outlook 2014 SMS by silverstreet
Makers & Drivers of Business & Commerce
KDN No. PP11067/12/2012 (031173)
penangâ€™s promise of an international & intelligent city
horticulture ISSUE: 1ST edition 2014
ORGA is an independent company with over 35 years of experience in the development, design, manufacturing and maintenance of high quality explosion proof electrical equipment, obstacle lights and marine aids to navigation.
LEADING IN OIL & GAS TECHNOLOGY
Our products are used worldwide on petrochemical plants, offshore installation, ports and harbours and have achieved a reputation for quality and reliability. ORGA’s products and services remain competitive without compromising safety, quality assurance or after sales services. ORGA’s products are developed and manufactured according to all international standards (IALA, ICAO, FAA, CENELEC, ATEX, etc). For more information, please visit us at www.orga.nl
From the Frames headquarters in The Netherlands and our international offices, we have been supporting clients in the worldwide upstream oil & gas industry with custom-made integrated solutions since 1983. Our portfolio ranges from safeguarding and control equipment to complete coverage of the separation train, through to advanced oil, water and gas treatment systems
fractionation. In short, we offer a portfolio from well to pipeline; for offshore, floating production and onshore. Through our office in Kuala Lumpur, established in 2008, we provide direct support to our regional clients and maximize the potential of the local supply chain. Combining extensive experience with state-of-the-art technology enables us to create innovative systems & solutions, solving all challenges presented to us by our clients. Some telling examples of such solutions are an optimized
package built in Malaysia, or a modularized gas SEA ORGA SDN BHD (798744-H) Office Suite 11-10, Level 11 Wisma UOA II No. 21, Jalan Pinang 50450 Kuala Lumpur Malaysia T +60 3 2162 7877 F +60 3 2161 1877 email@example.com www.orga.nl
treatment plant incorporating Frames OVC® zeroflaring technology. These type of solutions are in line with our vision to lead the strategic advancement in technology for global sustainable energy production. Frames Asia Pacific Sdn. Bhd. T +60 3 2284 0822 firstname.lastname@example.org www.frames-group.com
Meco DPL for metallization directly onto silicon.
Fico FSL The number one integrated solution for package singulation.
Esec Die Bonder 2100 The award-winning die bonding platform.
Datacon 2200 evo The multichip die bonder for advanced packaging.
Datacon DS11000 for flexible LED solutions.
Besi develops and engineers assembly equipment for the global semiconductor and electronics industries. Besiâ€™s product lines combine unique knowledge in leading-edge assembly processes for leadframe, array connect and wafer level packaging applications. The high-technology assembly equipment thus guarantee high productivity and quality at low cost of ownership.
Esec Esec covers assembly equipment and solutions for epoxy die bonding and soft solder applications, developed with a clear focus on market trends and reflecting state-of-the-art technology.
MDBC EVENTS / 11
STUDENT INTERNSHIP PROGRAM / 23
Outlook 2014 River of Life Briefing
MEMBERs news / 13
Fico Fico offers molding, trim & form and singulation systems. The reliable systems can process a wide variety of packages. The flexibility of the equipment allows individual configuration responding to customer needs. Meco Meco designs and manufactures plating systems to suit a wide variety of products. The company is known for its high performance, outstanding reliability and top quality.
embassy news /25
ADCN / 27
SOCIAL / 34
mdbc penang / 29
NEW MEMBERS / 36
Being Culturally Competent / 18
Inside look / 20
TALENT STRATEGY / 19
green board / 33
Innovation is our Tradition
Datacon Datacon is one of the most innovative companies in the area of advanced packaging and multichip bonding. Datacon is undisputed market leader in flip chip bonding. Its processes and systems are based on tomorrowâ€™s cutting-edge technologies.
FACILITATING FOREIGN TALENT
A NEW MDBC BOARD COMPOSITION FOR 2014
The Residence Pass-Talent (RP-T) was introduced in April 2011 by the Malaysian Government. It aims to attract and retain top talent in the country with a range of benefits. The Economic Transformation Programme is anticipated to create more than 3 million jobs in the National Key Economic Areas (NKEAs) by 2020. The RP-T will be offered to highly qualified expatriates seeking to continue living and working in Malaysia on a long-term basis.
“MALAYSIA WELCOMES GLOBAL TALENT AND GIVEN THE OPPORTUNITY, MANY WOULD COMMIT TO A FUTURE HERE.” Rakesh Mohan Chief Executive Officer, Unilever
90% HAVE MORE THAN
10 YEARS OF GLOBAL WORKING EXPERIENCE
2,096 RP-Ts HAVE BEEN
APPROVED SINCE 2011
TOP 5 NKEA SECTORS BUSINESS SERVICES
OIL & GAS
90% ARE C-SUITES AND
IN KEY ECONOMIC AREAS,
OF WHICH THE TOP 5 NATIONALITIES ARE: INDIA
“IN ADDITION TO PROMOTING DIVERSITY, FACILITATING TOP INTERNATIONAL TALENT WILL FURTHER ENHANCE THE LOCAL WORKFORCE AND SECURE MALAYSIA AS A DESIRED, WORLD-CLASS TALENT HUB.” Alois Hofbauer
In the previous edition of MDBCONNECTS you have already been able to read on Strategizing the Future of the MDBC, an ongoing process of the MDBC Board and the operational team to lay the fundamentals for a successful 2014 - 2018 for the Council. Hereby we also inform you of several changes in the Board of Directors. After more than 11 years at the helm, Chairman Dato’ Jaffar Indot has resigned. We are pleased to announce and introduce his replacement, and MDBC’s 3rd Chairman since our founding in 1996, Mr Zainul Rahim Mohd Zain. Zainul began his career at Shell Malaysia Exploration and Production (SM-EP) in 1978 as a Wellsite Petroleum Engineer. He has held various positions in drilling engineering, petroleum engineering, and information management & technology in SM-EP and during his two assignments in the Netherlands. Appointed Deputy Chairman and Executive Director of Shell Malaysia in 2001, Zainul also held positions as Shell Asia Pacific Region’s Transition Director based in Singapore and Chairman of Shell companies in Egypt, before retiring from the Shell Group in 2008. Zainul is currently the Chairman of Hibiscus Petroleum Berhad and
also sits on the Board of Bank Pembangunan Malaysia Bhd and Petronas Carigali Sdn Bhd, among others. Jan-Willem Smulders, Managing Director of AQ Services, resigned from the Board after serving for 5 years as he is expected to move away from Malaysia in the near future. On behalf of the Board and all MDBC members, we would like to express our sincere gratitude to Dato’ Jaffar and JanWillem for lending their enormous expertise and support to the Council and for playing their part in MDBC’s substantial growth. For the Financial Year 2014, Michael Brouwer has taken over the Honorary Treasurership from Datin Sandra van Hellemond. We are also pleased to welcome 2 new Directors: Rahul Colaco (Managing Director, Dutch Lady Milk Industries Bhd) and Jacques Hartman (Director Contract Logistics, CEVA Logistics (Malaysia) Sdn Bhd). Their addition to the Board will give more prominence to multinational members and to the Logistics and Consumer Products sectors.
Members of the Board at the recent New Year reception Back row: Jack Ang, Michael Brouwer, and Honorary Member of the Board HE Harry Molenaar; Middle row: Wim Botermans, Sandra van Hellemond, Anne de Graaf, and Marco Winter; Front row: Remco Koster, Datuk Merlyn Kasimir, and Zainul Rahim (not in picture: Barbara Voskamp)
The Board has prepared a white paper on the recommended composition of the Board, based on a variety of principles, such as nationality, gender, membership status, the origin and type of company the Director represents (MNC/SME, which sector). The overall composition of the Board should include a variety of sectors and expertise, in line with MDBC’s membership base, inclusive of important sectors in the Dutch Malaysian bilateral economic relationship, and take current requirements within the Board (such as expertise and committees) into consideration. This white paper will be presented at this year’s AGM. Marco Winter Executive Director Jacques Hartman (left) and Rahul Colaco
MDBC BOARD OF DIRECTORS Mr. Zainul Rahim Mohd Zain Chairman, Hibiscus Petroleum Berhad
Datin Sandra van Hellemond QPA Sdn Bhd
Mr. Remco Koster, Vice Chairman Woodwing Asia Pacific Sdn Bhd
Ms. Barbara Voskamp VoskampLawyers
Mr. Michael Brouwer, Treasurer Silverstreet Malaysia Sdn Bhd
Dr. Wim Botermans RB Lifescience Sdn Bhd
Mr. Marco Winter MDBC Executive Director
Mr. Rahul Colaco Dutch Lady Milk Industries Bhd
Ms. Anne de Graaf Netherlands Embassy
Mr. Jacques Hartman CEVA Logistics (Malaysia) Sdn Bhd
Datuk Merlyn Kasimir Former CEO of Matrade
Honorary Member of the Board:
Mr. Jack Ang Markant (M) Sdn Bhd
H.E. Mr. Harry Molenaar Netherlands Ambassador
Managing Director, Nestlé (Malaysia)
MDBC Patrons: Y.B. Dato’ Sri Mustapa Mohamed Minister of International Trade & Industry Y.Bhg Tan Sri Rafidah Aziz Patron, Malaysia-Europe Forum
Malaysian Dutch Business Council Unit 808, 8th Floor Wisma Lim Foo Yong 86 Jalan Raja Chulan 50200 Kuala Lumpur Tel : 603 - 2722 8335 Fax : 603 - 2141 8335 Email : email@example.com Website : www.mdbc.com.my
MDBCONNECTS · 1ST ISSUE 2014
To learn more, please visit talentcorp.com.my/expatriates/residence-pass
Drinkers of the world, unite.
Everywhere you go, you find the familiar sight of people savouring their Heineken, clanking the green bottles in merriment. Found in over 170 nations, Heineken is the worldâ€™s No. 1 international premium beer. So come, the rest of the world awaits you.
MON 14 / 5.00PM
FRI 16 / 6.00PM
THUR 17 / 9.00AM
MON 19 / 3.00pM
Interchamber at the BMW Malaysian Open 2014
EUMCCI Trade & Investment Forum 2014
THUR 24 / 3.00PM
Visit to The Star Media Hub in Shah Alam
Tastes of Europe Fest 2014
MDBC Special Event: Launch of the MDBC Business Directory & MSA 2014
THUR 22 / 3.00pM
MDBC Penang: Visit to The Star Northern Hub (TBC)
MDBC PREMIUM PARTNERS 2014 TMF
Thur 18 / 6.00PM
International Supernetworking Evening TBC
MDBC members will receive personal invitations for these functions by email once all details are confirmed. All events/dates to be reconfirmed.
Getting a clear (out)look on 2014
Outlook 2014 It is always good to start of the year with an overview of the issues that will affect us and our businesses. Held at MIDA, the Malaysian Investment Development Authority, MDBC invited various captains of industry to help cut through the clutter and point out the expected 2014 trends. With short, 5 minutes to the point presentations and a longer Q&A panel
discussion, Outlook 2014 once again proved a well attended and much appreciated start to the year. The following speakers provided members with the latest developments and expectations within their sectors: On the investments side of things, MDBC invited: Arham Abdul Rahman (Director Foreign Investment Coordination, MIDA): “Malaysia’s Investment Ecosystem 2014” Hew Wee Choong (Director & Team
Panelists l to r: Arham Abdul Rahman, Hew Wee Choong, Alun Jones, Anne de Graaf, Paul Lingan, Kenneth Chong and Ir. Ahmad Hadri Haris
Leader - Investor Relations, InvestKL): “Evolution of Greater KL as the ASEAN regional hub” On the corporate side: Ir. Ahmad Hadri Haris (CEO, Malaysian Green Technology Corporation): “Budget 2014 Incentives for Green Products and Green Services” Kenneth Chong (Corporate Services, Peninsular Property Agent): “Property Market Outlook 2014” Alun Jones (General Manager, Malaysian Exhibition Services): “Malaysian Exhibition Industry - Current Developments and Outlook” Paul Lingan (General Manager, ISC > Innovators): “The Un-Crystal Ball Advertising and Media Trends” And from the Netherlands Embassy, Anne de Graaf (Head of Economics and Trade): “What is the Netherlands’ focus on Malaysia in 2014”. After the panel discussion, there was time for networking and further one on one discussions with the speakers.
River of life briefing MDBC members were invited to join our Netherlands Alumni Association of Malaysia (NAAM) colleagues for a visit to the River of Life (RoL) Project on February 18.
(DID) Malaysia, being the lead agency in the river cleaning component, has set the goal to bring the rivers within the Klang river basin from its current Class III – Class IV water quality (not suitable for body-contact) to Class IIb (suitable for body-contact recreational usage) by
the year 2020. It is a challenging project which can provide the interested parties a better understanding of the RoL project. Also invited was the Director of River Basin and Coastal Zone Management Division of DID who shared additional details on the RoL project with attendees.
The RoL Project is an Entry Point Project (EPP) identified in the Greater Kuala Lumpur / Klang Valley national key economic area (NKEA) under the Economic Transformation Programme (ETP). It aims to transform the Klang River into a vibrant and livable waterfront with high economic value. This transformation is divided into three main components: river cleaning, river beautification and land development. The Department of Irrigation and Drainage MDBCONNECTS · 1ST ISSUE 2014
1st Edition 2014
Milestones, Expansions, CSR and Cooperations
KUALA LUMPUR, MALAYSIA
DUTCH LADY: MARKING A MILESTONE BY GIVING BACK To celebrate its 50th anniversary last year, the dairy giant gave back to society by inspiring the younger generation in Malaysia through the Inspire Tomorrow campaign, aimed to inspire and aid young Malaysian children to pursue their dreams in fields they aspire to through education, sports or creative arts. Through the campaign, Dutch Lady Malaysia (DLMI) carried out a 10-month pledge collection exercise to rally Malaysians to support and inspire our future generation. With an aim to collect 50,000 pledges, DLMI surpassed the target by collecting 52,030 pledges. This was followed by the Inspire Tomorrow Fund (ITF) award of education funds worth RM1 million to 50 children who hail from across Malaysia, between the ages of 4 and 12.
50 selected children in furthering their education or pursuing a particular field of expertise. Touted as the first of its kind in Malaysia, the ITF also saw the collaboration with the Malaysian Department of Social Welfare and the Ministry of Education, who each helped to select 20 deserving
The Netherlands came in fourth place as the happiest country in the world in the 2013 UN SDSN happiness report.
children for the fund. The other 30 children were chosen via a public video submission contest. DLMI continued the 50th anniversary celebrations with the Inspire Tomorrow Workshops, comprising 50 workshops delivered in 10 homes for underprivileged children nationwide from November 2013. The workshops were aimed to inspire the children to chase their ambitions through the focus of education and proper learning. In all, the workshop reached out to more than 274 children and 20 volunteers.
Fifty deserving recipients received the Dutch Lady Malaysia Inspire Tomorrow Fund.
Built on a desire to initiate a sustainable programme with a wide-reaching impact, the campaign was designed to aid the
CARGO PARTNER STRENGTHENS KLM iPad APP SOUTH EAST ASIAN NETWORK KLM Royal Dutch Airlines has introduced
Dynamics in Logistics
After successfully setting up branches in Malaysia, Singapore, Thailand and Indonesia, global logistics company Cargo-Partner is making the move into Vietnam. Cargo-Partner’s new office is located in the heart of the main traffic arteries between the airport and industrial centers of Ho Chi Minh City. As well as standard freight forwarding services such as air and sea freight, Cargo-Partner is also offering warehousing solutions and customs clearance of goods in Vietnam.
► Transports by Air, Sea, Rail, Road ► On all continents and in all seas of the globe ► 24/7 transparency all over the world ► With Accuracy. Reliability. Transparency. Passion ► Perfect Supply Chain for our customers cargo-partner Network Sdn. Bhd. (Formerly known as cargo-partner Logistics Sdn. Bhd.) Suite B610-B611, East Wing, Wisma Consplant 2 No.7, Jalan SS16/1 47500 Subang Jaya, Selangor, Malaysia Email
+60 3 5636-2228
CEO Stefan Krauter states, “We view Vietnam as a rapidly growing market of the future. Having our own branch in the country allows us to purchase freight volumes and control our logistics services providing an optimal flow of information for our customers.”
“Many companies from the electrical, garment and shoe manufacturing industries are based in Vietnam, so it was a logical step for us to open up a branch in the region to provide skilled advice along with prompt service to our customers on location”, Krauter added. With the team at the new office in Vietnam
an app enabling services such as searching for future trip ideas, booking, check-in, an in-app boarding pass and seat selection. “The app was developed with the assistance of international experts in the field of travel and design and a selected group of KLM social media followers. They have helped enrich core functionalities and improved the app’s usability.” shared Martijn van der Zee (Senior Vice President, E - Commerce, Air France KLM). Customers with a KLM or Flying Blue account can find their profile information and all they need to manage their journeys. The app will be subject to continuous improvement and is currently available in 11 languages. Later this year, the tablet app will also be developed for Android. MDBCONNECTS · 1ST ISSUE 2014
we take it personally
Exact the ﬁrst to offer pay-per-month licensing No minimum period, no up-front investment These uncertain times make large up front investments and long term commitments difficult. We understand that. We also want to make sure your business has access to the right tools for success.
Manufacturing Your customers demand quality. You demand it’s created on time, on budget. Whatever your processes, our enterprise-wide solutions will boost your speed, increase your accuracy and protect your proﬁts.
Professional services Drive growth by going beyond your customers’ expectations. Professional Services Automation ensures resources are utilized efficiently, and projects managed to successful, proﬁtable outcomes.
Wholesale & distribution With margins under pressure from every direction, you need insight into your entire operation. Exact’s wholesale management suite empowers you to ﬁne tune your supply chain, ensure efficiency and maximize proﬁts.
With pay-per-month licensing, your ﬁnancial entry barrier is lower, helping you to pursue opportunities with the right support and the freedom to change or stop as you need to.
Your challenges are the heart of our innovations. We’d love to show you the difference they can make. T +603 2081 6888 E firstname.lastname@example.org
KUALA LUMPUR, MALAYSIA
A milestone for software vendor Exact: The number of apps for Exact Online in the Exact App Center (available for customers in the Netherlands) has tripled in 2013 and shows the biggest growth since its introduction just over a year ago. The number of app users increased by a tenfold and the number of software partners offering apps increased to forty. The Exact App Center is an online store with add-ons to the Exact business software, sorted by industry, solution area and product lines. Customers can order the individual apps and install them on top of their Exact solution.
Dashboards distil large volumes of complex data into easy-to-read overviews - helping you identify issues and responding to them effectively.
Workﬂow Management allows your entire range of business processes to be managed in one seamless environment. Gain the complete 360 degree view by interconnecting every business entity to the right tasks, information and people.
Event manager ensures important information ﬁnds you (via - email or SMS), and not the other way around. Helping you address challenges before they become problems.
With online access to key functionality like leave registration and the reporting dashboards, you can boost efficiency and offer your employees greater freedom and flexibility. Working from smartphone or tablet, anywhere, anytime, becomes a reality.
relevant apps to his financial software through using the Exact App Center. For example, a retailer is able to connect the POS system to the accounting software for real-time insights in the stock. A manufacturer can choose for a time tracking app on top of Exact Online Manufacturing, which tracks cost prices real-time. Webshop owners can select branch specific apps to integrate their orders and payments into the Exact Online accounting system.
ERP for SMB market Small and medium-sized businesses usually have limited resources available. By using software it is possible to automate a lot of activities and the Exact App Center can help entrepreneurs with this. An Exact Online customer, for instance, can connect more and more
presses to the state-of-the-art level of contemporary newspaper presses. This was made possible through an extensive configuration by Dutch company and MDBC member, Q.I. Press Controls. These presses are used to print the Englishlanguage newspaper, ‘The Star’, with a print run of 300,000 a day. In order to remain competitive, Star Publications realised that to achieve a better print quality and a viable return of investment, the solution would also include QIPC’s fully automated fan-out system with ABD. Two presslines are in operation at The Star Media Hub in Shah Alam and one at the Northern Hub in Penang. According to Job van Hasselt, Area Sales Director Asia Pacific, “The fully automated operation of QIPC’s systems, the user-friendly and logical operating interfaces and IQM’s function as a management tool considerably increases the effectiveness of Star Publication’s production platform”.
HILTON SIGNS MAICA: Bringing aCADEMIC MaiAmbassador to THE Public ALLIANCE WITH KDU “Please Bring maimai Home With You”. sold out during the second day, with The tagline of two lovely maimai soft toys, one in blue and the other in pink, screamed for attention.
Prof Khong Yoon Loong (KDU Vice Chancellor) and William Costley (Vice President, Southeast Asia - Operations, Hilton Worldwide) signing the partnership agreement.
1st Edition 2014
EXACT SOFTWARE: Business QIPC rejuvenates The Star’s presses apps gain popularity within SME sector Star Publications Bhd recently upgraded its Goss Colorliner newspaper
Reporting & dashboards
Hilton Worldwide recently announced a school partnership agreement with KDU University College’s School of Hospitality, Tourism and Culinary Arts to develop talents for the country’s rapidly growing hospitality industry. Under the Hilton Class program, Hilton Worldwide will offer students of KDU rigorous on-thejob practical training and a theoretical curriculum designed to equip them for successful careers in hospitality. “This school partnership with KDU underscores our global commitment to impact a million young people by 2019,” said Vice President William Costley.
This is the first time the cherubic maiAmbassador of Maica Laminates Sdn Bhd in Malaysia has been produced as a cuddly soft toy, and for the right reasons too. The limited edition soft toy was made exclusively for the support of the company’s maiCSR program which raised funds for Pure Lotus Hospice of Compassion.
the ambassador’s fans asking for more. Though this was a special edition, limited run of the soft toy, there is sure to be a new maimai collectible in the next maiCSR program. What will it be? Top: Presentation of cash at the Pure Lotus Hospice of Compassion Bottom: Preparing to bring maiAmbassador home
The selection of a beneficiary for the maiCSR programs is strict. Maica ensures that all collected funds are used directly for the target beneficiaries, in this case, the patients of the hospice. The fundraising program was done at Malaysia’s largest architect and interior designers event, ARCHIDEX. As one of the largest exhibitors of the event, Maica was able to leverage on the attention from attendees and the maimai soft toy MDBCONNECTS · 1ST ISSUE 2014
KUALA LUMPUR, MALAYSIA
1st Edition 2014
BRUGMAN CUP KL 2014 This March, Brugman Events from the Netherlands gave a presentation to the Mayor of Kuala Lumpur and a high-level delegation of Kuala Lumpur City Council on the Brugman Cup 2014, the first Asian Arabian Horse event. This high profile event is scheduled to take place at Merdeka Square in KL from 12
With a distinctive head shape and high tail carriage, the Arabian horse is one of the most easily recognizable and most popular horse breeds in the world. Datuk Bandar Kuala Lumpur, YBhg Datuk Seri Hj Ahmad Phesal bin Hj Talib (6th from left) and Maud Brugman (5th from left) showcasing the Brugman Cup KL 2014 poster, together with the DBKL and Brugman Events teams
- 14 December, in conjunction with Visit Malaysia Year 2014.
Brugman Arabians is a Dutch-owned upcoming stud in the world of Arabian horses.
Shell and fisheries LAUNCH fad Recently the official launch of the Fish Aggregating Device (FAD) project took place. It is an innovative program funded by Shell Malaysia and delivered jointly with the Sabah Government through the Sabah Department of Fisheries. This is Malaysia’s first private-public sector project of this nature for fishermen. FADs are man-made floating structures aimed at attracting fish. The project involves creating new fishing grounds by placing FADs a safe distance away from the restricted Gumusut-Kakap deepwater project area. 10 FADs were safely installed in the pre-identified
area, located about 85 nautical miles off Kota Kinabalu. Sabah Department of Fisheries Director, Datuk Rayner Stuel Galid and General Manager for Sabah, Shell Malaysia, Siti Sulaiman were present at a symbolic ceremony to mark the official deployment of the FADs. Also present were members from the Kumpulan Nelayan Pancing Tuna Kota Kinabalu, who will become license holders for the FADs and responsible for operations and maintenance. “Our priority is, and always will be safety. As a responsible operator, we do not want our activities to interrupt the livelihood
Datuk Rayner (foreground, second right) and Siti (foreground, third right) casting mock replicas of the Fish Aggregating Devices (FADs) to the ocean, to mark the launch and installment of the FADs
of the communities we operate in, whether onshore or offshore. These FADs will ensure sustainable and continued fishing grounds for those affected by our operations,” Siti said.
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Randstad is a Fortune Global 500 Company and one of the world’s largest recruitment & HR services organisations. We are passionate about matching people with companies that will develop their potential and matching companies with people that will drive high business performance. As a Williams F1 Team Official Partner, Randstad is committed to supporting businesses outperform in their field. With over 17 years experience in Malaysia, our team understands what is needed to maintain a competitive edge, with experienced consultants across:
We all need electricity. Whether it’s to light up the local football match or warm the half-time drink – it’s an essential part of powering our lives. Shell is helping to deliver natural gas to more countries than any other energy company. When used to generate electricity, this natural gas emits around half the CO2 of coal. It’s one of the most abundant sources of energy available today and, with our continued innovation, it could provide us with cleaner energy for around the next 250 years. And it’s one of a number of different sources of energy we’re investing in to power and sustain our lives today and into the future. Let’s broaden the world’s energy mix.
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search: shell Let’s go
To explore interactive stories on innovation in energy on your iPad, scan the code or search ‘INSIDE ENERGY’ in the App Store. MDBC - March 2013.indd 1
20/3/2013 10:46:31 AM
MDBCONNECTS · 1ST ISSUE 2014
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people: nEED TO BE CULTURALLY competent
10 Talent strategy game changers
Text by Aneeta Sundararaj (Published in the New Straits Times)
Randstad is a Dutch multinational human resource consulting firm headquartered in Diemen, Netherlands.
difficulty with the local perception of time. “He couldn’t understand why his tennis coach hadn’t turned up for his lesson. The coach hadn’t called to cancel. When they next met, the coach said nothing, as though nothing had happened.
The average Malaysian will walk into the office, head for his/her desk, switch the computer on and start reading emails. At most, he/she will say “Good morning” to three people: A secretary, a colleague and the boss. “The French can’t understand this. In France, everyone greets each other and shakes hands. The women will kiss each other on the cheek,” says Marie Tseng, 45, an expert in cross-cultural competencies. The first scenario is common in companies that rarely focus on diversity and crosscultural training for their employees. In her boutique consultancy, Cultural Impact, which focuses on cultural diversity, Marie has come across many people who think that if we’ve been exposed to people of different backgrounds, we’re culturally competent. The reality is that people don’t understand the essential role that culture plays in how well we communicate and interact with one another. To illustrate, she gives the following example: “A foreign client was at a party when a Malaysian guest said to him, ‘You must come and visit. I live in Petaling Jaya. Drop by my house’. Like most Europeans, my client took this as an invitation. When he called to fix a time to visit, the other person said something like, ‘My house is hard to find’. The European replied, ‘Don’t worry. I’m great with the GPS. I’ll find your house’. He didn’t realise that the invitation wasn’t actually an invitation.” Laughing, she adds: “He doesn’t know that sometimes, Malaysians will say ‘yes, yes, yes’, when they mean ‘no’.” On another occasion, another client had 18
MDBCONNECTS · 1ST ISSUE 2014
“When I asked my client if he had sent a text message to reconfirm the appointment, he looked surprised and asked me, ‘Why should I reconfirm? I had already fixed the appointment’.” Marie explains: “In Europe, when an appointment is set, it’s set. There’s no need to reconfirm, even if the appointment was made six months earlier. If you cancel, you better have a good reason for doing so. As for my client, I advised him to reconfirm lessons in future.” In the workplace, multinationals often send someone from the head office in Europe to show a Malaysian counterpart how things work. She’s had European clients who say that since the Malaysian remains quiet, smiles and asks no questions, the European assumes he does not understand him. So he explains the same things over and over again. Marie is aware that the Malaysian is probably not accustomed to asking questions and merely smiles in response. Amused, she adds: “The smile becomes wider and wider, but, inside, he’s probably thinking, ‘You’re so thick, I don’t even want to tell you how arrogant you sound’.” The lesson here, she says, is that both parties need to understand where the other is coming from and each party needs to explain the way they do things. A good example she gives was when she asked a group of Malaysians their definition of a good manager. “They said a good manager is someone who shows he cares and is a good person. I told some clients in France this and they said, ‘Who cares if you’re a good person? You’re here to do a job. If you’re good at what you do, you’re a good manager’.” The rationale for this difference, says Marie, is religion. “In France, more than 30 per cent are atheist. Here, this number
is less than one per cent.” She goes so far as to extend the French national motto of “Liberty, Equality, Fraternity” to include “Laïcité”, which broadly translates into secularism. However, strong religious beliefs here reinforce the idea of “togetherness”. “Here, there is a ‘we’ culture. Most people feel the need to belong to a group. This group can be a school group, a group within a company or even ethnicity.” By extension, it is possible to equate a good person with one who is religious as well. “The French,” she adds, “are more individualistic and often say, ‘I can do whatever I want as long as I take responsibility.’” She admits that it is hard to have one’s beliefs challenged and recalls the time her husband challenged the concept of equality. “I thought it was almost blasphemy for him to say that we’re not all equal. As time passed, I came to see that, in a practical and realistic sense, we may not all be equal. It all depends on how you define words such as respect, hierarchy and so on. These are culturally loaded terms. And culture is the collective programming of the mind.” To demonstrate, she refers to a world map. “We’re programmed to think that Europe is up and Australia is down. Invert the map. What happens? You’ll see that Australia is up and Europe is down.”
Founded in the Netherlands in 1960 by Frits Goldschmeding, Randstad operates in 39 countries and specializes in human resource services for temporary and permanent jobs, including contract staffing of professionals and senior managers. The Randstad World of Work Report
2013 / 2014 stems from 14,500 survey respondents across Asia Pacific. Each year, the Randstad World of Work Report aims to bring our future into the frame.
originate from the different priorities or life experiences of each cohort, as well as the broader business realities in their industry or country.
While much has been written about differing leadership styles among the generations, Randstad’s findings show many areas of agreement and a few key differences - particularly when it comes to views about flexible work, adaptability and technology. It makes sense that a different focus or perception may well
What is clear is each generation of leaders brings both common and unique values and skills to the table to address one of the most important issues for organizations right across Asia Pacific - creating and implementing a game changing talent strategy.
Insight into 10 new rules for the talent strategy game. 1. Skilled talent shortages are expected to persist across the Asia Pacific — even in countries where growth is slowing — due to the restructuring of many economies and labour markets. 2. Organisations across the region need to make meaningful, inclusive workforce planning a priority to ensure their survival and success when it comes to attracting global and local talent.
That said, are things changing here? Are we becoming a more egalitarian society? Marie’s answer is telling: “I hear it but I don’t see it. There is a greater desire for equality. But, in the family, Dad will still decide what’s best. In the workplace, my clients still say, ‘All are equal until we’re not and we don’t know when the ‘we’re not’ is going to happen’.”
3. Effective workforce planning in this decade means using a mix of enabling tools, systems and strategies to attract, develop and retain an increasingly mobile and skilled workforce.
Overall, she feels that “we may not be able to change the various cultures we come across, but we can certainly make an effort to understand them. Then, we can find a way that fits everyone and move forward”.
5. High-end recruitment process outsourcing (RPO) can provide access to niche, hard-tofind skills, improve recruitment efficiency, and increase workforce scalability and flexibility.
6. The Asia Pacific region faces nothing short of a leadership crisis — it’s time for organisations to re-think their approach to attracting and developing leadership talent. 7. Organisations who need creative, adaptive leaders must find professionals with wide-ranging experience across multiple sectors or functions — who are confident with risk and uncertainty. 8. Talent analytics can help organisations understand the behavioural patterns and desires of top professionals enabling them to attract and retain them for the leadership pipeline. 9. Start small when it comes to talent analytics — choose one human capital problem you need to address and determine how the employee data within your organisation can help you to solve it. 10. Achieving measurable success on a key human capital challenge will help HR and business leaders build the case for greater investment in talent analytics and big data in the future. For more information, please contact Randstad and request your copy of the World of Work report.
4. The critical need for specialist professional and technical skills is driving organisations to consider outsourcing to experts in strategic planning, talent mapping and talent management.
MDBCONNECTS · 1ST ISSUE 2014
AN INSIDE LOOK
AN INSIDE LOOK
AN INSIDE LOOK: SILVERSTREET - SIMON LANDSHEER & MICHAEL BROUWER Silverstreet is a specialist Mobile Messaging (SMS) company offering global sending options to over 120 countries. Their primary focus is on mission critical traffic and high volume (wholesale) clients. Founded in 1999, Silverstreet is a diversified telecom group with interests in various tele and .com companies. Working with over 3000+ businesses, including mobile service providers and enterprises, Silverstreet’s mobile messaging solutions and innovative, highly scalable transaction platform continually provide their clients with unique, reliable and secure solutions. MDBC recently had a sit down with both Simon Landsheer (President & CEO) and Michael Brouwer (Chief Financial Officer). Simon has been responsible for the company’s immense growth and expansion from its initial foundation in the Netherlands throughout Europe and subsequently into Asia, Africa and Australia, establishing Silverstreet as one of the leading SMS aggregators in the global mobile industry. Michael joined Silverstreet in June 2011 and brings a total of more than 20 years of accounting, financial analysis and business planning experience to the team. With very different and yet complimentary personalities, these two affable gentlemen balance each other out and are part of a dynamic team that is taking Silverstreet forward. MDBC: Please tell us a little bit about the history of Silverstreet: Conceptualization, start up, expansion to Malaysia? SL: Silverstreet was founded by my good friend Maikel Lambregts; he was selling tools to send Bulk SMS to mostly clubs and bars in the Netherlands. Over six years, Maikel built the company up with a team of freelancers and no permanent staff. I Simon Landsheer
MDBCONNECTS · 1ST ISSUE 2014
joined Silverstreet in 2006 as a Commercial Director when Silverstreet was sending around three-million SMS per month, mostly in the Netherlands, and my job was to optimize the business. In the early days I focused on technical support, finances and sales. At one point I realized I had to set up a small department running 24/7/365 days a year for customer support. It did not make sense to run this from the Netherlands, due to the high cost involved and a somewhat overregulated environment. In late 2008, at a trade conference in Macau, I met my current Malaysian business partner, Ben Chong. He was experienced in our industry and happy to take on a new opportunity, so we set up a customer support office in Kuala Lumpur. I came to KL in early 2009 and kind of never left. Having an office in Asia was such an eye opener for me - a vibrant environment, easy and cheap to travel within the region, and such a wide open market. From Kuala Lumpur I expanded Silverstreet in to many other countries, with spin-off businesses in Malaysia as well as most other countries in the region. In 2011, Maikel decided to take a step back in Silverstreet, and I became the President & CEO, installing a strong management team under me to take charge of the day-to-day operations. My main focus today is on expanding the group of companies we have built. Nowadays we process multiple billion SMS messages per year and we are still growing steadily. MDBC: What have been some of the biggest challenges in setting up and expanding your company in Malaysia? In the SEA region? Europe? Michael Brouwer
MB: As we expand, we’re always trying to find the right staff, candidates that can adapt to different cultures, work across different time zones, learn quickly and grow with the business. I have previous experience in other countries such as the US and Singapore, and other (mobile) telco’s. However, technology seems to go faster every year. Nowadays, every employee needs to be able to adapt. MDBC: What do you think are the major challenges facing the top players in your industry today? MB: Anyone can send an SMS message in a few seconds, we can send thousands. Key is that the back office is on par with customer expectations. SL: We operate in a very small industry, and we are very familiar with the other top five players. I think our advantage is that we are 100% private owned and we have no external shareholders to answer to. We strive to focus on clean practices, both with the services we offer and within the industry as a whole. Working in unison with each other and operators to establish and follow regulations is key to the success and sustainability of an organisation in this industry. Abuse of loopholes, practiced by some, rightfully sets operators up to impose far greater restrictions on the industry as a whole in terms of what is and what is not possible with SMS connectivity. We want to move forward and make a positive contribution to the industry, rather than taking steps back. MDBC: Given the increase in smartphone sales and app development, what kind of changes do you foresee in your industry for the next five years? How do you see Silverstreet adapting to these changes? SL: If you do similar business tomorrow compared to what you’re doing today, you are actually moving backwards. We have a strong desire to keep growing upwards. By no means do I believe that SMS is dying, and there is still a time and a place for Peer-to-Peer (or people to people) messaging, for example in emerging markets where feature phone use is still prevalent we actually published an interesting whitepaper & infographic on this topic recently. However, the majority of our business is in Application to Person and I see that this is still growing and this is where opportunities lie. If you look at SMS as an app, there is no other app that is installed on literally every single mobile phone in the world,
content. The three-tiered approach - combining marketing, PR and sales - is one we put into practice at Silverstreet. and no other app will ever reach that level. Silverstreet has a sizeable Research & Development department in the Netherlands and we have them spend around 70% of their time on new developments / products to create future contributions to the Silverstreet group and the industry as a whole. MDBC: What are some of the biggest business development challenges you face in your industry? How do you address these issues? MB: Our industry used to be based significantly on pre-paid financial settlement. In the last couple of years this has moved towards post-paid financial settlements. Another major issue we see is margin corrosion throughout the industry due to the increasingly high and frequent attempts of certain players in the market to find loopholes or otherwise questionable ways of terminating SMS around the world. We more than tripled the capacity of our platform to cope with that at significant cost. While there are certainly various respectable and dignified players in the industry who share our belief in focusing on quality of service, quality of staff and educating our customers in terms of how the global SMS marketplace works, we see far too many companies trying to differentiate themselves by simply being the cheapest, regardless of how that status is achieved. This puts the respectable players in the industry, which is a category that we humbly consider ourselves to be part of, in a position whereby we must lower our prices to compete while in parallel working with the mobile operators and our customers to create a more reasonable and fairly structured market. We are also proud of our customer support and admin teams who are able to provide customers with very quick answers to their questions and requests. MDBC: Given confidentiality issues and a general lack of understanding over your company’s offerings, what are some of the major marketing challenges you face? How have you overcome these issues? What advice would you give leaders in niche industries such as yours who are looking to raise their profile and increase visibility and awareness? SL: Our product offering spans across different verticals and audiences. To ensure that our customers stay informed about what we do, as well as the role we play in our industry, it is important to proactively provide consistent and easily digestible
Accessibility is key: when potential or existing customers are looking for something that you can provide, they want to have access to it quickly. We have a dedicated, 24 / 7 sales team providing round the clock assistance, we’re continually improving the usability of our website and we regularly provide value added content for our customers in the form of blog posts, whitepapers and case studies. Marketing today means it is no longer efficient to send out a press release pumped with keywords in the hopes of helping your SEO. Instead, know your different audiences and provide them with targeted, good quality content and a strong sales and support team. Keep abreast of industry trends yourself and share your knowledge. This will help keep your company top of mind and position you as a trusted leader in your field. One of our main challenges in our marketing approach is that we handle SMS traffic for all the blue chip players, but we can’t always market it like that because they are front faced by value adding resellers and aggregators. MDBC: What is the best advice you’ve ever been given? MB: This may sound odd coming from a CFO, but: If everything seems under control, you are not going fast enough (Mario Andretti, former F1 driver). You must have a basic framework that pre-empts major risks, but especially as CFO, I also need to enable the business to grow, which means taking some calculated risks. It applies to many situations, also your own life. SL: If you move 10 steps forward and seven steps backwards, you still move three steps forward. Don’t trust someone who can’t trust you. You can only multiply if you’re able to share... Those are some of my favorite one-liners. Best advice I have ever been given is that I should strive for what I want because no one is going to hand it to you.
MDBC: What advice would you give to a young entrepreneur starting their first business? MB: Find the right local accountant, tax advisor and auditor to ensure local compliance and avoid risk exposure. Examples are payroll, GST, corporate tax, statutory filings etc. Gain experience from working with such parties before taking these services in-house. SL: I agree with Michael’s points. It’s important that you focus on what you’re best at, and in your startup phase leave all the time-consuming admin stuff to external professionals. It also makes a lot of sense to find like-minded, experienced entrepreneurs. It even makes sense to talk to failed entrepreneurs, you’ll learn from their mistakes. Don’t be afraid to share and impart knowledge you learn too, we don’t operate in isolation and can all learn something from each other, especially in the startup phase. Silverstreet Group provides management support, back office and financial support to startup companies that come to us with an idea we believe in. Also, once you realize you have a blue print, trust your instincts and your capabilities. Outside advice has its place but don’t let other people tell you they know better. They don’t always and it can end up costing you a lot of money if you listen to them. MDBC: Do you have any plans that you can share with us about your future goals? MB: Our approach is to constantly look for new opportunities to reduce dependency on a single SMS product. We are also restructuring the business whereby our Singapore company becomes the global Headquarters. SL: We don’t need to be the biggest, but a big focus for us is sustainability, growth and a positive impact in our industry. We continue to grow our core business and a significant amount of the money we make with that business is used to invest in setting up new business verticals. With the Silverstreet team in Malaysia
MDBCONNECTS · 1ST ISSUE 2014
STUDENT INTERNSHIP PROGRAM THE INTERN INTERVIEW: Berit Wildschütte Berit Wildschütte, also known as “B”, is doing her internship at MDBC member company ISC>Innovators. She is writing her bachelor thesis in the field of advertising as she is studying Art & Technology at Saxion University of Applied Science in Enschede, The Netherlands. Integrated Strategic Communications (ISC) was established in 1994 by Austen Zecha and YAB Dato’ Paduka Mukhriz Mahathir prior to its joint venture with TBWA from 2001 to 2011 and its subsequent re-activation as ISC>Innovators in January 2012. ISC>Innovators also has its own fully integrated and multi-award winning “sister” agency, Olomana Loomis ISC located in Honolulu, Hawaii, USA. The Honolulu agency is a member of the ICOM international consortium of leading independent agencies with more than 80 offices worldwide.
Silverstreet is a Wholesale Bulk SMS provider with almost 15 years of experience in the industry, covering more than 800 networks in the world. Silverstreet's mobile messaging solutions and innovative, highly scalable communication platform continually provides our clients with unique, reliable and secure solutions to help grow their business..
While working with ISC, B is researching the ethical values of alcohol brands while advertising the product in different countries: Malaysia, Germany and the United States. Employed as a Designer, B also helps out in the Digital Department and is working with clients G.H. Mumm Champagne and Absolut Vodka in order to have reliable references for her thesis. “It is really interesting to see how this theme is getting handled in a Muslim
Virtual Mobile Numbers
Berit with ISC>Innovators founder Austen Zecha at the ISC office.
country where promoting and consuming alcohol is regulated”, she says. B is able to really get hands on with advertising the products as she is also one of the Admins of the clients’ pages on Facebook, managing and designing postings. Since B is also a freelance photographer, it is a good combination with the tasks she has been assigned to. Her work for the clients extends to shooting event photos for the brands’ Facebook pages. She is also managing the clients and supliers side.
can try a lot of different foods. We also get to see a lot of different places in Kuala Lumpur, even while I am at work.” After her internship, B wouldn’t mind an opportunity to stay in Malaysia. She shared, “It is a beautiful country and everyone is really friendl; the heart of advertising and technology is here, so why not start my young career in Asia?”
In addition to the work that she does with the clients, brainstorming and visualizing, she is also allowed to do photoshoots on her own or just to assist. “I enjoy my work a lot. My work colleagues are really friendly and we go out for lunch almost every day so that I
Many of the students from the February 2014 SIP intake at the National Textile Museum for their cultural briefing and introduction to Malaysia, its culture and customs.
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MDBCONNECTS · 1ST ISSUE 2014 11/03/2014 15:53
NETHERLANDS EMBASSY NEWS
The Art of Packaging
Visit to kuala lumpur kepong hq ipoh
Cleaning, developing, producing, and distributing packaging for high quality and fragile industrial products
Ambassador Molenaar, together with representatives of the Embassy and Netherlands Foreign Investment Agency paid a visit to the headquarters of the plantation group Kuala Lumpur Kepong (KLK) in Ipoh on 12 February 2014. KLK is a public-listed plantation group with core businesses in oil palm and rubber plantations, oleochemicals
AMBASSADOR’S VISIT TO JOHOR BAHRU
After a visit to the North, Ambassador Molenaar went South to visit Johor Bahru and get a better overview of Khazanah’s involvement in the Iskandar Development, the general progress in Iskandar Malaysia and the possibilities for Dutch companies
meanwhile in kuala lumpur
ASEAN - NETH LINKEDIN GROUP Besides visits from Embassy staff to work on cooperation with our Malaysian partners, our presence in cyberspace is of course highly important.
No.28, Jalan Mega 1/5 Taman Perindustrian Nusa Cemerlang 81550 Nusa Jaya, Gelang patah Johor, Malaysia
LinkedIn is a great platform to share business information, but even more so
Tel: +607 5545678 Mail: email@example.com
and property development. KLK also has operations in Europe through two subsidiary companies - DR. W. KOLB NEDERLANDS B.V. in Moerdijk, Netherlands (speciality oleochemicals) and KLK Emmerich, Germany (fatty acids and glycerine).
the delegation also visited one of KLK’s oil palm plantations and palm oil mill in Tanjung Malim. At the plantation, the Ambassador was invited to visit a primary school and present schoolbags to the students on behalf of KLK.
Ambassador Molenaar met the CEO of KLK, Tan Sri Lee Oi Hian and discussed KLK’s palm oil related businesses in Malaysia and the Netherlands as well as KLK’s view of the Palm Oil industry including sustainability issues. Following a visit to the headquarters, in Johor. Of course, an official courtesy visit to the Sultan of Johor was scheduled. Ambassador Molenaar visited together with the EU Ambassador, H.E. Luc Vandebon. The presentation by the Iskandar Regional Development Authority (IRDA) provided an update on the current investments (the Netherlands is the 5th largest investor in Iskandar and the 2nd largest from the EU) and quality of life in Iskandar Malaysia. And there is no businesses without the PR of sports, once again proven by the CSR project of Khazanah, the “Cruyff Court”.
NMIT’s new campus is based at EduCity and is working towards filling their 4,000 students capacity. NMIT has developed, and is continuously designing, programs that range from Ceritificate, Diploma, Degree and Master levels. The diverse maritime-focused programes are to be accredited by the Malaysian Qualification Agency (MQA) as well as the appropriate certification bodies in the Netherlands.
While in Johor, we also took the opportunity to visit the Netherlands Maritime Institute of Technology (NMIT). On 10 February, the Netherlands Foreign Investment Agency (NFIA), hosted the annual Southeast Asia regional meeting in Kuala Lumpur. Participants from NFIA Singapore office Adeline Tan (Senior Project Manager) and Suzanne Sweerman
(Executive Director, SEA NFIA) as well as Peter Van Zanten from the Embassy in Bangkok participated in discussions on evaluating last year’s performances, budgets and targets as well as planning for the year ahead.
to enhance connections. Acknowledging that many of our contacts are interested not only in Malaysia, but in ASEAN as a region or some of the other ASEAN countries in particular, the Embassy in Kuala Lumpur took the initiative of starting the ASEAN - NETH LinkedIn Group. With some great help from our colleagues in Vietnam, one month after the launch at the start of the Year of the Horse the group is now
already approaching 400 members. The Embassies in Bangkok, Singapore, Jakarta and the office in Myanmar are part of this network. Join the group and see which other parties are already there; you may have some common interests. In addition to following the Dutch / ASEAN business interests, you are also invited to share relevant business information and at the same time build your profile in this Dutch / ASEAN business community. MDBCONNECTS · 1ST ISSUE 2014
ADCN Regional ADCN/Embassies Meet This March, the ASEAN Dutch Chamber Network (ADCN) was able to get together again in conjunction with the regional gathering of the Heads and Counsellors of the Economic Departments of the Netherlands Embassies and Consulates in the Asia Pacific region. Besides conducting their regional coordination meeting, the Embassies all played their part in a Seminar, “Doing Business in the Asia-Pacific Region”, which was organised at Philips Electronics Singapore by the Embassy of the Netherlands in Singapore and DutchCham Singapore on 6 March. Thailand, Cambodia, Laos, Myanmar, Vietnam, Indonesia, Malaysia, South Korea, Japan, Australia and New Zealand all provided a much-appreciated balanced overview of both the opportunities and challenges in doing business in these countries in front of a 120-strong audience mainly consisting of representatives of Dutch companies based in Singapore. Simultaneously, an Information Fair, at which the Chambers were also present, was held so that the corporate representatives could gather further information.
Above: MDBC Directors Barbara Voskamp, Jack Ang and Marco Winter at the Information Fair; Right: Brainstorm by Embassies and Chambers; Below: The 4 ADCNExecutive Directors (l to r): Elmar Bouma (INA), Marco Winter (MDBC), Nele Cornelis (DCS) and Bert Cesar (NTCC)
ADCN participants were the IndonesianNetherlands Association (INA), Netherlands -Thai Chamber of Commerce (NTCC), Malaysian Dutch Business Council (MDBC) and DutchCham Singapore (DCS). The ADCN group also discussed setting up a regional events calendar for all our members, the combined information distribution on the ASEAN Economic Community (AEC) and the upcoming launch of an ASEAN Chamber in the Netherlands under NCH. The cooperation between Embassies and Chambers was discussed during a combined session: what are the mutual interests and how can we streamline and improve the informative and commercial services which are to be provided in each country. Local circumstances will further impact the need for, and level of cooperation. All organisations also see the benefit of cooperation when it comes to explaining the importance of ASEAN in the Netherlands.
MDBCONNECTS · 1ST ISSUE 2014
MDBC Penang Penang’s Promise of an International & Intelligent City Text by: Remco Koster (Managing Director, WoodWing Asia Pacific and Vice Chairman of MDBC)
On 13 March, the MDBC together with the Chief Minister’s Office, investPenang and the Penang Institute organized a highly anticipated briefing by the Chief Minister, YAB Lim Guan Eng, in the grand ballroom of the majestic Eastern & Oriental hotel in Georgetown. Entitled “Penang’s Promise of an International & Intelligent City”, the briefing also included speakers from the Penang Institute, investPenang, the Malaysian German Chamber of Commerce and Industry (MGCC), the American Chamber of Commerce and Industry (AMCHAM), the Delegation of the European Union to Malaysia, and MDBC itself, all of whom later also participated in a lively panel discussion with the more than 200 attendees present.
and healthier- and its tagline: ‘Freedom to freely realize your potential.’ On a lighter note it was highlighted that Penang is currently number 10 in the list of top ‘selfie’ destinations in the world. To see what a selfie is and what selfies were made at the event I welcome you to visit our MDBC Facebook event photo page: www.facebook.com/mdbc.com.my/ photos_albums.
YAB Lim Guan Eng during his presentation
Kicking off the briefing, YAB Lim Guan Eng touched on the evolution of Penang from its humble beginnings exporting commodities to its current position providing (outsourced) services and as a successful destination for manufacturing goods. Outlining the vision of Penang’s future: to be the Silicon Valley of Malaysia, the Chief Minister shared that Penang is planning a RM3.3 billion 7 acre IT and business process outsourcing (BPO) hub. This hub will also boast a new technology university which aims to be in the top 100 in the world. A lot of work is also being done to develop Georgetown and continue to spark the creative spirit of the art and culture scene there. Medical tourism, currently growing by 15% annually, is becoming more important as well. The Chief Minister finished by explaining Penang’s aim for the future: to be leaner, meaner, safer
Continuing the session was Dr. Lim Kim Hwa of the Penang Institute. Dr. Lim explained the Penang Institute’s framework for creating an international and intelligent state in Penang, called the Penang Paradigm. The Penang Paradigm aims to create a balanced society by being culturally vibrant, intellectually creative, socially progressive, politically empowered, environmentally sustainable and last but not least, materially prosperous. There are three drivers for progress: ideas, private investment and public infrastructure, by focusing on the integration of these drivers Penang hopes to create three systemic properties: economic dynamism, liveability & sustainability, and social development & inclusion. Regarding investment opportunities in Penang, Loo Lee Lian (General Manager
of investPenang) highlighted that the current GDP of Penang was divided equally between the manufacturing and services sectors. For 2014, the target focus sectors for Penang will be the semiconductor, aerospace & avionics, LED, medical devices, services and SSO sectors. Penang’s focus is and will be on knowledge intensive and innovation-led industries. All of the above will contribute to Penang’s key objective of becoming a knowledge intensive state, whilst also honouring Penang’s rich cultural heritage. Expanding on the investment side of this briefing was Alexander Stedfeld (Executive Director, MGCC) who stated that the first German investment in Penang went back to 1881. Stedfeld explained that quality is more important than the quantity of high paying jobs. It was noted that not only are many new investments coming into Penang, but that existing investors are significantly increasing their investments in Penang. Three success factors were attributed to this: excellent infrastructure, large amount of qualified people, and a competitive cost factor. Bureaucracy however, remains a factor of concern and it is important for Penang to develop a good framework and social policy. He urged Penang to focus on addressing the lack of vocational training and recommended that the private sector get involved in helping to tackle this shortcoming; Penang was warmly offered the assistance of the German Chamber and its members. Dato’ Wong Siew Hai (Chairman, Malaysian American Electronics Industry (MAEI)) who was the AMCHAM speaker, stated that attracting and retaining talent remained a big challenge for Penang, one that it needs to overcome in order to achieve its ambitious growth targets. Contributing to this challenge is the rapidly rising cost of living, especially housing costs, which make it difficult to attract the necessary talent to the State. Once there, the problem of retaining talent becomes an issue due to the (too) low level of the average wages, especially in the engineering field. Wages in the state are not competitive enough in the international arena. Dato’ Wong added that in order to entice investors in the semiconductor sector, supply chains needed to be improved and that the lack MDBCONNECTS · 1ST ISSUE 2014
of land area would be an issue standing in the way of Penang’s growth ambitions. He also stressed that organizing highquality technology forums was important. Representing the local community of foreign entrepreneurs was the MDBC speaker, Sjaak Ligthart (CEO, BCL Packaging) who made a passionate plea for improvements in the level of local education. The current low level is forcing many parents to send their children to expensive international schools. Other frustrations faced by foreigners in Penang include the drastically increased fees levied on property purchases by foreigners and the difficulties in obtaining work permits and student visas. These rapidly rising property prices are a supply problem rather than an issue with demand, contrary to the current perception by the government that foreigners are inflating prices. Ligthart encouraged the government to address this issue by ‘carpet building’ (rapidly building of big affordable housing estates). He also urged them to bring the levies, which only foreigners have to pay, back to their previous levels.
TMF Group navigates businesses cross borders seamlessly With over 100 wholly-owned offices worldwide, TMF Group offers a comprehensive range of compliance and administrative services which are critical for clients from a financial, reputation and risk management perspective. Our services are delivered in each country by our expert staff, professionals who have the key local knowledge and speak the language. Contact us Kuala Lumpur’s office 10th Floor, Menara Hap Seng, No. 1 & 3, Jalan P. Ramlee, 50250 Kuala Lumpur, Malaysia T. +60 3 2382 4288, F. +60 3 2382 4170 firstname.lastname@example.org
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In the last presentation of the day, H.E. Luc Vanderbon (Ambassador and Head of the European Union Delegation to Malaysia) highlighted that the EU is a crucial partner for Penang as well as Malaysia as a whole. He noted that the EU is the largest single economy and that 2013 saw a 6.3% increase in trade with Malaysia. A great advantage to the EU is that once a product is imported into one of its member states, there is free movement of the goods without complex paperwork crossing borders. He concluded by highlighting the importance of Malaysia completing the Free Trade Agreement (FTA) negotiations with the EU as the agreement would allow Malaysia access to all of the EU markets.
l to r: Alexander Stedfeld, Loo Lee Lian, H.E. Luc Vanderbon, YAB Lim Guan Eng, Dr. Lim Kim-Hwa, Sjaak Ligthard and Dato’ Wong Siew Hai during the panel discussion at the end of the briefing.
Presentations were followed by a very lively panel discussion between audience members and the speakers, aptly moderated by MDBC Penang Chapter Representative John Benoist. The Chief Minister started out by addressing some of the concerns which were raised by previous speakers. Difficult topics such as illegal migrants and refugee workers as well as illegal hawker stalls on hotel property were discussed, and the difficulties in balancing competitiveness as a manufacturing hub against the need to raise wages were highlighted. It was made clear that Penang is looking at developing industries that involve highly skilled, high income labour rather than competing on low level, cheap labour manufacturing. The Chief Minister also outlined a wish list for the Federal Government where he feels it needs to focus more on honesty and integrity as well as revisiting current investments like Proton to ensure it focuses on the right things. At the end of the Q&A an impressive promotional video was shown of the IT & BPO hub project. Finally, Ton Mandemaker (Deputy Head of Mission, Embassy of the Kingdom of the Netherlands in Kuala Lumpur) presented the Chief Minister with a special token of appreciation. The event concluded with a networking session in the foyer where cocktails and snacks were served.
TNT Penang International Gateway A select number of MDBC members made a full day program of the visit and participated in an additional morning program, a briefing and tour of the TNT Penang International Gateway. This was hosted by Cheok Siow Lung (Cluster Linehaul Manager, TNT Penang) and Beh Peik Hoon (Marketing Manager). The facility is northern Malaysia’s first integrated air and road facility and is capable of handling 320 tons daily. MDBC members taking part in the visit to the TNT Penang International Gateway.
MDBC Penang Chapter representative Mr. John Benoist p/a TMF Administrative Services Suite S-21-H, 21st floor, Menara Northam 55, Jalan Sultan Ahmad Shah 10050 Penang Tel: + 6012 525 1520 firstname.lastname@example.org (email@example.com)
Penang’s office Suite S-21-H, 21st Floor, Menara Northam, 55 Jalan Sultan Ahmad Shah, 10050 Penang, Malaysia T. +60 4 210 7118, F. +60 4 210 7111 firstname.lastname@example.org
www.tmf-group.com The TMF Group consists of a number of companies worldwide. For details of TMF Group’s regulated companies, please see: www.tmf-group.com.
MDBCONNECTS · 1ST ISSUE 2014
Southeast Asia to become key location for horticultural development. Excerpts from an interview by Boy de Nijs in Horti Asia, reprinted with permission from Luuk Runia and Horti Daily.
In regards to horticulture, Southeast Asia is known as one of the upcoming markets with plenty of opportunities. Since it is not that easy to break into new markets due to cultural differences and the size of the area, not every company has got the best experiences with projects in the most thriving economy of Asia’s subregion. However, horticultural entrepreneur Luuk Runia of Greenhouse Solutions Asia says he is not planning to leave the region anytime soon.
Asian Perlite company group photo l to r: Frank Hermans (Service Manager Greefa / BTM / Priva), Muru (Greenhouse / Watertank Coordinator), Mae See (Office Manager) and Luuk Runia (Director)
Luuk Runia, who is the only European citizen doing business in Cameron Highlands Malaysia, first set foot into the Asian market more than 17 years ago. In 1996 he set up a sales office in Perlite substrate for Pull BV Rhenen., in 2001 he acquired this asset of the business. Operating from Malaysia, he expanded this business into an all round supplying and service company in horticulture. Perlite substrate was one of the first introductions of hydroponics in Asia by that time. “We started by supplying both knowledge and materials”, said Runia. “In Asia, you can’t simply sell your products and disappear: It takes a lot of pre and after sales. That’s why we focused on consulting in the first place to make the growers more familiar with new substrates, fertilizers and other materials.” Runia’s customers were mainly Malaysian
growers that were using high tunnels and rain shelters. “Within a few years we made many growers familiar with simple innovations from the Netherlands, like trellising systems, irrigation drippers, starting materials and simple tunnel greenhouses.” By that time horticulture in Malaysia saw an increase in popularity. Many growers were located in concentrated areas in the Cameron Highlands, but places to expand were becoming rare. That’s why in 2008 Luuk Runia together with Anne Eilings and Jouke Kampen of Wageningen UR and the Malaysian Department of Agriculture developed a
greenhouse structure suitable for the high temperatures, radiation and humidity in the tropic lowlands of Malaysia. Nowadays Runia is still very successful with this greenhouse design. “We produce the structures in Malaysia and we still sell and install many ALMA (lowland tropical) greenhouses in the lowlands. There are already 70 of these greenhouse installed, and hopefully we will have a chance to build even more of these units in Sabah,” he said. Besides this, the rising costs of labour in Southeast Asia brought Runia another thriving business: automation. Especially in the last two years, Runia noted an increasing demand for automation. Nowadays Greenhouse Solutions Asia is involved in many projects together with Greefa for vegetable and fruit sorters, BTM Glasshouse Logistics for flower sorting, Priva irrigation units, NPI watertanks, Legro cocopeat and
packaging lines. Runia expects that automation will become a bigger trend in the coming years. “Cost of labour has gone up, as well as the production cost, so automation will become very important,” he said. Another notable opportunity seen by Runia is the increasing demand for sustainable crop protection solutions. There are about 8,000 hectares with protected crops in Malaysia. Greenhouse growers have fewer products available to protect their crops from pests and diseases. This results in an increasing demand for alternatives. Runia recently toured several greenhouses together with Yassin Lahiani, export manager for the MENA and Pacific region at Koppert Biological Systems. “We scouted crops and trained growers about the use of biological systems. It still feels a bit like pioneering, but in the next few years growers in South East Asia will take huge steps. As their customers (big European retailers who gain foothold in Asia) demand more responsibly grown fresh produce and flowers, they can’t avoid it anymore.” Runia is confident that Southeast Asia will become a big, thriving and important place for horticulture development in the coming years. “Trade shows like the Horti Asia in Bangkok are contributing to development in this region,” he said. “However, companies must adapt to the Asian spirit. In the coming years it will still be all about consulting and education if you want to do business here.” Runia said sales are only 30 percent of the game. “Being around now for so many years has created a trust with the costumers and within the region. Projects recently in Australia, Thailand, India and Indonesia also show the region is growing for us. After-sales and service is where the future lies in Asia if you want to succeed. Greenhouse Solutions Asia is looking forward to the next coming years and hopes to see the company continue to grow steady like in the last few years,” Runia concluded. MDBCONNECTS · 1ST ISSUE 2014
NY Reception 2014 Happy faces all around! Great crowd of members and guests, great environment at the Ambassador’s Residence, great networking! If our ever-growing New Year reception is anything to go by, then 2014 is going to be an excellent year!!
(below) All these MDBC members and guests started the year by getting a better Outlook on 2014!
MDBCONNECTS · 1ST ISSUE 2014
MDBCONNECTS · 1ST ISSUE 2014
As always, we constantly expand to include new and interesting partners as part of our international community of business professionals, allowing our members to find more opportunities for success. To that end, we would like to extend a very warm welcome to the MDBC Community for the following new members:
Business Activity: Alpha Catalyst Consulting (“ACC”) is an Asian-oriented boutique innovation consulting company specialising in guiding large organisations to adopt a systematized approach towards innovation.
ALPHA CATALYST CONSULTING
Whether it’s incremental or radical innovation, product, service or business model innovation, we help leaders formulate and communicate the organisation’s innovation strategy, creating an integrated and aligned roadmap to make innovation happen in the organisation. Business Activity: We are one of the world’s leading logistics companies, providing end-to-end design, implementation and operational capabilities in freight forwarding, contract logistics, transportation management and distribution management.
CEVA LOGISTICS (M) SDN BHD
Crops For the Future
CROPS FOR THE FUTURE RESEARCH CENTRE
MDBCONNECTS · 1ST ISSUE 2014
We offer every customer a service tailored to their specific needs, built on our formidable experience across a broad range of market sectors. We have particular expertise in automotive and tires; technology; consumer and retail; industrial; publishing; energy; aerospace; and healthcare. Business Activity: Crops for the Future Research Centre (CFFRC) is the first of its kind global centre with the mandate for research and development on underutilized plants for food and non-food uses. Together with CFFRC and local, national and international partners and collaborators, CFFRC will conduct research that contributes to improved local food and non food crops with nutritional and / or market potential, establishing a high profile world research centre accessible to local scientists and institutions while promoting academic research, curricula and learning materials on underutilized crops.
Corporate RepresentativeS Dr. Suraya Sulaiman, Executive Director Azim Pawanchik, Managing Director CONTACT: 36th Floor Menara Maxis Kuala Lumpur City Centre 50088 Kuala Lumpur Tel: +603 - 2615 0133 Fax: +603 - 2615 0088 E mail: email@example.com Website: www.alphacatalyst.com
MALAYSIA INSTITUTE OF SUPPLY CHAIN INNOVATION
Corporate RepresentativeS Vikash Agarwal, Managing Director Jacques Hartman, Director, Contract Logistics CONTACT: Lot 9A, Jalan Tiang U8/92, Section U8 Bukit Jelutong Industrial Estate 40150 Shah Alam Selangor Darul Ehsan Tel: +603 - 7841 9898 Fax: +603 - 7841 9882 Website: www.cevalogistics.com
HILTON Petaling Jaya
Corporate RepresentativeS Prof. Sayed Azam Ali, Chief Executive Officer Zunita Zubir, Senior Office & HR Manager CONTACT: Level 2, Block B University of Nottingham Malaysia Campus 43500 Semenyih Selangor Darul Ehsan Tel: +603 - 8924 8799 Fax: +603 - 8924 9789 Email: firstname.lastname@example.org Website: www.cropsforthefuture.org
Business Activity: LBB International is a logistics consultancy and research firm, specialized in agri-food supply chains, industrial logistics and third party logistics. At LBB International we have a passion for bringing logistics excellence to the world, the foundation of a competitive advantage for companies and nations. Malaysia hosts our Halal Research Centre where we conduct research in halal logistics & supply chain management for the private sector and governments. Today, we have offices in The Netherlands and Malaysia as well as partner offices in Indonesia, Thailand and Vietnam.
Corporate Representative Dr. Marco Tieman, Chief Executive Officer
Business Activity: The Malaysia Institute for Supply Chain Innovation (MISI) is the fourth center in the MIT Global SCALE (Supply Chain and Logistics Excellence) network. Launched as a joint initiative between MIT and the government of Malaysia in 2011, it was modeled after the leading SCM Program at MIT CTL. MISI will feature both Master and Doctoral programs in supply chain management and executive training programs. Additionally, MISI conducts research and corporate outreach activities, which includes advisory services for global as well as local firms that operate in the Southeast Asian region.
Corporate Representatives Dr. Mahender Singh, CEO / Rector Susobhitha Menon, Director Industry Outreach
Business Activity: Hilton Petaling Jaya is the only 5 star international brand hotel strategically located in the heart of Petaling Jaya (PJ), Malaysia’s second city. A landmark of PJ and the surrounding areas, the hotel combines the high standards of the Hilton brand with three decades of local insights for an unforgettable personalised experience. Following its extensive two year renovation program, the new look Hilton PJ boasts 554 brand new rooms and suites as well as seven executive floors, all fitted with state-of-the-art facilities to cater to the needs of world travellers.
Corporate Representatives Charles Marshall, General Manager Sheryl Lim, Director of Business Development
Business Activity: Ridz Collection specializes in fashion retail, fashion exclusive order, batik uniform, interior and retail designs. Ridzuan Bohari is a self-taught designer who discovered his own innate flair for fashion and sense of style from boyhood.
Corporate Representative Ridzuan Bohari, Designer
It was 1989 when he first joined the Melwani Group in Singapore as a freelance retail executive. After a twoyear stint there, Ridzuan moved to Cub 21 where his personable customer service earned him an Excellence Service Award from American Express in 1992.
CONTACT: B - 5- 8 Plaza Mont Kiara Mont Kiara 50480 Kuala Lumpur Tel: +603 - 5021 9087 Fax: +603 - 5021 9097 Email: email@example.com Website: www.lbbinternational.com
CONTACT: 2A, Persiaran Tebar Layar Seksyen U8, Bukit Jelutong Shah Alam Selangor Darul Ehsan Tel: +603 - 7841 4800 Fax: +603 - 7842 1987 Website: www.misi.edu.my
CONTACT: No 2 Jalan Barat, 46200 Petaling Jaya Selangor Darul Ehsan Tel: +603 - 7955 6122 Fax: +603 - 7957 7294 E mail: firstname.lastname@example.org Website: petaling-jaya.hilton.com
CONTACT: C - 0 - 13, Ground Floor, Plaza Damas Jalan Sri Hartamas 1 50480 Kuala Lumpur Tel: +6012 - 292 3558 Fax: +603 - 6201 3558 E mail: email@example.com
MDBCONNECTS · 1ST ISSUE 2014
Business Activity: &samhoud is a world class, vision driven, usual unusual consultancy firm that creates sustainable and measurable value for employees, customers, shareholders & society. &samhoud’s philosophy is based on the Value Profit Chain developed at the Harvard Business School. It assumes that everything is about adding value: employee value, customer value and financial value reinforce each other continually. The Value Profit Chain is launched and maintained thanks to our people’s ability to connect, coupled with content.
Corporate RepresentativeS Nurdogan Hamurcu, Partner, Owner Wouter van der Weijden, Partner, Owner
Business Activity: Spring Professional is the professional recruitement & staffing arm of the Adecco Group in Asia, specializing in Information Technology & Engineering recruitement in Malaysia, Hong Kong, Singapore, South Korea, Taiwan and Thailand.
Corporate RepresentativeS Jeff Bonnin, Country Manager Ronnie van Munster, Consultant Engineering
The company’s focus is exclusively on the recruitement of middle to senior level management and engineers.
CONTACT: 225A Jalan Bukit Bintang 55100 Kuala Lumpur Tel: +603 - 2142 7088 Fax: +603 - 2142 7089 Website: www.samhoud.com
CONTACT: Suite 7 - 01, Level 7 Menara Binjai No. 2, Jalan Binjai 50450 Kuala Lumpur Tel: +603 - 2630 8888 Website: www.springasia.com
Business Activity: Vopak - with its headquarters in Rotterdam, the Netherlands - is the world’s largest independent tank storage provider, specialized in the storage and handling of liquid chemicals, gasses and oil products. Vopak operates 79 terminals with a combined storage capacity more than 30 million cubic meters in 29 countries. The terminals and strategically located for users along the major shipping routes. The majority of customers are active in the chemical and oil industry, for which Vopak stores a large variety of products destined for a wide range of industries.
Corporate Representative Law Say Huat, Managing Director
Jan van Driel 64 - 2 Seri Duta 1 764 Jalan Gallagher 50480 Kuala Lumpur Tel: +6016 - 303 6473 Email: firstname.lastname@example.org
Mirella Soyer Brielsedreef 26 4841 KS Prinsenbeek The Netherlands Tel: +31 (0) 613 772 478 Email: email@example.com
CONTACT: 203 Block G, Phileo Damansara 1 No 9, Jalan 16/11 46350 Petaling Jaya Selangor Darul Ehsan Tel: +603 - 7955 0671 Fax: +603 - 7955 0676 Website: www.vopak.com
Corinne Schons Corinne SCHONS@Co Unit 2A - 6 - 2, 6th Floor Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur Tel: +6012 - 201 0045 Email: firstname.lastname@example.org
MDBCONNECTS · 1ST ISSUE 2014
1st edition of the 2014 MDBC magazine with updates on Penang's goals for the future and An Inside Look into bulk smsing.