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MDBC

MAGAZINE Malaysian Dutch Business Council

Issue: 2nd edition 2009

KDN No. PP11067/12/2009 (022915)

Agriculture & Timber NL/EU - MY collaboration

Malaysia.

Truly Business.

Events

& more events

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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 world’s No. 1 international premium beer. So come, the rest of the world awaits you.

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CONTENTS

MEMBErs’ NEWs

MDBC EVENTs

QUArTErLY

fEATUrEs

MOKVELD 7

AGM FY2008 5

EUMCCI NEWS 15

JAKARTA TRIP 5

TMF 7

TAX MATTERS 9

MDBC SOCIAL 16

NL - MY AGRI 13

PELORUS 7

IPR BRIEFING 9

MDBC SIP 19

FLEGT 21

CASH MGMT 9

FRANK 23

CSR 25

M4M BIZ DEVT 11

NEW MEMBERS 29

MY in NL 27

VISIT TO PKFZ 11

CALENDAR/BoD 31

MDBC Executive Director speaks up DEAr MDBC MEMBErs, friENDs AND CoNTACTs, It has been a hectic and exciting first half of the year. In order to offer more information, more opportunities, more dialogues, more networking to our members, we have organised an even larger-than-usual number of activities. By the end of June, half-way 2009, MDBC would have organised not less than 15 events for its members, and through the association with other partners, our members would have received invitations for yet another eleven activities to attend.

Numerous MDBC members have stepped up to the plate to assist in providing valuable information and assistance to their colleagues. Event topics such as Tax Benefits, Business Development, Cash Management, Intellectual Property and What’s happening in KL were all supported by our experienced members and these briefings have attracted a wide range of participants. By the time you read this, we will have launched our MDBC Card. Initially, 20 member-companies will provide discounts or added value services to colleague-members and we expect this membership card to be a successful continuation of our “Membersfor-Members” activities.

In the larger scheme of things, the Malaysian government has also considered various opportunities to improve, or at least stablise the business climate in the country. New teams at various Ministries, including International Trade & Industry, Finance and Tourism, have been actively promoting Malaysia as the right place for business, investments, healthcare and tourism or even retirement. These can be considered positive efforts, judging by the number of Dutch business visitors which we have welcomed in Malaysia, as well as by the establishment of several new Dutch companies in the country during the past few months. Marco Winter 3

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SPECIAL EVENTS The B777. Photo by Capital Photos for KLM

KLM - MDBC trip to Jakarta

In conjunction with the introduction of the Boeing 777 on the route Amsterdam - Kuala Lumpur - Jakarta, Air France-KLM invited MDBC members for a 3-day familiarization trip to Jakarta last April. Nearly 25 MDBC members, family & friends made use of this interesting outing, which combined the various leisure and cultural aspects of Jakarta with undertaking some business meetings and connections.

Left and above: With old friends at the monthly Dutch business luncheon gathering in Jakarta. Below: Visit to the offices of the iNA (indonesian Netherlands Association) and Nuffic / NEso (Netherlands Education support office)

outings to Waterbom Jakarta, Batavia Cafe and the old Harbour. fortunately we flew by KLM Boeing 777 rather than this old KLM (?) boat we saw in the harbour! Below, bottom: Plenty of cultural shows, great food & drinks along this trip!

NCH Chairman reception The Netherlands Ambassador hosted a reception for MDBC members and guests at his residence to welcome the Chairman of the Netherlands Council for Trade Promotion NCH, Jochum Haakma (centre, towering above Ambassador Lody Embrechts and MDBC Chairman Dato’ Jaffar indot). NCH maintains the secretariat of MDBC’s sister-organisation, the Netherlands Malaysian Business Council NMBC in The Hague. Pictures on page 17.

MDBC Annual General Meeting The MDBC AGM over financial Year 2008 took place at the renaissance Kuala Lumpur Hotel on 25 May. resolutions on the financial audit and the (re)appointment of the Chairman and Directors were all passed unanimously. More pictures on page 16 and the overview of the current Board of Directors on page 31.

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mEmbErS’ NEWS Pelorus introduces VSTEP to Malaysia Pelorus Intelligence & Technology Academy Sdn Bhd, an organisation that embarks upon training, research and consultancy services with a specific focus on the maritime and logistics industry, introduced Dutch company VSTEP to its Malaysian stakeholders last April. Pelorus is cooperating with VSTEP in a consortium called M.I.T.S. which is developing maritime - and logistics training courses in Malaysia.

These environments are used in scenario training, procedure training and training simulators that increase the speed of learning and reducing the cost of teaching. One example of this is VSTEP’s virtual fire fighting training environment created for the Royal Dutch Navy featuring the ability to simulate incidents within a realistic rendition of the environment on board navy vessels. For the Port of Rotterdam, VSTEP created a simulation of incidents Left: Captain razali Yaacob of Pelorus exchanging a souvenir with Cristijn sarvaas of VsTEP Below: Jacoba Bolderheij of the Netherlands Embassy with VsTEP’s John Legierse

TMF expands APAC presence with KL office Dutch-based global management and accounting outsourcing group TMF is strengthening its presence in the Asia-Pacific region with the opening of its latest RM1.9mil office in Malaysia. TMF has been in a shopping spree recently to strengthen its global presence; these deals have helped it to grow 35 % last year against 19 % in 2007, TMF managing director for Asia Pacific Clayton Hebbard said. “In 2002, we didn’t have anything outside Europe. Today, we have 15 offices in Asia-Pacific. In Malaysia alone, we have one office each in Kuala Lumpur and Penang. Currently, TMF has 84 offices in 65 countries and over 3,000 professionals worldwide,” he added.

“The opening of the new office in Kuala Lumpur reaffirms the group’s continuing commitment to this important market – an area of key strategic focus for us in South-East Asia,” Hebbard said. While other companies were downsizing and retrenching, TMF felt that it had to expand its business to provide clients with a global platform advantage. TMF Group is keen to buy more outsourcing businesses and assets from its rivals including those in Malaysia. The group’s third-party services include bookkeeping and reporting, human resource and payroll, corporate secretarial, international licensing and collection and fund administration services.

At the TMf office launch: Ambassador Lody Embrechts, TMf Business Development Director Jochum Haakma, Hebbard and (former) TMf Malaysia Managing Director Mah Li Chen

VSTEP’s Dutch Technology was showcased to representatives of Malaysia’s maritime - and logistics industry, the fire brigade and port authorities. VSTEP creates 3D environments in which people can realistically move around and interact.

that can occur in the port, which are discussed as part of a class on incident management. VSTEP also builds training simulators, for example those that help people to learn how to drive or sail a ship. It’s the next step in leaning and development.

Launch of Mokveld Malaysia Mokveld, which provides the oil & gas industry with expert knowledge and highly advanced engineered valve systems for critical control and safety applications, had its official corporate launch of Mokveld Malaysia Sdn Bhd last April. This new factory in Shah Alam will produce the choke valves. Present at the launch were Selangor Senior State Executive Councellor Teresa Kok, Ambassador Lody Embrechts, Dato’ Mohd Jabar Ahmad Kembali of the Selangor State Investment Centre, and the management of Mokveld Valves BV in Gouda. After the speeches and an exciting lion dance, the guests enjoyed the factory tour.

Mokveld Malaysia’s Arnout Huiskens giving Kok and Embrechts a tour of the production facilities right: the new factory in shah Alam far right: guests inspecting the valves

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Negeri Sembilan Malaysia

Opportunities Aplenty The state of Negeri Sembilan in Malaysia is an ideal location for investors from around the world. The state is strategically located in Peninsular Malaysia, close enough to business hub in Kuala Lumpur or to Port Klang, KL International Airport, Putrajaya and the Multimedia Super Corridor. It is also blessed with a range of natural resources, making it the perfect home for many international companies from around the world dealing in a wide range of industries. All the right reasons to invest in Negeri Sembilan: • Strategic location • Low costs • Supportive / Pro-business State Government • Highly productive workforce • Attractive incentives • Good network of supporting industries / proximity to supply chain • Excellent infrastructure facilities • Nilai Inland Port • Quality of life Please contact: Negeri Sembilan Investment Centre (NSIC) your one-stop centre to make it all happen. Negeri Sembilan Investment Centre

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5th Floor, Block B, Wisma Negeri, 70503 Seremban, Negeri Sembilan, Malaysia Tel: +606-765 9570 / 5980 Fax: +606-765 5982 E-mail: ceonsic@ns.gov.my, enquiry@nsic.com.my Website: www.nsic.com.my

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mDbC EVENTS Shearn Delamore & Co.’s IP Briefing in conjunction with World Intellectual Property Day, Shearn Delamore & Co hosted an allinclusive briefing on Intellectual Property for MDBC members at their office in April. The briefing included in-depth information on the Enforcement of IP Rights by Wong Sai Fong, Trade Marks by Karen Abraham, Copyright and Confidential Information by Indran Shanmuganathan, and Patents and Industrial Designs by Timothy Siaw.

RSM’s Tax Briefing RSM Robert Teo, Kuan & Co / RKT Tax Consultants Sdn Bhd organised an extensive Tax briefing at The Gateway last March. Since this took place just 2 days after the presentation of the 2009 Mini Budget, it was a very timely and informative session. Lee Voon Siong, Wong Yok Chin, Lynda Harun and Mayadevi Karpayah made the presentations.

shearn Delamore’s Dato’ Johari razak (l) and s. radhakrishnan (c) welcoming guests; Below: the speakers

The briefing included: (a) Expatriate employee tax matters; (b) Schedular Tax Deductions (STD) - New rules: overview and employer’s responsibilities; (c) Corporate Tax: Extended scope of withholding tax under Section 109F (Section 4(f ) income), and Differences between Sections 109F and 109B (special classes of income); (d) 2009 Mini Budget. rsM’s Managing Partner Dato’ robert Teo (l) with his team of speakers

ING Cash Management Solutions ING Funds Berhad, the local affiliate of ING Investment Management, with the support of KPMG Tax Services Sdn Bhd, invited MDBC members to their office in May for the ING Cash Management Solutions Seminar.

The program started with a talk on Tax Benefits from Unit Trusts by Stefanie Low, Director KPMG Tax Services Sdn Bhd, and concluded with the presentation by Dato’ Steve Ong, CEO of ING Funds Berhad on Cash Management Solutions

The speakers together with iNG fund’s Head Corporate Business William Cheong (r)

As one of the fastest growing companies, and ranked amongst the top 10 players in the private sector unit trust market, ING Funds provides individual investors, corporate or institutional customers with experienced advice. ING Funds Cash Management Solutions comprise of ING Funds’ range of short-term fixed income, money market and bond funds. 9

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mDbC EVENTS M4M on Business Development We have to acknowledge that we are living in economically challenging times. Business Development needs to get more attention, and that’s why MDBC choose this topic for its Members-for-Members in March. Speakers shared experiences on busines models in changing times, on increasing sales potential, and on improving the effectiveness and efficiency of various business processes.

During this positive and informative session, which was hosted by Montpelier Asia in the Etiqa Twins building and attended by nearly 50 guests, presentations were provided by: Montpelier Asia, Stuart Williamson: Different approaches to develop business during challenging times; rsM strategic Business Advisors, Girish Ramachandran: Effective strategies in financial planning and budgeting; CEVA Logistics, Siva Indran: Increased efficiency and operations excellence in logistics Lean Projects; ABeam Consulting, Noor Hasmaddi Noor Hamid: Application maintenance and outsourcing to reduce IT cost and investment; rsM Profit improvement, Stephen Seah: Improving profits in challenging times.

Chia and ArP Chairman stéphanie van Gerven

PKfZ site tour

The speakers, clockwise from left: Host stuart Williamson (r) with stephen seah; According to Noor Hasmaddi there is still big fish in the pond! Girish ramachandran is more conservative; siva indran talking about Lean Projects.

Visit to Port Klang Free Zone A group of 50 participants paid a visit to Port Klang Free Zone in April. Half the group consisted of students and supervising professors of the Amsterdam Research Project (ARP) of the VU University Amsterdam who were on a study tour in Malaysia. PKFZ is Malaysia’s largest port and its designated load centre, designed to promote entreport trade and manufacturing industries involved in producing goods primarily for export. PKFZ offers consolidated facilities where factories and logistics firms can be located in the same zone so as to allow for easier coordination and smoother supply chain management.

has grown and shown improvements in terms of the number of investments, jobs provided and total cargo moved. MDBC members and VU students received video presentations on PKFZ and Port Klang Authority (PKA), a talk by PKFZ General Manager Chia Kon Leong, a PKFZ site visit, a Westports Tour of the Cargo Terminal and the Tour of the Vessel Traffic Management System (VTMS).

The VTMs as seen from the outside, inside, and inside looking out

PKFZ Authority, Jalan FZ 2 – P5 / KS 12, Port Klang Free Zone, Pulau Indah, 42920 Selangor Tel : 03 – 3101 5568 Fax : 03 – 3101 5096 email : www@pkfz.com

Road Map

MDBC had its previous visit to PKFZ over two years ago when it had just started operations, and the facilities have certainly widely expanded. There has been a lot to do about PKFZ during the past one year. It has also been said that despite the bumps, PKFZ

PKFZ Authority Office Port Klang Free Zone, Precinct 5 42920 Pulau Indah Selangor Darul Ehsan Authority Office Elevated Water Tank

11

3.5 km

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NEThErLANDS EmbASSy NEWS Malaysian-Netherlands agricultural collaboration Over the last five or six years, Malaysia has shown a lot of interest in the Netherlands agricultural business. Former Prime Minister Tun Abdullah Badawi visited The Netherlands along with Ministers such as Tan Sri Muhyiddin Yassin, Datuk Mustapha Mohamed and Datuk Peter Chin, all of whom found their way to The Netherlands during their term as Minister of Agriculture or Plantations. Apart from politicians, many civil servants and business representatives travelled to The Netherlands for orientation or business. The special interest that Malaysia has shown in The Netherlands may be surprising but can be easily understood if it is kept in mind that in the 9th Malaysian Plan, agriculture has been presented as the 3rd pillar of economic growth. This means that Malaysia is keen on developing its agricultural industry and bringing it to higher standards in terms of quality, production volumes and competitiveness in international markets. The Netherlands is a good example to follow as it is the 2nd largest exporter of agricultural products in the world, only the United States exports more. The Netherlands exports an amount to the value of 50bn euro which is mainly quality and technology driven. With that in consideration, Malaysia and The Netherlands are a perfect match in agricultural collaboration. In January of 2006 a Malaysian agricultural office in The Netherlands was established and in September of the same year a Netherlands office in Kuala Lumpur was inaugurated. Both offices facilitate bilateral agricultural business but are also intensively working on government to government partnerships. At the moment there are three of this kind of partnerships: a palmoil partnership together with Indonesia, scientific collaboration on carbon emissions resulting from peatland and a bilateral agricultural partnership.

Datuk Peter Chin hosting a visit by Minister Cremer to sime Darby’s palm oil plantation at Carey island

former Prime Minister Tun Abdullah Badawi visiting the Malaysian - Dutch Agro project in Terengganu

Since 2004, the trilateral palmoil partnership (between Malaysia, The Netherlands and Indosnesia) has conducted research activities with regards to residuals in palmoil, organized training programs and seminars and paid attention to the position of smallholders and landrights of the indeginous population.

The Netherlands is often one of the leading EU-members in defining these kinds of policies. The Netherlands also has economic interests in this matter as it is importing some 5% of the total production volume and has three Malaysian owned palmoil refineries within its borders.

At the moment, talks are ongoing about the continuation of this partnership which is of importance to all three countries. Indonesia and Malaysia control 85% of global production of palmoil and seek alliances in Europe in the discussion on sustainability criteria for production, biofuels and the food versus fuel issue.

The scientific collaboration on carbon emissions is a result of the visit of Dutch Minister of Environment, Jacqueline Cramer in December of 2007. As a result of discussions between Miss Cramer and Minister Chin, research in Sarawak is being conducted on the impact that the CO2 output of oil palm on peatland will have on the environment.

The heart of this agricultural collaboration is undoubtedly the partnership between both Ministeries of Agriculture. Annual meetings in one of the capitals hace been taking place since 2004 where decisions are made on projects and activities. Examples are training programs for laboratory employees, consultancy in dairy and horticulture and scientific programs. Since last year, several projects have been picked up by Malaysian and Dutch parties on fruit logistics, cold chain management in fisheries and on the development of new food products.

Adrie de roo in Cameron Highlands

Although a lot has been achieved over the last couple of years, there is still room for more. Malaysian visibility in the Dutch agricultural industry and decision making within the Malaysian bucreaucracy can be improved. Nevertheless, both parties are still convinced and committed to bilateral collaboration which can only lead to win-win results. Contributed by Adrie de Roo, Agricultural Counsellor Netherlands Embassy

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EUmCCI NEWS Europa Awards 2009

Celebration of EU-Malaysia Trade and

The EU Investment - Malaysia Chamber of Relations Commerce & Industry organised nd May 2009 | Sheraton Imperial Europa Awards 2009 in its 215 19:00 - 23.00 Kuala Lumpur last May. In the midst of this year’s economic and financial difficulties, the European - Malaysian business Partner: community took some time out to acknowledge the special efforts that have been undertaken For more information: Tel: +603 2162 6298 in order to minimize the effects E-mail: eumcci@eumcci.com of the global financial crisis on their organisations and maintain company earnings. Guest of Honour, newly appointed Minister of International Trade and Industry (MITI), Dato’ Mustapa Mohamed, acknowledged that this was his first engagement with EUMCCI. The Minister praised EUMCCI’s initiative to recognize excellence, and also encouraged those present to continue to support trade between the EU and Malaysia. He said that in 2008, the EU was Malaysia’s 4th largest trading partner and that he hoped this would continue even though under present circumstances both regions face difficult challenges.

Along the same lines, EUMCCI Chairman David Jones urged the local business community to look beyond traditional European markets to the potential in smaller EU member states, adding that Malaysia should take advantage of its position as an important business partner within the ASEAN framework. The Europa Awards string orchestra entertaining the guests with its European classics

This year’s Europa Awards Gala Dinner recognized enterprises which have made a significant contribution towards initiating and sustaining trade and investment between the European Union and Malaysia. In order to ensure that strict standards and guidelines were met, the judging procedure was conducted by an independent auditor and an independent selection committee. There were three award categories: 1. Highest Excellence: Trade / investment into the EU by a Malaysian investor This award is given to a Malaysian member company (Headquartered in Malaysia) investing / trading into the EU, who has shown exemplary business excellence. Judging for this award was based on the past 12 months as per the fiscal year.

Europe, namely: Sweden, Netherlands, Finland, Switzerland and Germany. 2. Highest Excellence: Trade / investment into Malaysia by a European investor The surprise decision not to present the second award, for the Highest Excellence: Trade / Investment into Malaysia by a European Investor, occured because the judges felt that none of the contenders reached the strict excellence standards. 3. Long Term Excellence in EU – Malaysia Trade / investment This award is to recognize the EUMCCI member company who has shown exemplary business excellence for the past 3 years. This company has to show that it has had a business presence in Malaysia for at least 10 years.

Marco Winter, Tan sri Mustafa Mansur (fMM) and Dato’ Noharuddin Nordin (Matrade)

The winner of this category was Standard Chartered Bank Malaysia Berhad, which has been operating in Malaysia for many decades before the country’s independence and has “sustained” itself for the past 134 years. The judges mentioned Standard Chartered’s consistent, impressive returns on investments over the past 3 years, its commitment to sustainability, and its commitment to their key stakeholders – their employees.

EUMCCI Logistics Committee

MITI recently announced plans to liberalize 27 of the services and financial sectors, which is expected to encourage foreign participation and investments in these sectors. The minister encouraged the guests to take advantage of these new opportunities and reiterated that EUMCCI members could approach the Ministry if they had any issues or problems.

The winner of this category is in the travel and tour business, Mayfower Acme Tours Sdn Bhd. Mayfower has a string of proud achievements and the Europa Awards judges recognized Mayfower for its substantial expansion into overseas markets. A substantial portion of its income is derived from the overseas markets and major customers comprise of travel agents in

One of EUMCCI’s more prominent and active industry committees is the Logistics Committee, it holds frequent meetings for their members and dialogues with relevant government authorities and agencies to discuss issues. Recently, MDBC member Marco Tieman of LBB Teams (M) Sdn Bhd was elected as Chairman of the Logistics Committee. Other MDBC members in the Committee include: Felix Relocations, Asian Tigers Transpo, TNT and Santa Fe Relocations. EUMCCi Chairman David Jones (l) passing the Committee Chairmanship to Marco Tieman

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mDbC SOCIAL Europa Awards 2009, 15 May

International SuperNetworking, 21 May

MDBC’s AGM over FY2008, Renaissance Hotel, 25 May

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mDbC SOCIAL Reception with NCH Chairman, 26 March

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STUDENT INTErNShIP PrOgrAm

The Malaysian Agrifood Corporation (MAFC) has been an active participant in the MDBC Student Internship Program for the past few years. MAFC has employed a variety of students, from Business to Life Sciences. At this moment, three Dutch students are undertaking their internships at MAFC. Here are their stories: Anita Luten works on a graduation project at MAFC to finish her study Food & Business at Hanze University of Applied Sciences Groningen. MAFC is acting as an agent of change in the agriculture business. The company was

only established in 2006 and is therefore still on its way to becoming a multinational. According to Anita, working at MAFC is than at a similar company in the Netherlands, where everything is automated and up and running, especially because the whole agriculture and horticulture industry in Malaysia is still so new. It is great to see the company developing itself and trying to change the agriculture industry in Malaysia, while also gaining work experience. “The project I am working on is more on the business side, I am helping MAFC to reach overseas markets by writing a report on how to develop and market a global brand,” Anita said. Anita explains that being in Malaysia is a big experience for her, not only because of the different work environment, but also because of the interaction with people from so many different cultures. “Another advantage of MDBC’s placement is the contact you have with other students from the Netherlands; we can support each other when and where necessary, and there is always a good party around!”, Anita concluded.

The Interns Interview

HAN new partner

stephan van de Bunte and Gerbert van den Hoek are the first students from Windesheim University of Applied Sciences who have found an internship in Malaysia under MDBC’s SIP. The students, who are graduate students in Business Logistics, experience this as a worthwhile challenge. Their graduation project consists of several smaller assignments which all contribute to one goal, working on supply chain improvement. MAFC strives to deliver products of high quality to its customers. Temperature and humidity are of high importance, due to the climate in Malaysia. Gerbert and Stephan explain that this was a big challenge because the circumstances in Malaysia can’t be compared with those in the Netherlands.

During his recent trip to the Netherlands, Marco Winter also further developed the cooperation with our SIP partner universities of applied sciences, and visited a new partner school. We are pleased to welcome and introduce our new partner school, the Hogeschool Arnhem Nijmegen (HAN). The HAN was established in 1996 after a merger of three schools located in the two neighboring cities (Arnhem and Nijmegen) and is now one of the fastest growing universities of applied sciences in the Netherlands.

The HAN is our 8th partner university of applied sciences and will take part in SIP offering students from the Life sciences study area. This study focuses on biology, biochemistry, bioinformatics, immunology, research strategies, and the physiology of plants and animals. Graduates from this study field can be found in regional labs for health care, food and health agencies or in a management position. The first HAN Life Science students can be expected in Kuala Lumpur by early 2010.

MDBC SIP briefing

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With their internship nearly ending, these students have already seen a lot of the country (both for business and sightseeing), learned a lot about the culture and the company. They noted that their knowledge of logistics has grown considerably. “Hopefully this experience will contribute to our future career. After all, we’ve learned a lot in these past months so we are quite sure it will. Doing our internship/graduating in Asia gave us a life-time experience, which we will never forget”, Stephan and Gerbert highlighted.

In order to assist more MDBC members with their interest in employing a Dutch student intern, and to explain the various study fields which we can now offer as well as what these students can deliver to their company, MDBC will provide a special briefing on the Internship Program. Partner AIESEC will also talk about students from Universities of Scientific and Academic Education. This briefing is scheduled on 20 August, and is meant to prepare for the intake in early 2010. 19

ADRENALIN I N T E R N E T

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EC NEWS Malaysia and the European Union in FLEGT Combating climate change and illegal logging With the climate change conference coming up in Copenhagen in December, one can expect a steady growth in attention on climate change. Deforestation in the tropics is a major contributor to climate change and addressing tropical deforestation is an important target for the EU to reduce the emissions of greenhouse gases. One of the ideas proposed is to put a value on the carbon in standing trees that are at risk of destruction. By doing so, the economic incentives for deforestation can be lowered and ultimately, reversed. Carbon-based payments could compensate for the opportunity cost of retaining forests as well as reduce the economic incentives for the conversion of forests to other uses. Economic incentives are only part of the picture; uncontrolled forest exploitation is a major cause of forest loss and degradation. Unless these underlying causes are addressed and governance capacity improved, it is unlikely that economic incentives alone will be successful.

Interestingly, the underlying causes of deforestation contributing so heavily to climate change are also addressed by the European Union Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan and the related Voluntary Partnership Agreements (VPAs). Malaysia and the European Commission are very familiar with FLEGT and a VPA. They started negotiating a VPA in January 2007 and are in the last stages of concluding the agreement. Under a VPA, Malaysia will implement a licensing scheme that attests to the legality of their timber exports to the EU. This will help assure the EU markets that products they buy from Partner Countries like Malaysia have been legally produced. EU market incentives for fLEGT licensed timber The FLEGT VPA’s will be supported by EU legislation obliging timber traders on the EU market to avoid trading in illegally harvested timber. This legislation is known as the Due Diligence Regulation. Timber from FLEGT partner countries will have a favourable position on the EU market once the Due Diligence Regulation kicks in.

The Netherlands – Malaysian fLEGT team in the early stages of the negotiations. Central and sitting Andre van der Zande (secretary General of the Netherlands Ministry of Agriculture, Nature and food Quality) and Aimi Lee (Director of the Malaysian Timber Council). right behind them is Vincent van den Berk

Legally harvested logs transported to a log pond in Temengor, at the Thai border

Countries that cannot demonstrate legality will find it harder to sell their timber to traders on the EU market. This piece of new legislation has passed the European Parliament and is now being discussed in the EU Council of Ministers of Agriculture. The European Parliament and several EU Member States Governments are requesting the strengthening of this regulation and it should be clearer by the end of this year. A strong legislation is in line with the Malaysian desire to support FLEGT licensed timber on the EU market. In addition, EU Member States are actively encouraged to accept FLEGT licensed timber in their public procurement policies. Legislation and public procurement will provide the necessary market incentives for FLEGT licensed timber on the market. The VPA negotiations between Malaysia and the EU Malaysia is without any doubt, technically able to implement the FLEGT ambitions. This is demonstrated with the recent international acknowledgement of the Malaysian certification scheme covering the forests of Peninsular Malaysia and with the sustainable forest management ambitions of Sabah aimed to be in place by 2014. Trends in timber trade supporting sustainable forest management EU and other markets are closing for illegal timber products as a

result of new procurement policies and/or new trade legislation. Other like-minded countries i.e. Japan, Australia and New Zealand (and indeed also China and Russia) are looking into improving their timber procurement policies and legality assurance systems along the FLEGT line. The legality of timber will be a minimum requirement for trading timber and timber products in the EU. This applies not only to Malaysian timber products on the EU market, but also to wood products imported from any other country made of Malaysian timber. This means that furniture manufactured in China from Malaysian timber and sold to the EU market will also be affected. A number of other Asian timberproducing countries, such as China and Vietnam, have recognised the benefits of a FLEGT Voluntary Partnership Agreement and are eager to negotiate FLEGT agreements with the EU. The Netherlands (together with the UK and Germany) is actively supporting the FLEGT negotiations between Malaysia and the EU. The final round of negotiations is likely to take place in the Netherlands, sometime after the European summer holidays. Contributed by Vincent van den Berk, Advisor Forest Law Enforcement Governance and Trade (FLEGT) European Union Delegation of the European Commission to Malaysia 21

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CAN I bE frank WITh yOU Malaysia Truly Business The world knows that Malaysia is Truly Asia. But does the world know that Malaysia is also Truly Business? Probably not. We recently compiled facts to determine how well Malaysia is performing as a business & investment destination. The facts came from respectable sources like the World Bank, Reuters, research agencies, various universities, international consultants, etc. The results were surprising; in reality, the world viewpoint is that Malaysia is actually performing much better than its image suggests. In the 2009 Forbes 4th annual Best Countries for Business ranking amongst 127 countries, Malaysia shot up 13 spots to number 25! The United Nations ranked Malaysia 13th in the Competitive Industrial Index, ahead of the BRIC countries and ahead of France and Canada! We found 166 other reasons why Malaysia is a great country to invest in. Here is a selection.

World-class infrastructure IMD concluded that the Malaysian government is the 19th most efficient in the world, ahead of India and Brazil, as well as the UK, US, France and Germany. Malaysia ranks 25th in corporate governance ahead of the BRIC countries as well as Spain and Japan (by the World Economic Forum). Malaysia is ranked 9th in terms of judiciary, as stated by Transparency International. Did you know that KLIA was voted the 2nd Best Airport in the world in 2007? To top it all off, 7.4 million Malaysians speak, read and write English. Political and financial stability There is, and has been political stability since independence. Malaysia has a relative low level of external debt and a high level of international reserves (ranked 15th in the world). Infation is relatively mild due to strong fiscal policies (BNM).

Exceptional standard of Living Quality of life for expats is high and Malaysia is the 13th best retirement haven for expats. Cost of living is low compared to Singapore and Hong Kong for instance. UBS ranked KL as the most inexpensive city out of 71 global cities surveyed. Other similar research shows the same result. CondeNast readers in the UK chose Malaysia as the best value for money tourist destination. Global Leader Malaysia leads the world in sectors like palm oil, rubber and Islamic finance. According to EMAsia, Malaysia is one of the world’s largest exporters of electronics and semi-conductor devices. Business-minded Starting a company in Malaysia is faster, easier and cheaper than in many of its competitors according to The World Bank. Malaysia ranks 22nd in the world for sophistication of company operations and strategy, well ahead of

the BRIC countries (by the World Economic Forum). In addition, according to IMD, Malaysia ranks 13th in terms of business efficiency even outranking UK, US and Germany. Its 2008 GDP growth of 4.7% was way ahead of some industrial nations (Trading Economics). All 168 reasons why Malaysia is a preferred business and investment destination are listed at www.malaysiatrulybusiness.com. Contributed by frank Nelwan Vice President Brand Leadership TBWA\TEQUiLA Malaysia

frank Nelwan Vice-President Brand Leadership

TBWA’s President Austen Zecha with the previous Tourism Minister and officials of the Tourism Ministry during the launch of www.malaysiatrulybusiness.com

Malaysia promotes Healthcare A Malaysian Healthcare Travel Council will be set up to promote the healthcare tourism industry in the country. This was announced by Health Minister Datuk Seri Liow Tiong Lai during the launch of the Malaysia Healthcare logo and website at the Renaissance Kuala Lumpur Hotel this June.

www.myhealthcare.gov.my

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SPECIAL EVENT - CSr CAfE IN THE NEW ENERGY FUTURE WE’LL NEED TO THINK SMALL. As the global population grows and energy demand increases, we all need to use energy more efficiently. With the Shell Eco-marathon we support teams from schools around the world as they explore ideas to push fuel economy to the extreme. The winner of last year’s competition produced a vehicle capable of travelling 3,382km on the equivalent of one litre of fuel. To find out how Shell is helping prepare for the new energy future visit www.shell.com/realenergy

OIL

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CSr Getting ethical Some consider the subject of ethics as philosophical and far removed from daily practices. Yet most international businesses are regularly confronted with ethical problems such as small scale bribery, gift giving, unfair differential pricing, under declaring of goods, price fixing agreements, tax evasion via transfer pricing to affect profit allocation, environmental pollution and maintaining unsafe working conditions.

Attitudes to business ethics also vary from country to country due to differences in the political climate, the functionality of the legal system and the national culture. What is considered a questionable business practice in one country may not be viewed as such in another country. Sharing of insider information for example is considered illegal in many Western countries but accepted in family business characteristic in some countries.

moral standards used to guide employee or corporate behaviour. However, having the code alone is insufficient. Research has found non-compliant behaviour to be caused by self-interest, dissatisfaction with the job or the remuneration system and ignorance.

It is common knowledge that some industries need to be more vigilant than others. After the recent turmoil in the financial markets, this industry is now lumped in with the ranks of the construction industry, pharmaceuticals and the petrochemical industry, to be monitored carefully by international ‘watch dogs’ such as PharmedOut, Healthy Skepticism, The Oil Watchdog, The Australian Building and Construction Commission. Companies exporting to the European Union also need to pay attention to the European Commission. Intel for example, was slapped with a 1.06 billion euro fine on the 13th of May, 2009 for engaging in illegal anticompetitive practices to exclude competitors from the market for computer chips.

The same is true for giving preference to a family member over a stranger to run the financial department, which is nepotism for some and business sense to others. Then there are the ‘grey areas’ or those practices that are not really considered illegal, but are not completely right as well. These grey areas include behaviours such as making a private phone call using the company phone, divulging confidential information, claiming credit for someone else’s work or concealing one’s errors.

Implementation is also important, which requires managers to role model ethical behaviour and intervene in peer dynamics in order to create an ethical climate. Codes infuence behaviour by acting as a ‘rule book’ to explain what is expected from employees, as a ‘sign-post’ to check if behaviour is appropriate or not, and to lead employees to the appropriate authorities to report violations.

A good code of conduct must be crisp, clear beyond doubt, explain consequences of violations, and contain processes for reporting violations. Further, it is communicated along every possible channel and included in all main business processes. When this is implemented properly, the issue of ethics will be dealt with in the right way. Contributed by: The Liaison Combination Sdn Bhd

Mirella soyer and Brian Lariche of TLC

A formal company code of conduct can clarify what is grey and illegal behaviour and what actions to take when confronted with questionable business practices or the grey areas. Usually it is in the form of a formal, distinct, written document containing 25

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Mokveld provides innovative control and safety solutions to the oil and gas industry. Based on many years of expertise and high quality integrated valve systems we aim to add value to the sustainable exploitation of oil and gas reserves. Mokveld counts over 300 staff worldwide and has next to its head office in the Netherlands a worldwide network of offices. For the Mokveldofprovides innovative and safetyopened solutions to the oil andfacility gas industry. Bas realization our growing ambitionscontrol we have recently a new production in on Alam, manyMalaysia. years of expertise and high quality integrated valve systems we aim to add value Shah

the sustainable exploitation of oil and gas reserves. Mokveld counts over 300 staff worldwi and has next to its head office in the Netherlands a worldwide network of offices. For t MDBC Magz 2009-2 v5.indd 26 25/8/2009 6:05:04 PM


my in NL Dutch Artists visit Malaysia Last January, eight lucky Dutch artists escaped the bitter winter in the Netherlands to embark on a two-week tour in Malaysia.

For most of the Dutch artists, it was their first time in Malaysia and even in Asia. Upon returning to the Netherlands, the artists

Braving the Malaysian rain

Courtesy call by the artists on sarawak Chief Minister Dato’ sri Haji Abdul Taib Mahmud

The visit is part of the public diplomacy programme by the Malaysian Ministry of Foreign Affairs (Wisma Putra).

will paint or produce sculptures based on their observations and experiences in Malaysia. The aim of this project is to promote Malaysia in a different way – not through the usual medium of advertisements and the media, but through artistic impressions of people from different backgrounds and cultures. It is a showcase of Malaysia through the eyes of the Dutch artists.

Late 2008, the Embassy of Malaysia in The Hague, in cooperation with the Netherlands-Malaysia Association, selected the eight Dutch artists based on their diverse and artistic talents in paintings and sculptures. Wisma Putra then prepared a full two-week trip for the artists to visit Sabah, Sarawak, Kuala Lumpur, Putrajaya, Melaka, Penang, Langkawi, Kelantan and Terengganu. The varied locations gave them an overview of Malaysia’s diverse tourist attractions, fora and fauna, culture, culinary, weather, people, arts and environment.

At the end of this year, all the paintings and sculptures on Malaysia by the Dutch artists will be exhibited at the prestigious Pulchri Studio in The Hague. A coffee table book will also be published based on the finished works of the artists. The Malaysian Minister of Foreign Affairs is expected to officiate the art exhibition and the book launch in December 2009.

Malaysian Ambassador to the Netherlands Dato’ Dr fauziah Mohh Taib (2nd right) organised a cocktail reception for the members of the Netherlands-Malaysia Association recently. Present were (from right) Gerard van den oetelaar, former Netherlands Ambassador to Malaysia Conrad van Tooren, Kasper de Gouw and Marco Winter.

Minister of Tourism woos Dutch tourists The mission to woo Dutch tourists to Malaysia got off on a good and positive start as top tour operators and local tourism consultants gave encouraging reports to newly appointed Tourism Minister Dato Seri Ng Yen Yen, who was on a working visit to hold trade seminars in Amsterdam and The Hague last May.

neighbouring country Indonesia. Package deals for Malaysia and Indonesia will be developed. Other initiatives presented: * Opportunities and value-formoney with Malaysia My Second Home (MM2H) and Golden Third Age (G3A - retirees) programs; * To invite more students to stay and learn in Malaysia; * Experience a good lifestyle in Malaysia with ecotourism, diving and sailing, food and the culture.

The seminars had given the minister an insight into the European tourism mindset and she said Malaysia needed a creative The Minister, who visitedtour theoperator Minister of Tourism Ng Yen Yen conducting seminar for also top Dutch approach to lure tourists from Keukenhof, announced that a Holland, considering their close new Malaysia Tourism Desk will historical and cultural ties with be opened in Amsterdam. The Minister (centre) with Dutch Tour operators and media in Amsterdam

Dutch genealogy award for Dennis de Witt Malaysian Dennis De Witt, a fifth De Witt spent 15 years researchgeneration Dutch descendant, ing his roots and local Dutch became thewith first Dutch foreigner be history before work was pubNg Yen Yen TourtoOperators and media athis Intercontinental Amsteel, recognised for his work entitled lished in 2007, chronicling the Amsterdam “The History of the Dutch in Ma- history of The Netherlands and laysia” when he was awarded the Malaysia during the 160 years of prestigious Nederlandse Aan- Dutch rule in Malacca. moedigingsprijs voor Genealogie or Dutch Incentive Prize for Ambassador Dato’ Dr Fauziah Genealogy during a ceremony at Mohd Taib, Netherlands-Malaythe Central Bureau of Genealogy sia Association secretary Pim ten in The Hague last April. Hoorn and MDBC’s Marco Winter attended the ceremony. Dennis de Witt (3rd left) with dignitaries and jury after the award presentation

Contributions for these articles from Ambassador Dato’ Dr Fauziah Mohh Taib, Malaysia Tourism, Dennis de Witt, The Star and Irene Reydon of Reydon HR and Malaysia Promotion.

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NEW mEmbErS

DELUCCA, The Italian Restaurant

DRI Malaysia Sdn Bhd

Hogeschool Arnhem Nijmegen

Uhrenholt A/S

Ground Floor, Office Tower, One Residency Jalan Mesui, off Jalan Nagasari 50250 Kuala Lumpur

36th Floor Menara Maxis Kuala Lumpur City Centre 50088 Kuala Lumpur

Laan van Scheut 2 6525 EM Nijmegen The Netherlands

Ritze Perdana Business Centre Block D1, Unit D-2-09, Jln PJU 8/2 Damansara Perdana 47820 Petaling Jaya

Tel: 603 - 2144 6545 Fax: 603 - 2144 6532 Email: info@delucca.com.my Website: www.delucca.com.my

Tel: 603 - 2615 7222 Fax: 603 - 2615 0088 Email: info@dri-malaysia.org Website: www.dri-malaysia.org

Tel: +31 (0)24 353 1900 Fax: +31 (0)24 353 1902 Email: info@han.nl Website: www.han.nl

Tel: 603 - 7728 4770 Fax: 603 - 7728 6770 Email: msj@uhrenholt.com Website: www.uhrenholt.com

Corporate Representatives: Firas Sowiedan, Director - Operations Frederiq Ries, Director

Corporate Representatives: Carol Chia, Program Manager Bryan Wah, Marketing Director

Corporate Representatives: Hanny Kuiper, Project Manager International Paul Smeets, Project Manager International

Corporate Representatives: Morten Staal, Senior Key Account Manager Kennet Paulsen, Key Account Manager

Business Activity:

Business Activity:

Business Activity:

Business Activity:

Delucca, the Italian restaurant, is a new concept of dining in the heart of Kuala Lumpur.

Malaysia’s premier professional Business Continuity Management (BCM) education and certification body.

HAN University of Applied Sciences is situated in the eastern part of the Netherlands. The twin cities of Arnhem and Nijmegen (only 15 kms apart) - accommodate HAN, one of the fastest growing and top rated larger universities of applied sciences in the country. Two modern city campuses facilitate the exchange of knowledge between more than 27,000 students and 2,500 staff members and 2,100 international students.

Uhrenholt A/S is a leading worldwide food company with a turnover of 560 million Euro, supplying primarily dairy, seafood and meat products.

HAN University of Applied Sciences offers almost every type of professional higher education. Students can choose from over 60 Bachelors and Exchange Programmes and 15 Masters Programmes.

On 1 January 2009, Uhrenholt merged with its sister company Emborg Foods A/S. Emborg will continue as a global key brand across the product portfolio. This portfolio includes a wide range of Meat, Cheese (including Gouda and Edam), Butter & Cream, Seafood (chilled and frozen), Vegetables and French fries.

Delucca offers unique Italian cuisine, charming atmosphere, an island bar and live jazz during the weekends. At Delucca, every meal is a journey. A meal is more than just about food, it’s an experience; an event to be shared. We serve authentic Italian fare with a modern twist, featuring fresh ingredients and masterful preparation. With us, you truly discover the art of lingering over dinner with family and friends, making conversation and enjoying wine in a setting that is vibrant, casual yet upscale. We put a spin on classics that brings a modern sense of style in every single thing that we do.

DRI International (Disaster Recovery Institute International) is a non-profit organization. It is the oldest, the largest, and the most globally recognized organization of its kind in the world. For more than 20 years, DRI International has set the standard for professionalism in business continuity planning and has provided the profession’s premier certification and education. There are over 7,500 active business continuity professionals from various industries and business sectors maintaining DRI International certifications worldwide. DRI Malaysia was established to promote and complement DRI International’s professional copyrighted BCM education and certification programs within the region.

HAN’s Institute of Applied Sciences (“Higher Laboratorium Education”) participates in MDBC’s Student Internship Program.

More than 570 people are employed around the world with 200 based in Denmark. We have local offices and representatives in key markets, e.g. Atlanta, Buenos Aires, Barcelona, Dubai, Kiev, Kuala Lumpur, London, Moscow, Oslo, Prague and Shanghai.

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bOArD Of DIrECTOrS

CALENDEr Of EVENTS

MDBC Board of Directors

Thursday 18 June

Dato’ Jaffar Indot (Jepamajosa Sdn Bhd), Chairman Mr. Hans Laarakker (Dutch Lady Milk Industries), Vice Chairman Mr. Hans Bodewes (Shell Global Solutions), Treasurer Mr. Marco Winter, MDBC Executive Director Dato’ Lim Say Chong (Lanjut Setia Sdn Bhd) En. Azizi Meor Ngah (Malaysian Agrifood Corporation Berhad) Mr. Gerry Power (TNT Malaysia) Ms. Jacoba Bolderheij (Embassy of the Kingdom of the Netherlands) Mr. Jack Ang (Markant (M) Sdn Bhd) Mr. Harm Bots (Royal Bank of Scotland Berhad) Mr. Isold Heemstra (ING Insurance Berhad) Mr. Remco Koster (Woodwing Asia Pacific Sdn Bhd (MSC))

6.00pm

Dutch Wine Vodka & Cheese sampling evening Delucca Restaurant

Thursday 18 June 7.00pm

Launch of The MDBC Card Delucca Restaurant

Tuesday 30 June 4.00pm

EUMCCI - CSR Book launch

July

Honorary Board Member

0.00pm

MDBC

H.E. Mr. Lody Embrechts, Netherlands Ambassador

Thursday 20 August

MDBC Patron Y.B. Dato’ Seri Rafidah Aziz, Member of Parliament

6.30pm

Malaysian Dutch Business Council mailing address: MDBC @ The Gateway The AmpWalk, Lot 2.01, 2nd foor, 218 Jalan Ampang 50450 Kuala Lumpur Tel : 603 - 7492 1077 Fax : 603 - 7492 5166 Email : info@mdbc.com.my Website : www.mdbc.com.my

MDBC Student Internship Program - briefing

Thursday 27 August 6.30pm

Networking Night with MABC (Australian Council)

september Members-for-Members MDBC members will receive personal invitations for the above functions by email once all details are confirmed. All events to be reconfirmed.

The MDBC Board of Directors at our recent AGM. from left: Dato’ Jaffar indot, Ambassador Lody Embrechts, Harm Bots, Gerry Power, remco Koster, Marco Winter, isold Heemstra, Hans Bodewes, Jack Ang, Azizi Meor Ngah and Hans Laarakker

Dato’ Lim say Chong and Jacoba Bolderheij were overseas during the AGM

Dato’ Jaffar thanking Pieter Leyssius for his contribution to the MDBC Board during a recent farewell reception at Parkroyal KL

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MDBC Magazine 2009/2  

Quarterly Magazine Malaysian Dutch Business Council

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