement of community associations and focus groups. Also seen are the use of procurement to benefit local SME building and engineering contractors and local Bumiputera companies especially in the construction of standard low-cost dwellings and in village road building. Procurement integrity is measured by local procurement officials and suppliers and contractors through the Integrity Plans of the Ministry of Rural and Regional Development.

� PROCUREMENT IN MALAYSIA’S FTAS Inclusion of public procurement in a bilateral and plurilateral FTA allows equal and non-discriminatory treatment in high-value tenders of foreign suppliers and contractors from the other signatory states in competition with domestic companies. Malaysia stands to benefit from this. It will have access to the procurement market in the other parties, technology transfer and other offset benefits resulting from the participation of foreign companies from other parties in domestic procurement. The report also identified disadvantages in the area of procurement in Malaysia’s FTAs. Domestic companies may not be able to compete against larger foreign companies with more advanced methods of production and enjoy greater economies of scale.

� CHALLENGES AND PROBLEMS IN MALAYSIAN PUBLIC PROCUREMENT The report identified 12 failings in procurement, which are analysed with examples. 1. The failure of procuring entities to provide a list of intended procurements in an annual procurement plan. 2. Poor drafting of specifications with lack of clear requirements and also a lack of quality criteria in the evaluation, resulting in sub-standard goods and works, or

goods and works that do not meet the needs of the procuring entity. 3. Non-compliance of suppliers and contractors to the scope and specifications of the procurement, and the failure of suppliers and contractors to undertake a contract after an award has been made. 4. The waiving of competition in favour of less competitive methods of procurement without justification such as direct purchasing. 5. Lack of post-contract evaluation of contractor and of ratings of the quality of workmanship and materials in works procurement. 6. Under-utilisation of facilities and goods procured, which raise the question whether they were needed in the first place; and lack of maintenance schedules for goods and facilities procured resulting in break downs and cancellation of warranties. 7. Lack of transparency in certain aspects of the procurement process including criteria of evaluation and reasons for contract awards. 8. Corruption in the procurement process including bribery, embezzlement and collusion with examples of high profile cases. 9. Failure of members of procurement committees and boards to disclose a connection or that of a family member to a company tendering for a contract resulting in a conflict of interest. 10. PDPs in-rail network construction contracts in which it supervises works packages including those undertaken by itself, resulting in a conflict of interest. 11. Excessive and duplicated registration of contractors for works procurements. 12. Lack of proper monitoring and enforcement of offset packages in large infrastructure contracts resulting in partial or delayed implementation.



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GENDER DIVERSITY TO STAY RELEVANT IN LEADERSHIP The theme for International Women’s Day this year is just so apt. Better the balance, better the world. It urges us all to think about how we can create a better gender-balanced world in all spheres of life – at home, in the workplace, in the playing field. There is no doubt we are seeing more balance emerging. For example, it is no longer uncommon to see fathers playing an active role in the care of the children and household chores. And of course, women are making impressive inroads in the workplace. But are we seeing sufficient balance in senior leadership roles to make a difference in this age of disruption? Disruption is a constant growing concern in business. New competitors with digital expertise and a penchant for experimentation are emerging to steal market share and legacy firms are trying to figure out what to do. One key criterion widely and continuously talked about that will give companies the edge to compete is gender diversity at the leadership level. A survey by global executive search firm Alexander Hughes interviewing 13,0001 leaders across 30 countries in the Americas, Europe, Africa and Middle East shows positive change in most regions and industries. From 2016 to 2018, the gender diversity trend increased from 20% to 21.7% (1.7%) in North America, 12% to 15.5% (3.5%) in Europe and from 5% to 7.2% (2.2%) in Latin America. In Asia Pacific, it remained constant at12.5%. The bright side is Malaysia is not far off from the global scene. A World Bank report on ‘Women on Boards in Malaysia’ 2 showed that a typical Malaysian firm has 13.8% women board members, above the Asia Pacific average of 12.5% and just below the global average of 15%. This comes as no surprise as the country has achieved multiple milestones in the corporate scene. For example,



there is an existing national initiative pushing for 30% women representation on public listed boards by 2020 and in 2018, 3 out of 11 homegrown investment banks had women chiefs. As reported by Bloomberg, this makes Malaysia a big outlier in a space where 96% of investment banking elite are men. The question here is, can the improvements continue at a slightly faster pace? Our country’s women labour force participation rate sits at just over 54% 3 and is an indication that women talent is not lacking. Perhaps what may be lacking are opportunities to rise in the upper echelons of an organization. One barrier is that as men make most of the decisions, they tend to hire people who think like them. They look for similarity and compatibility. They don’t look for diversity or difference. There also seems to be a fallacious association between leadership and masculinity. Nurturing is an innate quality of women. Women score higher on emotional intelligence, have higher social sensitivity, patience and empathy, which makes them better listeners, relationship builders, collaborators, team players and are better at compromising, in a good way, especially in negotiating deals. These are all traits that were deemed feminine in the past and today, are considered traits of an effective and transformational leader. So, on this International Women’s Day, let’s give a thought to shaping better balance in the corporate environment and how gender diversity can give organisations that competitive edge to stay relevant in this disruptive age. By Narinder Kaur, Managing Partner Alexander Hughes Malaysia

ALEXANDER HUGHES CONSULTANTS SDN BHD Alexander Hughes is a global Executive Search group headquartered in Paris. It has a presence in 40 countries through 53 fully-owned offices. The Malaysian office was established in 2017 and is one of six offices in Asia Pacific together with Shanghai, Hong Kong, New Delhi, Sydney and Singapore. Alexander Hughes Malaysia’s expertise cuts across the finance, technology, consumer, lifestyle and life sciences sectors. Its niche lies in bespoke tailor-made solutions to meet clients’ needs and offering local expertise combined with international capabilities. Alexander Hughes is ranked as one of the top 25 global search companies and is among the few integrated firms with a global footprint in the profession. Person-in-charge: Ms Narinder Kaur Address: B1-18-1, Soho Suites @ KLCC, Jalan Perak, 50450 Kuala Lumpur. Tel: +6012-297 9055 Email: n.kaur@alexanderhughes.com Website: www.alexanderhughes.com

ALILA BANGSAR Elevated above the bustle of Bangsar, Alila Bangsar is a modern urban retreat that fuses a haven of relaxation with a lively city vibe. Conveniently linked to the Bangsar LRT station, Alila Bangsar occupies the topmost floors of a mixed-use development known as The Establishment. The hotel’s sky-level lobby is on the 41st floor while its 143 guestrooms are located on floors 35 to 40, all offering uninterrupted views of the Kuala Lumpur skyline. Comfort and personalised service meets contemporary style and a variety of dining and lifestyle facilities, ideal for young urbanites, leisure travellers and sophisticated executives. It’s a place to feel at home. Person-in-charge: Mr Kamal Munasinghe Address: 58 Jalan Ang Seng, 50470 Kuala Lumpur. Tel: +603-2268 3888 Email: bangsar@alilahotels.com Website: www.alilahotels.com/bangsar



Switches are the unsung heroes of a building. They are often thought of as simply a means to spectacular lighting that illuminates exquisite furniture and magnificent architecture but true luxury takes care of details we don’t notice, and that’s what Jung has been doing for 100 years. Based in Sauerland, Germany, JUNG is one of the largest German manufacturers of electrical installation devices and systems, offering customised solutions for homes, offices, hotels and commercial spaces. JUNG Malaysia Sdn Bhd was set up as a branch office in 1997 with the support of a subsidiary office in Singapore for the Malaysia market. Person-in-charge: Chua Kian Lin Address: Lot 16-12, Tower A, Vertical Business Suite, Jalan Kerinchi, Bangsar South, Kerinchi, 59200 Kuala Lumpur. Tel: +603-2242 2322 Fax: +603-2242 2331 Email: kianlin.chua@jungasia.com Website: www.jung.de/en

Founded in 1953, Helmut Fischer is an innovative leader in supplying measurement technology and automation solutions. It is distinguished by its high-value products in industrial, process and laboratory measurement technology. Its products include instruments for measuring coating thickness, nano-indentation as well as material analysis and testing. Helmut Fischer’s products are manufactured at its state-of-the-art factory in Sindelfingen, Germany, with its quality management system certified according to ISO 9001:2015, and equipped with calibration laboratories in Germany, the US and Switzerland, which are accredited according to DIN EN ISO/IEC 17025. Fischer Technology (M) Sdn Bhd supports Malaysian customers from its bases in Petaling Jaya and Penang. Person-in-charge: Mohana Krishnan Address: A-05-07, Prima Avenue, The Tube, Jalan PJU 1/39, Dataran Prima, 47301 Petaling Jaya, Selangor. Tel: +603-7887 9291 Fax: +603-7887 9070 Website: www.helmut-fischer.com/en/malaysia/



New Corporate Partners

BOLLORÉ LOGISTICS MALAYSIA SDN BHD Registered in 1994, Bolloré Logistics Malaysia Sdn Bhd is a joint venture formed by Bolloré and Sunship Agencies (M) Sdn Bhd. Bolloré is a global leader in supply chain management ranking among the world’s top 10 in transport and logistics with a network of 602 sites in 105 countries. The company offers tailor-made solutions with door-todoor services covering the following businesses: national and international multimodal transport (air/sea/express/ exclusive air charters); own customs brokerage; aerospace, defence, oil, gas and industrial projects; oversized item transportation; warehousing; and distribution and valueadded business solutions. Person-in-charge: Stephanie Hericher Address: Lot 607, 3rd & 4th Floor, Jalan Lagoon Selatan, Bandar Sunway, 47500 Subang Jaya, Malaysia. Tel: +603-5631 8380 Fax: +603-5635 5410 Email: stephanie.hericher@bollore.com Website: www.bollore-logistics.com

MALAYSIA INTERNATIONAL TRADE AND EXHIBITION CENTRE (MITEC) Strategically located within the Kuala Lumpur's International Trade and Exhibition District, MITEC is the first component of high-impact project in KL Metropolis, a city within a city where trade, commerce, living and transport converge over 75.5 acres of prime land development. As the country’s largest exhibition centre with over 45,000 sq m of gross exhibition space and triple volume exhibition halls, MITEC also consists of the largest pillar-less exhibition hall in Malaysia. Spanning over three massive double volume floors, it incorporates nine mega exhibition halls, two medium-sized halls and a ballroom. The venue facilities include 13 meeting rooms, VIP suites and lounge, organisers’ office, business centre, food and beverage outlet. Person-in-charge: Mala Dorasamy Address: Kompleks MITEC, No 8, Jalan Dutamas 2, 50480 Kuala Lumpur. Tel: +603-6206 0100 Email: info@mitec.com.my Website: www.mitec.com.my



GOODSCIENCE SDN BHD GoodScience is a contract manufacturer of pharmaceutical products and health supplements located in its newly set-up 38,000 sq ft facility in Kundang Industrial Park. Vertically-integrated with modern clean rooms and critical utilities, GoodScience adheres to the GMP PICS guidelines for the manufacturing of oral solid doses in tablets and capsules. It is fully equipped with research and development, a laboratory with UHPLC, HPLC, spectrophotometers and spectrometers, in addition to standard equipment for chemical and physical testing, a microlaboratory and 24/7 air-conditioned warehousing facilities with adjustable RH rooms. The company offers varied packaging forms in biodegradable eco-bottles, conventional bottles and blisters packs. Person-in-charge: Address: No 7, Jalan KPK 4/3, Kawasan Perindustrian

Kundang, 48020 Rawang, Selangor, Malaysia. Tel: +603-6034 3883 Fax: +603-6034 2621 Email: enquiry@goodscience.my

YONG & LEONARD Yong & Leonard is a licensed audit firm. We have been in practice in Malaysia since 1976. Our clients cover a wide range of industries including manufacturing, construction, properties development, fashion, professional services, trading and medical. Yong & Leonard is a one-stop services provider specialising in helping businesses to incorporate companies in Malaysia. Its services include corporate secretarial services, accounting, sales & service tax, payroll, statutory audit, tax compliance, tax planning, valuation of business, financial due diligence review and forensic audit. Person-in-charge: Leonard Leong and Chin Yoong Ken Address: C-3-28, Block C, 8 Avenue Business Centre, Jalan Sungai Jernih 8/1, Seksyen 8, 46050 Petaling Jaya, Selangor. Tel: +603-7956 3668 Fax: +603-7956 2668 Email: corporate@yongleonard.com Website: www.yongleonard.com

Profile for Harini Management Services Sdn Bhd

EUMCCI Review|Vol 7|No 1|2019|EUROPA Awards 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 7|No 1|2019|EUROPA Awards 2018  

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