Byline October 2015 by Raymond Philip

Byline A Publication of Malaysia Australia Business Council

KDN PP 5847 | 07 | 2015 (032890) | 3rd Issue | October 2015

MABC 29 Annual General Meeting | 25 June 2015

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CONTENTS 07

04 05 06 07 08 11 12 15

Issue no 3 | October 2015

Chairman’s Message High Commissioner’s Message Business Opportunities in SEA

16-20 21-25 26-27

MABC Events Member’s News New Members

SA & Malaysia Collaborate on Art Festival Let’s Make it Stronger Anti Corruption Law | Proposed Changes Maintaining a Positive School Culture Principal Hub (PH) Incentive

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Byline | MESSAGE

CHAIRMAN’S MESSAGE Leigh Howard | Chairman Malaysia Australia Business Council

Dear MABC Members & Friends, The second half of the year is traditionally a busy time for the MABC, and 2015 is proving to be no exception. Our AGM held on 25th June was very well attended and is always satisfying to be able to update members on the activities delivered in the previous year. The AGM is an opportunity to share with members the key achievements of the MABC and the ways in which the Council promotes the growth of the Malaysia-Australia business relationship by connecting, informing, and representing MABC members. I would like to once again congratulate our newly elected Executive Committee member, Mr. Dinesh Nambiar, Managing Director of Lend Lease Malaysia, and also Mr. Richard Liau (CA), Director of Croesus IT Solutions who was appointed as the MABC’s new Honorary Treasurer. Congratulations also to all of our existing Executive Committee members who were re-appointed to their positions. In the month of August, the MABC also arranged events with the Australian Foreign Minister, the Hon Julie Bishop, MP and the Australian Trade Minister, the Hon Andrew Robb AO, MP. Both Ministers shared very candid views with MABC members on the Australian government’s perspective and plans for increasing engagement with Malaysia and Asia, and the way this will impact people doing business with Australia. MABC members were also invited to three networking sessions in conjunction with a Trade Delegation led by the South Australian Premier, the Hon Jay Wetherill, MP. These sessions covered: 1. Defence, Aerospace & Manufacturing 2. Water and Infrastructure Networking 3. Education Networking This type of trade mission is intended to be an annual event by the South Australian government. Based on feedback provided by the MABC to the South Australian government we would expect to see events involving members from a broader range of industries as part of next year’s mission. On the Malaysian front, the MABC organised a luncheon with YB Senator Dato’ Sri Abdul Wahid Omar, Minister in the Prime Minister’s Department in charge of Economic Planning. A full room of 100 MABC members and guests heard from the Senator on the current economic outlook for Malaysia and the continuing efforts of the 11th Malaysia Plan to boost Malaysia’s economy. Finally the MABC Annual Gala Dinner will be taking place on Friday, 2nd October 2015 with our Guest of Honour, YB Dato’ Sri Mustapa Mohamed, Minister of MITI. Last year’s event was a sold out and we once again expect to deliver an evening of great entertainment, food and wine. I look forward to seeing you there!

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Byline | MESSAGE

HIGH COMMISSIONER’S MESSAGE Rod Smith PSM Australian High Commissioner to Malaysia

As MABC members would be aware, the past several months have been amongst the busiest in the AustraliaMalaysia relationship for some time. In August alone, we welcomed Foreign Minister Julie Bishop, Trade and Investment Minister Andrew Robb, the Governor General Sir Peter Cosgrove, and South Australian Premier Jay Weatherill, who was accompanied by several ministers and a trade delegation. MABC members played important roles in all of these visits, and I would like to express my thanks for your tireless efforts to ensure that our visitors went away impressed with the strength and vibrancy of the bilateral trade and investment relationship. A recent highlight was the official launch of the New Colombo Plan in Malaysia by Foreign Minister Julie Bishop. Many MABC members were present on 6 August to hear Ms Bishop set out her vision for the New Colombo Plan, and her intention for it to become a “rite of passage” for young Australians wishing to gain a greater understanding of the region. In 2016, Malaysia will welcome around 270 Australian undergraduates to undertake 24 projects, a substantial increase on our inaugural intake of around 160. We were honoured that Deputy Foreign Minister Reezal Merican was able to attend the launch and give a short speech, and that Deputy Higher Education Minister Mary Yap was also present. I was especially pleased that International Trade and Industry Minister Mustapa Mohamed was able to take time out of his busy schedule to attend the launch, highlighting the special relationship he has with the country in which he studied under the original Colombo Plan. On that note, I would like to commend to MABC members the New Colombo Plan Business Program. This initiative allows business to support the program by providing private-sector internships and other opportunities to New Colombo Plan students, bringing a breadth to their study abroad experience and helping to prepare this generation for longer term engagement in the Indo-Pacific region. More information is outlined at: http://dfat.gov.au/people-to-people/new-colombo-plan/business-engagement/Pages/business-engagement.aspx. I was also pleased that Mr Robb agreed to present a keynote address to members of the MABC at a lunch during his visit to Kuala Lumpur in mid-August. On the back of his recent launch of the “Why ASEAN? Why Now?” publication, Mr Robb set out his thoughts on the investment and trade opportunities that ASEAN offers Australian business, and in our case, Australian and Malaysian partnerships. The impending declaration of the ASEAN Economic Community will also open up new and exciting possibilities for collaboration between our businesses over coming years. The “Why ASEAN? Why Now?” publication is available online at: http://dfat.gov.au/news/news/Pages/launch-of-why-asean-and-why-now-insights-for-australian-business.aspx. Mr Robb announced his intention to return to Malaysia early in 2016 for the next Joint Trade Committee meeting, accompanied by a business delegation. I’m sure this will be of considerable interest to those MABC members who wish to improve their business linkages with Australian companies, and look forward to working with the MABC to ensure the visit proves beneficial for all involved.

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Byline | NEWS RELEASE

Business Opportunities in South-East Asia

14 August 2015

The Australian Minister for Trade and Investment the Hon Andrew Robb AO MP today launched a publication promoting the trade and investment opportunities for Australian business in the ten countries comprising the Association of South-East Asian Nations (ASEAN). “The ASEAN region has never offered more opportunities for Australian business than it does today,” Mr Robb said. “This is particularly the case in areas where the middle class is growing and consumer demand outstrips local supply, such as in the food and beverage, agriculture, healthcare, education and financial services sectors.” Why ASEAN and Why Now? Insights for Australian Business draws on the experience of Australian companies and Australia’s network of diplomatic and trade missions operating in the ASEAN region. The publication delivers practical insights on doing business in ASEAN and how to use regional free trade agreements. It outlines new opportunities for Australian businesses underpinned by the forthcoming declaration of the ASEAN Economic Community, and the growth of the services sector and regional value chains across ASEAN. “As a whole, ASEAN is Australia’s second largest trading partner, with two-way trade surpassing $100 billion in 2014,” Mr Robb said. Australian exports to ASEAN countries grew almost 18 per cent between 2013 and 2014. During the same period, ASEAN investment in Australia grew 15 per cent, to over $110 billion. “I urge all Australian exporters, tourism operators and investors to read this report and make the most of the opportunities that ASEAN has to offer,” Mr Robb said. The publication was jointly prepared by Austrade and the Department of Foreign Affairs and Trade and is available at www.austrade.gov.au/ASEANreport.

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Byline | NEWS RELEASE

South Australia and Malaysia Collaborate on Arts Festivals 19 August 2015 Artistic, cultural and business collaboration is at the heart of an agreement between the Adelaide Festival Centre’s OzAsia Festival and Malaysia’s Georgetown Festival. The Memorandum of Understanding was signed last night, witnessed by Minister for Investment and Trade Martin Hamilton-Smith and the Chief Minister of Penang Lim Guan Eng as part of the State Governmentled trade mission to South East Asia. “The Georgetown Festival and OzAsia Festival have established themselves as internationally significant arts festivals in the ASEAN and Pacific regions, attracting attention from the international arts industry,” Mr Hamilton-Smith said. “The Georgetown Festival is an annual, month-long celebration of arts, culture, heritage and community, showcasing world-class performances, installations and collaborations from international and local artists alike. “This Memorandum of Understanding represents a desire to provide mutual opportunities for each festival to collaborate, grow, share and exchange across artistic endeavours, government relations, business opportunities and audiences. “Adelaide’s OzAsia Festival is the only arts festival in Australia dedicated to showcasing the best dance, theatre, film, music, visual arts and cultural engagement from Asia.” Director of OzAsia Festival Joseph Mitchell said the partnership will foster collaborative programming initiatives, attract world leading artists and add an exciting new element to the Festival in Adelaide. “It also allows us to help the Georgetown Festival while promoting our own Festival to the rest of Asia,” Mr Mitchell said. Adelaide Festival Centre CEO and Artistic Director Douglas Gautier said the Georgetown Festival is one of the pre-eminent Festivals in the Asian region and their desire to partner with OzAsia is recognition of the growing reputation of the OzAsia Festival in Asia.

“The partnership strengthens the Adelaide Festival Centre’s program of Asian-Australian Culture engagement. It will improve the experience for our OzAsia audiences in Adelaide and it also allows us to grow exchanges, tourism and community engagement with Penang and Malaysia,” Mr Gautier said. Mr Hamilton-Smith said the Memorandum of Understanding builds on the existing sister city relationship between Adelaide and Georgetown which commenced back in 1973 and has been beneficial in promoting strong social, cultural and economic ties. “The Malaysia leg of the trip was a key focus for the State Government in terms of investigating potential trade and investment opportunities,” Mr HamiltonSmith said. “Building on strong bilateral relationships, Australia and South Australia are well positioned to participate in Malaysia’s development through business and institutional involvement in areas such as infrastructure, food, healthcare, manufacturing, energy, agribusiness and the arts. “This Memorandum of Understanding is exactly the sort of agreement we want to see struck as part of the State’s South East Asia engagement strategy.”

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Byline | TRADE & INVESTMENT

“The Australia-Malaysia relationship is strong.

Let’s make it even stronger”

By Joel Backwell | Former Trade Commissioner, Australia Trade Commission

Having arrived in KL in early 2013, it will sadly soon be time for me to say farewell and return to Australia. I will do so with many new friends, a far greater understanding of this fascinating country, and much optimism about the state of the bilateral relationship and the potential for further collaboration between businesses both our countries. In the time I have been in Malaysia, Australia has risen from its 10th to 6th largest trading partner, with two way investment now over $30 billion . This is due in part, I am sure, to the Malaysia Australia Free Trade Agreement, which came into force on 1 January 2013. Even more though, it is being driven by the increasing level of engagement at all levels. If you include the Ministerial visits that will take place in August 2015, in less than three years there will have been more than a dozen high-level visits from Australia, including the Prime Minister, Foreign Minister, Trade and Investment Minister, and even the Governor General. Over 20,000 Malaysians are currently studying in Australia. The New Colombo Plan will see more and more Australian students studying in Malaysia, staying on to do internships, and building even greater 8

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people-to-people links. The Malaysia Australia Business Council is building momentum, with greater value for its members and many of its industry subcommittees becoming increasingly active. New South Wales recently appointed a permanent Director based in Malaysia, Victoria continues to have a strong presence, and during my time in KL, Austrade has helped facilitate visits from Western Australia, South Australia and the Northern Territory. The familiarity that so many Malaysians have with Australia, built on decades of education and tourism links, means that aspects of Australia’s way of life including our food, healthcare, leisure and consumer sectors, as well as our urban environment, carry a high level of prestige in Malaysia. Australian businesses with something unique to offer in the ‘Lifestyle Australia’ space should seriously be considering Malaysia as an export destination. And I am happy to say that over the last few years my team and I have met with hundreds of Australian companies doing just this. From aged care services, to fresh food and wine, to high-end architecture and design, there are now almost 3,800 Australian businesses exporting to Malaysia, and I’m honestly surprised there aren’t

I will miss the beauty of Malaysia. My wife Cassidy and I have explored far and wide during our time here, often getting out of Kuala Lumpur to make sure we experienced the rest of the country too. more. Last year Lend Lease won the tender to build the billion-dollar Tun Razak Exchange; Flex Health, Jeta Global and others are catering to Malaysia’s ageing population; and last year Malaysia imported around half-a-billion dollars’ worth of meat and dairy products from Australia. In short, the activity between our two countries is greater than ever before, and this could not have come at a better time. With Malaysia chairing ASEAN in the lead-up to the creation of the ASEAN Economic Community at the end of this year, it is a perfect opportunity for more Australian companies to find Malaysian partners, not just to do business here in Malaysia, but across the entire region. I have said it from the beginning of my Posting: Malaysia is the perfect springboard into Asia. With its central location, English-speaking, skilled workforce, and exportoriented economy, it should be one of the first places Australian companies look to when heading into Asia. People often forget that, taken collectively, ASEAN is Australia’s second largest trading partner, and Malaysia sits right at its centre. Unfortunately this message still gets lost amidst the hype surrounding China and India. I look forward to seeing Austrade continue to build awareness of the plethora of opportunities that await. We will do this by working with the MABC and our allies back in Australia, like the Australia Malaysia Business Counc l, States and Territories, and industry bodies like Wine Australia,

Dairy Australia, and the Australian Institute of Company Directors, all of whom have visited Malaysia in the last 12 months. Since I arrived in Malaysia, there have been many memorable moments. We had visits from President Obama and FC Barcelona and earlier this year I was fortunate enough to sit down to dinner with Jimmy Choo. The terrible tragedies of MH370 and MH17 brought much sadness to Malaysia and the rest of the world, but they have also brought our two countries closer together, so hopefully there is some goodness that comes from these awful events. Following drought and heavy water restrictions in Kuala Lumpur in 2014, floods on the eastern side of the Peninsula destroyed many homes and affected thousands of residents. But these calamities also brought Malaysians together to help each other out, putting aside race and politics for the greater good of the community. Of course Australia won the Asian Football Cup and the Cricket World Cup, and it was nice to share both of these victories with some of my Malaysian friends who took an interest. Malaysia isn’t exactly a sporting-mad nation, but I feel that this is changing. Even in the two-and-a-half years I have been here, I have seen more and more gyms opening up and more people running around KLCC Park in the morning, or joining Boot Camp. Austrade will continue to leverage these growing trends to introduce Australian expertise in the area of healthy living, an aspect of Lifestyle Australia that I think many Malaysians can benefit from. Reflecting personally on my relatively brief stint here in Malaysia, there are many things that I will miss and many things that have left an indelible impression on me. Of course I will miss the food. My nasi lemak on the way to work, mid-morning coffees at Espresso Lab at the bottom of Avenue K (almost as good as a Melbourne coffee!), roti canai on Jalan Nagasari just around the corner from my apartment, top-class dinners at Fuego, Drift, Nobu and Beast, and of course all of the great Chinese dishes that my staff have introduced me to on a regular basis. I will miss the beauty of Malaysia. My wife Cassidy and I have explored far and wide during our time here, often getting out of KL to make sure we experienced the rest of the country too. From the beautiful beaches of Langkawi, to the murals and festivals (and Narelle’s delicious cakes) in Penang, to drinking tuak during Gawai in Kanowit, to swimming with turtles in the MABC BYLINE

Perhentians, to our favourite trip of all - watching the sunrise from the top of Mt Kinabalu, this country has it all. Indeed Malaysia has much to offer both foreign and local tourists, particularly with some small improvements to its tourism infrastructure and hospitality services, areas where Austrade is keen to introduce Australian expertise under our Lifestyle Australia banner. Of course I will also miss the people. The MABC Executive Committee and its members, who welcomed me so quickly into the country. My teammates at the mighty Malaysian Warriors, undefeated so far in 2015, with whom I have shared many international tours and many great memories (for anyone interested in playing with the Warriors or watching them play, email p_milbourne@hotmail.com). The staff at St Mary’s who have taken such good care of me and my wife, even when they were the ones hurting after the devastating earthquake in Nepal earlier this year. Given we never owned a car while we were here, the hundreds of taxi drivers who have responded to MyTeksi requests, particularly those who actually turned up on time and knew the location of where I wanted to go. The staff of all the major hotels in KL – I think I have been to all of them – for taking care of me and my customers at various lunches, networking events and gala dinners. My many new friends, both expat and local, who have introduced me to some of the lesser known places in Malaysia, and kept me sane all this time. All of my colleagues at the High Commission, who work so hard to keep the bilateral relationship humming along. And last but certainly not least, my team at the Australian Trade Commission, and especially Susan Kahwati, our Senior Trade Commissioner, for their enthusiasm, for challenging me on a daily basis, and even sometimes laughing at my jokes. I feel very fortunate to have been given the opportunity to work in Malaysia as the Australian Trade Commissioner, and to continue the work of my predecessors, and the MABC, in building the relationships between Australia and Malaysia and increasing the level of investment, education, tourism and trade between our two countries. I feel like I haven’t stopped sprinting from the day my plane touched down, but that is merely a reflection of the level of activity that is going on, which is a wonderful thing. Upon returning to Australia I will continue to do my best to encourage more Australian companies to get on a plane and come over here. I know that my successor, Naila Mazzucco, is very excited about taking up the Austrade baton here in Malaysia. For those of you with whom I have worked over the last few years, thank you and keep up the great work. The relationship is a strong one. Let’s make it even stronger. 10

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Byline | LEGAL

Proposed Changes To Malaysian Anti-Corruption Law Aim To Put Liability On Companies, Board Members, And Senior Executives

As part of an ongoing effort by the Malaysian government to establish greater corporate accountability, the Malaysian Anti-Corruption Commission Act 2009 ("MACCA") and the Companies Act 1965 ("CA") are in the midst of being revamped. The proposed amendments are centered on corporate criminal liability; an area which is currently underdeveloped in Malaysia. The MACCA, which is the primary anti-corruption legislation in Malaysia, came into effect on 1 January 2009. A unique feature of MACCA is its extra-territorial reach; a Malaysian citizen or permanent resident who commits an offence outside of Malaysia may be subject to prosecution. The offences set out in MACCA include, the giving and receiving of gratification, the procuring of the withdrawal of a tender, and specifically the bribing of an officer or a public body. An officer of a public body is widely defined and may include officers of a body corporate. Presently, MACCA does not provide for a specific corporate liability offence. Without such a provision, corporations, board members, chief executive officers and senior management are not subject to fines and are not vicariously liable for the actions of their employees. The Malaysian Anti-Corruption Commission ("MACC") and other relevant stakeholders have proposed amendments to the MACCA to address the ambiguity of the corporate liability offence, and to include specific provisions for body corporates, board members and senior managements to be liable. Although no specific details on the amendments have been revealed, it is understood that it could model the corporate liability provisions described in the United Kingdom Bribery Act ("UKBA") and the United States Foreign Corrupt Practices Act ("FCPA").

The CA is another legislation which touches upon anti-corruption. For example, the CA stipulates that any director or officer of a company who, without the consent or ratification of a general meeting, uses his or her position to directly or indirectly gain benefit for himself or herself or any other person, would be guilty of an offence. It is understood that the CA may be revised in the future to potentially include a set of rules and procedures to govern corrupt business dealings. While the proposed amendments to the MACCA are yet to be tabled in the Parliament, it is critical for corporations to understand the legal developments and its impact in the way business will be conducted in Malaysia. It is important for companies to review and scrutinise existing gifts and entertainment policies, and to implement comprehensive audits on the conduct of their employees, directors and agents when dealing with third-party public vendor(s) or public officer(s) to ensure compliance. It is only a matter of time before the corporate liability provision, accompanied with heavy fines, would be introduced into the MACCA, and companies are advised to be prepared early on.

Attributed to: - Chew Kherk Ying, Partner, Wong & Partners - Eddie Chuah , Senior Associate, Wong & Partners

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Byline | EDUCATION

How to Maintain a Positive School Culture by Dr Deborah Priest, AISM Principal

From time to time, the Education World magazine updates and reprints a previously published article that is regularly of interest to school administrators and parents. It talks about the importance of maintaining a positive school culture and how such a culture can provide lasting benefits for the whole school community. "School culture is the set of norms, values and beliefs, rituals and ceremonies, symbols and storiesâ&#x20AC;? that build the sense of community in the school, says Dr. Kent Peterson, a professor in the Department of Educational Administration at the University of Wisconsin-Madison and co-author of Shaping School Culture: The Heart of Leadership.

a positive school culture if they want to improve student outcomes and remain viable in a competitive independent school marketplace such as exists in Malaysia.

In a school with a positive culture, Peterson says, "there's an informal network of heroes and heroines and an informal grapevine that passes along information about what's going on in the school, ... a set of values that supports professional development of teachers, a sense of responsibility for student learning, and a positive, caring atmosphere" exists. On the other hand, in a toxic school environment, teacher relations are often conflictual, the teachers donâ&#x20AC;&#x2122;t believe in the ability of the students to succeed. Clearly, all schools need to focus on maintaining

AUSTRALIAN INTERNATIONAL SCHOOL MALAYSIA (AISM)

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Staff and administrators in a positive school culture believe they have the ability to achieve their ambitions and they know that school culture has a profound effect on staff development and retention. Peterson reminded us that "it affects attitudes toward spending time to improve instruction, motivation to attend workshops, and the [activities] people choose to participate in".

Every school has underlying assumptions about what staff members will discuss at meetings, which teaching techniques work well, how amenable the staff is to change, and how critical staff development is. This core set of beliefs underlies the school's overall culture. At the Australian International School Malaysia, the Principal and her staff are strengthening their already strong, professional culture through a specific and

“

well-researched pedagogical program focussed on improving students’ academic performance. Following a pilot trial in 2014, this year all AISM teachers immersed themselves in the research and understanding of Professor John Hattie’s work on visible learning and visible teaching. Hattie undertook a meta study of over 800 international educational research projects that involved millions of students across the globe. This meta study represents the largest ever evidencebased research into what teaching techniques works best and therefore produce the best outcomes. A practical result of Hattie’s work is the publishing of the “effect size” (amount of influence) that particular actions can have on student learning. For example, we know that providing regular and timely feedback to students on tasks has a significant positive impact on student learning (effect size=0.90) whereas oneto-one individualised instruction has a minor impact on improving student outcomes (effect size=0.22). By understanding which teaching practices have the most significant impact on student learning, teachers can focus and hone their teaching practice towards the most influential strategies thus optimizing the class time they have with their students. In terms of further developing an already positive school culture, AISM has been keen to collect data from students regarding the effectiveness of this new whole-school approach to teaching and learning. In the 2015 annual AISM Student Survey there was a clear indication that students feel more positive about learning and they feel more in control of their academic outcomes. These early indications have provided affirmation to the teachers and have resulted in increased positivity about the benefits of continuing to hone teaching practice in the classroom.

What aspects of the culture are positive and should be reinforced?

What aspects of the culture are negative and harmful and thus should be changed?

The nurture of positive aspects of the school’s culture is important and while teachers at AISM focus on what happens inside the classroom, the leaders of the school will continue to: celebrate successes ceremonies,

staff

meetings

and

tell stories of accomplishment and collaboration whenever there's an opportunity,

use clear, shared language created during professional development to foster a commitment to staff and student learning.

For AISM the biggest lesson this year has been “when administrators and staff collaborate in a strong push to foster a positive environment where wondrous things can happen”.

WHAT CAN SCHOOL ADMINISTRATORS DO? While AISM is well-advanced in their focus on growing their positive school culture, there are lessons in Peterson’s work for other schools who are looking for ways to turn around a negative school culture. He suggests that Principals or Head Teachers need to "read the school". They must talk to storytellers on the staff to discern what kind of history the school has and they need to examine what they have learned about the school culture. Following this they must ask two questions:

References : Hattie, J. (2009) Visible Learning: A Synthesis of over 800 meta-analyses relating to achievement. Routledge, New York Deal Terrence E. and Peterson Kent D. (1999) Shaping School Culture: The Heart of Leadership. Jossey-Bass, San Francisco Deal Terrence E. and Peterson Kent D. (2002) Shaping School Culture Fieldbook. Jossey-Bass, San Francisco

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Byline | INVESTMENT

Principal Hub (PH) Incentive

Leveraging Malaysia As The Principal Hub Within The Asean Region The Malaysian Investment Development Authority (MIDA) has introduced the Principal Hub (PH) incentive to replace the previous incentive on Regional Distribution Centres (RDC), International Procurement Centres (IPC), Operational Headquarters (OHQ) effective from 1st May 2015. The introduction of PH incentive would enable a PH company to leverage on Malaysia’s bilateral and regional Free Trade Agreement. In addition, Malaysia’s diversified and strong manufacturing and services base would provide locational flexibility for a PH company to operate in Malaysia. Definition of Principal Hub | A PH refers to a locally incorporated company that uses Malaysia as a base for conducting its regional and global businesses and operations to manage, control, and support its key functions including management of risks, decision making, strategic business activities, trading, finance, management and human resource 3 Tier Incentive | An approved Principal Hub company is eligible for a 3-tiered corporate taxation rate as follows: 3 TIER INCENTIVE

TIER 3

BLOCK (YEARS) 5 +5

TIER 2

5 +5

TIER 1

5 +5

TAX RATE 10% 5% 0%

ELIGIBILITY CRITERIA | A Principal Hub is required to comply with the following requirements:-

Local incorporation under the Companies Act 1965. No local equity / ownership condition.

Paid-up capital of more than RM2.5 million.

Minimum annual sales of RM300 million (additional requirement for goods-based applicant company).

Serves and control network companies in at least 3 countries outside Malaysia Network companies refer to “related companies or any entity within the group including subsidiaries, branches, joint ventures, franchises or any other company related to applicants’ supply chain and business with contractual agreements”.

Carry out at least 3 qualifying services.

To meet the following employment requirement and annual business spending:-

Employment Requirement

Annual Business Spending

Tier 3

15 high value jobs

RM 3 million

Tier 2

30 high value jobs

RM 5 million

Tier 1 50 high value jobs RM 10 million Customs Duty Exemption | A Principal Hub is allowed to bring in raw materials, components or finished products with customs duty exemption into free industrial zones, LMW, free commercial zones and bonded warehouses for production or re-packaging, cargo consolidation and integration before distribution to its final consumers for goodsbased companies. EXPATRIATE POSTS | Expatriate post based on requirements of applicant’s business plan subject to current policy on expatriates. EFFECTIVE DATE OF APPLICATION 1. New applications received by MIDA from 1 May 2015 until 30 April 2018 is eligible to be considered for this incentive. 2.

Application for the extension of the incentive period must be submitted to MIDA six (6) months before the expiry of the initial incentive period.

The extended incentive period shall begin from the date following the end of the initial incentive period and continue for a period of five (5) years.

Article contributed by | Dato’ Robert Teo | RSM RKT Group

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23 April 2015 | Grand Hyatt Hotel Kuala Lumpur

PARTNERS IN PROGRESS 2015

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MABC April NETWORKING EVENING

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MABC Joint Networking & Talk on â&#x20AC;&#x153;BUSINESS INTEGRITYâ&#x20AC;? 28 May 2015 | Ramada Plaza Dua Sentral Kuala Lumpur

The May Networking Evening & Talk was jointly organised with the Malaysian Spanish Chamber of Commerce & Industry (la camara), attracting about 40 members from both Chambers. Prior to the networking session, a talk was held on Corporate Integrity System presented by Dr Mark Lovatt, Business Integrity Programme Manager, Transparency International Malaysia (TI-M). The highlights of the talk included the costs and risks of corruption for business and how a comprehensive Corporate Integrity System can help mitigate these challenges.

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25 June 2015 | Thursday @ 5.30 pm Australian High Commission | Kuala Lumpur

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MABC 29th Annual General Meeting

The recent MABC Annual General Meeting saw the Chairman, Mr Leigh Howard presented on major activities over the past 12 months which included a trade and investment mission with the Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed, a reception with the Australian Prime Minister, H.E. Hon Mr Tony Abbott and the MABC Annual Dinner 2014 which was attended by 500 members and guests. Mr Howard also reiterated the role of the MABC and shared the Chamber’s vision and future strategies. On the financial ground, the Chamber reported a stronger financial performance with a higher surplus as compared to the previous year. EXECUTIVE COMMITTEE 2015 – 2016 Chairman | Mr Leigh Howard Vice Chairman | Dato’ Peter Tan Choon Hoo Vice Chairman | Dato’ Robert Teo Keng Tuan Honorary Life Chairman | YAM Tunku Dato’ Seri Shahabuddin bin Tunku Besar Burhanuddin Elected Members: Mr Bastian Tensen | Mr Loong Caesar | Mr Matthew Barsing | Mr Brett Smythe Ir Yong Kee Chiang | Prof Tan Hock Lim | Mr Kenneth Lim Fung Hsien | Prof Glenda Crosling | Mr Dinesh Nambiar

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30 July 2015 | Hilton Kuala Lumpur

The July Networking Evening & Talk attracted about 40 participants. The evening started with a talk on Expatriates & Immigration Updates by Mr Siva Kumeren, Head Foreign Talent Facilitation & Shared Services of TalentCorp Malaysia who highlighted the newly launched MYXpats Centre, a joint initiative between TalentCorp and the Immigration Department to assist in obtaining immigration passes such as employment passes for expatriates. Following the talks, members moved on to a lively and interactive business networking session.

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MABC Joint Networking & Talk on â&#x20AC;&#x153;EXPATRIATES & IMMIGRATION UPDATEâ&#x20AC;?

Byline | MEMBER’S NEWS

BYLINE | MEMBER’S NEWS

The Edge Captures a Moment with Breezway Breezway’s activities in the Malaysian market recently caught the attention of the popular publication, The Edge Malaysia. On 23 February 2015, The Edge’s Editor and Photographer paid Breezway a visit and had an informative chat with Breezway’s General Manager, Mr Kelvin Ling. The interview was held at Breezway’s Experience Centre in Subang Jaya, Selangor. The interview was conducted in an effort to introduce Breezway to Malaysian consumers and to feature our range of products. The Haven – Edge Malaysia magazine is the number one business daily publication in Malaysia. The article has been published in the designer section of the latest issue for April/May 2015 and promotes new generation Breezway Louvre Windows, highlighting how the innovative louvre has been designed to bring together old-fashioned ingenuity and modern technology to deliver a high quality product for homeowners. The article goes into detail about the advantages of Breezway Louvre Windows and provides information on where readers can go to see and learn more about the range of Breezway products. Explore these futuristic window louvres at the Breezway Experience Centre, B-07-25, Empire Subang Soho, Jalan SS16/1, Subang Jaya. Call (603) 3291 4885 or visit www.breezway.com.my for more information.

Australian International School Malaysia

Students Triumph at the World Scholar’s Cup Kuala Lumpur Recently, 24 students from AISM attended the Regional Round of the World Scholar’s Cup (WSC) 2015 Kuala Lumpur which saw the participation of scholars from over 40 countries around the world. WSC challenges students to perform in a range of different academic events that include Team Debate, Essay Writing, a subject specific examination (Scholar’s Challenge) and a team quiz (Scholar’s Bowl).

classroom in a global environment. The competition has always managed to combine academic performance with fun, so despite the long hours and nerve-wrecking competition, the event is run in a spirit of friendship and celebration.

The highlight of the night was the Senior team’s win at the top spot, with students Kavya Sritharan, Yann Ran Ng and Sakiko Okayama bringing home a trophy so big, it was even taller than some of them! In addition to this, AISM students picked up an additional 40 individual awards, including first and second places in the Junior division for the Scholar’s Bowl and an overall fifth place in the Junior division. The students owe their success to months of training with the support and guidance from their dedicated teachers. This is the fourth year in a row that AISM students have won one or both of the major sections of the World Scholar’s Cup. At AISM, students thrive not only to be academically accomplished, but to also achieve beyond the

AISM students with their trophies and awards at the recent Regional Round of World Scholar’s Cup Kuala Lumpur 2015

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Byline | MEMBER’S NEWS

BYLINE | MEMBER’S NEWS

EcoWorld Opens New Gallery in Iskandar Malaysia The EcoWorld Development Group (EcoWorld) opens a sales gallery in Iskandar Malaysia in August 2015. Dubbed EcoWorld Gallery @ Eco Business Park 1, 16,000 sq. ft space will showcase the Group’s three business parks in Iskandar Malaysia. The strategic locations of Eco Business Park 1, 2 and 3 in Tebrau (Flagship A), Pasir Gudang (Flagship D) and Senai (Flagship E) respectively already make them very attractive investment propositions. However, the sales gallery highlights the other ground-breaking advantages these green, gated and guarded business parks have to offer. The gallery gives a close look at EcoWorld’s innovative 4-in-1 concept that synthesises the retail, office, showroom and factory concept into a highly synergised building. Visitors will understand just how flexible the unit is, as it can be customised to meet a range of requirements, from light manufacturing to premium retail. It serves as a one-stop centre where customers can avail themselves of the EBP One-stop Business

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Solution. The proprietary suite of professional services is designed to assist them in setting up their operations. Trained personnel will be on hand to help navigate the application process for licenses and incentives, as well as bridge the gap between owners and the end-financier. There are also business incubator facilities so that customers can launch their businesses while waiting for their premises to be completed. For more information about EcoWorld Gallery @ Eco Business Park 1, please contact TEL +607 238 2525 or ecobusinesspark@ecoworld.my.

Byline | MEMBER’S NEWS

From Kuala Lumpur to Universities in 13 Different Countries! Head of school Dr Norma Hudson (second from right) presenting the IB diploma to Moa Schafer while (from left) high school principal Jeff Farrington, ISKL board chairman Saif Malik and YB Kamalanathan look on

The International School of Kuala Lumpur (ISKL) hosted its 48th graduation ceremony recently at the Royale Chulan Hotel, Kuala Lumpur. The graduates were honored in a dignified and special ceremony with several speeches, awards, and music. Approximately 1200 people were in attendance comprising the 155 graduates, their family members, teachers, alumni and friends of the ISKL community. We were very honored to have the Deputy Minister of Education II, YB Mr. P. Kamalanathan P. Panchanathan and the Director of Private Education, En. Halim bin Ismail from the Ministry of Education of Malaysia in attendance. Both our guests gave away the Valedictorian and the Salutatorian Award to Anissa Martha Saylany and to Amanda Yeoh Jia Xin respectively. Amanda is ISKL’s International Baccalaureate (IB) Diploma Scholar. Our seniors have been accepted to 460 universities to date, with 267 applications still pending for the next few months. Our Class of 2015 have accomplished much: in applying to universities in 13 countries, to date 88% of our seniors were selected to at least one of their top three university choices, they received over USD2.2 million in scholarship awards, and they have selected majors in areas such as engineering, economics and business, art and design, English, biological sciences, film, music and architecture. Additionally, 127 of our students were selected to one of the top 50 global universities as noted by The Times Higher Education Global University rankings. The International School of Kuala Lumpur (ISKL) is a private, not-for-profit, parent-governed, coeducational day school offering an educational program from Pre-Kindergarten (3-year-old) through Grade 12 for students from more than 60 nationalities. A college-preparatory curriculum is offered, including Advanced Placement courses and the International Baccalaureate Diploma Program.

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Electronic Payments & JomPay Elec tronic

The electronic payment agenda has been on the radar for all financial institutions in Malaysia. In 2011, Bank Negara Malaysia released the Financial Sector Blueprint that charts out the future of financial systems over the next 10 years heading towards 2020. One of the key agendas was the reduction of cheque issuance while ensuring there are sufficient electronic payment products available in the payment eco system to support businesses and consumers migrating from the usage of cheque to electronic payments. In this context, we at AmBank pride ourselves with our capabilities to offer the complete suite of electronic payment products. In fact, we pledge to offer our clients, especially our Corporate Clients, with an extraordinary electronic banking experience. Traditionally, companies would opt for cheque collection over electronic forms of receivables due to inavailability to match back and reconcile the receivables against bills or invoices issued. They would wait for two days before a cheque was cleared. With the introduction of JomPay Bill Payment, companies can now collect payments from their customers and receive a report or notification on the payment details, inclusive of the payer information whilst funds are credited into the company’s account on the same day (if the transaction was performed before 5pm on a banking day in Kuala Lumpur). With JomPay and the entire enhancement invested

by the bank to ease Electronic Payment reconciliation and acceptance, we have seen the Electronic Payment volume make a quantum leap over recent years. JomPay is a national initiative to help companies collect payments from their customers at lower costs and accelerate cash flows. It costs relatively cheaper to collect your payment via jomPay as compared to credit card collection via terminal or proprietary bill payment scheme that you sign up with any bank as the onboarding process is much more streamlined. Besides, you will receive your payment via IBG from other banks on the same day if the payments are paid within the IBG processing windows. Their online validation feature significantly reduces the risk of sending a payment with incorrect details. Besides, as a recipient, you will receive notification immediately or in batches from service providers or AmBank (whichever you prefer) to advise you on the payment status. All you need to do is connect with us as your single biller bank to start collecting payment from your customers via 42 banks in Malaysia. Your customer has the convenience to pay anywhere and anytime via internet and mobile banking at no cost. There is no need for cheques, stamps and travelling to the mailbox and no waiting in line at the bank’s counters. Many companies have started speaking with us to learn more on how to enjoy Fast, Convenient and Secure Receivable Management.

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IAEA Report Confirms that Lynas Plant is Low Risk The Lynas Rare Earths plant has been operating in the Gebeng Industrial Estate near Kuantan since late 2012. All aspects of business operations continue to improve and based on recent performance, Lynas expects to continue to deliver positive free cash flow. Last year Lynas relocated its head office and its leadership team to Kuantan, in a move that signaled its ongoing commitment to Malaysia and the local community. In recent news, the International Atomic Energy Agency (IAEA) released its latest report on the Lynas Plant which is available on the IAEA’s website, www.iaea.org. The IAEA Report confirms that “the radiological risks to members of the public and to the environment associated with the operation of Lynas Advanced Material Plant are intrinsically low.” The IAEA Report also mentioned that Lynas has instituted a wide range of public information and stakeholder engagement activities including addressing over 10,000 people and hosting nearly 3,000 stakeholders at the site. Visitors including politicians, academics, NGOs and local residents have been provided with information on Lynas’ operations as well as safety and environmental data. Outreach programs for schools and the availability of real time radiation and emission data online at the AELB and DOE websites show Lynas’ expanding commitment in engaging with the community. From the commencement of its operations, Lynas has set industry leading standards in environmental, safety and quality issues. Lynas remains committed to delivering Rare Earth materials with assured environmental practices from mine to market.

The Lynas Rare Earths plant in the Gebeng Industrial Estate

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Byline | NEW MEMBERS

K-PINTAR SDN BHD “Founded in 2002, K-Pintar is fast becoming the country’s leading human capital solutions provider, with emphasis on globally-recognised certification courses. Its contribution in upskilling and reskilling the workforce covers four main areas: Executive Development; Professional Certification; SME Capacity Development and Graduate Capability Development. K-Pintar offers a comprehensive range of programmes, targeting specific needs in the workforce, and have produced admirable results in creating dynamic, flexible and knowledge-rich personnel. Our affiliations with globally-recognised market leaders in learning and development include Cranfield University (UK), European School of Management & Technology (Germany), Australian Human Resource Institute, The CEO Institute (Australia), SAP (Germany), Prosci (USA), IIBA (Canada), amongst others. These partnerships have strengthened K-Pintar’s presence in the industry where they have serviced over 2,000 clients from all sectors, locally and internationally. The organisation prides itself as a contributor to the country’s growth towards becoming a high-income workforce. K-PINTAR SDN BHD Suite C-16-6, 13th Floor | Wisma Goshen, Bangsar Trade Centre | 59200. Kuala Lumpur. Tel +603 2284 4148/43/46 | Fax +603 2284 4175 | URL www.kpintaracademy.com

Contact person | Mr R A Thiagaraja - CEO

Breezway (Malaysia) Sdn Bhd Breezway began manufacturing old style metal louvres around 1947 and by the mid-1960’s Breezway louvres were being exported to over 65 countries. Over the years the company has manufactured a number of other products but aluminium louvre windows have always been a key part of the business. Breezway is now privately owned by an equity shareholder and the Breezway Management Team. Mr Kelvin Ling is the General Manager of Breezway Malaysia and is based out of their local office in Klang. After joining the company five years ago, Kelvin Ling has help to streamline the business in Malaysia to better serve a new generation of homeowners who are constantly on the lookout for leaner and greener solutions for their homes. Today, Breezway is at the forefront of louvre window technology and design with a constant stream of product improvements flowing from their R&D Centre in Australia. The Altair Louvre Slimline Window System, Easyscreen System and Powerlouvre Window are all Breezway owned with patents and trademarks. Altair Louvre Windows are an elegant, high performance window designed for harsh environments. Fully tested to International Standards, the Altair Louvre far exceeds any other louvre on the market. Breezway ASIA has made an impact in the ASIA building landscape. You will find Breezway Louvre Windows often used in green homes and green energy projects, and have helped developers win green ratings, such as the Ken Rimba project in Malaysia. Major developers such as SIME DARBY in Malaysia, Land & House in Thailand, Ayala in Philippines have all used Breezway louvres in their development projects. Breezway Altair louvre Windows have been exported all around ASIA, Middle East, Africa and The Caribbean. Homeowners are welcome to see how the innovative louvres work at the Breezway Experience Centre | B-07-25 Empire Subang Soho | Jalan SS16/1 | Subang Jaya Call + (603) 3291 4885 or visit www.breezway.com.my for more information.

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Byline | NEW MEMBERS

STAR’K (M) SDN BHD STAR’K (M) Sdn Bhd was first established in 1999 as a supplier of quality, specialty chemical products, both imported as well as locally manufactured, to selected Malaysian-based and international multinational companies. STAR’K (M) Sdn Bhd today developed and specializes in the marketing of a comprehensive range of high performance specialty construction resin flooring products – from Cementitious to Epoxy, Polyurethane to seamless terrazzo and flatness controlled floors. Using the latest technologies available, it offers flooring solutions that uniquely brings together the highest standards of local expertise with products of international quality. STAR’K (M) Sdn Bhd evolved in their core business as one of the leading contractors in the waterproofing industry. The company specializes in new technologies in the green and environment industries and achieved to be the only one in the industry which completed the first platinum BCA rated building. Also it completed platinum Leeds accredited buildings. The company also specializes as a system solution provider and consultant in energy efficient buildings and to achieve certain U values. The waterproofing products used by the company are one of the most advanced in the industry. In response to the growth potential of the construction industry in the country and across the region, STAR’K moved to strengthen its market position with the development of its own brand of high performance products and obtaining the agency from an establish waterproofing manufacturer from Australia namely Radcrete PT LTD carrying the product known as Radcon Formula #7 and Radmyx. With the appointment of a team of highly experienced and trained technical personnel, this has enabled STAR’K (M) Sdn Bhd to further strengthen its expertise. This has directly led to the company working closely with leading consultants, architects and designers and to the successful specification of the STAR’K range of products in numerous projects in Malaysia and the region. Spurred by the support of its growing network of business associates and satisfied customers, STAR’K (M) Sdn Bhd is now geared towards providing absolute Solutions to the construction industry. As reflected in the company’s tagline “Your Friendly Solutions Company”, STAR’K (M) Sdn Bhd has a rapidly growing team of highly experienced, service-oriented marketing personnel, providing quality solutions to its customers. Most of the marketing and technical personnel in the company are Degree or Diploma holders in their respective trades and have been involved in the successful execution of most of the industrial, commercial, retail, residential projects in the country. STAR’K (M) Sdn Bhd is strategically focused on achieving its 5 E’s corporate mission : Envisioning continuous growth, Endorsing product quality, Embracing product innovation, Ensuring excellent customer service and Engaging new ventures. As such, it is constantly looking out for new ventures and opportunities that will add synergy to its group. In the long-term, STAR’K (M) Sdn Bhd aims to be a world-class market leader.

Sarawak Convention Bureau (SCB) Sarawak Convention Bureau (SCB) was established in 2006 by the State Government of Sarawak. SCB is a non-profit company whose aim is to bring Sarawak to the forefront as a competitive destination for international meetings. The Bureau is a member of the International Congress and Convention Association (ICCA). The Bureau’s goal is to help connect NGOs, corporations and government bodies with whatever necessary to make international conventions a success in Sarawak. SCB recently launched the Business Events Sarawak (BESarawak), a special programme dedicated to all aspects of business events, empowering industry players towards new heights in professionalism and excellence in business events. BESarawak introduces the 3-component programme, Communicating, Educating and Awarding for associations, corporate organisations, government agencies, media and industry partners.

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