According to a string of surveys, Democratic presidential candidate Kamala Harris has a narrow advantage over her counterpart Republican candidate Donald Trump and this heats up further the US presidential election.
Based on a Reuters/Ipsos poll published, Harris is said to be holding a marginal three-percentage-point lead over Trump, 45%-42%.
As such, BusinessToday spoke to two economists to gather their thoughts about the economic impact for Southeast Asia or in particular Malaysia if Trump wins the presidential election happening on Nov 5.
Economist Geoffrey Williams said a Trump victory will likely be positive for the global economic environment, especially in Asia and Malaysia.
“Firstly, the geopolitical situation is extremely volatile and is affecting trade and market confidence across the world, and Trump has a wholly different approach to the Joe Biden-Harris administration.
Williams foresees Malaysia to benefit if Trump wins the election
“This is clearly shown during his tenure when there were no major conflicts in the Middle East or Ukraine…he had an extent with Russian President Vladimir Putin, he reached out to North Korea and he brokered the Abraham Accords in the Middle East. This ensured four years of peace under his administration and we can expect a return to that if he is re-elected,” Williams said to BusinessToday.
He added that Trump has a market-driven domestic economic policy which will support growth in the US and open up trade and investment opportunities albeit with an emphasis on US interests.
“This will support global growth, trade and investment, especially in Asia,” he said, adding that there may be a different approach to China which will focus Chinese business on Asian trade and investment.
“This will be beneficial to Malaysia as we have good trade and investment relations with China and this refocus will support the existing relationships and build new opportunities,” he said.
Overall, he foresees Malaysia to benefit if Trump wins the election.
“Existing US investments and trade will continue and new opportunities will open up from the US and from other countries wanting to locate here,” he said.
On the other hand, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid told BusinessToday that the possibility of Trump winning the election revolves around the excessive trade protectionist policies and expansionary fiscal policies.
“Such policies may include universal import tariff of 10% and 60% tariff imposed on imports from China and all this is expected to add more cost to businesses globally resulting in exporters need to add most cost in to account for the tariff imposition.
“Additionally, there is also a measure to make the 2017 tax cut permanent and, in most circumstances, tax cut measures would provide a boost to the US GDP growth which can fan inflationary pressures.
“This then would alter the course of US monetary policies as the Federal Reserve may need to maintain a restrictive monetary policy which could strengthen the US dollar,” he said, adding that risk premium could be higher should Trump prevail in the Nov 5 presidential election.
On who he thinks Malaysia can benefit more from, he said it is a matter of degree of protectionism as the US administration has become more protectionist with respect to trade policies.
Based on the data from the Malaysia External Trade Development Corporation, Malaysia’s trade with the US climbed 29.4% to RM207.38 billion for the first eight months of 2024 compared to the corresponding period in 2023. Exports continued to expand with double-digit growth of 18.8% to RM124.34 billion backed by solid demand for electric and electrical products, machinery, equipment and parts, as well as optical and scientific equipment. Imports from the US also increased by 49.4% to RM83.03 billion.
The renewable energy (RE) industry remains resilient despite the recent challenges brought on by the COVID-19 pandemic.
As the world looks to make the planet more livable for the future generations, it is heartening to see new strides being made with newfound opportunities and heightened awareness in this critical industry.
Tasked to advance the nation towards adopting sustainable energy measures, the Sustainable Energy Development Authority (SEDA) Malaysia, since its inception in 2011, has overcome many challenges and obtained many achievements in shaping the country’s sustainable energy growth.
In this light, SEDA Malaysia will be organising its 5th International Sustainable Energy Summit (ISES) 2022 in collaboration with the Energy and Natural Resources Ministry (KeTSA) from Aug 29-30 at the Kuala Lumpur Convention Centre (KLCC).
ISES 2022 is mooted in partial of Strategic Thrust 5 of the National Renewable Energy Policy and Action Plan (NREPAP), which encompasses promotional and awareness building on sustainable energy. ISES 2022 brings together experts and thought leaders to discuss the issues related to sustainable energy as well as to address topical matters of interest.
Prime Minister YAB Datuk Seri Ismail Sabri Yaakob will be officiating this year’s landmark summit.
Aligned with the recently launched Malaysia Renewable Energy Roadmap (MyRER), the summit will witness intellectual and strategic discussions on actions and interventions towards achieving the Government’s RE target of 31% by 2025 and 40% by 2035 in the national installed capacity mix.
With the theme ‘Empowering Energy Transition’, the summit will highlight key pillars from MyRER and discuss the future of energy.
There will be four plenary sessions and 10 deep-dive workshop throughout the two-day summit whereby various perspectives of technology, business models, financing, government policies and will include topics such as exploring digital innovation in the electricity system and fostering urban development of low carbon cities in the energy transition.
SEDA Malaysia envisions ISES 2022 as a platform to exchange views, experiences and aspirations of the new norms in the journey of energy transition. It will also address economic recovery strategies necessary for such transition.
This year’s event will also see a bigger exhibition setup with large-scale exhibitions by leading RE partners, enhanced with technology showcases, trade programmes and business networking sessions all rolled into one event. ISES 2022 expects a strong turnout of 4,500 visitors over the two-day summit. The event will explore two key elements – sharing knowledge via conferences, and on ground activities taking the forms of exhibitions, pocket talks, and others. A line-up of 30 exhibitors and 70 speakers will further drive the sustainability agenda, with strong focus on renewable energy and energy efficiency topics, as well as addressing climate change issues within the country and globally.
Among the key panellists and speakers at ISES 2022 are The World Bank’s Lead Economist for Malaysia Dr Apurva Sanghi. A macro-economist with environmental expertise, and lead author for the Intergovernmental Panel on Climate Change (IPCC), Apurva will expand on the main theme ‘Empowering Energy Transition.’
Apurva has worked on development topics ranging from infrastructure and climate change to microfinance and agricultural economics before joining the World Bank, under which he led the Economic Growth Cluster of the World Bank in Washington DC. He has also held similar senior posts globally.
Another celebrated speaker is World Bank Senior Infrastructure Finance Specialist Prajakta Chitre who has vast experience on the workings of Infrastructure Finance, PPPs and Guarantees, and in-depth knowledge on the various transactions and structure risk mitigation instruments to mobilise private capital for strategic infrastructure projects in emerging and developing markets.
On the Malaysian front, Bursa Malaysia Berhad’s Chairman Tan Sri Abdul Wahid Omar will Chair the Main Plenary session and share his views on various issues across the ISES 2020’s theme.
Abdul Wahid is among the most versatile corporate leaders in Malaysia having successfully led four major organisations in infrastructure development, telecommunications, financial services and investment management.
He has served with Permodalan Nasional Berhad (PNB) – Malaysia’s largest fund management company – as its Group Chairman, from August 2016 to June 2018 following the completion of his term as a Senator and Minister in the Prime Minister’s Department in charge of Economic Planning from June 2013 to June 2016.
Besides these industry professionals, ISES 2022 will feature Platinum partners such as Tenaga Nasional Bhd, Petronas, Cenergi SEA Bhd, Concord Renewable Energy Sdn Bhd, Malakoff Corporation Bhd, OHP Ventures Sdn Bhd, MBSB Bank Bhd, and Sarawak Energy Berhad (SEB). The Diamond partners are NUR Power Sdn Bhd, Jentayu Sustainable Bhd, and Bank Rakyat.
This summit is a not-to-be-missed gathering of Malaysian corporate leaders, policy makers, industry players, think tanks and practitioners from the public and private sectors as well as civil society.
To register or obtain more information about the summit, visit www.ises.gov.my
Mohd Muazzam Mohamed appears to be running two marathons simultaneously. The first marathon is his cycling feat and being a bicycle enthusiast, he tries to do at least 100 km on weekends.
He appears to have achieved many formidable feats in this area evidenced by the medals that he has showcased in his lush office but the other marathon that he is still at is his attempts to make Bank Islam a formidable financial player in the country.
Having assumed the leadership of the Bank in December 2018, the chartered accountant was tasked to steer Bank Islam towards its listing status and beyond.
His achievement to date is nothing short of stellar evidenced by the fact that Bank Islam, in the shortest period, became the country’s fourth-largest Islamic financier and Muazzam has put in place plans and set the vision for the newly restructured financial entity.
Industry analysts were baffled as to why a financial entity would undertake restructuring and the eventual listing of Bank Islam when the country was besieged with the pandemic.
Muazzam appears to be unperturbed by the turn of events but remain steadfast and focused on the objectives that he has set for Bank Islam and does not see the “headwinds” as an obstacle.
In an exclusive interview with Business Today, Muazzam said that the restructuring will pave the way for Bank Islam to emerge as a full-fledged pure-play Islamic financial institution in the country and that the Bank would also be accorded full autonomy in undertaking its corporate and business strategies as well as adopting its capital management initiatives.
The Group CEO thinks that the transfer of listing from BIMB Holdings Berhad (BHB) to Bank Islam will allow the bank to gain direct access to the equity capital market for fundraising activities.
As for the shareholders, the exercise is expected to allow them to participate directly in the equity and future growth of the new Bank Islam Group and Takaful Malaysia, which were previously BHB’s subsidiaries.
The whole listing exercise would allow Bank Islam to have a capital injection to further innovate and provide better products and services for the convenience of its customers.
With the listing, the Bank is not sitting on its laurels but has set its sights and goals on scales that are just not on the immediate horizon but also on timescales that are much longer.
The Road Map
Moving the plan forward, Bank Islam has set out a 5-year roadmap through its 5 business drivers; Wealth Management, Social Finance, Digital Bank, Enterprise and Wholesale Banking, premised on its key line of businesses notably Consumer Banking, SME Banking, Commercial Banking, Corporate Banking, Treasury, Deposit and Cash Management and its investment management arm, BIMB Investment Management Berhad.
Integrated Wealth Management aims to transform from product-centric business to holistic financial advisory, resulting in a wealth-creating proposition beyond basic financing.
For enterprises in the SME market, the focus is to propagate, nurture and develop the segment, by advancing from financing-centric approach to catering to an ecosystem approach to the SMEs. This will be achieved by enabling the Halal economic platform to facilitate a collaborative financial ecosystem. The renewed focus is aligned with the recent Budget 2022 announcement which, among others, emphasised business progression, particularly among the SMEs.
The Bank’s Wholesale Banking proposition looks to further enhance its delivery of total holistic financial solutions that help customers achieve sustainable growth through efficient capital mobilisation.
Bank Islam’s Digital Banking ambition will not only see the utilisation of technology and collaboration with fintech partners to further improve our digital offerings that promise convenience and security. With the advances made in digital and technological capabilities, it will catalyse the Bank’s entrance into new markets and segments.
Social Finance customers can anticipate being a part of Bank Islam’s journey of inclusivity with a focus on empowering the unbanked and underbanked communities to become bankable. This is in line with setting the path in spurring Malaysia’s economic recovery, building resilience and catalysing economic reform, as outlined during the recent tabling of Budget 2022 by the Finance Minister.
On other plans after listing, Muazzam said that the Bank has always been retail-driven and that it plans to grow its customer base, and this would mean continuous improvement of its customer service and experience.
He said that its vendor financing programmes were one of its success stories and that the concept has been replicated to many of the business strategies.
As of June 30, 2021, the size of its SME portfolio was RM2 billion and the Bank plans to elevate it’s SME portfolio in the future. The support for SMEs is crucial as they are the nation’s economic backbone, employing almost half of the total workforce in the country and contributing close to 40% of Malaysia’s gross domestic product (GDP).
Bank Islam also aims to position itself as the Bank of choice within the ecosystem, providing not only financing facilities but other financial services including cash management solutions.
Diversified Offerings
On being listed and whether it plans to take on corporate business, Muazzam said that he intends to leverage the strength as a group to deliver diversified offerings, an uplift from the previous “monoline” approach.
“Financing-based products can be accompanied by investment-related ones, hence providing “Total Islamic Financial Solution” to our customers, enabled by a digital proposition,” he said.
“We see this as an opportunity to strengthen our market positioning and build winning operating models while profiling the group synergy proposition. While the Bank and the entire industry has been absorbing losses from the pandemic, we see this as building reserves towards recovery,” the Group CEO said.
Minimising resource and infrastructure duplications would mean prioritising cost optimisation and management. The inclusion of a stockbroking arm, BIMB Securities, provides alternative means to expanding fee-based revenue streams, together with our investment management arm, BIMB Investment. Having entrenched in the local market, the question is whether Bank Islam would be making its presence in the overseas market altogether. To this,
Muazzam said that it has no plan to go outside the region. He further said that with a deeper collaboration with a global asset manager, Arabesque, its investment management arm, BIMB Investment aims to strengthen local market position while garnering new market share by securing further distribution in regional markets. BIMB Investment’s 5-year roadmap aspires to grow its Asset Under Management (AUM) to more than RM10 billion in 5 years. This, in turn, will pave the way for access to the vast ASEAN regional network to be recognised as the market leader in the Shariah-ESG space. The company strives to establish a value proposition for long-term sustainable growth while expanding and establishing Shariah-ESG investment capabilities, he said.
With the onset of digitalisation in banks, Bank Islam has no intention of being left behind. The Bank embarked on a three-year transformation plan (2019-2021) named CODE21, where the Bank marched towards culture, operation and digital excellence.
Becoming the digital Islamic Bank of Choice is one of the items that Bank Islam is striving for, and one of the ways to do this is by working with FinTech companies that would provide the Bank with the solution on digitalization Muazzam said that it has gained significant traction and is on track to get some initiatives off the ground by early 2022.
“With these efforts, Bank Islam intends to provide financial solutions that are beneficial to all. These endeavours stem from improving Malaysia’s situation today; the rising cost of living, high household debts, and high level of unemployment exacerbated by the pandemic.
Also, one of the key focus, he said in the innovation labs is to develop Bank Islam’s ability to enhance staff skill set, train employees to bring agility in processes, and apprise them of developments in ongoing digital transformation.
Still, many would ask what is the value that Bank Islam brings to investors and stakeholders, Muazzam said that this listing will allow Bank Islam to better position itself in the Islamic Finance and Islamic Capital Market and capitalise on both markets’ growth in the Bank’s effort to expand its customer base.
He said that Bank Islam can look forward to enhancing group value proposition plans and with more business opportunities being formed, delivering value to all of the stakeholders has become its goal. “It’s noted that while the exercise will enlarge its share capital base, it will also strengthen its capital position and improve the liquidity of the shares,’’ he said.
Green Financing
On Environmental, Social and Corporate Governance (ESG) and Value-based Intermediation (VBI), he said that in the 5-year direction, the Bank plans to expand and grow Shariah-ESG investment and financing capabilities.
“It means to double our green-financing portfolio from where we are while raising Shariah-ESG funds to about 12% – 15% by 2025, thus providing a total Islamic solution,” he said.
“We also aim to provide value-added services that are offered to the customers (advisory) including information sharing and updates on relevant development within the ESG spheres (industrial and regulatory development BNM, Bursa Malaysia, Securities Commissions),” he said.
He said that with the current pandemic, investors will continuously assess their exposure to defensive and cyclical stocks to ensure that diversification effects are maximised in the wake of unstable situations that are highly volatile. ESG has become more critical now to these shareholders in seeking sustained business performance.
Muazzam further said, “The year 2022 will be a critical year for Malaysia, not just from an economic recovery perspective but also the healing of businesses, livelihood and employment, particularly to those most adversely affected by the pandemic.
With these efforts, Bank Islam intends to provide financial solutions that are beneficial to all. These endeavours stem from improving Malaysia’s situation today; the rising cost of living, high household debts, and high level of unemployment exacerbated by the pandemic.
He adds, “Therefore, Bank Islam will continue to play its role to stimulate the market and provide the necessary aid in promoting economic growth and sustainable income generation to all in the sector.”
With the listing and the visionary team in place, Bank Islam is set to change the Islamic financial landscape in the country.
Gearing up to play a pivotal role in thrusting more entrepreneurs, as an investment holding company owned by Minister of Finance Incorporated (MOF Inc.), Perbadanan Nasional Berhad (Pernas) appears to be the driving force that is mandated to develop the franchise industry since 2004.
Bound by its strong rich history, Pernas has witnessed significant changes in the corporate landscape and being an agency under MEDAC, it will continue to reiterate its importance in driving the franchise sector in the country as it emphasises its focus on building an entrepreneurial community with the franchise in mind.
Understanding that in keeping the organization relevant in the industry and in line with its goal to produce more entrepreneurs in the franchise industry and develop more local brands towards franchising, the decision to rebrand the company in a big way was imperative.
The rebranding itself involved changing its acronym and logo, to strengthen its position as Malaysia’s franchise champion.
With Chief Executive Officer, Mohd Hilaluddin bin Abd Shukor at the helm, he believes that the Pernas rebranded signals the move to enable the public to differentiate Pernas distinctively and maintain the mandate given as the agency responsible for the development of the country’s franchise industry.
The first move in this new direction was to conceive a new corporate identity.
“First we have a new corporate logo which depicts the sun as the new beginning with the cradle visual as symbolic of how we nurture business growth from the start-up to success.
“The circle featuring a spectrum of orange colour symbolises the sun that portrays a bright future as well as progressive relationship and growth,” Hilaluddin told Business Today in an exclusive interview.
A modern and fresh new logo and colours that symbolises the support to its effort in empowering the growth of entrepreneurs.
The rebranding exercise was not only to introduce the new identity as Pernas but also a strategic one that allows the company to position itself as Malaysia’s franchise champion that underscores its role in providing franchise opportunities to entrepreneurs while growing the nation’s entrepreneurial community.
“The change from PNS to Pernas signals our move to become the nation’s distinguished franchise champion. To reflect this change, we now have a new brand promise to fulfil, “said Hilaluddin.
Hilaluddin said that it plays a pivotal role in not just limiting the existing franchise brands but also in guiding micro-businesses and SMEs with the potential to grow them into becoming franchisees.
ENHANCED QUALITY OF SERVICES
The rebranding exercise also entails other aspects such as the quality of the services Pernas offers to its customers and entrepreneurs with the commitment to produce more entrepreneurs, especially in the franchise business in line with the National Entrepreneurship Policy (NEP) 2030.
Through its five-year plan, Pernas aims to approve 5,000 financing funds for entrepreneurs to grow its franchise portfolio by 400% from RM178 million to RM700 million; create 18,000 new job opportunities, and contribute RM4.4 billion to the nation’s Gross Domestic Product (GDP).
To achieve this, the CEO said Pernas will create a more effective franchise ecosystem with a comprehensive value chain supported by digital technology as well as empower the socio-economic development of Bumiputera through entrepreneurship.
Since 2004, Pernas has disbursed a total of RM1.3 billion in funding to more than 5,500 entrepreneurs and created more than 35,000 jobs.
BEATING THE PANDEMIC
The pandemic has provided fresh challenges for Pernas and it had to overcome these challenges through various assistance and funding schemes, including the introduction of the “RECURVE” program that offers additional funds to entrepreneurs to help revive their businesses.
“A total of RM20 million is allocated for this purpose which will benefit more than 350 of Pernas existing franchise entrepreneurs; the offering of a moratorium to eligible borrowers for all financing for six months from June to November 2021; rescheduling of loans for all eligible financing after the end of the moratorium period.
The assistance is offered to borrowers with a good repayment record and for this year, a total of 337 entrepreneurs had their moratorium application approved which amounts to RM9.32 million, the CEO said.
Pernas also organised several webinar series which include collaboration with the Ministry of Entrepreneur Development and Cooperatives (MEDAC) to provide information on Pernas services and products including providing knowledge and guidance on franchise business as well as sharing sessions by industry experts on entrepreneurship strategies and plans to prepare entrepreneurs in facing the new norm.
FUTURE PLANS
On how optimistic Pernas is in achieving its laid-out goals in the coming years, Hilaluddin said that the franchise industry grew at a commendable rate where its annual sales value recorded an increase of 17.3% of RM13.3 billion compared to RM11 billion in 2019.
In fact, he said there are now 1,090 registered franchise companies and from that, a total of 68 local franchise companies have successfully entered the international market in 70 countries.
“This proves that the country’s franchise industry has gained a place among entrepreneurs as one of the viable branches of entrepreneurship,” he said.
Based on this positive scenario, Pernas will continue to be focused and committed to produce more franchise entrepreneurs and develop more local franchise brands through its financing, guidance, and advisory services offerings.
Pernas disbursed the following funding amount, RM22.8 million in 2020 to 94 entrepreneurs; a total of RM33.7 million to 202 entrepreneurs in 2019; and for this year up until June 2021, Pernas has funded a total of RM16.3 million to 55 entrepreneurs.
To improve the franchise ecosystem in the country for it to achieve a higher position, and in an effort to create a more effective franchise ecosystem and achieve a higher level, Pernas has established strategic engagements and collaborations with various government agencies and the private sector.
Collaboration such as these plays an integral role in Pernas initiatives, especially when developing and strengthening the business system of existing and potential entrepreneurs, including the transition from being a skilled workforce to franchise entrepreneurs.
He said that to support the creation of 18,000 job opportunities initiatives in the next five years, Pernas has launched two new projects early this year. The launched projects by Pernas are also in line with the government’s intention to produce more entrepreneurs, namely:
Be Your Own Boss (BYOB) Project offers two programs targeted at women and youth known as the Successful Women Entrepreneurship Engagement Talent (SWEET) program for women and the Young Entrepreneurship Engagement Talent (YOUNITY) program for youth.
In addition, Hilaluddin said that Pernas aims to produce 1,000 franchisees and pre-franchisees under these programs where participants are offered comprehensive guidance and training, funding as well as access to current markets.
He said that since they were first introduced, more than 614 participants comprising youth and women have registered as BYOB participants; and from that number, 417 participants have completed their training and 396 of them are undergoing a business matching process.
The other project, he said was the Xcelerator Project where Pernas actively helps existing entrepreneurs to fast-track their business towards the franchise. i.e within a year.
He said that the projects were initiated with the aim to help reduce the rising unemployment rate in Malaysia especially when Malaysians are facing job losses during the Covid-19 outbreak, and help cultivate public interests to make entrepreneurship a top career choice.
ROLE OF SMEs
The small and medium enterprises (SMEs) including micro-enterprises have been integral to Malaysia’s economy as they play a significant role in creating employment and account for being the major contributor to the nation’s Gross Domestic Product (GDP).
In 2020, SMEs contribute 38.2% of the nation’s GDP which is RM512.8 billion from RM1,343.9 billion.
Pernas has offered several initiatives to assist SME entrepreneurs through
Business In Transformation (BIT) Program which identifies and in turn helps develop small businesses towards franchising; provides funding support, advisory services, and consultancy to participants; and to create more affordable franchise businesses that enable more potential entrepreneurs to venture into the franchise business.
He said to date, a total of 142 companies from various sectors such as food & beverage, retail, services and education have registered in the BIT program.
He said that SME businesses play a big role in contributing to the national economy. Based on this initiative, Pernas is one of the agencies that will help MEDAC to achieve its aspiration to produce 100 millionaires every year among SME entrepreneurs.
In addition, the Pybli; provide online services for buyers and sellers to conduct their business transactions; and this infrastructure was developed to provide a digital marketplace designed specifically for franchise businesses, BIT entrepreneurs under Pernas and SMEs.
He said to date there are 442 small entrepreneurs registered under Pybli where Pybli’s existence is seen to be able to further diversify the choice of platforms and services for entrepreneurs to market their products and services digitally.
MEDAC and Pernas also offer entrepreneurs the opportunity to participate in the Jom Ubah Minda Peniaga (JUMP) Program with the objective to provide digital training and exposure to micro and SMEs entrepreneurs and reduce operating costs, acquire new customer targets as well as optimize SME resources.
Among other initiatives is the Franchise Institute with the aim to provide training and consulting services in various fields and not just limited to the franchise and this is not limited to only SME entrepreneurs, in fact, all entrepreneurs and entrepreneurs to-be can go to the Franchise Institute to gain knowledge and receive guidance on entrepreneurship and business.
On how to heighten the awareness on affordable franchises, the CEO said that the public has the preconceived sceptical view that franchise businesses are expensive.
“There are many who still think that franchise brands are limited to big brand names such as McDonald’s, Marrybrown and so on (super brand) but the truth of the matter is, franchise businesses are not only vast but also there are plenty of affordable brands under franchise business that can be explored.
He said that when talking about the franchise business, society perceives it as a business that requires high capital.
Today, prospective entrepreneurs who want to venture into business, particularly in the field of franchise, do not have to worry about the big business packages because you get to choose franchise business packages that are more affordable.
“For example, the MD Putu Bambu World brand. With their package starting from RM7,000 to RM70,000, you can start a franchise business,” he said.
He said in fact, the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) has implemented the Micro Franchise and Affordable Franchise Development Program as follows:
Through the presentation of Budget 2021 on Nov 6, 2020, the Government has allocated a total of RM5 million to KPDNHEP to implement and carry out the Micro Franchise and Affordable Franchise Development Program successfully; This program will be one of the main programs in an effort to attract the involvement of more people, especially the B40 and M40, to venture into the franchise business.
He said that KPDNHEP as the national franchise industry development leader has announced the implementation of this program focusing on granting grants to develop more affordable franchise packages worth RM100,000 and below as well as micro franchise packages worth RM50,000 and below to increase the number of franchise entrepreneurs (franchisees) from the B40 group and M40 and they are not limited to the F&B sector only.
Hilaluddin said that the objectives of the implementation of this development program are to provide job creation to the M40 and B40 groups and expand the franchise business to target groups especially those affected by the Covid-19 pandemic.
In the past, the franchise industry was dominated by the food and beverage sector, today the franchise business sectors that have gained more demand and has the potential to thrive are Beauty and health; fashion and accessories; Services and maintenance; Convenience stores and supermarkets; IT and telecommunications; Learning and childcare centres among others.
Back in 1992, the Sunway College was just one institution. That one institution has since grown to become Sunway University, having established no less than four Sunway Colleges around Malaysia as a pre-university and professional courses institution of repute and opened up Sunway International School Kuala Lumpur and Johor to cater to the demand for high quality secondary education.
Today, there are 17 institutions under the Sunway Education Group (SEG) and at the helm of it is Chief Executive Officer, Professor Elizabeth Lee.
“What I do stems from my passion for education and I believe there’s still a lot to do! Nurturing young minds is an important job and a satisfying one too, especially when you see your students grow and mature into responsible citizens who try and do their part in helping others and making their world better.
“It gives me great joy when my former students and our alumni return and contribute to the further development of the institution as well as the next generation of students,” Lee tells BusinessToday.
SEG’s success she says is the collective effort of so many people at the SEG, driven by leader and founder, Jeffrey Cheah, whose leadership led to the foundation of multiple collaborations with Harvard University, University of Oxford, University of Cambridge, University of California, Berkeley and the Massachusetts Institute of Technology (MIT).
Other partnerships include with Lancaster University, Victoria University and Le Cordon Bleu.
Lee also attributed the success achieved by SEG to the talent it has invested in from all backgrounds, genders and expertise from Malaysia and around the world. “Talent diversity is key in order to continually develop, grow and thrive. And we are constantly looking for young talent to ensure continued success of the SEG,” she says.
The Ever-Changing Education Landscape
“The Malaysian education system is very exciting, believe me. Along the way, there have been some hits and misses, but I believe Malaysia is still a great destination for all learners and we have great potential moving forward,” Lee highlights.
SEG is looking to nurture future entrepreneurs through its updated curriculum and additional programmes made available through the Sunway Innovation Labs (Sunway iLabs) and Alibaba GET (Global eCommerce Talent).
“Post-pandemic, we need to have graduates who not only seek employment, but who can help create jobs instead.”
In 2013 and 2015, the Ministry of Education and Higher Education launched their own Malaysia Education Blueprints for schools and higher education, respectively, which sought to change the education ecosystem through teaching reform, more community and parental involvement, less emphasis on exams, incorporation of technologies, greater emphasis on TVET, enculturing entrepreneurship and making Malaysia an international education hub.
Recent incidents however have also changed the education landscape. With Covid-19, teaching and learning not only changed in Malaysia but globally as well. To enable students to continue in their education, education institutions switched to an alternative mode of online and dual mode learning.
As part of the change, SEG adopted hybrid teaching and learning across all their institutions, allowing students to continue their learning either online or face-to-face, wherever they are throughout the world.
In fully embracing new technology and new ways of learning, SEG continued to provide innovative education pathways. Last year, SEG launched 42KL, part of the worldwide phenomenon Ecole 42, which is a revolutionary model of learning, different from the conventional institutions of higher learning.
“We believe that the future of education is multi-dimensional and one that fully utilises the resources and technologies available in this 4th Industrial Revolution,” Lee says.
While the pandemic has been a cause of concern for the education landscape, Lee urges all education stakeholders, from governments to private sector, communities, school and institutions of higher education to ensure that no one is left behind.
Inculcating and Achieving the UNSDGs
“Education is empowerment. We only have this one planet and in pursuit of greater productivity towards a more comfortable lifestyle, we have unfortunately overused our natural resources, jeopardising our flora and fauna.
“If we do not do something, we might no longer have a home. As such, it is crucial to ensure the younger generations are aware of what is at stake and chart a better and more sustainable path for humanity,” Lee tells BusinessToday.
Of the 17 United Nations Sustainable Development Goals (UNSDGs), Sunway has placed focus and continuous work to fulfil three of them, zero hunger, quality education and partnership for goals.
The Jeffrey Cheah Foundation (JCF) which owns the Sunway Education Group, making it the largest non-profit social enterprise education conglomerate in the country has handed out over RM500 million in scholarships to deserving students.
What’s Next?
“Of course, at its core, we must continue to fulfil our duty to provide the highest quality of education in terms of curriculum and delivery. We will continue educating and enhancing the lives of the masses through education by promoting equity and inclusiveness.
“We are also committed to ensuring future talents are ready for a digital and technology driven world as well as to nurture socially responsible future generations who are empowered to care for the environment and ensure sustainable living,” Lee says optimistically.
However, in achieving their goals, the chief executive urges for the need to step up research efforts as it is also a major thrust for her and her team in Sunway University.
Aside from that, SEG is also looking to continuously expand on micro-credentials.
“Post pandemic, many in the workforce will have to be re-trained or upskilled to ensure they stay relevant and be up-to-date according to the shifts in the job environment,” she added.
“I hope to look back one day, and see my students succeed and thrive in the world out there. Everything we do here is for them, and we join in the joy of the good they achieve. I also hope to see them give back to society, celebrate differences, be civic minded citizens, and become caretakers of our world,” Lee concludes
With presence dating back to 1997, the Teladan Setia Group is a property developer with an established portfolio of landed, low-rise and high-rise residential properties in Malacca. The Group’s milestones in the industry have also received positive market acceptance.
Having taken over from his father, the late Datuk Teo Poh Boon, Richard Teo, the Managing Director of Teladan Setia has led the company as a visionary leader who pushed boundaries and brought the company to new horizons.
In a conversation with BusinessToday, Richard shares his thoughts on 2020 and what it meant to lead his company through a storm and the transitions that took place.
An early start
“It was never my intention to follow my father’s footstep. I was sent to Singapore to study and I went on to graduate overseas and worked as a software engineer. 2 years into the role, my father asked me to come back and help as he needed someone he could trust to run operations,” he says.
The software engineer turned property developer thought the break from the software field would only last a year or two. But it was after working in the industry, his interest turned to the property market completely.
“Malacca was a small town when I came here during 1997 but in the year, 2008, the city was awarded the world UNESCO heritage site and that immediately put it on the map. Tourists started flocking in and along with it came purchasing powers.
The locals went into F&B and hospitality and this eventually also grew the locals’ purchasing power and they started to look for more properties to buy,” he highlights.
“While landed property development was and still is our bread and butter, venturing into high-rise was a natural progression for us. No doubt, it was an uphill task when we first started as locals favoured landed properties more. So to succeed, we worked extra hard to ensure our design, location and pricing were all on point to sway home buyers. Despite the challenges, we were adamant to add high-rise into our portfolio early on because we believe Malacca would eventually grow into the city KL and Johor is today where land would become limited and expensive. Looking back, we are glad we did those projects as things are starting to turn in our favour on that front as locals are more receptive to high-rise properties,” he says.
In 2011, the Group ventured into their first high-rise on their prime land in Taman Sentosa in the city. The project was well-received by the locals and sold out quickly.
While most Malacca residents prefer landed properties, Richard says high rise buildings must be built in town areas so locals purchasing it could opt to either make it their home, rent the property or turn it into a homestay.
During the initial Movement Control Order (MCO), the city saw boutique hotels close and with a shortage of hotels in the city, it was Airbnb segment that supported the arrival of domestic tourists after domestic borders were open again.
A people’s leader
“2020 was unexpectedly challenging for us with the COVID-19 pandemic and the MCO. I think I’ve grown to be a better leader over the past year, learning how to command confidence and motivate my staff during periods of uncertainty. These valuable lessons will stick with me forever,” Richard says.
“I feel that a company’s best asset is actually its people and to me this is important. I alone cannot get everything done but with the support of my staff, we are able to achieve big things. Thus, retrenchment or pay cuts did not cross my mind at all. Now more than ever, their welfares need to be taken care of. Once this is over, we will be able to continue growing together,” Richard says.
Having been with his senior management for more than 10 years, Teladan Setia has experienced minimal turnover rate and Richard’s leadership has only created an environment that his staff look forward to working with him.
Overcoming challenges and building trusts
While the property sector faced unprecedented challenges, to Richard, the crisis was one he knew he could overcome. “Since our inception in 1997, we have come out of each economic downturn stronger. We are confident that there will not be any exceptions this time around as our business remains resilient with a healthy financial footing. We believe every crisis presents new opportunities.”
“Our focus now is to resume our business momentum. The new circumstance has prompted us to adopt fresh approaches to tackle the shift in consumer behaviour. One of the many initiatives was incorporating digitalisation to our promotional activities. Customers are now able to virtually view our new projects in the comfort of their homes. This has helped in keeping client engagement intact.”
“Ultimately, we believe what sets us apart is our presence of over 2 decades here and we have grown along with the locals. In 1997, when we sold our first house to a couple, it was received very positively. Soon word of the mouth did its job, and we continued to deliver quality houses, establishing a track record,” he tells BusinessToday.
“It’s the trust and reputation that we have established with the locals that got us here, and I believe it to be the very thing that will bring us even further.”
And with the reintroduction of Home Ownership Campaign announced in the recent Budget 2021, Richard believes buyers will get to enjoy even more incentives. For his portfolio of high-rise buildings, the Managing Director says they continue to receive interest from investors outside Malacca.
Teladan Setia’s seaside project, Bali Residences serviced apartment is seen as a reliable investment particularly as a homestay for tourists to enjoy during holiday seasons. The project is set to complete in 2021.
“By the end of the year, we will launch the Taman Bertam Heights project which is a gated and guarded development. As the purchasing power of Malaccans rises, they look for houses with security and added facilities such as swimming pools and gymnasiums. In the past, we have completed small developments of similar style. Premised on that, we believe it is time to expand this concept to a grander scale. Taman Bertam Heights is set to be one of the largest gated and guarded developments in Melaka,” Richard says.
“We are also completing the Taman Desa Bertam project with phases 2 and 3 slated to be finished in 2022,” he shares.
Richard attributes these decisions to the growth of Malacca and with tourism set to be a key driver to boost the industry, he foresees that demand for houses will further increase.
Experts and leaders in the property segment share their thoughts and directions for the market as 2021 sets in with a raging virus
The Coronavirus triggered major shifts in almost every sector in the country and the property segment was no exception to the changes that took place.
Development and construction saw a brief pause due to the lockdown regulations that was imposed to curb the space and the domestic and international border closures impacted property buying and rental. And after a year filled with challenges and turbulence, the market started observing recovery only to once again face a reimposed Movement Control Order in early January this year.
BusinessToday speaks to experts and leaders in the property market on what is in store for the property market in 2021 as the virus rages on and players in the market continue to innovate to stay ahead.
“Following the stamp duty exemptions announced by Putrajaya during Budget 2021, we anticipate more consumers will be searching for homes in the subsale market. The generous discount offered will prompt many to continue their search for the perfect home this year,” Shylendra Nathan, General Manager of iProperty.com Malaysia Sdn Bhd says.
The stamp duty exemptions announced during the Budget 2021 tabling for first time homebuyers is valid until 2025. A home buyer who purchases a home priced up to RM500,000 will get to enjoy cash savings amounting to RM12,500.
Another factor he says that this has sparked interest in property purchases, especially among middle and upper class households is the support provided by the government in the form of easy financing through the progressive reduction of Overnight Policy Rate (OPR) rate to its current 1.75 percent, which is the lowest value in over 15 years.
Nathan is also predicting for further reduction in the OPR in Q1 this year.
The property site has also seen organic searches for subsale property listings on an upward recovery of +41 percent by the end of the first week ofJune 2020 following the implementation of the CMCO. “Unique visits for subsale property listings on iProperty.com.my experienced an upward recovery of 85% by Dec last year,” Nathan says.
Commenting on the trend for the year, Vincent Lim, Managing Partner of The Property Guys foresees that purchasing homes would do better as opposed to rentals due primarily to the Home Ownership Campaign (HOC), resulting in full stamp duty exemptions for first time home buyers from now until 2025.
Vincent Lim, Managing Partner of The Property Guys
“Developers will continue to churn out all sorts of schemes to encourage renting and purchasing of any sort such as rent-to-own, zero down payment and high discount rebates for instance. Office spaces will also continue to see a decline as corporate tenants will start to realise the plethora of cheaper options out there.
However, I’m rather uncertain about shopping malls as it highly depends on restrictions posed by the government as a result of the pandemic,” Lim tells BusinessToday.
The Managing Partner also foresee that auction properties and firesales will end up saving businesses while developers will be adding more value to their offerings. He also highlights that fully furnished designer homes will become increasingly popular to help buyers complete their home ownership journey to ease their burdens further.
Property developer, Mah Sing Group is cautiously optimistic that demand for their property projects will be able to continue to attract the home buyers’ interest driven by their strategic location, attractive price points and packages, as well as innovative design and layout.
“In line with better economic outlook in 2021, demand under the property market is recovering as purchasing power from households improves gradually and we believe affordably priced properties at strategic locations will still be well sought after,” Mah Sing Founder and Group Managing Director, Leong Hoy Kum says.
Mah Sing Founder and Group Managing Director, Leong Hoy Kum
Mah Sing’s internal findings reveal that many have come to realise the importance of owning a property, especially properties with strategic locations with ready amenities.
To this end, the Group recently introduced their HOME with Mah Sing Campaign where it is premised on the concept of everything ‘originates’ from home. The campaign allows anyone to own a home – with payment-free for up to four years and will run until March 31, with Mah Sing also throwing in various incentives and savings aimed at easing the path towards home ownership, such as low booking fees starting from RM500, free stamp duty and legal fees.
Commenting on the HOC and the full stamp duty exemptions, IDEAS senior fellow, Carmelo Ferlito says while the initiatives can support the market, he however do not see the measures to radically change the trends that are in place.
“We do have to distinguish between long-term trends and short-term effects. The Malaysian property market is experiencing a decade long cycle and now this cycle is in its downtrend, as witnessed by the constant cooling down of prices,” he tells BusinessToday.
As for this year, Ferlito sees the continuing of the stabilisation process which is typical of the last stage of a business cycle. Therefore, prices will keep cooling down and transactions will remain more or less stable, after the post-lockdown physiological rebound.
“Consider that in Q3-2020, we recorded +7.4% in transaction volume (q-o-q) but -2.4% in transaction volume (q-o-q). This means that we had more transactions but of lower average price. The average value of transaction in Q3-2020 was around RM 380,000, while it was almost RM 420,000 in Q3-2019,” he added.
This anyhow is an improvement from the dramatic figures of H12020 which was -27 percent in volume and -31 percent in value. He believes focus should be placed on the cyclical trends rather than on the short-term signals.
A virtual norm ahead
“The new norm that took place in 2020 will become an existing norm that everyone is already used to, virtual tours, online meetings, e-commerce and deliveries. Hence everyone will be expecting better and more convenient products and services this year,” Lim points out.
He is also optimistic that virtual tours for rental properties will likely be increasingly more popular as people become more comfortable with a digital lifestyle.
Joining in, Nathan says as most consumers have gotten used to the new norm and should still be able to scout online for properties they are interested to purchase or rent in 2021. However an ongoing challenge, he highlights, is the approval of home loans. Although the interest rate is at an all-time low, many aspiring home buyers still find it tough to secure a loan.
Shylendra Nathan, General Manager of iProperty.com Malaysia
According to the latest Bank Negara figures in Dec 2020, the home loan approval rate is at only 35.2 percent. Consumers are encourage to evaluate their financial capability and ensure their target property is within their income bracket and debt profile.
However, with recent news of vaccinations set to take place in March, Nathan says the news will boost confidence among homebuyers.
“The positive update will provide most with a sense of relief and safety, thus encouraging them to process with their day-to-day activities. Consumer confidence will definitely contribute towards higher housing demand. Investor too will be more optimistic about the future, which will encourage further movement in the local property market,” he says.
Ferlito on the other hand is remaining prudent on the vaccine. “It was just announced and a new virus mutation has appeared. Side effects are yet to be fully understood.
So, while I preached to avoid panic amid the Covid-19/MCO crisis, at the same time I preach to avoid euphoria for the vaccine. Let’s analyse all the trade-offs in place and take sound decisions based on sound analyses,” he urges.
Mobility over stability
Even with the reintroduction of the Home Ownership Campaign, Lim says the rental market below RM2,000 will remain the same regardless as there will be a constant supply of young adults and students who are not ready to buy a house.
“The same goes to anything above RM4,000, because this price range is mostly to suit the expats and foreign tenants. The rental market between RM2,000 to RM4,000 will be affected because this batch of income earners will be tempted to buy their first home to take full advantage of the benefits, together will the current record low interest rate. Hence, we have to give more values to our tenants in order to maintain our business,” Lim stresses.
Ferlito agrees with Lim, highlighting that rental will probably become the preferred choice for younger generations which, despite the outbreak, will promptly restore their preference for internal and international mobility.
“With a growing number of people preferring mobility over stability, the rental market will play a growing role in Malaysia in the near future.”
Still room for affordable products?
“I believe that, for political reasons, in the past years, the debate on the affordable segment has overemphasised the need for affordable homes. Despite the past political debate, home-ownership is pretty high in Malaysia, around 77% and it is normal that there is less demand for middle and lower income homes, while high-end units remain attractive for investment purpose,” Ferlito tells BusinessToday.
He also shares that with over 16,000 high-rise overhang units, 57 percent of the units are priced below RM500,000 and with 8,607 terraced houses unit overhang, 61 percent of the units are priced below RM500,000.
Similarly, the IDEAS Senior Fellow also says that the economic crisis does not play in favour of investment from middle and lower income groups, which are more financially at risk and at the same time may want to recur to the secondary market. He foresees these trend to stay in 2021.
Additionally, property developer, Mah Sing Group says they are well aware that the financial difficulties and constraints in getting the appropriate financings have been major hurdles and these have heightened particularly during the outbreak period.
As such, the Group is planning to continue their focus on offering affordable range of products near city centres with good accessibility and ready amenities such as M Luna and M Adora that have seen encouraging demand, as affordability remains as one of the key concerns for the industry.
“Our wide product mix with successful project launches within the affordable segment and right location focus where demand remains resilient, has laid down a strong foundation for Mah Sing to reach greater heights,” Leong says.
This can be related where for example, under the HOME With Mah Sing Campaign, buyers have the option of choosing a sales package which offers a payment-free period of up to 4 years (the exact payment-free tenure differs for each participating project). Depending on the project, this payment-free period comes into play during construction, or upon VP.
The Group says their latest campaign is designed to look into specific pain points in customers’ home ownership journey. “This as the campaign is rested on three pillars or key concerns namely financial (financing issues, cash-flow, return on investment), uncertainty (job & pay security, economic recession, property market price & supply), and product (quality & features, pricing & affordability package, reputation & track record),” Leong tells BusinessToday.
According to the Global Startup Ecosystem Report 2020, Malaysia ranked 11th as the Top 100 Emerging Ecosystem, with an ecosystem valuation of RM 63.5 billion. The study further rated Malaysia as an ideal startup location, citing low prices, high quality of life and expertise, coupled with strong government support as primary reasons for entrepreneurs to either start or move their companies to Malaysia.
Playing an equally important role in building the ecosystem, the Malaysian Global Innovation & Creativity Centre (MaGIC), an agency under the Ministry of Science, Technology and Innovation malaysia ( MOSTI ) is tasked to empower technology startups and social innovators while developing a vibrant and sustainable entrepreneurship ecosystem.
“MaGIC’s DNA is in creativity and innovation. With a proven track record in the tech startup ecosystem to accelerate the realisation of the country’s innovation policy agency, our mandate also extends to social innovations in line with MOSTI’s agenda to spur wealth creation through innovation,” says Dzuleira Abu Bakar, Chief Executive Officer of MaGIC. Since its inception in 2014, MaGIC has achieved a value creation RM409 million, has organised 294 programmes, accelerated 189 startups and created 690 jobs.
National Technology And Innovation Sandbox
The National Technology & Innovation Sandbox (NTIS) is an initiative mooted to cater for the needs of technology startups in Malaysia. NTIS is also known as the the national solution co-ordination centre that allows innovators and startups to stress-test their products, services, business models and delivery mechanisms in a secure and live environment, with some relaxations from all or selected regulatory requirements.
“NTIS also aims to provide a structured framework for the latest innovations to be tested in a controlled environment for innovators, researchers and product developers. The test will run at a suitable facilitation provided by NTIS partners both from the government and private sectors,” says Dzuleira.
NTIS will facilitate startups operating in heavily regulated industries and technology verticals such as healthcare, drone operations, agriculture, communication, mobility and so on. We have to recognise that technology and innovation, in which case tech startups are usually ahead of their time and operate in grey areas. Regulations and laws unfortunately do not move at the same speed. Hence the conundrum we are in as far as regulating tech & innovation is concerned.
NTIS Funding Schemes
“Through NTIS, we will assist drone powered solution companies by working with regulators such as the Civil Aviation Authority Malaysia (CAAM) to ease and streamline permit applications especially in situations where drone operations pose lower risk,” she adds on.
The CEO further highlights the positive impact that has come from drones in the logistics and healthcare segment. With better case studies and adaptive regulations that promote innovation, she says MaGIC is confident that NTIS will help Malaysia achieve its goal to become a frontrunner in DroneTech.
However, Dzuleira has also highlighted some of the challenges the agency faces in delivering these initiatives. Along with regulatory red tape, the lack of participation from private sectors, high dependency on foreign talent for high-tech solutions and low commercialisation rate after R&D stage has prevented the initiatives from achieving their most.
“The Covid-19 pandemic and the Movement Control Order has also made these challenges more pronounced,” says Dzuleira.
Public-Private Partnerships
As part of their efforts in enhancing social innovation, MaGIC seeks to increase partnerships across the ecosystem value chain. “We look at agencies under MOSTI and across ministries and find many ecosystem players who are ideal partners such as Agensi Inovasi Malaysia, Cradle Fund, MDV and MAVCAP to help achieve inclusive and sustainable growth in SPV 2030 and SDG 2030,” Dzuleira tells BusinessToday.
“In NTIS, we have the Innovation Acceleration Network partners which consists mainly of investors and corporates from the private sector. Their involvement and participation within NTIS are essential and important to bridge the gap between government and private sector and to increase private investments,” she adds on.
MaGIC has reached out to approximately 31 corporate partners who are acting as supporters and enablers by giving industry inputs. These partners further assist in product and solution commercial viability.
BusinessToday speaks to Idham Nawawi, Celcom’s Chief Executive Officer on his journey with the company, the changes the telco player has undergone and what is in store for the company
One of the oldest and most recognised mobile telecommunications provider in the country, Celcom, is a brand that has been bridging communications and advancing multimedia services for Malaysians for decades. Known for its wide coverage nationwide, the telco has almost 13 million users and owns over 11,000 network sites covering 2G, 3G, 4G, making Celcom one of the leading broadband network providers in the country. Leading the company in the past two years is Idham Nawawi, who very much like the brand itself is no stranger in the industry. With experiences spanning over two decades in both Malaysia and Indonesia, the former Axiata Group Chief Corporate Officer is currently the engineer behind the telco’s revamp efforts and its future direction.
A NEW JOURNEY
“We do things beyond short term prospects, and sometimes we take the longer-term view route,”
“Time just flies, it just shows how fast paced the industry is. The journey has definitely been both challenging and exciting,” Idham recalls as September marks the completion of two years since he took the wheels. “Celcom as a 32-year-old company has its own culture and my responsibility is to turn into a more sustainable company for the next 3 decades,” he says. As part of his efforts to revamp the company, Idham introduced the Celcom Compass. “What it does is it helps to build an institution with a soul. Companies can get very technical and very mechanical but with the Celcom Compass, we can introduce a new set of values.
“I wanted to achieve a balance in what Celcom is all about,” he says. Celcom’s aim is all about advancing societies, Idham says, who also comments that while the company hopes to continue impacting the lives of its customers positively, it also keeps in the mind the need to become a high performance company.
“We have got shareholders and strategic partners who expect to prosper by working with us.” While the company has had a streak of being a high-performance player in the past, Idham says the company has also hit a couple of roadblocks recently. Despite that, the CEO says it is the long-term view that matters to him. “We do things beyond short term prospects, and sometimes we take the longer-term view route,” he says. Operating in a highly competitive field and with consumer behaviour changing every day, Idham tells BusinessToday, that the challenges he faces daily comes not just locally but also internationally.
“Malaysia can be described as a hyper-competitive field. There are so many more players today, its more than what the 32 million population market can sustain,” Idham says. Competition is not the only challenge Idham faces, regulatory changes are also impacting some of the decisions he make. Celcom is among the country’s three biggest cellular service providers, joined by Maxis Bhd and DiGi.Com Bhd. According to a report by The Edge Financial Daily, TA Securitis analyst Wilson Loo stated that the telco giants have continued to cede market share to small players in the last year.
“This is not a short journey to shape this 32-year-old company, we have had our challenges but we want to get established as fast as we could,” Idham tells BusinessToday, further highlighting that introducing agility in the company has been one of the more important aspects of his journey when he first started in Celcom. “We have to keep in mind that the market doesn’t remain constant,” he says.
A PEOPLE’S TELCO
“Celcom will leave no one behind and is committed to stand together with Malaysians.”
“When the MCO was implemented, it was a test to see how ready we were as an organisation. I was proud with the way we adapted and moved,” Idham shares. The Movement Control Order (MCO) implemented on March 18 had impacted businesses nationwide, resulting in a temporary three months slowdown but with Celcom being one of the country’s largest mobile communication provider, the show had to go on.
“At the time, I had three priorities. The safety of our people, how do we make sure the network is not disrupted and as a responsible organisation, how do we keep providing service to Malaysians nationwide,” the chief executive officer tells BusinessToday. “We changed the way we work, monitor and manage the demand geographically in order to make the network continued uninterrupted.”
The telco remained committed in supporting Malaysians throughout the pandemic. For a start, it ensured everyone remained connected by providing free SIM cards to returning Malaysians who are required to undergo the 14-day mandatory quarantine. The prepaid packs were pre-loaded with 1GB data and 10GB access to Facebook, Instagram, and Games Walla.
“Celcom will leave no one behind and is committed to stand together with Malaysians,” Idham assured during the period. “I am also quite pleased by how we took care of our employees. The network engineering team and customer service team braced through those difficult periods to continue ensuring Malaysians stayed connected,” Idham further highlights.
The telco had also helped hospitals when the healthcare industry needed communication services. Frontliners were also awarded free data and free calls as part of the telco’s recognition of their sacrifice. The telco also extended the much-needed aid to students and the B40 group nationwide, staying through to its motto of prioritising people.
JENDELA
The Jalinan Digital Negara (JENDELA) or also known as the National Digital Network is a collective effort by industry players and Putrajaya to set ambitious aspirations for Malaysians to have quality access to digital connectivity. The national aspirations it hoped to achieve includes 100 percent 4G coverage, Gigabit access fixed broadband and more than 100 Mbps mobile broadband. It also aims to set the foundation for 5G.
Supporting the launch of JENDELA, the National Digital Infrastructure Lab Report (NDIL) highlighted that the national aspirations will be achieved via a phased approach and the priority is to maximise the existing resources and infrastructure. As of 2020, the plan has achieved 91.8 percent of 4G coverage with 25Mbps mobile speed and more than 4 million premises have passed. Phase of the plan which is currently taking place from 2020 till 2022 hopes to achieve 96.9 percent 4G coverage.
“JENDELA came out of the lab that Celcom was part of. There were a lot of debates and we identified the gaps in certain areas. The challenge here now is achieving the last 10% coverage,” Idham says. The telco veteran goes on to share that achieving that target might be a lot harder than it seems.
“We need to set the right expectation because shutting down 3G completely has to be done carefully to minimise impact to users. There are still customers using 3G as the network is widely used for voice messages as well as machine-to-machine application which mostly involves household meter reading,” Idham stressed, further staying on that these part of the process that needs to be thought through. “While it is costly to ensure complete wireless coverage for the last 2 percent, Idham says there are other technologies that telcos can bring over to ensure connectivity.
“We also have to ensure that when the 4G coverage is completed nationwide, consumers have to have the right device to keep up with the changes made,” Idham urged. Speaking further on the telco’s preparation for 5G, Idham tells BusinessToday while JENDELA’s plan is to ensure a 100% 4G coverage, 5G has not been abandoned.
“It will be a very important of our future moving forward. Covid-19 has showed us that. Now, with the rise of hybrid classrooms and SMEs adopting digitalisation, 5G is more important than ever,” he says.
“The way we consume network is going to be very different when 5G gets rolled out. While many assume 5G will fuel innovations to do with AR/VR, automation, and robotics, it may also give birth to different ideas which I’m not sure what it might turn out to be,” Idham says. However, the telco veteran also opines that given the limited availability of devices and applications, it is yet the right time to commercialise 5G and it could be costly for network infrastructure service providers to do so at an earlier stage. “There is currently no mass production of 5G equipment and limited content suitable for 5G usage that is being released to boost demand for the technology,” he was quoted by The Edge Markets.
FROM ONE HOMEGROWN BUSINESS TO ANOTHER
While the pandemic may seem as a catalyst for Celcom to come with innovative ways to help SMEs, the telco has previously showcased its commitment towards SME owners.
One of the more common observations during the pandemic and MCO were the rise in digital adoptions among SMEs. Business owners nationwide saw the need to digitalise to be more sustainable in the future. And playing an important role in helping them, Celcom offered SMEs nationwide its, Celcom Business Suite. As MDEC’s technology solutions partner, Celcom obtained a business digitalisation grant to finance 50 percent of the digital kit’s subscription fee, amounting to RM 5,000. “We introduced it a couple weeks back and the interest has been overwhelming. We are also reaching out to business association to expand our reach and I want this to be a success,” Idham aspires.
Additionally, the telco’s campaign, “Celcom Business: Reimagine SME for Tomorrow”, is part of its efforts to accelerate digital adoption among local SMEs. The campaign will run until year-end and will see Celcom partner with 13 partners, which will include MDEC, SME Corp, and Bank Simpanan Nasional. While the pandemic may seem as a catalyst for Celcom to come with innovative ways to help SMEs, the telco has previously showcased its commitment towards SME owners.
In January this year, the telco partnered with Alliance Bank Malaysia Bhd with the objective of helping SME owners grow and manage their businesses better with a combination of connectivity and banking solutions. The Celcom Business Suite for Retail which was launched at the time was adapted to the needs of retailers.
KEEPING MALAYSIANS CLOSE AT HEART
“Celcom is everywhere. It’s part of Malaysians’ lives and it touches them from the moment they are awake and even as they travel overseas, we are there to keep them connected,”
“Celcom is everywhere. It’s part of Malaysians’ lives and it touches them from the moment they are awake and even as they travel overseas, we are there to keep them connected,” Idham proudly claims. Establishing that Malaysians will always be at Celcom’s core, Idham says he is looking forward to seeing what is in store with for the telco in the next three decades as it continues to move forward. “We are constantly finding a way to impact the lives of Malaysians in the long term and as homegrown Malaysian company run by innovative Malaysians, it’s our responsibility in ensuring that happens,” Idham concludes.
As the saying goes, every cloud has a silver lining.
We have been caught off-guard by the unprecedented pandemic. However, Covid-19 can be looked at as a game changer to accelerate digital transformation of our nation. Until two months ago, the actual transformation has been rather slow for many. Now, companies are speeding up the adoption — which was either in discussions for years or put on hold — as they see digital readiness is no longer a choice, but a must.
Both organisations, in the private or public sectors, must rethink their strategies to invest in more integrated digital infrastructure to manage current disruptions and stay relevant in the future.
Viewing it in a wider context, the use of technology has seen a rapid uptick during the Movement Control Order (MCO). Many digital solutions have been innovated and are energising an ecosystem which were in a transitional stage of transformation. We have seen business behaviours reshaped, consumer activities shifted to online platforms, social and conducting business done across online conferencing tools.
By using robust connectivity, complemented by the most effective digital infrastructure, TM ONE is playing the role in providing the most effective platform to help drive Malaysia’s digital strategy forward.
Equipped with newly launched comprehensive digital solutions, TM ONE, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad, is determined to help businesses rapidly adapt and continue operations in these challenging times. As an enabler of the Digital Malaysia, TM ONE is wellpositioned to enable the ecosystem for digital society, digital business, and digital government.
In an exclusive interview with Ahmad Taufek Omar, Executive Vice President and Chief Executive Officer of TM ONE, the leader explains why with every crisis there comes an opportunity.
Without a doubt, technology played a key role during the MCO in keeping us connected and safe, Ahmad Taufek points out. We have witnessed an increase in cloud adoption as businesses leverage on the power of cloud to stay in operation and connected.
At TM ONE, we aspire to spearhead the digital transformation for the nation but as it turns out, the pandemic has accelerated many of our initiatives,” Ahmad Taufek says. When the government enforced the first MCO in March, I threw a challenge to the team to come up with a digital solution to help businesses during the pandemic.
Hence, towards the end of March, they launched TM ONE Cloud α (Cloud Alpha), the key enabler of the digital transformation for Malaysian businesses and public sectors. Its objective is to help organisations to reduce information technology infrastructure complexities towards cloud adoption and particularly to boost their resilience amidst the challenging times.
Ahmad Taufek Omar, Executive Vice President and Chief Executive Officer of TM ONE
“Forging resilience through optimisation and technology-driven strategies is crucial across industries”
Cloud Alpha’s robust and r e s i l i e n t infrastructure is hosted in our highly secured, Tier III certified, and global standards compliant data centres within Malaysia.
“We want to ensure our customers are able to fulfil their data residency requirements, and ultimately, data sovereignty,” Ahmad Taufek explains, adding that customers then will have peace of mind, allowing them to focus on their business.
In a response to a question, the CEO also points out the key factor that differentiates Cloud α from other cloud services is the comprehensive offerings, and multi-cloud offerings that provide flexibility to complement multiple deployment models customer’s cloud adoption strategy and business objectives.
Case in point was when our valued customer needed a scalable solution as a stop-gap measure for the temporary surge on their website. Cloud α was deployed as the solution and within one week, from capacity planning to deployment to testing, the government’s backend system was put in place to support the wave.
As with the recent collaboration with Huawei, it will enable TM ONE to offer an additonal array of cloud computing services under the umbrella of Cloud α. With the additional of Huawei and existing collaborations with other other hyperscale cloud providers such as Microsoft, AWS and VMware, will further strengthen TM ONE’s positon as Cloud Aggregator and to become the leading Cloud Services Provider in the country.
“It is another testament of TM’s promise and prominent role as the enabler of Digital Malaysia aspirations.”
According to Ahmad Taufek this partnership will enable them to accelerate the digital services and solutions to the nation, forging ahead as the only Malaysian-owned end-to end cloud infrastructure service provider.
This adds another milestone for TM ONE as they now have full cloud capability as a core offering to capture growth in Malaysia, which is expected to grow at a Compounded Annual Growth Rate (CAGR) of 27 percent in the next five years.
In May, when the government announced the extension of the conditional movement control order (CMCO), it meant that more Malaysians are beginning to return to work. This has raised its own set of questions, primarily on how businesses can ensure a safe work environment for its employees.
One such solution has presented itself. TM ONE, unveiled their smart digital health screening solution – TM ONE Predictive Analytics Screening Solution, or ONE PASS. It works by screening the body temperature of individuals as they enter business premises.
It is a purely local product developed by their own software designers, software architects and coders.
“ONE PASS is aimed at providing business continuity for organisations to declare their building as a ‘safe zone’ to work by implementing state-of-the-art health screening solutions,” Ahmad Taufek elaborates.
ONE PASS is a non-contact connected solution with three main digital service features such as visitor management, thermal sensors, and monitoring and contact tracing. The real-time digital solution includes an employee and visitor management app for selfdeclaration assessment and deployment of thermal cameras and sensors to check body temperatures prior to entering a building.
“We leveraged on the opportunity to launch two key products which are beneficial to the nation while working at home, Ahmad Taufek remarks proudly.
“In essence this is congruent to TM ONE’s actual plans, where our role is towards the nation’s digitalisation process.”
DIGITAL TRANSFORMATION IS KEY TO SURVIVAL
In this Covid-19 period, digital transformation is no longer an option for businesses. It has become a necessity for operational efficiency and business survival.
International Data Corporation (IDC) reported that by 2020, cloud-based IT spending will reach up to 60 percent on IT infrastructure and 60 to 70 percent on all software, services and technology, whereas Global Data estimated Malaysia’s spending on cloud computing is RM10 billion.
The CEO is optimistic and remains committed. “TM ONE’s role as part of TM Group is to deliver a Digital Malaysia, hence the pandemic has allowed us to really show our support for the country and its entire ecosystem.”
“Malaysia is on the right track towards digital transformation, and Digital Malaysia sums up what we are as a developed nation,” Ahmad Taufek says positively.
On another note, the CEO tells Business Today that some businesses are not able to embrace the transformation coherently. Previously, digitalisation was largely seen as IT driven and required high investment. Technology moves so fast but not all companies are able to keep up in terms of the financial capability. Hence, because of this, they become irrelevant very quickly.
And, digital transformation requires agility and speed. There is a saying “Culture eats strategy for breakfast.” If the culture of the organisation does not embrace agility, business leaders will find that their digital transformation strategy will falter.
Ahmad Taufek explains that for businesses to embrace a coherent transformation, firstly they must be customer-centric. It is always customers first – creating the best experience for them. It applies to all business strategies as well as digitalisation.
Secondly, business leaders must ensure that people strategy evolves to support their business transformation. When the whole team has a common objective, the journey will be smoother, and things will fall into the right places.
And finally, you must have strong collaborative partners, Ahmad Taufek emphasises. Trusted partnerships with other players in the technology ecosystem will help your customers achieve their digital journey.
Nevertheless, TM ONE is part of TM Group, and each line of business within the Group, has its very own part to play in driving transformation and helping Malaysian companies transform digitally.
“We remain committed to play our part in improving the ecosystem. TM ONE is the only local player with its own state-of-the-art core Data Centres and Cloud infrastructure with full data residency, locality and sovereignty in Malaysia. Our twin core data centres are located in Cyberjaya and Iskandar Puteri respectively,” Ahmad Taufek says with conviction.
With these digital infrastructures and services, TM ONE offers a comprehensive data residency and locality in Malaysia. Holistically, they are an ideal cloud services provider for the nation.
Regarding why businesses should no longer be hesitant on their transformation journey, the CEO says it is the only means of staying relevant in these trying times.
“We have the capabilities to support them,” Ahmad Taufek affirms. If they turn to us from an infrastructure standpoint, TM ONE has the network, software, and platform and most importantly, full data sovereignty, but if it is from an advisory perspective, we have the expertise from top solution consultants.
“Our role as a responsible organisation is to support businesses to elevate to an era of digitalisation”
Furthermore, TM ONE, also working is with the Government to support local small and medium businesses (SMEs) so that they #stayinbusiness in these challenging times.
“We are offering some free services for businesses to leverage, according to their specific needs. Hopefully, they will get a perspective of where they want to head towards by adopting the necessary applications for digitalisation in their business,” Ahmad Taufek says.
WEATHERING THE COVID-19 STORM
To some extent, during the MCO, the use of technology has already been proven to enable many business operations and social connectivity to remain in place. However, the increased deployment of technologies will also speed our path in the post-Covid world.
Undoubtedly, Ahmad Taufek stresses that during any crisis, telecommunication is one of the critical sectors, and at TM ONE their role is to ensure business continuity for their customers to stay in operation.
“It is business as usual. We are committed and ever ready to serve our customers in these trying times,” he states. The team’s responsiveness to address the demands of our customers and our scalable offerings have helped many businesses and public sectors to stay connected, stay in business and stay served.
Understandably during this time, businesses are pulling the handbrakes and accessing the overall expenditure of their business for survival. Hence, to convince the market to spend, Ahmad Taufek says they must ensure the services they offer are well managed and serviced.
“We are here for long-term.”
THE ADVENT OF IR4.0
This is the biggest objective for the TM Group, according to Ahmad Taufek. “We fully support TM in the Group’s role as a national telecommunications infrastructure provider of Malaysia’s Digital Nation aspirations.”
TM Group will continue to lay the foundation for Industrial Revolution 4.0 (IR4.0) and roll out 5G nationwide if it is awarded to us – serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government – to enable a Digital Malaysia.
“We fully engage ourselves around key industry verticals, and with the team and industry experts to enable us to gain a deep understanding of industry needs to exploit the market quicker,” Ahmad Taufek points out.
“We believe in long term partnerships and customer-centricity.”
Ahmad Taufek also shares that TM ONE will continuously develop and deliver digital solutions enabled by Internet of Things (IoT), Big Data Analytics and Artificial Intelligence (AI).
“Through our end-to-end digital solutions, we will fulfil the dynamic needs of the various industries in today’s hyper-connected ecosystem,” he says.
STEERING AHEAD
Now, acceleration is key. “We are focused on taking transformation forward for every one of our customers, buoyed by our digital solutions, Ahmad Taufek says with commitment.
“Our role is to enable a reliable hyperconnected ecosystem, one which will empower Malaysia’s enterprise and public sectors to realise the full potential of their digital opportunities through our end-to-end digital solutions and industry experts, he adds.
“We are fully committed to combat this pandemic, to help industries, and the nation move forward – stronger than ever before!”
The digital enabler’s approach opens the avenue for growth in a post-MCO landscape and helps to build resilience for future upheavals.
“At TM ONE, we want to provide technologies which will further assist businesses and organisations to bounce back safely and responsibly to revive our economy,” Ahmad Taufek concludes.
The current Covid-19 induced societal, health and economic disruption has resulted in potentially fundamental radical changes in how we live and work moving forward. This has caused tremendous economic dislocation and we are possibly on the threshold of a global depression that could be worse than the Great Depression of the 1930’s.
Despite the gloomy macro and microeconomic picture, one sector of business seems to have their heads in the sand – International schools.
But before we examine that phenomena, let’s take a look at the industry.
ISC Research’s Market Intelligence Report for Malaysia, the total number of English-medium international schools in the country have increased by 75 percent since 2012, and student enrolments have also gone up by 87 percent. A further 12 new international schools opened in the 2018/19 academic year. There are now approximately 80,000 students studying in international schools.
Approximately 80 percent of students attending international schools today are the children of local families who hope their kids can get an English centric education and a leg up in the future.
Since the MCO started 2 months ago, schools have been going on full e-learning mode to varying degrees of sophistication depending on how prepared they are with relevant e-learning tools.
E-learning is ready for prime-time but it is not, and never will be a substitute for face-to-face learning. Global experts have been advocating blended learning for years which is the combination of face-to-face learning, 2-way learning online via video conferencing tools as well as online lectures, webinars, podcasts and other digitised material.
Online learning cuts the cost of delivery while at the same time increases retention and engagement among students. The costs of these solutions can be quite affordable. For example, www.kidslearning.asia only costs USD60 per annum (about RM 20+ per month)!
However, it is not a substitute for face-to-face learning provided by the school environment.
International schools however seem to feel that they are performing their roles as per normal and are shockingly choosing to continue charging parents normal fees with token discounts of 5 to 15 percent being offered!
In essence, they are trying to make this a net revenue neutral exercise for them!
If schools are closed, essentially, they save money on running costs of the buildings and facilities in areas such as utilities, cleaning and security staff (which is normally outsourced).
From a service delivery perspective, however, the parents (who are the customers of the school) are shortchanged. Not only do they have to supervise their own kids, the quality of education is lower and absolutely no access to normal facilities and interaction which normally an international school provides.
In the corporate world, no vendor will dare charge customers the same fees while delivering lower quality of services. Essentially, they would be setting themselves up to lose customers or worse still, open themselves up to lawsuits.
Schools are also able to act in an arbitrary manner because parents have to pay deposits prior to children entering the schools and therefore, if at least a term’s notice is not given, the deposit is forfeited. So, essentially for most parents, pulling the kids out of school is not an option and hence, they are at the mercy of the school.
What these schools don’t realise is the threat of being out of touch with the market, as well as potential disruptions to their business model by alternative providers such as homeschooling which is a viable alternative product, if they blend it with e-learning.
After all, the MCO has been a game changer for how we work, live and study.
In an article in the Edge Financial Daily in 2018, Eduseeds Sdn Bhd founding chairman Kevin Gan Muk Chun, said that “There are easily more than 100 [homeschooling] centres in the Klang Valley alone.” Eduseeds is a home-grown virtual curriculum provider for private learning or homeschooling centres.
Gan, who manages five such homeschooling centres in the Klang Valley( at that time), is among a growing number of educators benefiting from parents clamouring for cheaper and more effective educational alternatives to what they perceive as a poor national school system and the high cost of international schools.
Industry players report that, on average; homeschooling centres enjoy a profit margin of between 20 percent and 40 percent. Across the Klang Valley, homeschooling centres’ monthly fees range from RM700 to RM2,500 per month.
“If my centre can make a 35 percent profit from a monthly fee of RM1,300 per student, how much more profit do you think a RM2,000 fee could command?” a homeschooling centre operator said in the Edge article.
So, what is the middle ground here for the schools and parents, particularly for the majority of middle-class parents who make tremendous sacrifices in order to send their kids to international schools?
My daughter studies at UCSI International in Subang Jaya. Parents across the board have requested a reduction in fees. I proposed something which I felt was logical and fair to both the school as a business and to parents which is to split the fees by timeline and service delivery in the following manner:
Pre-MCO it should be 100 percent of fees payable as full service was rendered by the school.
During MCO, it should be based on the number of hours of online teaching delivered versus what is normally delivered via regular school hours. A reduction in fees should be calculated based on service delivery, with some quantum of discount added on for the fact it is only e-learning.
No miscellaneous fees should be charged, given that no facilities are being used.
The school’s response was a feeble one, that is, their business rental is not being reduced!
And, to top it off – NO DISCOUNT on fees, but payment deadline extended for one month!
The Ministry of Education as the regulator, should come out with a clear policy that is fair to parents. Otherwise the schools will continue to do as they please.
Minister, this is an opportunity to display decisive leadership, protect voters and set yourself apart from discussions about drinking warm water to neutralise covid-19, Doremon, Tik Tok and wearing of Hazmat suits!
By Brian Fernandez
Brian Fernandez is a former business presenter at BFM and at MoneyFM in Singapore. He heads Talent Search International, a regional executive search company and in January launched 360learning.asia, an e-learning business.
It’s Friday again, the week just zoomed past despite having to confined to my small unit typing away on my keyboard. Anyways, hoped you have had a smooth week and Happy Ramadan to all our Muslim readers out there.
Looks like we’re going to get another big test to persevere and sustain – both individual and businesses – with the movement control order (MCO) at the tail-end of the third phase and moving into the fourth.
Surprisingly, we’ve got a ton of news today to close off the week.
With the oil price dip being the largest in history, Business Today explores what that could mean to the Malaysian economy. MIER has also released their annual report job indicating that job losses are projected to decline from 2.41 million to 1.46 million if the MCO keep extending.
UOB Kay Hian fears that the extended MCO will create an economically monumental hollowing-out effect which plunders the economy, and reverse reinvestment decisions of both local and foreign investors.
The foreign research house also warned that the long MCO period will be destructive to post-MCO consumption recovery trends as consumers fear job losses and salary cuts. Business failures and consolidations will manifest in the months to come as a slow post-MCO consumption recovery will wilt entrepreneurs’ optimism.
With the coronavirus mowing down bottom lines worldwide, Netflix, the entertainment streaming giant, said 15.8 million more people had subscribed from January to March, as billions were confined to their homes to help stem the spread of Covid-19.
But, sad to say most other business sectors were singing the blues, however.
Dutch brewer Heineken said its net profit was down by more than two-thirds, or 68.5 percent. French hotel giant Accor reported that sales fell by 17 percent as it closed two-thirds of its 5,000 establishments worldwide.
And on the local front, our country’s airline industry faces an estimated USD3.32 billion loss in revenue, affecting some 169,700 jobs.
Lastly, let’s end the note on a lighter side.
The Ministry of Women, Family and Community Development at long last opened their mouth to clarify the issue regarding the government-funded RM100 Covid-19 food baskets.
According to the Ministry’s minister, Rina Harun, the food items in the bundle cost RM35, and the remainder RM65 is for delivery charges.
Wow, I would’nt pay RM65 for delivery charges. That’s my two cents worth. Would you? Let me know your thoughts.
In an email interview with Business Today, Azlan Ahmad, Head of Sales, Start Up & Small Business, Sage Asia, shares his insights on digital transformation measures SMEs need to undertake in the short and medium term to win this tide.
By Sharon Chang
“Because of this pandemic, small and medium enterprises (SMEs) in Malaysia have finally woken up, realising digital transformation is a priority.”
It’s apparent the SMEs have been hard hit by the unprecedented Covid-19 pandemic. Many face declining sales, challenges in production, issues caused by supply chain disruptions and the inability to physically engage with customers.
Nonetheless, it is also clear that the SMEs most prepared for this climate have begun their journey into digital transformation some time ago, with the pandemic acting as a catalyst for acceleration.
“However, for businesses that have been caught off guard,” Azlan says in a emailed response to questions from Business Today, there are key steps that can help them adapt to the current climate and navigate the post Covid-19 era.
“It is time to explore online collaborative software and virtual conferencing as a culture.
“A commitment from all stakeholders to prioritise these efforts are pivotal,” he says, adding that by embracing digital communication both internally and with customers ensures the business will run continuously at optimum engagement levels, while keeping intact both the business identity and employer branding, despite the current distancing.
The Magic of Personal Touch
He also adds that it is imperative to adopt the magic of personal touch. Even amongst all the technological advancements and collaboration tools in the market, do not forget that the staff and customers are above all, people.
Develop robust work from home and customer relations measures that prioritise video conferencing and calls over just email communication.
“In this unprecedented time, the entire nation is lacking the social interaction that they are accustomed to, making that personal touch all the more important,” Azlan remarks.
Whilst this period may have kept many of us on a roll and busy working harder to get results, stop and make exclusive time for people, it will pay off.
E-learning as a Staple
In response to questions, he says, “Many schools and training centres are already offering virtual learning options in view of the current situation, hence it is essential that businesses leverage this period to pick up digital skills and software knowledge to future proof the business.
“Upskill employees in areas of digital transformation – adopt e-learning as a staple. This is the time to prepare for what lies ahead.”
Engage with Virtual Events
In addition, he says that companies should begin to convert any workshops, conferences or seminars into virtual platforms. It is likely the public will be advised to practice social distancing for a longer period even after the movement control order (MCO) is lifted.
“Leverage platforms that are user friendly and allows ease of engagement with the viewers and vice versa,” Azlan adds.
Automate for Improved Productivity
Under this current circumstance, he also points out that many businesses are facing the looming prospect of reduced productivity or even staff retrenchment.
It is vital that all functions are working efficiently to ensure maximum output with the key focus to improve productivity and reduce time wasted on repetitive administrative work.
“Leverage on software which can automatically repeat recurring entries periodically, this will drastically cut down on manual entries,” Azlan explains.
The ability to automate tasks is an important aspect of digital transformation.
Access Government Grants
Azlan adds that the government has rolled out many initiatives, such as the SME Digitisation Initiative which allows qualifying SMEs to apply for 50 percent matching grants of up to RM5,000 to acquire Accounting/ERP systems, Point of Sales systems, Payroll and others.
“Companies should take advantage of this but, find out and choose the technology and software which are affiliated with the grants.”
Yet, Azlan emphasises that at the end of the day, it’s about a community sharing of expertise and knowledge to ensure businesses can overcome this disruption.
Companies that fail to adopt and accelerate digital transformation as a core concept, will find it increasingly difficult to stay competitive both amidst and post-Covid-19.
The effects of the COVID-19 pandemic are likely to last for months if not years, and in line with SME Corporation Malaysia (SME Corp) target to digitalise all SMEs by 2024, there hasn’t been a better time to make the shift.
Whilst the agency has intensified efforts to assist SMEs in adopting digital technologies since last year, there has been no greater push than that presented by this pandemic.
The shift has taken its course and the conversation is not about if your business will digitally transform but when and how.
“The economy needs all its players to rise up in order for it to bounce back from this colossal episode,” Azlan concludes.
In an effort to ensure SMEs have easy access to the kind of information they may need to ride the disruption, the team at Sage has put together the Coronavirus Hub. This hub is an online platform with practical, straightforward advice on tackling the challenges businesses are facing, quick access to solutions that enable businesses to operate remotely and useful resources from government and official sources to help organisations navigate the evolving situation.
Azlan Ahmad, Head of Sales, Start Up & Small Business, Sage Asia
Azlan Ahmad, as the head of the SSB (Startup & Small Business) business at Sage is responsible for looking into the needs of this segment, managing and growing all SSB product lines across Asia, and work in close collaboration with marketing, product development, partner operations and Customer Success team.
The coronavirus is predominantly a global tragedy, not only affecting hundreds of thousands of people, but also having a growing impact on the world economy.
Businesses in Malaysia have plummeted tremendously which led the Securities Commission (SC) to come up with further relief options for companies in its commitment to ensure continued access to fundraising.
Datuk Syed Zaid bin Syed Jaffar Albar, Chairman of Securities Commission Malaysia
The SC chairman Datuk Syed Zaid Albar said during a virtual conference on the SC Annual Report 2019, that proactive measures are required to facilitate greater access to funding in order to maintain confidence and ensure long-term recovery of the market.
In response to the increased interest by small and medium enterprises (SMEs) to tap into alternative funding channels, the commission lifted the funding limit on equity crowdfunding (ECF) platforms to RM10 million, and allowed ECF and peer-to-peer financing (P2P) platforms to operationalise secondary trading with immediate effect.
“The raising of the limit to RM10 million will also enable bigger companies to use ECF for fund raising,” Dr V. Sivapalan, Co-Founder and Senior Partner of Scaleup Malaysia Accelerator and Co-Founder of Proficeo Consultants tells Business Today, adding that startups can also utilise this as a substitute for Series A fund raising especially if venture capitalists (VCs) become more cautious
According to Syed Zaid, there is still demand from issuers to raise funds, but investors are hesitant. Hence, to address this the government’s Co-Investment Fund (MyCIF), administered by the SC, has increased its funding matching ratio from 1:4 to 1:2 for eligible ECF and P2P campaigns.
This means that the ECF issuers/promoters will need to raise less money from external investors to reach their funding targets.
However, this will run from now until September 30, 2020.
Sivapalan applauds the SC’s positive announcement, he says that the MyCIF ratio increase is excellent as it decreases the risk of ECF investors while assisting issuers in speeding up their fund raising.
“This is a vey proactive policy approach especially during this period where conditions remain volatile, he says.
Lastly, Sivapalan tells Business Today that he hopes the secondary trading of ECF shares which was proposed earlier but has yet to be executed, will be expedited as it will provide liquidity for ECF investors.
The SC assured investors that the Malaysian capital market remained fundamentally strong and was functioning in an orderly manner.
“Over the years, Malaysia has withstood many crises and the SC has worked closely with the industry to strengthen the capital markets and address systemic weaknesses.”
Ronnie Tan, Chief Executive Officer of GAX MD, shares with Business Today in an email interview, how investment management helps reposition investment portfolios and reassure investors during market volatility.
By Sharon Chang
The finances of individuals and companies will be at crossroads in the coming months due to the impact of the Covid-19 pandemic.
Covid-19 has an unprecedented impact on markets, driving volatility to a point where meaningful changes is made in asset valuation daily.
While we reckon that investors will likely hope their investments can continue to serve them as a trusted store of value and means of wealth preservation, as we continue to spiral uncontrollably into uncertainties.
Ronnie Tan, CEO of GAX MD
In a response to email questions, Tan says, it is important to note that this is not the first nor would it be the last market dip we may face in our lifetime.
Nevertheless, it is a good opportunity to get investments strategies in check.
The right kind of investments
There are investors holding different types of investment portfolios.
“Firstly, if you are one of those conservative investors who have suffered sharp losses recently, what you can do now is start setting aside your required emergency funds, then, later, leverage on your excess fund and plan out a long-term investment goal,” Tan advises.
He also points out that it is important to practice dollar cost averaging by starting small and invest gradually with a fixed amount regularly.
“Furthermore, always ensure your investment is well diversified.”
Time in the market is more important than timing the market
Investment strategies to adopt must best fit the investors’ risk profile; like a discipline investment methodology with well diversification of assets (comprising equities, bonds, treasury bills, gold/commodities, REITS), supported by portfolio rebalancing and optimisation driven by smart innovation.
While, also complemented by a team of professional portfolio managers who are competent to do what is best for their clients based on the investor’s risk appetite, investment horizon, income and assets – which can be tailored to the investor’s requirements whether in a bullish or bearish market.
Then, there are the value investors, Tan says, who see quality blue chips at great value to invest.
“While it might be an attractive short-term strategy to buy stocks in oil & gas, airline industry, hotel and travel-related companies whose shares have plummeted recently, it will not be wise to make hasty updates or to predict the market performance for clients, Tan explains, because the impact of the coronavirus on the economy and on the capabilities of companies has added so much uncertainties and volatilities to the market.”
Trading halts due to triggered circuit breakers seem to be the norm at this juncture, with the number of new coronavirus cases globally is just as volatile.
“And it is precisely during this economic climate where there are so much uncertainties, investment managers should advise their clients to participate in passive investment according to their risk profile via exchange-traded funds (ETFs) instruments that are well diversified over multiple asset classes.”
Photo credit: Pixabay
Recently, the local FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) was down by about 18 percent, while S&P 500 and Dow Jones Industrial Average (DJIA) have each plummeted by about 30 percent in its year to date (YTD) performance.
Hence, it is more evident than before that now is the best time to start investing early.
Although there may be a lot of doubt and fear in the market, there are also opportunities.
However, one common mistake that many investors do is wager and try to time the market.
Instead, they should have a mindset towards a long-term investment strategy and practice diversification, Tan says.
And lastly for investors who have a bigger risk appetite – an aggressive investor – higher risk leads towards higher gains. Investment managers should give their clients the option to have multiple functional portfolios by customising them according to their preference.
According to Tan, there are three functional portfolios in MYTHEO, GAX MD’s digital investment management service which are Growth (equity-centric), Income (bond-centric) and Inflation Hedge (real asset-centric) which investors can choose from to best suit their appetite.
“MYTHEO uses an algorithm based on AI and sound investment strategies to automatically create, maintain and optimise an investment portfolio to help investors grow their wealth,” he explains.
The goal of the Growth portfolio is to obtain high returns on a long-term basis in line with the global equity market. In order to achieve this, the portfolio invests in assets with a high long-term rate of return, like stocks.
Meanwhile, the income portfolio is mainly composed of fixed-income ETFs which is designed to achieve relatively stable and steady returns with much-protected downside risks – recommended for people who are retired or do not want to take extra risks of the sudden decrease in assets while obtaining stable income at low risk.
And as for the Inflation Hedge portfolio, it is designed to match and exceed the Malaysian inflation rate. For this purpose, the portfolio focuses on investing in asset classes that tend to do well in high inflationary environment such commodity (Gold, Metal and Agriculture), Infrastructure, Real Estate and Inflation Hedge Bonds.
Hence, it is recommended for people who have already built up substantial value of assets and want to prevent the asset value from eroding due to inflation.
Tan points out that the aggressive investors who have high-risk appetite and longer investment periods should put more weightage on the Growth portfolio which is made up of diversified equity ETFs that yield higher returns.
While the aim is high returns, the Growth portfolio construction process does not rely on trying to forecast the returns of individual companies which is very difficult to do accurately.
In addition, the Growth portfolio uses optimisation techniques to minimise risk (i.e. return volatility).
In this way, aggressive investors can in a way have the best of both worlds.
GAX MD was granted a Capital Markets Services license by the Securities Commission Malaysia to carry out the regulated activities of fund management in relation to digital investment management.
Digital investment management is a fund management business which incorporates innovative technologies into discretionary portfolio management services.
In accordance with the extended Movement Control Order (MCO), Shangri-La Hotel, Kuala Lumpur are offering guests to have Iftar dishes delivered to the comfort of their own home or office from April 23 to May 23.
Shangri-La’s culinary team has put together three different Iftar sets to choose from throughout the fasting month.
“The Horizon” includes Malay Kuih Muih, Tunisia Dates, Ulam-Ulaman Kampung (Local Salad with Chili Dip), Daging Masak Rendang Pedas (Beef in Malay Herbs and Dry Coconut Sauce), Ayam Kapitan Berkentang (Chicken Kapitan with Potatoes), Kari Kepala Ikan (Fish Head Curry with Lady Finger and Eggplant), and Dhall Cha Sayur (Lentil Stew with Mixed Vegetables and Spices). The set is completed with Steamed Rice, Sliced Tropical Fruits and Cheesecake.
The set is priced at RM60 nett per person
The second offering by Shangri-La is “The Horizon”. This set includes Malay Kuih Muih, Tunisia Dates, Ulam-Ulaman Kampung (Local Salad with Chili Dip), Daging Masak Rendang Pedas (Beef in Malay Herbs and Dry Coconut Sauce), Ayam Kapitan Berkentang (Chicken Kapitan with Potatoes), Kari Kepala Ikan (Fish Head Curry with Lady Finger and Eggplant), and Dhall Cha Sayur (Lentil Stew with Mixed Vegetables and Spices). The set is completed with Steamed Rice, Sliced Tropical Fruits and Cheesecake.
The set is priced at RM60 nett per person
The third set being the “The Shangri-La” set, contains Malay Kuih Muih, Tunisia Dates, Ulam-Ulaman Kampung (Local Salad with Chili Dip), Daging Masak Rendang Pedas (Beef in Malay Herbs and Dry Coconut Sauce), Ayam Kapitan Berkentang (Chicken Kapitan with Potatoes), Kari Kepala Ikan (Fish Head Curry with Lady Finger and Eggplant), Dhall Cha Sayur (Lentil Stew with Mixed Vegetables and Spices) and Nasi Biryani Kambing (Lamb Shank with Biryani Rice). The set is completed with Steamed Rice, Sliced Tropical Fruits, Cheesecake and Chocolate Cake.
It is priced at RM80 nett per person.
Shangri-La Kuala Lumpur is also offering Hari Raya Hampers which comes in three different content customisation.
The Raya Delight, Lebaran Treasure and Aidilfitri Platinum hampers are priced at RM688, RM888 and RM1,288 respectively. The overall look and feel of the hampers are designed to capture the essence of Hari Raya, suitable as a gift for family and friends. Minimum two day pre-order time is required for the hampers.
When place the booking, do take note that a minimum order for three persons is applicable for all Ramadhan delivery sets, available from 10am to 4pm.
Guests can also call +603 2074 3900 or WhatsApp +6019 390 2257 to in order to place their orders. Orders can also be completed through Shangri-La Specials Mobile App.
Shangri-La will also be offering delivery services for the orders made, with respective delivery fees charged according to the distance. Alternatively, self-pickup is also available at the Concierge Counter, Lobby.
Business Today speaks to Jason Chong, chief executive officer & co-founder of Cornerstone Partners Group (CPG), on the impact to the hotel industry due to the Covid-19 pandemic and the measures to cope with the situation.
By Sharon Chang
The hospitality and tourism industries have taken a brutal beating with tourist arrivals coming to a halt since the unprecedented Covid-19 pandemic and Movement Control Order (MCO) was implemented.
Though it’s true that such occurrences are hard to predict – the ‘black swan’ event – they cause catastrophic consequences.
Now, as the pandemic has spread to major global tourism markets, the hotel industry is at risk of experiencing a business downturn from lower levels of global and regional travel.
Jason Chong, CEO & co-founder of Cornerstone Partners Group (CPG)
“This pandemic and travellers’ behaviour are expected to set Malaysia’s tourist arrivals back by two decades to less than the 10.22 million recorded in 2000,” Chong says, adding that the tourism industry will not pick up even after the MCO is lifted because this global pandemic will deter tourists coming in from other countries.
People will be wary of travelling and as most countries have stopped their citizens from travelling, the industry will continue to suffer.
According to Chong, the hotel industry will be so badly affected to the extent that it’s something most of us will not experience during our lifetime.
Despite the hotel business being listed as an “essential service”, there are two defining aspects of the MCO’s effect on hotels: firstly, restrictions imposed on hotels from taking in domestic guests, and secondly, the freeze on inbound international travellers.
“These two aspects can be viewed as somewhat oxymoronic, as domestic guests aren’t allowed to check-in and there aren’t any international guests arriving, thus making it difficult for hoteliers to keep their workers gainfully employed,” Chong explains.
According to the Malaysian Association of Hotels (MAH), business volumes across hotels in Malaysia have dwindled to a third, year-on-year, while Smith Travel Research (STR) claims they see unprecedented historical low levels of occupancy. External factors contributing to this are travel bans imposed by many countries as well as traveller sentiments.
Chong also says that on an operational perspective, some hotels have temporarily closed to weather out the pandemic, while others are trudging along with single digit occupancies. There are even some hoteliers who volunteer their hotels as quarantine stations for returning Malaysians.
“The low guests’ volume has severely disrupted cashflow for both the property management operating level and the investment company in terms of servicing financial obligations, he adds.
“To mitigate the financials, lay-offs, pay cuts and other payroll reduction measures have inexorably been announced at some hotels. But the cleaning and sanitisation costs have increased to upkeep the hygiene of the hotels.”
In the instance of CPG, Chong says the company is fortunate to have their presence in three distinct countries, with access to many financial affiliates to allocate and reroute their resources and capital where it’s most required.
“Our regional coverage has also allowed us a diverse perspective on the virus’ impact on hotels. The ability to compare data on social practices, consumer sentiment, the virus’ effects through these regions, and different national and specific hotel strategies applied does give us a bit of an upper hand in tackling the reduced business volumes.” he remarks lightly.
Chong tells Business Today that while the industry is reeling from the brunt of Covid-19’s short-term effects, they believe that this pandemic will change the course of the industry and will create a lasting impact.
“Travel patterns and cost management methods will evolve, and this serves as an opportunity for us to look at things we’ve taken for granted in the past, and reposition ourselves,” he opines.
Sustenance to survival
In response to questions on how long the industry can sustain before drastic changes or measures need to be taken, Chong says it depends on the maturity of the property.
“Most hotels in Malaysia should have sufficient working capital on the property to sustain for around two months. With prudent cost management and mitigation initiatives, I would believe, like other hotel owners, we should be able to weather out at least 3 months of reduced business, he says.
“Nonetheless, bearing in mind that salaries constitute the single largest fixed cost of any hotel, every hotel owner is working tirelessly to preserve liquidity. Even a significant amount of capital reserves may not be sufficient if there’s an imminent delay to recover.”
Recovery
The road to recovery can be long – hopefully not, but the bulk of the tourists’ receipts will be from domestic travellers. Malaysians will likely be travelling locally for the time being.
Chong says the domestic tourism is easier to predict, as he thinks the industry can expect an influx of domestic guests within 3 months after the MCO is lifted, which is also in line with MAH’s prediction, the 3rd quarter of this year.
“This is partly due to Malaysia’s competent management of the outbreak.”
On global travel, he mirrors the thoughts of economists. If there is a salient and viable containment “solution” to the virus, it may take possibly anywhere between 6 months to a year.
While we applaud the Government’s initiatives to the hospitality sector such as the wage subsidy programme and the special relief fund, but according to Chong, the special relief fund is limited to RM1,000,000, which unfortunately isn’t particularly helpful to the larger convention hotels.
While MAH has lauded a higher wage subsidy and MATTA having urged the government for a longer period beyond the 3 months, Chong believes a tailored approach may be more appropriate.
“Hotels are resource intensive businesses, and no two hotels are alike.”
Take the wage subsidy programme for example, the limit is capped at 200 employees, which may be more than sufficient for budget and small-scale hotels, but totally inadequate for larger hotels or resorts with higher room counts and facilities.
Furthermore, the cap on RM4,000 qualifying salary only benefits the rank and file of the property, and may exclude supervisory & management personnel, which contribute to a significant and necessary portion of the payroll.
“As one of the most direly hit industries, I would advocate for any hospitality targeted stimulus to be catered to those who really need the support, fully scalable to the size of the hotel, and for the recovery strategy to be systemically forward looking, Chong stresses.
“There should be a semi-assured light at the end of the tunnel.”
Strategies moving forward
At the property level for our Malaysian hotels, domestic guests are the priority for the immediate future.
Hotels should craft strategies towards that effect.
“We have to realise, travel habits have indubitably changed, guests will place higher emphasis on hygiene and prevention, and we have to ensure our hotels are able to adapt to our client’s dispositions,” Chong points out.
Covid-19’s impact would dictate travel patterns as well, such as less Meetings, Incentives, Conferences and Exhibitions (MICE) but more staycations and self-contained resort experiences.
“Therefore, we are taking the opportunity to reassess our products’ positioning and would not rule out repositioning after market stabilises.”
In a way, the reduced business volume is forcing the industry to take a good hard look at itself, and as a result, neoteric cost mitigation exercises are now being implemented.
“While we have always fostered a close relationship with our management and brand partners, but in times of crisis, we’ve forged even closer ties and work hand-in-hand with them in bolstering the business,” Chong shares.
Therefore, Chong says the company is pleased and appreciative to their associates such as InterContinental Hotels Group (IHG) and Hilton for taking drastic immediate steps to curb spending and preserve liquidity.
“On a corporate level, as a group, we have been on a sharp growth/acquisition phase for the past half-decade, focusing on new developments, he adds.
“However, our near-term strategies, given the economic outlook may involve risk-adverse acquisitions of operating assets with proven track records or hedging products with potentially lower but secured yields, we expect favourable deals to be slowly seeping into the market in the near future.”
Even prior to the pandemic, CPG has foreseen a potential market downturn, and hedged into mixed developments such as the announced CPG Tower in Melbourne.
“The company, as a group, is and will be hospitality centric, but we are studying other real estate asset classes as well, with diversification as a strategy,” Chong concludes.
There is much to be said on the buoyancy of the hotel industry, evidenced by how we overcame a range of past crises.
Having said that strategy developed at this point has to be centred around resiliency. Nonetheless, no strategy developed by an individual organisation can survive on its own, we will require both global and national cohesive efforts to surpass this challenge.
The Malaysian Association of Tour and Travel Agents (MATTA) is concerned with the disclosure by the Malaysian Aviation Commission (MAVCOM) that it had given leeway to airlines in providing refunds to customers due to challenges faced by commercial carriers following the Covid-19 pandemic.
Airlines operating in Malaysia indicated approximately 13.6 million seats were cancelled, which literally means hundreds of millions of consumers’ hard-earned dollars are stuck with the airlines including more than the 100 foreign airlines currently operating in Malaysia.
Datuk Tan Kok Liang, MATTA President
In a statement, MATTA President Datuk Tan Kok Liang said that MAVCOM’s function is also to provide a mechanism for protection of consumers.
“If so, the Commission ought to ensure that consumers (which include travel agents who act on behalf of consumers) get their due refunds without delay or offer equitable proposals acceptable to ticket holders,” Tan remarked.
He said that the least MAVCOM can do is to accept this extraordinary challenge and provide a timeline plus a mechanism for refunds and provide options and solutions both to airlines and consumers.
“Ticket holders need to be given an option on monies back or any alternative solutions acceptable to the consumer,” Tan said, adding that regulators in the US and EU have generally instructed airlines to refund ticket holders their monies.
“By allowing airlines to dictate terms at its commercial discretion especially during this time of crisis is poor supervision and governance.”
Henceforth, MAVCOM should consider the drastic impact to consumers if any of the airlines were to go into liquidation.
What good will be the value of the vouchers and points then?
“Has MAVCOM taken all of these factors into account?” Tan asked.
In a related context, under the IATA Billing Settlement Plan (BSP), travel agents must provide financial security in the form of Bank Guarantee (BG) or Default Insurance Program (DIP) in order to sell tickets. Similarly, IATA should now insist that airlines provide financial security to protect travel agents and passengers should the airlines close.
MAVCOM should be aware of IATA’s Passenger Agency Conference Resolutions in which airlines are being protected from the failures of travel agents but not otherwise (i.e. travel agents are not protected should an airline fail).
Also, Section 12, First Schedule, Item 5 of the Malaysian Aviation Consumer Protection Code (MACPC) 2016 (designed to protect consumer interest in air travel) requires airlines to resolve complaints and remit refunds to consumers within 30 days of receipt of complaints.
The least MAVCOM could do is to direct airlines to pay refunds within a given timeframe or offer any alternative solutions acceptable to consumers, Tan said.
“Perhaps the Ministry of Finance should scrutinise the current practice of airlines, as what they have done is similar to deposit taking cooperatives that were banned in the 1980s for utilising collections from consumers to cover operating costs.”
MATTA reiterate that while they are sympathetic to the adverse conditions of the commercial aviation sector, they stand firm on their position that taking deposits for future services and the inability to provide refunds is not prudent financial management.
Customers’ deposits ought to be placed in a designated or trust account until services are rendered.
“Why must airlines be allowed to delay refunds when they are not the only business affected by the pandemic? This is akin to telling every business that credit vouchers will suffice instead of refunds.”
“Ironically, all passengers except those on transit, children below two years old, and passengers using the Rural Air Services in Sabah and Sarawak are made to pay RM1 levy to MAVCOM since 1 May 2018. Perhaps it is time for MAVCOM to cease collections due to its failure to protect consumers,” Tan added.
Booking trends and travel patterns will be stifled unless this issue is settled in order to boost public confidence.
“MATTA urges the government to seriously study the possibility of providing financial support such as soft loans to our local aviation industry and local airlines Malaysia Airlines Bhd and Air Asia Group Bhd to survive this period as they are crucial to the recovery of the travel and tourism industry”, concluded Tan.
[Part 1 of this article appeared on Mon: Recession Today, Opportunity Tomorrow: How To Build Sustainability Today And Prepare For The Coming Economic Recovery]
By Dr V. Sivapalan
Most entrepreneurs don’t look too far ahead. They are often caught up fire fighting on a daily basis and worry about operational matters and survivability more than strategic matters. However, when a crisis hits, thinking about the future of their industry and forward planning take on an equally important position within their daily roles.
The Malaysian government has already introduced two stimulus packages to assist individuals and companies to get over the current pandemic. While there is a lot of support for individuals and conventional SMEs, these packages don’t do enough for the tech sector especially Startups.
Most Startups are small, young (less than 3 years old), don’t have sufficient cash flows to take on loans and most don’t have a track record to even apply for a loan. The Prime Minister has indicated that there may be a third stimulus package for Startups so I think we need to wait for his announcement.
However, companies shouldn’t just wait for government assistance. Now that we know the recession is here, there are several critical things entrepreneurs need to do. These are divided into two areas, building sustainability and preparing for the recovery.
Building Sustainability
To take advantage of the recovery and future potential, you have to first stabilise the ship so that you can survive the next 12 months.
Preserve Cash
Many companies don’t have sufficient cash flow for even a couple of months, but there’s ways to preserve and stretch your cash for a longer period.
Firstly, look at your debtors ageing and identify who owes you money and assess how much you can collect and how soon. A lot of companies have uncollected billings that may give them a lifeline. Work on collecting as much of this as you can. Give debtors discounts for early payment if you have to. But get this cash into your bank account.
Are there customers who may buy your products or services at a discount? If you have to give discounts for cash sales then this can increase your cash buffer too.
Some services can be sold now for future use. Airline tickets and hotel rooms for example sell tickets and rooms that will only be used sometime in the future but collect the payment in advance. Can you also do this? If yes, then do it.
Stretch Your Cash
As you build your cash resources, you also need to stretch this for as long as possible. Ideally build sufficient cash for a 6 -9 month period. As some normalcy returns you will start selling again and revenue will return.
In the tech industry staff costs are the highest, often 70 to 80% of total costs as its primarily a knowledge based industry. Find ways of reducing staff costs. You don’t necessarily have to retrench staff, start with across the board pay cuts instead. It must start with the founders and management right down to the staff. However, cuts for staff earning smaller salaries should be much less than for those earning more. But make sure everyone has a pay cut.
Explain to everyone why pay cuts are needed. You’re trying to save the company and saving jobs. If cuts are not made then either the company closes down or there will be retrenchments neither of which are desirable. You staff will understand and good staff will stay together to save each other’s jobs.
When making pay cuts, do it in one big round, don’t do small cuts and then make more cuts later. That will create uncertainty and will cause staff problems with planning their own cost cutting measures. However, try and ensure that what they take back is sufficient for living costs.
I’ve been asked whether these should be pay cuts or pay deferments i.e. you cut their pay now but agree to pay the difference later. This is not a good idea as this can cause serious cash flow implications in the future; essentially you’re just pushing the problem into the future. Cut salaries but as soon as the business stabilises increase their salaries again and if the business does well pay them a bonus as appreciation for helping the business survive.
In some cases you may need to retrench staff, perhaps because just cutting salaries alone is not sufficient or because the business has fundamentally changed and some staff may not be needed. In that case make one major cut of staff you no longer need and make sure you don’t cut anymore in future. The worse thing you can do is cut slowly. This creates a lot of uncertainty and will affect staff emotionally as they won’t know who else will lose their jobs in the future.
This may be the hardest thing you do as a founder, but it may be necessary to save the company.
Ultimately, the amount of money you save from pay cuts should allow you to stretch your burn rate for a longer period.
Then talk to creditors, your landlord and other business partners and ask them for payment extensions. If necessary pay in instalments over a longer period and keep to your promised schedule. They will understand.
If possible re-negotiate tenancies and other costs, ask for short-term discounts or reductions. No one wants you to fold up so most people will try and accommodate.
Secure Additional Cash
If it’s possible secure some additional cash either via investments or a loan. But remember that a loan has to be paid back and you will need revenue and cash flow to do this. So raise only the extra sum you’ll need for the next 6 to 9 months and ensure you can pay this back. Also, if the government has any grants or is offering any support via their stimulus packages go grab it immediately.
Resource and Performance Reviews
As part of the plan, review your resource requirements especially staff. How many people do you really need, who do you need, what must they do, can they do more? Some companies actually have more staff than they need or if the future of your business has changed maybe some staff are no longer needed. Do the necessary restructuring to your staff requirements so that going forward you have optimum staff levels.
You also need to improve productivity of your staff. Are you tracking their productivity? What metrics are you using? Are you benchmarking against industry norms? In a recession everyone has to give 150%, so everyone has to do a lot more. Everyone’s performance has to improve significantly.
Product Reviews
You also need to do a complete product review to determine which products or services are providing you with better return on investment than others. For products that bring poor ROI or cause you to lose money, cut those products and focus on those with better margins. This may also require less staff and lower your costs. Better margins mean more cash flow.
Future products or research and development must also focus on products that will bring better ROI and not just vanity products with poor returns.
Better Business Models
Review your business model and pricing strategy to make sure it’s optimised to bring the best returns at the lowest cost. Look for innovative models that may bring more sales or better margins. Don’t assume the old ways of doing things are the best. Some ideas can be found in my book, “Blue Sky Innovation” which is available on Amazon Kindle. If you can create a model that brings in recurring monthly or annual incomes that is a better way to build a sustainable business than one time sales.
Check your unit economics to ensure that the lifetime value of your customer (i.e. how much you make from the customer over the period the customer buys from you) is at least three times your customer acquisition cost. Founders often do not realise it but their customer acquisition costs are much higher than they think and their customer lifetime value (LTV) is lower than expected and this leads to a poor business model. Review this and ensure that the returns justify the costs.
Sometimes this depends on your pricing strategy. If you don’t price it right you may be earning much less than you can and this can lead to poor margins. So review your pricing and do some experiments to determine if you can price the product higher. Better positioning or packaging can also lead to better pricing and a higher margin.
Hopefully these suggestions will help you to sustain your company for the next 12 months and help you manage the recession better. Once you are able to do this, you need to then prepare for the future, as there will be a lot of opportunities when the world economy recovers.
Preparing for the Future
Every storm has a silver lining and if you can weather the storm you will be in prime position to take advantage of the strong growth of the global economy that happens after every recession. History has shown us that recessions are generally short but the recovery and subsequent growth period is long and profitable.
With less competition in the market, the addition of good talent, stronger financials and a better business model you will be primed to enjoy the benefit of a long period of growth.
However, you’ll need to ensure that you tap all the opportunities available post recession.
Explore the Potential
Use this time to explore and study your market and industry to discover what new opportunities are available for the next 5 – 10 years. How will changes in consumer behaviour, market and technology trends and government support change your business environment? Does it open up new markets, new sectors? Do you have to adapt your product to new problems or needs?
The more you explore, the more you talk to customers and ecosystem leaders the more understanding you’ll build about the future and this will help you to change, adapt and position your company and products for the future.
Be prepared to serve your customer needs better and grab the opportunities faster than competitors. Remember some competitors won’t make it; many others will be badly bruised and won’t be able to compete as effectively as before, so this means you have the upper hand.
However, as you do this remember that you must build a financially strong and long-term sustainable company because funding will be scarce, so the only way to fund the business is via sales and margins. Build a company that is profitable and you’ll not just survive but thrive.
No matter how bleak it looks now, if you do all of the above, you’ll be a very successful company from 2021 and beyond.
Building a Pegasus Business with ScaleUp Malaysia
In mid-2019 I was already predicting a recession. Not because I’m super smart or that I have a crystal ball, but if you go back 100 years, you will realise that every 8 years or so after a recovery a recession happens. The global economy started recovering from the GFC from 2009 and it’s been one of the longest periods of prosperity over the last 100 years. With this prosperity comes excesses and this will always lead to a recession. It’s a predictable cycle. We only don’t know what the trigger will be but it’s always been a black swan event. Unfortunately for this recession it was the coronavirus and the disease it causes, Covid-19.
Knowing a recession was looming, when we launched ScaleUp Malaysia Accelerator, our model was premised on building a “Pegasus” which we define as a high growth but profitable company. Hence we don’t believe in the “Go big or go home” mantra or the build market share at all expense model either. This was ok in the go-go years of the 2010s but as you approach a recession this is a dangerous strategy. We can see the possible failure of multiple companies that have this model, from WeWork to OYO to the many other VC funded companies that sacrifice cash flow and profitability for market share. In fact many of these companies don’t even know if they’ll ever turn a profit. That model is now dead, for the next few years anyway.
Hence in ScaleUp Malaysia we selected companies that have high growth potential, but also have a business model that allows us to build a path to profitability. Even if growth is not as fast as some of the VC funded companies, its ok, as we are willing to sacrifice some growth in return for profitability and a positive cash flow. Today cash is king, so a positive cash flow is highly desirable and this is what all ScaleUp Malaysia companies are working towards.
We are not worried about the recession because we already knew it was coming. All our investee companies have solid business models and great prospects going forward and we will prepare them to be resilient and to have a business model that helps them to build a sustainable and long-term profitable business.
We will use the strategies and ideas mentioned above to do this.
I am sharing these ideas because I am passionate about entrepreneurship and have spent the last 2 decades helping entrepreneurs to build great businesses. So I hope you’ll take advantage of what I have shared and work on building a solid business that you can be proud of. And if you do, apply for future cohorts of ScaleUp Malaysia because we would love to work with you.
Until then, stay strong, stay positive and stay safe.
Dr V Sivapalan (seated in the middle – blue shirt) with the cohort of ScaleUp Malaysia.
(Dr. Siva has a Ph.D in Venture Capital from the University of Edinburgh, Scotland. He is the Co-Founder and Senior Partner of Scaleup Malaysia Accelerator (www.scaleup.my) and Co-Founder of Proficeo Consultants (www.proficeo.com). Visit his LinkedIn at https://www.linkedin.com/in/drsivapalan/ )
He is also the author of “Blue Sky Innovation” published in Feb 2013.
This article was first published in Digital News Asia
Used-car selling service, Carsome has announced that they have set up a $50,000 Covid-19 Support Fund for all their employees across their bases in Southeast Asia.
The fund is expected to cover Carsome’s 700 employees financially across SEA, should an employee contract the virus.
“Covid-19 is unlike any other previous crisis we have seen and has caused major disruption in businesses, healthcare and the economy. With the support fund, we hope we can help alleviate the stress the crisis has brought to our employees by contributing to the fight against the pandemic” said Eric Cheng, chief executive officer and co-founder of Carsome.
The fund will also be utilised to provide living expense support to employees if they have contracted Covid-19.
Carsome will also issue a one-off gratuity payment totalling $1,000 to each infected employee and undertake additional costs up to $3,000 should the employee require further treatment.
“As we grapple with the scale of this pandemic, we will continue to provide our employees with the utmost attention and do our very best to care for their safety and well-being,” added Cheng.
As I write this article more than 1.5 million people worldwide have been infected by COVID-19, ninety thousand people have lost their lives and the pandemic is escalating in the United States and India. My heart goes out to those who have lost loved ones especially the older generation.
I pray that governments will take painful but necessary measures to curb further infections and deaths and that the people will comply. The rest of us can only stay at home and pray for the safety of the most vulnerable in society.
While this unfolds another tragedy is happening – a recession. There is no doubt in my mind that a recession is already here.
Over the last two weeks 10 million workers have been displaced in the US, the largest in history and there’s already a 10 percent unemployment rate there, more than during the great recession of 2008-2009.
It is only going to get worse as the US starts enforcing a nationwide lockdown. Some experts predict a 15 percent to 30 percent unemployment rate in the US; worse than the Great Depression of 1929 when the average was about 20 percent.
Bank Negara Malaysia predicts a 2020 GDP growth rate of between -2 percent to +0.5 percent while the World Bank predicts a contraction of -0.1 percent this year which means more likely we will see a recession too – a mild one.
Bank Negara Malaysia predicts a 2020 GDP growth rate of between -2 percent to +0.5 percent, AFP PHOTO (Photo by STR / AFP)
This may change as the rest of the world grapples with the pandemic. If our major trading partners or the rest of the world falls into a worse recession, then ours may be worse as well. There is still too much uncertainty to make a better prediction.
Depth and Length of the Recession
The bigger question is not just how bad the recession will be but how long will it last?
There are generally three types of recession and recovery scenarios. There is the “V” shaped recession which predicts a sharp and fast fall in economic growth, often caused by what they call a “black swan” or totally unpredictable event like the current pandemic, followed by an equally fast and sharp rebound. The recession after the 9-11 terrorist attack in the US is an example. Recovery is generally quite fast on average about 12 months.
Then there is the “U” shaped recession, which can be a fast or slower fall, but it stays down for a longer period and then recovers to pre-recession levels. Imagine the letter “U” and you get what I mean. A “U” shaped recession often takes between 12 to 36 months and the recovery takes longer than a “V” shaped recovery.
Dr V.Sivapalan
And, there is the “L” shaped recovery, which starts with a fast or slow fall but takes a very long time to recover. This is often classified as a depression and can take a decade for the economy to recover. The recovery period is also not easy to predict.
The Great Depression in the US that lasted from 1929 to 1939 is such an example. In fact, if it wasn’t for World War II that started in 1939, the depression may have lasted even longer. The war required the US government to spend on war preparations and it got the factories to work producing weapons and other war needs and this got the US out of the depression. Yes, government spending works.
Photo credit: AFP
I have personally been through many slowdowns and recessions in Malaysia from the 1984-86 oil shock, the 1994 stock market crash, the 1997-98 Asian Financial Crisis (AFC), the dot com bust in 2000, the 9-11 terrorist attacks in 2001, the 2008 Global Financial Crisis (GFC) and now the Covid-19 pandemic induced 2020 recession.
So, this is nothing new to me. And one thing is certain – every recession ends with a recovery, often a strong one that lasts for a few years. The AFC was probably the worst in Southeast Asia (SEA) and it lasted a few years but by the 2000’s all the SEA economies recovered strongly. The GFC was the worst to hit the world since the Great Depression but then we had 10 years of strong economic growth.
Hence, the most important lesson is this: that there will be a recovery and when that recovery happens, will you be around to take advantage of the strong growth or will you be watching from the sidelines wondering “what if?”
In my opinion, and most analysts predict this as well, we will experience a “U” shaped recession, which means a sharp fall followed by recovery in 12 to 36 months. If that is the case, as an entrepreneur how do you prepare for such a situation? What must you do?
Before we go there let’s explore what will happen in the next couple of years.
The Recessionary Period
It will be painful. Many people will lose their jobs, businesses will close and there may be a dramatic change in the economy. Entire industries may fail, some will recover but many won’t.
-Competition and closures-
Many companies with weak financials and product-market fit will close. Most startups fall into this category.
A recent survey by the Malaysian Global Innovation and Creativity Centre (MaGIC) shows that 40% of startups can’t survive beyond 2 months and only 2.9% can survive beyond 12 months. These are dire figures but goes to show that we have too many startups with weak fundamentals. This means there will be less competition so while it is bad for those that have to shutter, it will be good for survivors as it gives them a better chance to build stronger companies.
-Availability of Talent-
As more startups close, their employees and even founders will be looking for jobs or be available to join the management teams of the survivors. This is good because over the last few years talent has been one of our biggest problems. Many of them will also have startup experience and this is great for the survivors.
-Funding-
While existing funds still have money to invest, they are going to be more selective and their mandates or criteria will change.
We are already seeing more and more venture capitalists talking about looking for companies with a path to profitability. This is common.
It happened after the dot com bust, the GFC and now this crisis. So, generally over the next couple of years only the stronger companies with better fundamentals and solid revenue models will get funding.
I predict however, that investors will return to their market growth at all costs model in the future as they always do, but the next three years will be about fundamentals.
So, while funding is still available it will be harder to get.
-Market Access-
In a recession, companies and consumers will be a lot more careful about spending. High levels of unemployment mean consumers have less money to spend so they will be selective with their spending. Companies will want to preserve cash to ensure sustainability and maintaining profitability so they will only spend on necessaries. However, they will spend on technology that improves productivity, reduces costs and increases their bottom line.
So, while access to markets will be tougher, companies that offer solutions and products that their market needs will still be able to grow. There will always be opportunities, so companies have to adapt and be creative in capturing these opportunities.
-Market Changes-
The market will change, and in some ways, it may be a dramatic change.
The demand for some products will disappear but new demands will appear. For example, more things will be done online as people have learnt to use online tools during the Movement Control Order. Ecommerce will flourish even more, retail sales will drop, more people may be working from home and this may lead to less office space requirements and much more.
In every industry or sector there will be changes and entrepreneurs have to study their own markets to determine what these changes are and prepare for and adapt to these changes.
The Recovery
In a “U” shaped recession there will be a reasonably fast recovery. Why will we see a “U” shaped recovery? It’s mainly because governments all over the world have learnt that by spending money and pump priming their economies, they will literally “force” their economies to grow.
It happened during the Great Depression and also during the GFC. During the AFC, the IMF imposed prudent spending guidelines on many countries that led to a slower recovery. The same happened in much of Europe with economies like Greece and Spain having slow growth because they couldn’t spend themselves out of a recession.
This time around led by the US with their USD2 trillion stimulus package, every government is doing the same. Even the Malaysian government has a USD57.5 billion (RM250 billion) stimulus package with more to come to save the economy from going into a deeper recession. I believe we will see record spending by governments like we’ve never seen before. All this will trickle down into the economy and induce growth.
With interest rates at or near zero among the OECD countries and in some cases negative interest rates, companies find that borrowing costs are extremely low and just like during the GFC sooner or later companies will borrow to grow their companies. This will lead to higher employment and more money in the economy.
A recovery will happen that is a given, likely in the second half of 2021. That being the case what do entrepreneurs have to do to prepare for this?
Some of the companies that we have coached including from the Coach & Grow Program are very concerned about the future and I’ve been asked on several occasions already what they need to do to overcome the current problems and how do they prepare for the future. I’ll address this in the second part of this article tomorrow.
Dr. Sivapalan Vivekarajah has a Ph.D in Venture Capital from the University of Edinburgh, Scotland. He is the cofounder and Senior Partner of Scaleup Malaysia Accelerator (www.scaleup.my) and cofounder of Proficeo Consultants (www.proficeo.com). Visit his LinkedIn
This article was first published in Digital News Asia
Little that we know, micro-organism such as novel coronavirus disease or famously known as Covid-19 has a severe impact to humanity globally. It all started in Wuhan City, China, whereby the first cases reported was on 31 December 2019.
When the World Health Organisation (WHO) commenced their Situation Report on 21 January, the number of infected countries was just four and they were namely China, Japan, Republic of Korea and Thailand. Total number of confirmed cases stood at 282 while the total number of fatalities was 2.
Fast forward, more than 200 countries have been infected by Covid-19, cumulative cases soared to 1.21 million and total deaths stood at 67,841 as of 7 April 2020.
The International Monetary Fund (IMF) has called for global output contraction on 27 March while the World Bank says that the prospect of global financial shock and recession would hurt the developing countries.
About 193 countries have begun injecting the economy with cash and financial assistance in order to expand the healthcare facilities and capacity, safeguardingjobs and businesses cash flows. Not to mention the major central banks like the US Fed and the European Central Bank have dialled back their Quantitative Easing (QE) measures.
The move was none other than to flood the system with cash so that the economy would keep going.
In a nutshell, the global economy is expected to experience its recession this year. The last time the world economy went into recession was in 2009 whereby the global GDP fell by 0.1 percent. Back then, it was originated from the US following the proliferation of toxic assets also known as Sub Prime Mortgage crisis which have been held by various countries and institutions.
The Bank Negara Malaysia (BNM) could not agree more too.
In their latest communique, the central bank is of the view that Malaysian economy would contract by as much as 2 percent or the GDP could grow by a maximum of 0.5 percent in 2020. The net exports are expected to fall by 27 percent while domestic demand would only grow by a paltry 1.1 percent.
The Federal Government has also announced the total fiscal stimulus amounting to RM260 billion. The focus has been to ensure employers will keep their employees by subsidising their workers’ wages for three months commencing April. Maintaining a healthy cash flows are also the immediate priority with various financing packages with super low rates are being poured in.
Indeed, the scale of the public health crisis is unprecedented.
Kudos to BNM which has implemented an unconventional means to address the current predicament. The six months loan moratorium is by far the largest stimulus in our view. The RM100 billion bandied around the measures are, perhaps quite conservative.
Total loans repaid in February 2020 stood at RM97.5 billion while in January, the figure was RM109.8 billion. This should give us a monthly average of RM103.7 billion. Last year, the monthly average of total loans repaid was RM101.1 billion.
Assuming if its RM100 billion per month, we are looking a total of RM600 billion worth of savings by the businesses and households. If its 50 percent take-up rate, that would put the figure at RM300 billion. Still that’s a 20 percent of GDP, give or take.
In that sense, the potential economic recovery is enormous. The BNM has estimated that it would yield 2.8 percentage points of impact to the economy. That, too, is still conservative.
From our estimates, the economic impact from the loan moratorium could be more than 5 percentage points should all segments of the economy opted for the six months instalment deferment.
Imagine if someone is paying RM500 per month for car financing and monthly instalment of house financing of RM1,000, that would give RM9,000 worth of savings. Assuming 30 percent savings from that amount, that would leave him or her with RM6,300 to be spent on other stuff.
This year, the average loans repaid by the households stood at RM30.6 billion between January and February. That’s RM183.7 billion worth of savings to be made by the households if all of them decides to take on the six months loan moratorium. Applying 53 percent of Marginal Propensity to Consume (MPC), that would translate into RM97.4 billion worth of spending and that is equivalent to 6.6 percent of GDP. It’s massive indeed.
Notwithstanding that, it is easier said than done. All the permutation and hypothetical estimates are hinges upon the duration of Movement of Control Order (MCO) and the success to contain and to break the chain of Covid-19 spread.
The economy is almost at a standstill. That is what it is.
Therefore, it is imperative for everyone to adhere the MCO ruling. Otherwise, all of us will have to pay the economic cost that is so dearly and most importantly, our lives. So folks, please stay at home!
Dr Mohd Afzanizam Abdul Rashid is Chief Economist of Bank Islam Malaysia Berhad
Malaysia is the second largest migrant-receiving country in the Association of Southeast Asian Nations (ASEAN), after Singapore. Based on the United Nations (UN) database, the country accounted for 28 percent of the total migrant stock in ASEAN in 2019.
Though the plight of migrant workers has constantly occupied policy debates, it continues to be entrenched in divided feelings between employers, unions and the government in relation to the economic (workers’) rights. With the outbreak of the Covid-19 pandemic and the enforcement of the movement control order (MCO) in Malaysia since March 18, 2020, migrant workers once again garner the media attention.
With no work during this MCO because of the temporary halt of jobs in most sectors, not only is the livelihood of migrants affected, but they are also struggling to meet their basic needs.
Migrants are a vulnerable group; living hand to mouth, subject to abuse and exploitation by employers, and with no or minimum social protection. They are also highly vulnerable to infections given their unsanitary living conditions. Paradoxically, the “deservingness” of migrants to decent work, healthcare facilities and safety nets have long been contested, despite their role and significance to the Malaysian economy.
First, migrants are indeed an indispensable workforce that has and continues to instrumentally contribute to the economic development of Malaysia. Representing 31 percent – 40 percent of the labour force, they work in critical sectors, such as plantation, manufacturing, construction and essential services (security and cleaning services). It is therefore no longer justified to treat and consider migrants as “disposable” workers.
The second point is linked to the first point above in that it relates to the contribution of migrant workers to economic growth through international trade. Migrant workers dominate jobs as production operators in most export-oriented and multinational companies for the trade-dependent Malaysia. More revealing is the extensive contribution of migrants during this pandemic. A case in point is that migrant workers are utilised by rubber glove manufacturers, which are permitted to operate during the lockdown with a restricted number of workers, to meet the surge in demand for medical gloves. Migrants continue to work diligently for these companies that already have a history of mistreating them. Migrants certainly deserve respect for their essential contribution during this pandemic despite the risks.
Third, Malaysia is not just a migrant-receiving country, but also a migrant-sending state. Approximately, 15 percent of the ASEAN migrants came from Malaysia based on the latest 2019 UN database. Malaysia has therefore emerged as the third largest migrant-sending country (after Myanmar and Indonesia) within the region. Migrant-sending states, on balance, are of little help to their migrant population abroad as it is difficult to influence state behaviour of host countries, even though migration is regarded a shared responsibility of receiving and sending countries. Given Malaysia’s dual (receiver and sender) contribution to migration flows within the ASEAN region, it only seems appropriate for it to integrate migrant workers into the national (financial and healthcare) policies and demonstrate a high respect for human rights.
It is even more timely now, with the battle against the Covid-19 crisis, that the relevant actors put a positive spin on their thoughts on the rights of migrants instead of challenging them. Human rights should be made available for all, leaving no one behind, including migrant workers. A rights-based approach should therefore be applied to addressing the welfare of migrants in this MCO period.
The national response during this pandemic therefore needs to consider the plight of this vulnerable group of migrants, without discrimination against both the documented and undocumented. To date, the public policy measures seem a far cry from addressing the welfare of migrants.
Social distancing, for one, is impossible for the migrant group given the congested state of their accommodation. On the contrary, this measure puts migrants at risk. It therefore comes as no surprise that almost 10 percent of the Covid-19 positive cases in the country were reported to be non-Malaysians, as at April 9, 2020.
The government must also rethink its healthcare policy to be more inclusionary. The March 23, 2020 announcement that COVID-19 tests will be made free for foreigners does not mention if it includes the undocumented migrants. The government obviously needs to take a stand on policy inclusivity. For example, Portugal has already done so by temporarily giving all migrants and asylum seekers citizenship rights, that is granting them full access to its healthcare during this Covid-19 outbreak.
The Covid-19, therefore, is seen as a major stress test for the government to respond inclusively to the human rights concerns of the vulnerable group of migrant workers.
Evelyn S. Devadason is a Professor at the Faculty of Economics & Administration, University of Malaya. Her research focuses on international trade and regional integration. She currently serves as an Associate Editor to the International Journal of Social Economics and as a member to the Editorial Board of the Journal of Contemporary Asia.
In times of crisis when the Covid-19 outbreak has disrupted lives globally, Malaysia’s frontliners as well as the marginalisedwho are facing severe impacts are in a battle against the unpredictable nature of this pandemic.
Businesses in various industries have come together to support each other to stay afloat since the movement restrictions were enforced nationwide.
The virus has not just taken more than 60 lives in the country, but also disrupted the normalcy of life for many, causing businesses to fold and the needy to be cut off from their daily necessities.
However, there are two social enterprises that have stayed open throughout the outbreak in the country to continue doing what they do best – helping others.
“Our roles are more prominent and important as of now, this is why we exist in the first place,” says Kim Lim, founder of PichaEats, who also points out that many more people will fall into the poverty line and for those who are already in the marginalised group will suffer deeplyduring this ongoing crisis.
PichaEats, a social enterprise that feeds the needy and the marginalised has continued its efforts,despite the government’s Movement Control Order (MCO) announcement even though their orders for events were severely impacted around middle of February which affected their B2B sales due to the coronavirus outbreak.
Credit: PichaEats
“We had to quickly adjust to the B2C sector and grow that channel,” says Kim, adding that they were also working on pivoting their business to expect the worst, as they might not get any catering orders the rest of the year.
Initially, PichaEats only deliveredmeal packages of five pax and 10 pax mini-buffet delivery, but due to the current situation, theyhad to adjust their current model to serve more people.
Furthermore, Kim and her team re-activated a movement to get people to contribute to the frontliners who need food in order to continue their services.
Kim told Business Today that her team must be more creative to help the marginalised, but it’s not without its challenges.
“The challenges we face will be the availability to run our business to support the people working with us which also means there’ll be a need of more creativity to make this happen and survive through together.”
“Now, it’s also the best time to experiment with new ideas and strengthen processes,” Kim adds.
MasalaWheels, another social enterprise, also plays a significant role in lending a helping hand not just to the frontliners but to students and communities that have no access to food.
Credit: MasalaWheels
KuhanPathy, one of the co-founders of MasalaWheels, initially started the #foodwithoutborders movement to sponsor meals for stranded university students for a week during the MCO period.
The #foodwithoutborders is a “Pay It Forward” social campaignwhich allows contributors to sponsor suspended meals for the needy which are delivered through their volunteers to the identified beneficiaries.
Soon the campaign grew sizable and MasalaWheelsfound themselves partnering with the Ministry of Youth and Sports, Non-Profit Organisations(NGOs), and hospitalsin the state
More so, they continued to garner attention from the banking sector, universities as well as the Prime Minister’s Office.
“As a social enterprise, we felt the calling to act immediately and what we started for the stranded students became a large and significant social movement for many towards remedying the unfortunate situation,” Kuhantells Business Today.
Thus far, the movement has raised over 8,000 meals and fed more than 7,000 beneficiaries including poor households, medical frontliners, welfare homes and university students, and they have 16,000 meals to raise further.
Though, PichaEats and MasalaWheels received support from government agencies and various stakeholders, they hope this can lead to a more sustainable collaboration that will allow social enterprises to continue working together with NGOs rather than in silos.
“Social enterprises work on strict accountability which allows both the private and public sector to work with us knowing full well that the funds will be channeled in a proper manner,”Kuhan affirms.
While the Prime Minister announced further aid for the Small and Medium Enterprises (SMEs) during the MCO period, Kim points out that there is confusion as to whether social enterprises fall under the same category as SMEs.
Lastly, Kim says that the government will not be able to address all the issues, and thus, social enterprises which are already working on the issues at grassroots level will be able to assist.
The spread of the novel coronavirus has led to a global pandemic and economic stagnation. According to data from the U.S. Bureau of Economic Analysis and JPMorgan Chase bank, industries that have been severely hit include financial services, tourism, aviation, public transportation and hospitality.
New opportunities emerge
During this period of severe global market turbulence, there is economic slowdown and stagnation, but for some industries, new opportunities can arise. Alchemist Codes is proud to announce the recent acquisition by AIQ Limited.
AIQ Limited aims to create a modern-day online ‘Silk Road’, spanning Eastern and Western markets. The vision is to facilitate the interconnection of small and medium-sized enterprises in Eurasian countries to establish a global e-commerce network.
By choosing to support Alchemist Codes’ OCTAPLUS application, AIQ has provided validation of the platform’s technical potential and value. Alchemist Codes believes that its creativity and strength will enable it to surpass the pandemic and move into the economic recovery period where it will be able to fully leverage its advantages and become a major player within the global market.
OCTAPLUS App was officially launched in 2019. The core concept is to allow users to selectively screen the items they are interested in when shopping online. Superior to other online shopping platforms such as Lazada, Shoppee and 11Street, OCTAPLUS boasts of an excellent shopping cashback system with instant online retail promotion functions.
The platform provides users with discounts and quality information on the products including price comparison data, product information and reviews.
It is imperative for international communities to join hands in fighting the pandemic!
In the past, the rapid spread of a virus across international borders has resulted in catastrophic plunges in global stock markets. This pandemic is no different as both European and American stock markets have generally fallen by more than 20 percent.
In efforts to alleviate the impact of this pandemic on the global economy and financial markets, certain overseas central banks have announced emergency monetary policies such as interest rate cuts and quantitative easing initiatives which are designed to increase market liquidity and provide effective support for their financial systems.
The temporary halt in the global economy caused by the pandemic is real, however it is part of the overall economic development trend which experiences highs and lows. Many believe that though there are hardships, the overall trend will be to move forward, rather than take a permanent pause or recession. Once this pandemic period is over, economic recovery can begin and a new generation of business opportunities are expected to emerge.
Highlights in the haze
Founded in April 2018 by Charles Yong, Alchemist Codes is a provider of specialist software solutions that utilise artificial intelligence (AI) capabilities. Its areas of expertise include software engineering, mobile web application development, and social chat platform development. Alchemist Codes has its own professional information technology research and development team dedicated to designing and developing comprehensive information technology solutions for customers within the field of e-commerce.
Charles Yong had analysed and researched the Malaysian e-commerce industry and realised the developmental growth opportunities of the shopping cashback market. This, combined with the implementation of big data analysis, data mining and AI, showed real potential, which led to the initial development of the OCTAPLUS e-commerce platform and mobile application.
From February to March 2020, OCTAPLUS saw a 47.6 percent growth in total users, and the platform has proven itself attractive to both e-commerce retailers and end-users due to its cashback system.
Through the use of social media platforms, OCTAPLUS users can connect with each other. Retailers are also able to connect with users to answer customer inquiries and build brand awareness. Alchemist Codes also utilises the analysis of real-time big data, which helps e-commerce retailers to better target their offerings and anticipate changes in consumer behaviour.
Going forward, Alchemist Codes aims to leverage the rollout of 5G networks, build greater relationships with e-commerce retailers, establish social media partners and extend its consumer and B2B offerings.
AIQ Limited – A Unique Vision
In 2020, Alchemist Codes was honoured to become the first company to be acquired by AIQ Limited. Charles Yong is confident that the backing of AIQ and its investors will have a positive impact on Alchemist Codes’ market value going forward
Charles Yong’s operating concept is also in line with the core concept of AIQ, which is to “Integrate Differential Industry Alliances & Resources”. It is through the combination of wisdom and co-existence that the world may be united!
The world economy faces an unprecedented challenge due to what economists are calling a dual shock generated by the lockdown of almost three billion people around the world.
Even though these lockdowns are inviting people to stay at home and practice social distancing as a precaution for sanitary reason and limit the spread of the Covid-19; they also interrupt the majority of national and international productions.
Professor Dr. Christophe Schinckus, Head of the School of Accounting and Finance in the Business School, Faculty of Business & Law at Taylor’s University
According to a study from the Department of Labour in the United States (US), only 29 percent of workers can really operate via teleworking processes in a service-based economy.
This number is certainly lower in emerging countries where manufacturing sectors account for a significant part of the GDP. Forced to remain at home, workers do not produce, and closed factories simply must interrupt their supply and scale down their operations.
The impact of the Covid-19 on the manufacturing activities can be seen as a “supply shock”, referring to a sudden exogenous reduction in abilities of national companies to supply goods.
If the supply disruption does not last too long, factories can reopen, and the supply can bounce back quickly supporting a relatively quick recovery of the economy. In case of a longer disruption, companies facing this forced interruption of activity miss business opportunities and may lose their ability to continue paying their staff salaries.
A number of these companies might even have to reduce their number of employees.
A recent analysis from the Malaysian Institute of Economic Research (MIER) indicated that the Covid-19 might generate up to 2.4 million of job losses in Malaysia in 2020 – this challenging situation will negatively affect household income, which is expected to fall by 12 percent in Malaysia according to MIER.
A reduction of households’ income generates a decrease of national consumption that directly affects all other (non-manufacturing) economic sector. This snowball effect creates a “demand shock” might create dynamics of recession.
The Covid-19 is hitting national economies by generating this dual shock and creates a growing uncertainty for policymakers who, instead of debating between monetary and fiscal tools; must combine them to keep the economy afloat.
But what are these monetary and fiscal tools? And how can they contribute to the recovery of the economy?
A traditional firepower of the Central Bank aims to reduce the interest rate in order to restart of production and supply and promote economic development with more incentives for investment.
This is a current option recently taken by leading Central Banks such as the FED the US, the Bank of Canada, the Bank of England and the Central Bank of China for instance. In order to support production and economic activities with accessible loans, commercial banks are encouraged to lend more and to do so, they require enough liquidity leading monetary authorities to inject liquidity in the economy via the banking sector and/or to reduce the reserve requirements imposed on commercial banks.
These actions are not without risk given the fact that banks will be under further pressure due to a significant decrease of business investment and corporate bankruptcies. To help alleviate this situation, several countries are offered state guarantees for bank loans to the most affected companies.
Some Central Banks such as the European Central Bank and the Bank of Japan already have very low (even negative) interest rates, and as a result, these monetary authorities have a very small room to react limiting their actions to the two measures evoked above (inject liquidity in the banking system and/or reduce the reserve requirements imposed on commercial banks).
In the context of the Covid-19, a monetary policy alone will definitely not suffice to boost the economic recovery. This is more so since one might wonder whether the classical monetary policy consisting in an interest rate cut will have a real effect simply because the spread of the virus generated a growing uncertainty reducing the enthusiasm of households to save less or companies to invest.
In other words, monetary measures must be combined with an appropriate fiscal policy.
With well-targeted fiscal measures, the government can spend money through an appropriate support to help impacted households and businesses.
In the short-term, fiscal policy aims at protecting incomes and supporting workers and their families as well as ensuring an effective continuity of the national health system.
The creation of a temporary income for vulnerable households in Brazil; targeted cuts in taxation in Canada and China, or the development a specific fund decided by the European Union (EU) to help SMEs affected within the regions and labor markets are among the measures taken.
These expenditures must also be supplemented with the significant increase in spending on epidemic control and hospitals.
All these fiscal measures have a direct impact on government spending and some countries might have less room than others for fiscal stimulus simply because of the existing debt-to-GDP ratios.
This subsequently limits their borrowing abilities, as in the case of Japan and most countries in the EU.
The Malaysian government also implemented a combination of fiscal and monetary measures with a bigger emphasis on the fiscal stimulus. Bank Negara Malaysia (BNM) reduced its interest rate from 2.75 to 2.5 in addition to providing a RM 2 billion worth in loans for SMEs, especially those involved in food production.
To encourage companies and SMEs to invest, RM 500 million will be used to fund start-up and early stage Malaysian micro-companies while the Securities Commission will waive fees for enterprises looking for market investment by being listed. These measures aim to limit the supply shock by ensuring that companies will invest and boost their future activities.
Additionally, to increase the liquidity for households, the employee contribution towards the Employee Provident Fund (EPF) has been reduced from 11 per cent to 4 per cent to ensure more cash (estimated at RM 10 billion) in hand for families. This option combined with a financial assistance to low-income household is expected to limit the decrease of national consumption.
As mentioned, the government decided to combine several measures to maximise their fiscal stimulus: deferring taxes, government fees and loan payments as well as a particular package for tourism (one of the most affected sectors) combined with tax exemption on equipment and machineries are examples of targeted measures taken in Malaysia.
Some Keynesian measures have also been implemented to support the national economy.
To support national contractors (and therefore the national consumption and investment), the government will spend RM 2 billion in infrastructure projects (maintaining roads, bridges, water supplies etc.) with a particular emphasis on the improvement of broadband quality and internet access across the country.
This measure will be combined with the allocation of RM 300 million in loans for SMEs looking to digitalise or automate their business.
The Covid-19 has place all national economies in an unprecedented situation, which has generated an important economic uncertainty in which classical economic tools must be combined instead of being debated.
The Covid-19 outbreak has caused a global disruption, causing economies around the world to be under stress which in return has led to industries such as aviation and tourism to be affected from the very start of the pandemic.
In Malaysia, different sectors have already seen the impacts arising from the outbreak. With the Movement Control Order (MCO) in place, the country’s entire economy has been put to test and this includes the property sector.
According to IDEAS senior fellow, Carmelo Ferlito, the property market will be under stress from different perspectives. He points out that projects under construction cannot go ahead under the MCO and with a dominant climate of uncertainty, investments are on hold both for commercial and residential properties.
In recent weeks, tenants of both commercial and residential units have been affected in their capabilities to pay rents. Ferlito points out that this is particularly true for activities within the malls and for individuals who are losing the job and in return will affect landlords as well.
“Such difficulties add on to the structural difficulties experienced by the industry in the past few years, where both the residential and the commercial sector have faced a slowdown,” says Ferlito.
Putrajaya had recently announced three stimulus packages in order to better aid Malaysians as well as businesses in the country, in particular SMEs. Ferlito points out that the stimulus package recently announced is more oriented toward the generality of the public and presents further measures for SMEs.
He further points out that the property market, together with all other industries can enjoy some of the credit facilitations or loan payment deferral which are introduced however, nothing specific is foreseen for the property market
“It has to be said that, according to some studies, the construction sector is the one that has cash enough to stand longer than other sectors,” Ferlito says.
He also cautioned that if the MCO were to last longer than expected, property segment will remain stand still with some projects abandoned for good and some firms will face bankruptcy however the extent of the impact will still very much depend on the MCO duration.
Foo Gee Jen, group managing director of CBRE, who shares a similar sentiment with Ferlito stressed that the property market will not be exempted from a pandemic of this magnitude.
“The property market is known to be lagging behind economic changes, thus there may not be significant changes in the first-half of 2020 while economies around the world are still contemplating and domestic consumption and investment behaviours are unlikely to change immediately either once the MCO is lifted,” Foo says.
He added that the effects would be more evident in the second half and challenging times are to be expected ahead.
Impacts vary according to segments
As for the residential market, Foo says the market has been on the bear run prior to the pandemic and the market is anticipated to remain subdued in short to medium term. Lack of spending confidence and more stringent lending policies are expected to deter residential purchases as well. A similar effect will be seen on new launches and price appreciation as Foo points out, will take a back seat.
CBRE Malaysia managing director, Foo Gee Jen
“By segments, the conventional housing segment could be lesser impacted compared to the stratified properties with higher density intended for tourism and accommodation for expatriates as sharing communal space may be perceived as a risk during this sensitive time,” Foo opines.
“Challenges may be felt first-hand by the mid and lower range housing that caters to the vulnerable B40 and certain portion of M40, especially the self-employed and daily wage earners,” he added.
He is however optimistic that in the long run, organic drivers such as urbanisation and population growth shall continue to induce stabilising effect on the residential market.
In regards to the office sector, CBRE Malaysia told Business Today that the sector is likely to experience a more minimal adversity in short to medium term since office tenancy by default, has longer lease term. Foo points out that that the MCO does induce organisations to be more agile in their operation and it is an eye-opener to remote work arrangement.
“The greater threat to the office actually lies with the ongoing oil price war in the international market. If the race to bottom persists, another gust of headwinds could await the oil and gas industry in the country. As the industry is one of the nuts and bolts in Malaysia’s economy, it’s downfall will certainly trigger a damaging chain effects in the downstream,” Foo stressed.
Data by CBRE Malaysia shows that occupancy rate of Klang Valley’s office market – which measures 112 million square feet in size – is still hovering slightly above the healthy benchmark of 80 percent. Rental has also remained stable in the past few years as well and there is 10.2 million square feet of office space in the pipeline to be completed in the next two to three years.
“Should the oil and gas industry enter into a downturn, office supply in Klang Valley will come into the picture,” Foo told Business Today.
As for the retail and hotel segments, CBRE Malaysia says malls in sub-prime areas may see increasing vacancy rate and the upcoming ones could expect difficulty in securing tenants. While the services industry contributes to more than 50 percent of the country’s Gross Domestic Product (GDP), Foo says it is also the likeliest industry to experience longer lasting adversity from the pandemic.
“On the other hand, businesses are staring at a possibility of capacity reduction post-MCO may it be due to labour shortage or mandatory requirement by the authorities,” Foo told Business Today.
The retail and hospitality segments which are in the eye of the storm are expected to foresee a painstakingly slower recovery after the impacts arising from the outbreak subsides.
Foo stressed that e-commerce has to be the breath of fresh air in the gloomy retail and tourism markets where a number of e-commerce platforms have acknowledged surges in their orders for groceries and food deliveries in particular.
“This may be the time for offline retailers to explore omnichannel while hoteliers could undertake enhancement actions such as renovations, upgrade, innovative marketing, collaborations among many others to future proof themselves,” Foo says.
One of Malaysia’s leading mixed developers, Mah Sing, told Business Today as Mah Sing is heavily reliant on technology, their employees are working from home using collaboration tools, which have been implemented companywide for some time now.
Mah Sing founder and managing director, Leong Hoy Kum
Founder and managing director, Leong Hoy Kum pointed out that Mah Sing employees are using online platforms to showcase their products currently with most of their new projects available for viewing via virtual showrooms. “Our property advisors are also available to video chat with potential buyers,” he said.
Furthermore,another segment of the market that will face an inevitable temporary slowdown according to Foo is the industrial segment where industrial sector is foreseen to moderate as well as on both local and foreign fronts.
According to CBRE Malaysia, from a long-run perspective, the industrial sector will continue to be the bright spot in Malaysia’s property market with logistics and warehousing being the silver linings. “The economic fundamentals and the prospects of industrial sector of Malaysia with reference to high value manufacturing, regional logistics and distribution are still very tangible,” Foo says.
Moving forward
CBRE’s managing director, Foo told Business Today there are a few curative and corrective measures that could be considered moving forward, for one, getting the government to bring back another edition of Home Ownership Campaign (HOC) to spur the soft residential market.
He added that the new HOC should be broadened to cover both the primary and secondary markets with indiscriminate rebates for properties for all prices.
“Unsold bumi lots holds back cashflows of developers, there should be simplified mechanism for quicker release of the unsold bumi lots,” Foo stated.
He has also pointed out that recognising a possible higher incidence of project delays after this couple with prevailing residential overhand in which the authorities must assess the demand and supply condition before granting new approvals.
Mah Sing’s Leong also shares a similar sentiment to Foo as he proposes for the continuation of the HOC, not only for ongoing and completed residential projects, but to also extend to commercial developments.
“We hope the government can consider introducing a new HOC scheme with additional incentives such as higher margin of financing for first property, reinstating maximum loan tenure for 45 years, lower interest rate for first property as well as considering the developer interest bearing scheme (DIBS) for first-time homebuyers.
“I would start with a gradual lift up of the MCO, in order to restore economic activities,” Ferlito on the other hand says while expressing that he is quite sceptical on the efficacy of the stimulus package, as it both massive, too general and short-sighted.
“The Government, on the advice from public health authorities, should create a zoning system for production clusters or territories as a basis to gradually allowing employees to return to work and businesses to resume operating,” he added.
However, in terms on how the property market will shape in the second half of the year, Ferlito says he is not very positive as he does not see signs of a different policy.
“The situation is very difficult to predict now. we do not have a clearer picture of the medical situation and signs of easing the MCO, the economy (which is not an it, but a group of he and she) will keep on suffering,” Ferlito stressed.
Cambodian Prime Minister, Hun Sen has banned a flight carrying 150 Cambodians from Malaysia in an attempt to curb the spread of the virus outbreak in the Kingdom.
According to Japanese daily, The Mainichi, the premier in a press conference stated that the decision to turn down the planned return of the Cambodians, who have been working in Malaysia, was for the safety of the country’s population of 15 million.
Sobri Salleh, a Cambodian student from the International Islamic University Malaysia was among the 150 passengers that was denied re-entry today into Cambodia.
“We have informed the Cambodian embassy in Malaysia but there was no answer if we could get another flight back or a refund,” Sobri told Business Today.
He further added that a number of Cambodians among the 150 did not have a valid Visa anymore or money to keep staying, pointing out that buying necessities might become a struggle.
Patrick Lee, legal consultant for the Central Alliance of Labor and Human Rights told Business Today that the ban on the flight was a violation of Article 40 of the Constitution, where it is stated that all Khmer citizens have the right to settle abroad and to return home.
“We heard that there are around eight workers sleeping in the airport because they don’t have enough money to go anywhere else,” Lee said
A news report according to Khmer Times stated that 70 of the passengers due back were fisherman who had lost their jobs and their flights were paid by the fishing company that hired them.
The Cambodian Embassy in Malaysia has also issued a statement in accordance to the Prime Minister’s ban, urging Cambodian workers to not return home.
The statement did not include any form of aid or remuneration from the embassy for the stranded workers.
In early February, the prime minister had personally greeted 400 who had disembarked from the Westerdam cruise ship after two weeks at sea.
The cruise ship previously turned away by such countries as Japan, the Philippines and Thailand over virus fears.
This was seen as a likely show of goodwill to the U.S. and Europe.
Cambodia has recorded up to 115 positive cases with 80 of it being imported.
Hun Sen has also cancelled the upcoming Khmer New Year from April 13 to 15.
The Health Ministry has announced that 80 Covid-19 cases have been discharged bring total number of recoveries to 1,321 with one death.
Total number of deaths from the infection is currently at 63.
However, 170 new cases have been identified bringing number of positive cases to 3,963 with 92 cases in the intensive care unit. 50 out of the 92 are currently on ventilators.
The Health Ministry has also urged for Malaysians residing or working in Singapore to stay on for another two weeks.
Allianz Malaysia Berhad has confirmed news reports that Zakri Khir has resigned as Chairman of the Social Security Organisation (Socso).
Zakri, who is also Chief Executive Officer of Allianz Malaysia Berhad and Allianz General Insurance Company (Malaysia) Berhad, tendered his resignation to the Minister of Human Resources, Datuk Seri M. Saravanan this morning with the resignation taking immediate effect from April 7.
“I was appointed by the Council of Eminent Persons (CEP) to helm Socso as Chairman on October 8 2018 due to my 30-year experience in the insurance industry. I looked at it as doing national service to the country. But with any new government, there will come changes and I am of the opinion that my services are no longer required.
“I have done my best and am grateful for all the support received and that I was given the privilege to serve the government for the last 16 months,” said Zakri.
Since performing the country’s first heart transplant, IJN has continued to make strides in giving patients with heart failure a new lease of life
One of the chief concerns for people with heart disease is having their condition develop to the point of requiring a heart transplant. The procedure is usually carried out when a patient has experienced heart failure, when other treatments and interventions have not worked.
Clinical Director of Transplantation and Mechanical Heart Services, Datuk Dr Mohd Nazeri Nordin
While the thought of going under the knife to receive a whole new organ can be daunting, Institut Jantung Negara (IJN) Consultant Cardiothoracic Surgeon and also Clinical Director of Transplantation and Mechanical Heart Services, Datuk Dr Mohd Nazeri Nordin says it’s a necessary treatment option for some.
“We have much better medication and treatment options for heart patients now; coupled with some lifestyle changes, these can effectively help most patients manage their conditions,” he says. “However, if the heart disease is very severe, a transplant can make a significant difference in prolonging a patient’s life.”
Since carrying out Malaysia’s first heart transplant in 1997, IJN went on perform the country’s first lung transplantation in 2005 and subsequently the first double lung transplantation in October 2007. Capping off all these milestones is the fact that IJN remains the only hospital in Malaysia to offer heart transplantation and mechanical heart implantation surgery.
To date, IJN has successfully performed 23 heart transplant surgeries, 5 lung transplantations and 3 heart-lung transplantations. It’s a number that Dr Mohd Nazeri feels is relatively low when compared to the transplantation rates in other countries.
“At the top transplantation centres in countries such as the United Kingdom and Australia, about 50 to 70 heart and lung transplants are performed every year. Here at IJN, we carry out about one or two transplants a year – I think the highest number of surgeries was in 2011, when we performed five heart and lung transplants,” he says.
Aside from a limited number of specialist available to perform transplantations, a main reason for this is the lack of organ donors in Malaysia.
“Donations” that save lives
As reported in the media late last year, over 20,000 Malaysians are currently waiting for donor organs. However, on average, there are only 30 organ donor cases annually.
While this is partly due to Malaysia’s low organ donor rate, another major factor lies in the lack of awareness among family members of people who have pledged to donate their organs. Based on Health Ministry statistics, as of October 2019, around 1.3 percent of the country’s population (432,215 people) are registered as organ donors. However, in almost 80 percent of the cases handled, healthy organs were not retrieved due to opposition from family members.
Dr Mohd Nazeri thinks that this is awareness raising regarding organ donation can play an important role – particularly in highlighting the urgency and need of patients who can benefit from such donors. “It’s not a new concept, the Health Ministry has been carrying out an ongoing campaign for the past 20 years,” he says.
“But we need to further educate potential donors about communicating their wishes to their immediate family members as well. Once a patient is brain dead, it is the family members who have to decide on their behalf.”
On its part, the Health Ministry in November last year unveiled a plan to revamp how it runs organ and tissue procurement services. Among its plans is to streamline the functions of the National Transplant Resource Centre (NTRC) to effectively coordinate all organ and tissue donations upon the death of donors.
At present, the NTRC manages organ donations in Malaysia by maintaining a list of donors and organs available. Dr Mohd Nazeri explains that coordination with NTRC is crucial as a heart or lung transplant usually needs to occur within four hours of organ removal for the donor organ to remain usable.
“It can be quite an intense process,” says Dr Mohd Nazeri.
“First, a team has to go in and carry out an assessment of the organ donor, to see if the organs are suitable, and subsequently retrieve them if they are. This has to be done within two hours at most. Then we have to coordinate with the donor recipient, bring them in, and perform a final check on their suitability as well. And of course, finally, it’s preparing for and performing the surgery itself. So, we’re looking at a team of 20 to 30 personnel to do all of this within the tight time frame we have.”
He adds that another crucial component of this process is more emotional than clinical. “We take care to counsel patients who waiting for organs, and prepare them for all the possible scenarios. It can be quite overwhelming to handle, and they need to be ready to come in for surgery at any moment. But most of all, it’s the waiting that can be tough to handle,” he says.
A little from machines
While transplantation is the ideal solution for end-stage heart and lung disease, IJN has made significant efforts at exploring other forms of treatment for heart failure patients – namely, mechanical systems. “These systems are particularly useful to act as a bridge, while patients wait to receive an organ,” explain Dr Mohd Nazeri. “Some patients are unable to receive heart transplants at all, either due to their specific type of heart condition or other illnesses present such as cancer.”
Here, IJN also boasts of being the first hospital in the country to perform a mechanical heart implantation in 2005. Since then, various state-of-the-art mechanical systems have been introduced for patients suffering from end stage heart disease. These systems offer patients full circulatory support, and are lightweight enough to offer patients the freedom of mobility to continue carrying out their daily activities.
Among the latest in these are the left ventricular assist device (LVAD) and the extracorporeal membrane oxygenation (ECMO).
The LVAD is an implantable mechanical pump that helps pump blood from the ventricles to the rest of the body. A control unit and battery pack are worn outside your body and are connected to the LVAD through a port in your skin. While commonly implanted in patients awaiting a full heart transplant, the LVAD has also been proven useful as a long-term treatment option for patients with heart failure who are not good candidates for a heart transplant for various factors such as age and other underlying conditions.
Dr Nazeri shares that the centre has achieved significant success with LVAD implants, even receiving patients from other countries for the procedure. “However, the only problem is that is incurs quite a high cost and not everyone can afford it. The IJN Foundation has helped to sponsor a number patients for the LVAD, but we are definitely open to more funding – this is truly a life-saving procedure,” he says.
Meanwhile, the ECMO is a mechanical circulatory support systems that temporarily takes over the function of lungs and heart for patients experiencing failure in both these organs. Generally, it is used either post-cardiopulmonary bypass or in late stage treatment of a person with profound heart and/or lung failure.
“While the ECMO can help stabilise a patient experiencing heart and lung failure, it does not treat the underlying cause of the patient’s disease or injury,” explains Dr Mohd Nazeri. “But it is one of the most advanced tools we have to support the patient while the doctors work on treating them – it goes a long way in buying us the time we need and minimising risk to the patient as much as possible.”
With more options available to end-stage heart and lung disease patients, Dr Mohd Nazeri reiterates that the diagnosis is not necessarily a life sentence. “There are more advanced treatment methods in development right now, and these have the potential to improve the patient’s quality of life,” he adds.
Business Today Malaysia speaks to Fave Managing Director, Jake Abdullah and founder of DiineOut, Lionel Lau and co-founder of The Other Kitchen, Albert Wong on how their initiatives are helping businesses in the F&B industry to stay afloat
By Poovenraj Kanagaraj
In any given day, businesses in the food and beverage (F&B) industry face daily struggles to keep operations running smoothly. Today, these struggles have amplified, raising questions if the existing players in the industry will be able to have their doors open after the crisis subsides.
Restaurants, in all shapes and sizes in the country are asking themselves a similar question. With the outbreak and the announcement of the Movement Control Order (MCO) following suit, restaurants and cafes alike have been seeing close to zero revenue in the last couple of weeks.
However, arising from the crisis are several movements that are hoping to cushion the impact the industry is currently facing with hopes that everyone can come out unscathed after the outbreak subsides.
Digital merchant platform, FAVE have launched the #SaveOurFave movement encouraging consumers to support their favourite merchants by purchasing eCards that could be used at the time of purchase or within the next six months.
“Our goal with the ‘Save Our Fave’ movement is to help cushion the business closures that restaurants and retailers will face over the next few months,” says Fave Managing Director, Jake Abdullah.
FAVE, Managing Director, Jake Abdullah shows his support to local business via his Instagram post
With over 300,000 nationwide restaurants and retailers in Malaysia, 17,000 restaurants and retailers are registered under Fave.
“We have seen many joining the social media movement by posting a picture of what restaurant or service they are missing the most and tagging five other friends to the same along with the hashtag #saveourfave,” Jake told Business Today Malaysia.
The movement has also seen local personalities join in to further encourage Malaysians to support their favourite merchants by purchasing the eCards in order to keep businesses afloat during the crisis.
According to Jake, within the first week of the movement (4th week of March), Fave have seen the eCards sales grow three-fold and the same upward trajectory has since been seen daily as more people continue to join the movement to express their support towards local businesses.
Until the end of April, Fave will not be taking any commissions or cuts from the eCards that merchants are pre-selling on the platform. This will allow merchants to obtain 100 percent of sales until April 30.
“We encourage other platforms to reduce their commissions, so we can all chip in to help ensure restaurants, retailers and businesses do not bear the brunt of the economic damage,” urged Jake.
He further says that more needs to be done for them to help mitigate the situation as well as to address business challenges as most F&B retailers are already trying to salvage the situation in the form of token gestures and paying it forward.
#JomTapau, another movement that came about during the crisis has been seeing a similar traction among Malaysians. The hashtag in Malay meaning ‘Let’s Takeaway’ is an initiative launched by The Other Kitchen, a F&B focused digital marketing agency and DiineOut, a local pioneering online marketplace for unique dining and F&B events, aiming to help F&B businesses to offer self-pick-up or delivery options to their customers.
The #jomtapau logo
Both firms had come up with an Online Ordering System (OSS) called app’etite which allows restaurant partners to create a simple webpage within just 24 hours to list menu items, images, pickup and delivery options.
Lionel Lau, founder of DiineOut says challenging times call for a change in the way things have been done.
“We know the small eateries as well as local home-grown eateries that are dependent on day-to-day sales for their livelihoods are struggling,” Lau says.
A flat rate of RM 2 per order for the payment processing fee and a two percent transaction fee will be imposed over the transactional fee will be waivered until industry is in a better position.
Co-founder of The Other Kitchen, Albert Wong says they have partnered up with the likes of MrSpeedy and Lalamove as delivery partners and will continue to see more partners come on board as the numbers of F&B businesses listing themselves on app’etite continues to grow as well.
Currently, the number stands at 70 with up to 10 to 15 inquiries coming in from various restaurants on a daily basis.
According to Albert, there have been an increase in deliveries registered by restaurants, estimating a 20 percent jump from a usual day of operations. While the significant jump is unusual for restaurants due to the MCO, the services provided by the team is proving to be an alternative for many currently confined to their homes.
“People are realizing that there are alternatives as not all delivery services can deliver to certain locations due to the shortage of riders,” says Lionel.
While Lionel and his team continue to approach small and local eateries, it is not without its challenges as some eateries have resisted to the changes taking place on the belief that things will go back to normal in a couple of months.
“Delivery is here to stay and it will continue to grow,” Albert tells Business Today Malaysia as he goes on to say that it is the smaller eateries will face the biggest impact.
“What we are trying to do is give them this option and not lose the diverse food options we have out there. It would be a sad day if all we are left with is large chains. You will see a number of players collapse but we will continue to help as many to stay afloat,” says Albert.
Mah Sing Group Berhad (Mah Sing), together with its corporate responsibility arm, Mah Sing Foundation (MSF) has donated 30,000 pieces of face masks to the Ministry of Housing and Local Government (KPKT).
The face masks will be distributed to KPKT in support of the Ministry’s on-going efforts to mitigate the outbreak of Covid-19 through the Public Sanitisation Exercise at hotspot locations in the red and orange zones nationwide particularly the People’s Housing Programme (PPR) located in red zone areas.
Mah Sing’s chief executive officer,Ho Hon Sang presented the donation to KPKT Minister, Hajah Zuraida Kamaruddin at a presentation ceremony held at the Ministry’s office in Putrajaya today.
Mah Sing’s founder and group managing director, Leong Hoy Kum said “We appreciate KPKT’s Public Sanitisation Exercise to ensure the level of cleanliness of the community across various different segments is well taken care of in respect of the current Movement Control Order.
He further expressed his appreciation to the KPKT front liners’ to provide their services throughout the ongoing crisis.
“We laud the government’s move to introduce the RM10 billion Prihatin Stimulus Package for SMEs as this will certainly ease their financial burden – ensuring the
SMEs continue to support the corporate and economy of the country,” he added.
Together with MSF, Mah Sing has presented a pledge of 20 units of heavy duty critical-care ventilators worth RM3.9million for National Disaster Management Agency (NADMA), to front line hospitals in need.
This is part of the Group’s RM4.175 million pledge in support of the fight against the Covid-19 pandemic, which
includes Personal Protective Equipment (PPE) for Johor government front liners, whilst 150,000 face masks have been allocated for five government agencies.
Prime Minister Tan Sri Muhiyiddin Yassin has announced an additional RM 10 billion to help sustain SMEs and retain employment nationwide.
The announcement made by the PM increases total wage subsidies to RM 13.8 billion, which is expected to benefit 4.8 employees nationwide.
Further measures included special grants worth RM 3,000 that will be offered to micro finance companies. This is expected to benefit up to 700,000 micro SMEs.
Additionally, companies with up to 75 employees will receive RM 1,200 in wage subsidy for each employee while organisations with 76 to 200 employees will receive RM 800 in wage subsidy.
Companies with more than 200 employees will receive wage subsidies of up to RM 600.
The wage subsidies are granted for up to three months and for employers who have registered under SSM before January 1.
The Government has also allocated RM 200 million in order waiver Micro Credit Scheme interest rates from two percent to zero percent while easy loan schemes for micro SMEs will be extended to a limit of RM 10,000 with zero percent interest rate.
SMEs renting in government buildings will either receive rental discounts or be exempted from paying rents.
Putrajaya has also announced a 25 percent levy for foreign workers starting April 1 until the end of the year.
AirAsia Foundation has launched a public digital donation drive as part of AirAsia Group’s #InThisTogether campaign to help vulnerable communities impacted by the pandemic.
Donations will be channeled to social enterprises and charities such as Perak State Parks, SEED Foundation and Beyond Borders Malaysia that provide food and medical aid to Orang Asli families, people without permanent shelter and refugees.
The Foundation will also be monitoring the situation of its social enterprise grantees and the community members involved, as many had lost daily subsistence wages as a result of movement restrictions imposed across the region.
“The pandemic has disproportionately affected those who were already socio-economically disadvantaged. Among our grantees, several have reported appeals from community members for food aid. In these extraordinary times, we call for collective action and hope that as many people as possible will give their support,” said AirAsia Foundation Executive Director Yap Mun Ching.
AirAsia will also be redirecting its commercial and transportation channels to provide a lifeline for small businesses.
Other than the Foundation’s fund-raising drive, the Group is also providing e-commerce and delivery solutions via its e-ecommerce platform OURSHOP and Teleport delivery service to bricks-and-mortar businesses.
Enterprise Singapore have collaborated with three food delivery platforms to launch the Food Delivery Booster Package.
The platforms involved are Deliveroo, foodpanda and GrabFood.
The initiative announce aims to benefit food and beverage businesses in Singapore that are existing operators on as well as new entrants to online food delivery platforms.
Starting from April 7 till May 4, the Food Delivery Booster Package will fund five percentage points of the commission cost charged by the three food delivery platforms.
Additionally, there will be no cap on the qualifying food delivery transaction value.
In order to qualify, food and beverage businesses must be selling food that have been prepared on the premise for immediate consumption.
The initiative will cover small establishments for instance hawker stalls and cafes as well as larger establishments such as restaurants.
Enterprise Singapore is a government agency committed to support Singapore’s small and medium enterprise development.
By Gibu Mathew, Vice President and GM, Asia Pacific, Zoho Corp
The evolving digital business landscape in the Asia Pacific region is seeing a trend of operations moving into the cloud. Firms are collecting massive quantities of data that requires analysis, protection, and storage. This data brings significant business opportunities along with it.
SMEs, in particular, can utilize this information to achieve a competitive advantage. As suggested by IDC data, smaller enterprises are increasing their investments in IT products and services, indicating that digital transformation spending worldwide will grow steadily throughout the 2019-2023 forecast period, achieving a five-year compound annual growth rate of 17.1 percent.
However, many of these types of businesses still lack the dedicated internal IT support teams required to pursue their business objectives.
Lacking the resources available to large enterprises, smaller companies generally struggle to gain a competitive edge, even as they continue to pursue innovation. However, as researchers note, social media can be a relatively cost-effective way for these companies to create brand awareness and pursue innovation, increasing their website traffic and sales.
That depends, of course, on whether these businesses can overcome the potential technological challenges facing IT teams, like providing employees with the mobile devices and cloud applications necessary to facilitate collaboration.
Cloud collaboration tools in particular help internal teams become more creative and engaged when developing solutions for increasing revenue.
The increased accessibility of data across multiple devices also allows for improved mobility of business processes, since approvals and decisions can be made more quickly.
Because of their direct engagement with customers, sales and customer support staff typically have access to customer information that isn’t always available to marketing.
On the other hand, marketing may be developing their campaigns without keeping sales teams in the loop. When sales and marketing teams are able to collaborate, they can greatly improve a company’s ability to make informed decisions.
The sales team can share live feedback with marketers to improve new content in real time, and other internal teams can quickly access up-to-date lead information remotely. With cloud tools, IT admins gain more control over access rights for legitimate users, which facilitates stronger data security.
Among the clear benefits of adopting cloud collaboration solutions, four key reasons stand out for any organization undergoing transformation projects:
1) The Cloud benefits organizations with limited budgets
In the past, IT has been a differentiator for large enterprises that could afford to invest in software, hardware, and ongoing maintenance.
Over time, IT departments have evolved to embrace cloud software. For SMEs, adopting SaaS solutions helps bridge the gap in IT resources.
When seeking to minimize IT costs, businesses have become more resourceful in leveraging cloud platforms, as they avoid the huge upfront cost that comes with on-premises ERP systems.
2) Cloud collaboration tools reduce complexities
Traditional on-premise office productivity tools are cumbersome to install, maintain, and update—in terms of both licensing and software upgrades.
Cloud collaboration tools, on the other hand, make solutions more accessible to employees and require less IT oversight. As the priorities of a business evolve, cloud solutions require less adjustments to meet changing needs.
Cloud platforms also offer greater stability over time, since software upgrades are taken care of by the vendor, allowing business owners to focus on higher priority tasks.
3) Integrating third-party software is simpler when data is in the cloud
When products that you use on a day-to-day basis are integrated, productivity and usability increases, boosting their combined value.
In the past, Application Programming Interfaces (APIs)—which are critical for integrating tools from different vendors—were hard to acquire or even non-compatible, and integrating different software solutions involved in one business process required highly paid consultants to get working.
Today’s cloud collaboration tools are much less complex with much more open architecture that encourages integration between diverse platforms and products.
4) The interface will match employees’ experiences with consumer tech
Consumer technologies and social media platforms, like Facebook, WhatsApp, and Instagram are part of the lifestyle of Asia’s young workforce. So, it is no surprise that at work, employees work better when their business software provides a comparable experience. With the right tools for collaboration, employees will be empowered and motivated to be more productive.
For businesses that want to stand out in a highly competitive environment, the cloud is the way forward. The benefits of these tools will be felt long into the future as the business world continues to become more mobile.
Bank Negara Malaysia continues to highlight the growing intensity and frequency of climate-related events that are increasingly posing physical and liability risk to the economy.
According to BNM, the country has experienced more than 50 natural disasters, affecting more than three million people through displacements, injury and death.
Between 1998 and 2018, the Malaysian economy suffered a total damage of RM 8 billion due to climate-related events.
Source : BNM Annual Report 2019
The central bank stated that immediate transition towards a greener future will put jobs and industries at risks and changes in policy, technology and market changes without caution can affect asset valuations and significantly increase business risks in the coal and energy industries for instance.
Source : BNM Annual Report 2019
BNM has also pointed out that the banks, insurance and takaful operators are also exposed to liability risks, asset impairment and rising claims.
“With about 11.7 percent of their assets in sectors potentially exposed to climate change, it is important that the Malaysian financial institution treat climate risk like any other financial risk which has the potential to affect their profitability and balance sheets that in turn may affect the ability of financial institutions in raising funds,” the central bank stated.
Source : BNM Annual Report 2019
“A recent example is the prolonged drought last year which led to supply disruptions in palm oil production and had a visible impact on the growth of the Malaysian economy particularly in the fourth quarter of 2019,” BNM stated.
The central bank late last year issued the Climate Change and Principled based Taxonomy Discussion Paper to solicit feedback on the classification of assets associated with fun raising and investment activities in, based on their exposure to climate risk.
According to BNM, taxonomy, backed with better date and insights into climate-related risks, it is expected to increase financial flows to activities that will support the transition to a low-carbon and climate resilient economy.
The central bank has partnered with Putrajaya, industry and other domestic regulators in responding to climate risk. September last year saw the central bank and Securities Commission Malaysia establish the Joint Committee on Climate Change (JC3) to drive and coordinate the financial industry’s collective response to climate risks.
Furthermore, BNM is also part of the Malaysian Green Financing Taskforce,which is chaired by Securities Commission Malaysia to spur private sector financing in the renewable energy sector.
Kwasa Land has appointed Mohamad Hafiz Kassim as its managing director designate effective April 1.
The wholly-owned subsidiary of the Employees Provident Fund (EPF) new managing director will lead Kwasa Land’s strategy and execution of the company’s role as a master developer of Kwasa Damansara, a 2,300-acre mixed development covering residential, commercial, educational and recreational offerings.
Kassim first joined EPF in 2008, taking on several leadership roles within the Investment Division and will continue to lead EPF’s real estate investment team.
Bringing with him over 20 years of experience, Kassim’s focus has been on real estate, capital markets, private equity, financial services and accounting.
The role was previously held by Mohd Lotfy Mohd Noh who retired end of March 2020.
Business Today through an email interview with Philips, the Dutch health technology company, finds out their efforts in managing production of critical care products and solutions during this challenging time.
By Sharon Chang
The shortage of ventilators is inevitable. Runaway demand for ventilators has laid bare the grim reality for healthcare professionals who need them to treat patients impacted with the unprecedented Covid-19 pandemic.
“While we acknowledge that there is an unprecedented global demand for medical equipment to help diagnose and treat patients with the virus, we have also put in protocols to ramp up efforts to meet these demands,” Philips says in an emailed response to questions from Business Today.
“As a global leader in health technology, our effort is to prioritise increasing the production of certain critical care products and solutions.
“We are working around the clock to double our hospital ventilator production within the next eight weeks and are aiming for a four-fold increase by the third quarter.”
Given the circumstances, such as shortage of parts due to the disruption of the supply chain and the lockdown implementation, Philips says they are working closely with their suppliers to secure materials supply to feed the increased production at their manufacturing facilities.
In addition, Philips is leveraging on its innovation capabilities to re-purpose adjacent product ranges and, also, engaging with third party contract manufacturers to address the increased demand.
“Furthermore, we are also hiring additional manufacturing employees and adding manufacturing lines and increasing the current work shifts to 24/7 shifts,” it says.
Philips says that currently, the most needed products are patient hospital (portable) ventilators and medical consumables for non-invasive and invasive ventilation to treat a broad range of respiratory conditions.
Meanwhile, Philips is hoping to increase production of other equipment critical in the fight against Covid-19, such as vital signs monitors, diagnostic imaging systems and software solutions for hospitals to monitor and manage patients in intensive care units.
“These will help our frontline medical teams address the preparedness, response and recovery needs from diagnosing to assessment of respiratory conditions,” it explains
In a response to questions, Philips says, “For a more data-driven and connected approach, we will explore how we can leverage our hospital telehealth solutions to centrally monitor and manage patients in the intensive care unit (Philips eICU program), and solutions to connect caregivers and patients at home.”
Philips adds that their ventilators are designed to be easy-to-use and simple to maintain.
The intuitive, graphical user interfaces and menus are created to simplify ventilator set-up and boost productivity. Advanced, automated features, such as mask auto-calibration, can save time, and built-in monitoring alerts you to patients’ changing conditions.
Together, these advances can help to improve workflow.
“Backed by our deep clinical knowledge, our hospital ventilators and masks are developed using only high-quality parts,” Philips shares, adding that their ventilators, patient-friendly masks and accessories deliver non-invasive ventilation (NIV).
Government needs to act
In line with the recent call to action by the International Chamber of Commerce (ICC) and World Health Organization (WHO), Philips says they are calling on governments to facilitate enhanced access to critical materials and components by not imposing restrictions such as export controls and tariffs.
“Besides, the government must also provide help to accelerate logistics, as well as exemptions for critical suppliers from lockdown measures,” it says.
Critical medical equipment, such as hospital ventilators and patient monitors, should be made available across the world, Philips believes, adding that priority should be given to those communities and countries which need them the most,
And most importantly, use a fair and ethical approach to allocate supply to acute patient demands based on data such as the Covid-19 risk-classification of a country/region.
Light at the end of the tunnel
Despite these turbulent times, the company has been able to continue its global business operations and serve its customers, according to Philips.
However, the impact of the outbreak on public life and industry in the most affected regions is resulting in a decreased demand for Philips’ consumer portfolio and is affecting Philips’ global supply chains.
While this is expected to have a negative impact on the financial performance in the first half of 2020, the company cannot quantify the magnitude and duration of such impact at this time given the continued fluidity of the situation.
Philips continues to monitor and assess its business operations daily and will provide an update as appropriate.
Business Today Malaysia interviews Bryan Boo, Pet Lovers Centre, operations director on how the biggest pet retail chain has adopted digitisation and discusses their strategies moving forward
By Poovenraj Kanagaraj
“Our business strategy is focused on targeting the middle class groups who frequent malls and those that are hands-on with their pets and are interested in learning more on how to care for their furry best friends,” operations director, Bryan Boo told Business Today Malaysia.
Known as the biggest pet retail in the country, Pet Lovers Centre (PLC) is a household name that has since achieved over 53 store openings since its flagship store back in 2016. And with rapid expansion brings about opportunities and with it, comes challenges.
Tackling challenges
PLC, like many of its counterparts are facing an increasing need for storage as spatial need proves to be a burden for traditional brick-and-mortar stores, and many stores and malls are facing stiff competition for rapid footfall to meet a quota of customers per day.
Pet Lovers Centre, Operations Director, Bryan Boo
“There is a pressing concern on the freshness of stock and PLC aims to reassure that we have a robust protocol for ensuring that our customers get the freshest and best from the range,” Bryan said.
However, a pet retail chain has a few advantages on being at a bigger capacity operations-wise to store food and keep track of the expiration date through a meticulous tracking system both online and offline.
Bryan further states that a higher inventory turnover rate ensures that a retail store sells its average investment locked up in inventory during a particular period of time and generates employee morale which leads to higher loyal customer conversion rate and improves the image of the store.
When it comes to guarding against losses from product perishability, PLC practices the ‘first-in-first-out’ method (FIFO) which ensure that product expiration is stringently followed through according to the dates.
“Product perishability is a possibility that every business must plan for and comprehend. As mentioned, PLC has a standard protocol where we check for the product’s freshness every month and the automated system for weekly deliveries to stores,” Bryan pointed out.
Providing a more holistic experience
PLC believes in becoming the centre that provides the best for pet needs and for the convenience of owners around the country. The opening of it’s Ikano Power Centre mall (IPC) flagship store, The Pet Safari (TPS) later this year, is aimed to serve as an extension of the PLC stores which features specialised themes suited towards the needs of pet owners.
Through this space, the brand will be working together with longtime partner, PAWS Animal Welfare Group, to provide potential owners with a one-stop centre for their adoption needs ranging from available stray animals to be adopted, food, hygiene products and starter kits to help these owners ease themselves into their new roles.
At MyTown, TPS focuses on a garage theme and provides additional services would benefit both the owners and pets. PLC believes these add-ons diversify offerings at the store which includes a pet bakery, small animal grooming section and a vet pharmacy among others.
The pet retail brand is also planning to venture further into pet care which will include pet insurance, pet cremation, a vet pharmacy in Klang Valley, pet relocation services, a dog training centre and a daycare centre for pets.
Digitisation, partnerships and strategies moving forward
According to PLC, digitisation is giving leverage to technological advancements such as high-tech toys and veterinary applications which showcases the information about health and welfare and this will further equip pet owners with the information to afford better care for their pets.
“We are seeing more and more NGOs utilise social media and the voices of these passionate individuals to preach for the need for adoption. This ensures that the message of adoption is propagated,” Bryan told Business Today Malaysia.
He further pointed out that the increase in demand for better quality products along with the ease of information available in the digital streams will be a part of the ability for the pet sector to move forward.
“In line with increasing digitisation, partnerships with e-Commerce sites will be beneficial to improve brand accessibility,” said Bryan.
Beyond its brick-and-mortar presence, PLC is innovating itself into adopting omni-channel marketing via social media and building partnerships with e-Commerce applications such as HappyFresh.
“We also foresee that there will be a rise in pet-friendly apartments and high-rise buildings, pet inclusive homes becomes trendy and many property developers – in a bid to remain on top of their competition – will offer this feature as a way to appeal to this trend,” said Bryan.
This will lead to more pet-friendly homes where interior designing will take centre stage as owners are looking towards integrated designs such as decorative litter boxes with sustainable litter which is eco-beneficial.
“PLC has continuously emphasised on a strategy to expand and have more stores within the malls because it improves the economies of scale, as there were no other pet shops penetrating the malls back when we were just getting started. Till this day, it has remained one of our key strategies,” Bryan told Business Today Malaysia.
Malaysia is no stranger to external shocks affecting its macroeconomy. Over the past two decades, it was buffeted by the 1997 Asian Financial Crisis (AFC), the 2001 global slowdown after 9/11 and the 2008 Global Financial Crisis, each shock affecting the Malaysian economy in different ways.
The first one resulted in the steepest economic contraction in Malaysia’s history – reversing growth to negative 7.35 percent in 1998. The country surmounted this massive crisis through prudent policy-making and drew important lessons to protect itself from the latter two economic shocks.
This latest global COVID-19 crisis is particularly unique given the context in which it emerged and the dual threats it poses to states and societies across the world. Before COVID-19’s global spread during the last two months, economic growth in almost all countries had already slowed on the back of trade tensions between the United States and China.
Against this softening economic backdrop entered the COVID-19 virus. What began as a localized epidemic in Wuhan, China has now transformed into an international public health crisis and an international economic crisis creating supply shocks and demand shocks in over 180 countries. Amidst this unfolding global pandemic, international oil prices, too, began to plummet in early March adding additional fiscal pressure on oil-producing countries including Malaysia.
World bank Group Global Knowledge and Research Hub in Malaysia country Manager Dr. Firas Raad (Pics by Hussein Shaharuddin/TMR)
The public health shock created by COVID-19 first evolved slowly and then expanded rapidly in March of the year. Within four weeks after February 27, the cumulative number of infections skyrocketed upwards to 2,766 confirmed cases, and there were 43 deaths and 537 recoveries (as of March 31).
These trends are already placing the Malaysian health system, particularly the public hospitals, under considerable strain. A third ‘tsunami wave’ in the words of MOH Director-General Datuk Dr. Noor Hisham Abdullah, if not prevented through more expanded testing, case isolation and enforcement of public compliance, could easily flood Malaysian healthcare facilities and result in numerous fatalities not least among the elderly and persons with chronic health conditions.
COVID-19’s shock to the Malaysian economy has deepened with the mounting public health crisis. Initially, the effects of the crisis were felt in the electrical and electronic products (E&E) sector which is closely tied to the Chinese market; and in the tourism and retail sectors due to a significant drop in incoming tourists.
These effects widened recently resulting in broad-based disruption to all economic activities in the country including the financial and currency markets.
Looking forward, recent projections by the World Bank indicate that substantial economic pain will be inescapable in all countries in the region. In our latest regional economic update East Asia and Pacific in the Time of COVID-19 launched earlier this week, economic growth in developing East Asia and Pacific countries is estimated to slow to 2.1 percent in 2020 under a base case scenario; and to negative 0.5 percent in a lower-case scenario.
For Malaysia, economic growth in 2020 is forecasted to drop to negative 0.1 percent under the base case and negative 4.6 percent under the lower-case scenario.
Along with significant economic retrenchment, the global pandemic will have a large impact on poverty in the region with 24 million fewer people escaping poverty in 2020 under the base case scenario than was forecasted in the pre-COVID-19 projections.
These estimates were generated under continuously changing conditions and based on available data as of March 27.
The World Bank update urges countries to take immediate action to strengthen containment, to boost healthcare capacity and to implement targeted economic measures to lessen the impact on Malaysian households, businesses and workers including the injection of greater liquidity and repayment flexibility into the financial sector.
The report also promotes the importance of countries adopting an integrated approach towards containment and macroeconomic policies, and international cooperation and public-private partnerships to ensure the production and supply of key medical supplies across international borders.
In line with these recommendations, the Malaysian Government issued two economic stimulus packages and placed the country under a ‘Movement Control Order’ (MCO) for an initial two weeks – now extended to mid-April. The MCO, through banning public gatherings and mandating home-based learning and work for all students and workers (except those involved in essential services), seeks to limit further widespread diffusion of the virus.
Public compliance with MOH testing policies and movement restrictions will be crucial to preventing a new and sweeping wave of infections from gathering momentum.
The economic stimulus packages, on balance, contain the right elements for mitigating the impact of the COVID-19 crisis. The second and larger economic package announced on March 27, rightly prioritizes supporting front-line workers in the healthcare system and purchasing medical supplies.
It also contains important additional measures to protect the income of vulnerable Malaysian households through cash transfers, help individuals and businesses smoothen out their debt repayments, and provide support and wage subsidies to Malaysian businesses. The goal of the wage subsidy measure is to encourage struggling companies in the private sector to retain their employees during this downturn.
Although this second package is prescribing the right economic medicine for the COVID-19 crisis, there may be questions about gaps in the medication and the appropriate dosage of some of the measures.
Specifically, how best to support medium-sized, small and micro-enterprises will require further thinking and action, and the relatively modest size of the wage subsidy may prove insufficient to prevent job layoffs by firms in weaker financial positions. If the public health crisis continues unabated and requires an extension of movement restrictions, a third economic stimulus may be necessary.
In retrospect and taking the long view, Malaysia has seen many economic crises in its day. With enough determination, clear-eyed thinking,careful policymaking – and capitalizing on its prior experiences – it will be able to weather this unusual storm.
Malaysia Tech Week 2019 (MTW19) is a city-wide festival of industry driven events that will congregate the best of Malaysian corporates, ecosystem partners, investors, regulators and tech start-ups along with delegations from around the world to the tech hub of Southeast Asia.
Knowledge Group, together with Malaysia Digital Economy Corporation (MDEC) and other partners will be organising the nation’s first Malaysia Tech Week from 17th to 21st June 2019.
MTW19 is a 5-day event which will feature a variety of activities, such as innovation showcases, business matching opportunities, pitching platforms, and access to Malaysia’s tech ecosystem network.
This event also offers experiential engagement in a casual setting with an abundance of networking opportunities for all participants.
“Malaysia, with its strategic location and diverse culture, has long been a favoured tech foreign investment destination in the Southeast Asia region,” says Surina Shukri, CEO of MDEC.
“We are a nation with a rapid-growing tech ecosystem that has so much to offer the world. With that, we would like to welcome tech start-ups, companies, investors and more from all over the world to come witness what Malaysia has to offer right here at MTW19!”
In conjunction with MTW19, the Central Bank of Malaysia (BNM) will also host MyFintech Week (MyFW), an event that brings together the industry movers and shakers in the fields of finance and technology for meaningful exchanges to shape the future of financial services.
The End of Oak Street is the kind of film that makes me wish its first half was as good as its second.
First half of The End of Oak Street: Anne Hathaway with those bangs. Chef’s kiss.
Second half of The End of Oak Street: Anne Hathaway with the gun that bangs. Chef’s kiss.
Somewhere between those two Anne Hathaways is a film I really wanted to love more than I ultimately did.
Directed by David Robert Mitchell, the filmmaker behind It Follows and Under the Silver Lake, and produced by J.J. Abrams, The End of Oak Street takes a wonderfully bizarre premise and drops it into suburban America.
After a mysterious cosmic event rips Oak Street out of suburbia and transports the neighbourhood somewhere unknown, the Platt family discovers that survival depends on them sticking together as they navigate a world that has become completely unrecognisable.
And yes, there are dinosaurs.
Lots of them.
But surprisingly, I think The End of Oak Street works better as a family adventure than it does as a dinosaur movie.
The first half takes its time
The biggest problem for me is the first half.
Mitchell spends a considerable amount of time building suspense around what exactly has happened to Oak Street. Strange details gradually creep into the otherwise ordinary suburban environment, creating this sense that something is fundamentally wrong.
The problem is that the suspense never quite reaches the level the film wants it to.
It keeps teasing that big moment where everything falls apart, but the build-up feels more deliberate than genuinely tense. I understand what Mitchell is trying to do, especially with the mystery surrounding the cosmic event, but I found myself waiting for the movie to get to the good stuff.
Thankfully, it does.
And once it does, The End of Oak Street becomes considerably more fun.
Once the dinosaurs arrive, the movie comes alive
The second half is where the film finally finds its rhythm.
The dinosaurs get more room to wreak havoc, the action becomes more inventive and the Platt family’s fractured dynamics start paying off. There is one particular oner that is fantastic, giving the action a sense of geography and movement that is increasingly rare in modern blockbusters.
Rather than chopping everything into a million edits, Mitchell allows the sequence to play out and lets us understand where everyone is.
That is old-school blockbuster filmmaking.
And it works.
This is also where I understand the critics who were considerably more enthusiastic about the film than I was. RogerEbert.com’s Zachary Lee gave it a perfect 4/4, praising the film for bringing together its family drama, apocalypse story and dinosaur spectacle into something he considered a genuine movie miracle. Polygon similarly described it as an Amblin-style adventure that feels like the kind of film you would stumble across on television and immediately watch until the end.
The Associated Press called it a “gonzo good time”, while Empire praised its set pieces and argued that it manages to out-dino some of the more recent Jurassic entries. Those are strong endorsements, and I completely understand where they are coming from.
I just needed the movie to get there sooner.
This is Spielbergian done right
The Spielberg comparisons are impossible to avoid.
And for me, this is where The End of Oak Street gets particularly interesting.
I reviewed Spielberg’s Disclosure Day earlier this year and, while I appreciated aspects of that film, it never quite gave me the Spielberg experience I was hoping for.
Ironically, David Robert Mitchell has made the better Spielberg homage.
Not because The End of Oak Street is better than Jurassic Park. It absolutely is not.
But Mitchell understands what makes Spielberg’s 1980s family adventures work.
The children. The suburban setting. The dysfunctional family. The sense of wonder. The danger invading an otherwise ordinary home. The strange lights. The creatures. The mixture of humour, fear and sentimentality.
It is not simply copying the visual language. It understands the emotional language.
The film feels like someone took the DNA of E.T., Close Encounters of the Third Kind, The Goonies and Jurassic Park, put it through a blender and then dropped a suburban neighbourhood into the Early Cretaceous.
Vulture described the film as effectively slamming Jurassic Park into Close Encounters of the Third Kind, while IndieWire praised it as a nostalgic but not reactionary blockbuster that understands what audiences want from this kind of summer adventure.
And that is exactly why I enjoyed its 1980s aesthetic.
It is nostalgic without constantly screaming, “Remember this?”
A surprisingly good family movie
The dinosaurs might be the marketing hook, but the family is the heart of the film.
The Platts were already struggling before their neighbourhood was ripped out of suburbia. The cosmic event simply forces them into a situation where they cannot avoid each other anymore.
That gives the film an unexpectedly sincere emotional core.
Screen Daily highlighted Anne Hathaway’s Denise as the character carrying much of the film’s emotional weight, particularly through its exploration of parenthood and the everyday heroism of trying to hold a family together. The AU Review similarly noted that Mitchell seems more fascinated by the family inside the house than the dinosaurs outside it.
And yes, Anne Hathaway is easily the standout.
She has the emotional responsibility of the movie on her shoulders, but she also gets to become an absolute badass once the dinosaurs arrive.
Feathered dinosaurs? Thank you
I also have to give Mitchell credit for committing to the idea that dinosaurs had feathers.
I appreciate this immensely.
After decades of pop culture teaching audiences that dinosaurs should look like giant scaly monsters, it is refreshing to see a blockbuster actually embrace more modern palaeontological understanding.
The film also chooses dinosaurs from the Early Cretaceous rather than simply assembling the greatest hits from Jurassic Park.
It is a small detail, but one that tells me Mitchell actually cares about making a dinosaur movie rather than simply making another Jurassic clone.
And when the dinosaurs work, they really work.
The raptors are nasty. The larger creatures feel imposing and the film occasionally gets surprisingly brutal for a PG-13 adventure.
Deadline praised the film’s willingness to push the rating with its dinosaur violence, while other critics have highlighted the creature work and set pieces as among the movie’s strongest elements.
I just wish there had been more of it.
Because despite all this praise for the dinosaurs, I still came away thinking:
Meh, dinosaur movie.
The split-diopter shots actually mean something
I have become weirdly conscious of split-diopter shots this year.
After watching Lee Cronin’s The Mummy, where I felt the technique was used a little too often, and Polong, which I thought used it very nicely, I was immediately noticing Mitchell’s use of the same technique here.
The difference is that The End of Oak Street uses it wisely.
The film has plenty of split-diopter compositions, but they rarely feel like Mitchell is simply showing off.
They are particularly effective during the dramatic scenes.
When two characters are standing close to each other but emotionally disconnected, the technique allows Mitchell to keep both faces and the surrounding action in focus. During the more intimate family moments, it becomes part of the emotional language of the scene.
That is where the technique works best.
The Mummy sometimes made me think, “Okay, we get it, you have a split diopter.”
The End of Oak Street made me think, “Oh, this actually serves the scene.”
And that is the difference.
The little things make it work
There are plenty of smaller details that I enjoyed.
The 1980s production design.
The old-school framing.
Michael Giacchino’s score leaning into that John Williams-esque adventure language.
The weirdness of the premise.
The willingness to get bloody.
And, obviously, great doggo. You’ll know why.
No further questions.
There is also one scene that was censored for the Malaysian theatrical release, which is amusing because the same material will apparently be available through another medium anyway.
So, technically, nobody is really missing anything.
And then there is my personal headcanon that this somehow exists in the Cloverfield universe alongside Overlord.
I know it does not.
I know.
But I will continue believing.
My Project Zomboid brain also absolutely lit up when the sledgehammer came out.
My Zomboid soul was screaming.
The critics loved it more than I did
This is probably where my 6/10 will look slightly harsh compared with the broader critical response.
At the time of writing, The End of Oak Street sits at around 84% on Rotten Tomatoes, 67 on Metacritic and 6.6 on IMDb.
Some of the strongest critical reactions include:
RogerEbert.com – 4/4: Zachary Lee called it an unusually ambitious combination of family drama, apocalypse and dinosaur spectacle, describing it as a movie worth returning to.
SlashFilm – 10/10: praised its optimism and its use of genre cinema to process loss and find a way forward.
Polygon – 91/100: called it an Amblin-style suburban adventure and one of the summer’s unexpected blockbusters.
Vulture – 90/100: highlighted its collision of Jurassic Park and Close Encounters of the Third Kind.
IndieWire – A-: praised the film’s nostalgic but non-reactionary approach to the Spielberg-era blockbuster.
Empire – 4/5: argued that the film’s Spielberg influences are obvious but that its dinosaur set pieces can surpass recent Jurassic films.
The Irish Times – 4/5: enjoyed the film’s energy but noted that the screenplay stumbles when trying to explain its strange premise.
The Independent – 4/5: praised its originality, its darker edge and, importantly, its correctly feathered dinosaurs.
The Guardian – 2/5: was considerably less impressed, arguing that the film’s Spielbergian influences sometimes feel more like pastiche than genuine inspiration.
That last criticism is probably the one I disagree with most.
Because I do think the Spielberg homage works.
It just does not work consistently enough for me to give the film the kind of score some of those critics have given it.
So, is it the dinosaur movie we have been waiting for?
No.
Not for me, anyway.
It is not Jurassic Park.
It does not have the same sense of awe, nor does it have enough dinosaur material to completely satisfy the prehistoric itch.
But it is something arguably more interesting: an original blockbuster that understands why those old family adventure movies worked in the first place.
The first half is too slow and the mystery does not entirely justify the patience required to get through it. Some of the logic is deliberately vague, and even the critics who loved the film have acknowledged that its central mystery does not always make complete sense. The Irish Times specifically noted that the screenplay stumbles when it attempts to explain exactly what has happened.
But the second half?
That is where The End of Oak Street finally becomes the movie I wanted it to be.
It is fun. It is sincere. It has dinosaurs. It has Anne Hathaway with a gun. It has a great dog. It has some genuinely excellent filmmaking.
And, most importantly, it feels like somebody actually remembers what a Spielberg family blockbuster felt like.
Which makes it all the more amusing that, for me, this is a better Spielberg homage than Spielberg’s own Disclosure Day. At least, that’s my personal opinion.
ETA Group Bhd has secured two construction contracts worth a combined RM13.17 million for the design and construction of industrial factory and warehouse buildings in Mukim Rawang, Gombak, Selangor.
The group said its wholly owned subsidiary, ETA Design & Build Sdn Bhd (ETA D&B), executed the two construction agreements on Aug 13, 2026.
The first agreement was entered into with Eckem Sdn Bhd, while the second was with Entire Concept Sdn Bhd.
Both Eckem and Entire Concept are wholly owned subsidiaries of Eckem Holdings Bhd, which is listed on the ACE Market of Bursa Malaysia Securities.
Under the agreements, ETA D&B will undertake the design and build of the industrial factory and warehouse buildings at the respective sites.
Eckem is principally involved in the distribution, sales and application formulation of specialty industrial chemical products to key account customers.
Meanwhile, Entire Concept is principally involved in the distribution, sales and application formulation of specialty industrial chemical products under its own brands.
Eckem Holdings and its group of companies are principally engaged in the distribution, sales and application formulation of specialty industrial chemical products, as well as the manufacturing and trading of rubber products.
US stocks rose on Thursday morning after another inflation reading that eased September rate-hike bets and a slew of earnings reports.
The Dow Jones Industrial Average and S&P 500 both added about 0.3%, while the tech-heavy Nasdaq Composite moved up 0.2% after a calm day on Wall Street.
Data from the Producer Price Index, which tracks inflation from the sellers’ perspective, showed prices rising by less than expected, another positive sign for investors after Wednesday’s Consumer Price Index report showed inflation easing in July. So-called core readings showed slowdowns of both monthly and annual price appreciation.
Though cooling CPI and PPI data prompted traders to fade bets of a September rate hike, it likely wasn’t enough to settle the divide among policymakers, and Fed watchers still expect at least one rate hike by the end of the year.
Air India pilots will undergo mandatory drug screening starting Thursday (Aug 13), according to an internal memo seen by AFP, after a captain involved in a serious mid-air incident reportedly tested positive for marijuana.
Existing rules require airlines to randomly test at least 10 per cent of their flight crew for psychoactive substances each year.
We have decided to undertake a full screening of all Group pilots for any substances or medications that are not permitted under prevailing regulations,” the memo said.
“Testing is mandatory and will start today.”
On Aug 4, at least 24 passengers were injured when an Airbus A320 lost about 91m of altitude shortly after departing from Thailand’s Phuket for New Delhi.
Local media reports said the main pilot had smoked marijuana and had tested positive in a second confirmatory test. Air India said the results have not been shared with them.
Indian investigators have not commented on the reports but said they were closely examining evidence linked to the flight.
The inquiry is being supported by Airbus and France’s civil aviation safety agency, the BEA.
The incident came as Air India is seeking to overhaul its operations following a string of setbacks.
Its reputation suffered a major blow in June 2025 when the London-bound Flight 171 crashed shortly after take-off from Ahmedabad, killing all but one of the 242 people on board and 19 people on the ground.
Last week, the airline appointed former Ethiopian Airlines chief Tewolde Gebremariam as its new chief executive.
Selangor Menteri Besar Dato Amirudin Shari said the state will not approve new data centre developments in areas without sufficient water and electricity capacity.
He said the state government had adopted a clear policy requiring data centre operators to demonstrate certainty of adequate water and energy supply before their projects could proceed.
“Data centres are not built arbitrarily. There must be certainty of sufficient water and energy supply. If there is no water supply, we will not allow it, even though a large number of data centres have entered the state recently,” Amirudin said.
Separately the MB also added that the Selangor government would introduce a 30% policy aimed at creating opportunities for local companies to become suppliers to the data centre industry.
He said the policy would initially define “local companies” more broadly rather than restricting participation exclusively to companies based in Selangor.
This, he said, would ensure that there was a sufficiently large pool of qualified suppliers while avoiding pressure on the data centre industry’s capacity to expand.
“We will not limit it to Selangor initially. We will start with local companies because if we restrict it to Selangor, the number would be quite limited and this could put pressure on the ability of data centres to continue operating,” he said.
The policy is intended to ensure that the rapid expansion of Selangor’s data centre industry also creates opportunities for Malaysian businesses to participate in the wider supply chain.
The People’s Bank of China (PBOC), the country’s central bank, said Thursday that it will conduct a 1-trillion-yuan (about 147.3 billion U.S. dollars) outright reverse repo operation on Friday to maintain ample liquidity in the banking system.
The operation will have a fixed quantity and be conducted through interest-rate bidding, with winning bids determined at various price levels. It will have a tenor of six months, or 185 days, with a maturity date of Feb. 15, 2027.
As 1 trillion yuan of six-month outright reverse repos are due to mature in August, this means the operation will serve as an equal-amount rollover of the maturing repos.
Outright reverse repo operations, a tool the central bank introduced in October 2024 to manage liquidity in the national banking system, are conducted once each month with a tenor of no more than one year.
PBOC said the operations have strengthened the country’s monetary policy toolkit, complementing previous measures such as temporary repos, temporary reverse repos, and the buying and selling of treasury bonds
Tomei Consolidated Bhd’s wholly owned subsidiary, Tomei Services Sdn Bhd, has entered into a joint venture agreement with TY Net Sdn Bhd to collaborate in the pawnbroking business carried out by the indirect subsidiaries of JP United Sdn Bhd (JPU).
Tomei Services entered into the agreement with TY Net on Aug 13, 2026, as part of a proposed joint venture that will see TY Net participate in JPU as a joint venturer.
JPU is a wholly owned subsidiary of Tomei Services, making it an indirect subsidiary of Tomei Consolidated.
Under the proposed joint venture, Tomei Services has agreed to TY Net’s participation in JPU for the purpose of collaborating in and expanding the pawnbroking business conducted by JPU’s indirect subsidiaries.
The company said the proposed joint venture is aimed at combining the business expertise of both parties in pawnbroking operations, while leveraging their respective business networks and customer bases.
It will also allow the parties to tap available financial resources to support the expansion of the pawnbroking business.
Tomei said the collaboration is expected to provide the parties with opportunities to strengthen their capabilities and broaden their reach in the pawnbroking sector.
Keyfield reported profit after tax and minority interest of RM79.2 million for the first half of 2026, a 9.0% decrease from RM87 million in the first half of 2025. 1H2026 revenue was RM160.7 million, 26.5% lower than a year ago.
For the second quarter of 2026 ended 30 June 2026, Keyfield reported ‘Core’ Operating PATAMI of RM24.1 million, a decrease of 43.0% from RM42.3 million in 2Q2025. 2Q2026 revenue was RM113.5 million, 14.0% lower year-on-year
The group said it will continue its fleet renewal and recalibration strategy and enhance fleet with higher capabilities and the ability to serve a wider range of customers. This will include Keyfield Joyful acquisition and the ongoing construction of 3 new-build vessels comprising one new dynamic positioning class 2 (DP2) Accommodation Work Boat (AWB) vessel and two 90MT dynamic positioning class 2 (DP2) Anchor Handling Tug Supply (AHTS) vessels.
For Q2FY2026, Pharmaniaga Berhad recorded revenue of RM1.04 billion, representing a 12.3% increase from RM926.9 million recorded in the corresponding quarter of the previous financial year. Profit after tax (PAT) improved significantly to RM13 million, compared with RM4.2 million in Q2FY2025, while profit before zakat and taxation (PBT) increased to RM17.8 million from RM7.4 million previously.
For 1HFY2026, the Group recorded revenue of RM2.22 billion, up 12.0% from RM1.98 billion in the corresponding period last year. PAT increased 31.2% to RM45.2 million from RM34.5 million previously, reflecting ongoing improvement in the Group’s operating performance and financial position.
The improved performance was underpinned by higher order volumes from Government hospitals under the APPL and stronger sales to the private healthcare segment. Supported by effective inventory management and the partial repayment of borrowings generated finance cost savings of RM7 million, further strengthening the Group’s profitability during the period.
For 1HFY2026, the Manufacturing Division remained a key earnings contributor, with earnings before interest, taxation, depreciation and amortisation increasing to RM55.6 million, compared with RM50.3 million in the corresponding period last year. The improvement was supported by stronger demand for the Group’s in-house manufactured products.
The Group also declared a second interim dividend of 0.48 sen per share for the financial year ending 31 December 2026, representing 50% of profit after tax and minority interest (PATAMI).
Chin Hin Group Property Bhd (CHGP) has secured shareholders’ approval for its RM66 million acquisition of a 16,222 sq m leasehold industrial site in Kota Damansara, paving the way for its entry into industrial property development through The NeX, a project with an estimated gross development value of RM449.4 million.
The NeX will comprise 242 warehouse units across nine storeys, targeting SMEs, logistics operators, distributors, e-commerce players, showroom operators and light industrial users.
The project will combine industrial space with amenities including a rooftop lounge garden, gymnasium, pickleball court, event hall and conference facilities, positioning it as an integrated industrial-commercial hub.
Located within the established Kota Damansara industrial enclave, the development will have access to the Damansara-Shah Alam Expressway, New Klang Valley Expressway and Lebuhraya Damansara-Puchong.
The acquisition expands CHGP’s portfolio beyond its traditional residential and commercial segments and lifts the group’s total development pipeline to about RM6.3 billion across 11 ongoing projects.
CHGP Executive Director and Group Chief Executive Officer Chang Tze Yoong said the move into industrial property was a strategic expansion aimed at capturing sustained demand for quality industrial space in mature locations.
He said The NeX was designed to meet the changing needs of modern enterprises by offering scalable industrial units alongside facilities intended to support productivity and operational efficiency.
Subject to regulatory approvals, the development is expected to be completed by 2029.
AirAsia Group Bhd posted a net loss of RM830.5 million for the second quarter ended June 30, 2026 (2Q26), as a sharp spike in fuel costs and foreign exchange losses weighed on earnings despite resilient revenue and higher yields.
Revenue was broadly steady at RM5.1 billion, down 1% year-on-year, even as capacity was reduced by 11%, reflecting the group’s strategy of prioritising yields over volume.
Revenue per available seat kilometre rose 11% to 21.28 sen, supported by fare adjustments and dynamic fuel surcharges.
Fuel expenses surged 58% year-on-year as average jet fuel prices climbed to US$183 per barrel, although the group still recorded positive EBITDA of RM442.6 million, down 56%.
The bottom line was also hit by a RM331 million foreign exchange loss. Excluding this, AirAsia Group said its net loss would have been RM499.6 million.
Performance was dragged mainly by short-haul operations in Thailand, the Philippines and Indonesia, as well as long-haul operations in Malaysia. Its short-haul businesses in Malaysia and Cambodia remained profitable.
The group has since suspended underperforming long-haul routes, delayed the launch of its Bahrain hub and reduced fleet allocations in the Philippines and Indonesia to focus on higher-yield domestic and core ASEAN routes.
Cost controls helped cushion the impact, with cost per available seat kilometre excluding fuel falling 7% to 11.02 sen following cuts to non-essential spending, vendor optimisation and deferred capital expenditure.
AirAsia Group said it recovered around 70% of the higher fuel burden through fare increases and lower non-fuel costs, with average fares rising more than 20% year-on-year in May and June.
The airline is also returning 25 older aircraft in FY26 while preparing for new A220 and A321XLR deliveries from 2028.
On liquidity, the group is pursuing up to US$1 billion in funding and RM700 million in local facilities, alongside plans for a targeted bond issuance.
AirAsia Group CEO Bo Lingam described 2Q26 as the group’s “floor quarter”, saying the airline does not expect jet fuel prices to remain at the extreme levels seen during the period.
For 3Q26, the group plans to trim capacity by 20% to 25% year-on-year before restoring capacity towards pre-war levels in the fourth quarter as year-end travel demand strengthens.
Orkim Bhd’s existing Consecutive Voyage Charter contracts with Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd have been extended by a further six months, effective Aug 16, 2026.
The extension was formalised through an addendum entered into by Orkim’s wholly-owned subsidiary, Orkim Reliance Sdn Bhd, with the two Shell entities.
Following the six-month extension, Shell retains the option to extend the contracts for three additional six-month periods, subject to the existing terms and conditions.
The contracts will continue to operate on a cargo nomination basis, with cargo movements scheduled at the discretion of the charterers according to the agreed schedule of rates.
Orkim Chief Executive Officer Captain Cheah Sin Bi said the extension reflects the group’s continued partnership with Shell Malaysia in supporting the country’s energy supply security.
Cheah added that while geopolitical developments continue to influence global oil trade flows, underlying tanker demand and supply fundamentals remain supportive.
He said the group’s fleet expansion plans remain intact as Orkim continues to pursue its growth objectives and meet the evolving needs of customers.
CSC Steel Holdings Bhd’s profit after tax (PAT) rose 5.5% to RM32.02 million for the first half of FY26 (1H26), from RM30.37 million a year earlier, as lower production costs more than offset pressure from weaker average selling prices.
Revenue for the six-month period increased 3.1% to RM713.43 million from RM692.09 million, supported by overall sales volume growth of between 8% and 12%.
The group said the improvement in profitability was mainly driven by a reduction in unit production costs, helped by a stronger ringgit which lowered raw material procurement expenses.
For the second quarter, PAT increased 3.9% to RM18.46 million from RM17.77 million, while revenue rose 1.3% to RM368.18 million from RM363.5 million.
CSC Steel said the higher sales volume helped cushion the impact of lower selling prices during the period.
Looking ahead, the group expects the global steel market to remain challenging in 2H26 amid persistent overcapacity, shifting trade policies and geopolitical uncertainty.
It noted that subdued demand in China’s property sector and elevated Chinese steel exports is likely to continue intensifying competition in international markets.
In Malaysia, however, continued public infrastructure spending, industrial expansion and investment in high-value manufacturing are expected to provide support for domestic steel demand.
CSC Steel said it will continue to focus on operational efficiency, cost optimisation and disciplined inventory management, while strengthening its competitiveness through decarbonisation initiatives, energy-efficiency improvements and higher value-added steel products.
Netflix has added several high-profile names to the voice cast of Charlie vs. the Chocolate Factory, its upcoming animated take on Roald Dahl’s world.
Nicola Coughlan, Kate Winslet, Helena Bonham Carter, Charithra Chandran, Samson Kayo and Christopher Chung have joined the cast. They will appear alongside previously announced stars Kit Connor as Charlie Paley and Taika Waititi as Willy Wonka.
The film is set for a global theatrical release on Nov 5, 2027, with Netflix streaming it from December 22. Sony Pictures Entertainment will handle international distribution for the cinema release.
The new story moves the action beyond the events of the original Charlie and the Chocolate Factory. In this version, Wonka has spent years in prison after turning a child into a blueberry during the infamous Golden Ticket contest.
After serving his sentence, Wonka returns to his factory with plans to change his outlook and bring some sweetness back into the world. His plans run into trouble when Charlie Paley and his friends decide to break into the factory.
The group is facing eviction and plans to steal a valuable Wonka Bar to save their homes. Their break-in soon takes them into the factory, where they encounter the dangers and strange creations inside.
The film is directed by Jared Stern and Elaine Bogan. Stern previously worked on The LEGO Batman Movie and Green Eggs and Ham, while Bogan directed Spirit Untamed.
The production also includes Shrek producer Aron Warner and Timothy Yoo. Waititi is an executive producer in addition to voicing Wonka.
Netflix says the film will feature original songs, new characters and some familiar faces from the Wonka universe. It is being produced as an animated feature rather than a live-action adaptation.
For Connor, who leads the film as Charlie, the project offers a new interpretation of the familiar story while keeping elements of its original tone. He said he was drawn to the directors’ vision and the film’s approach to the world created by Dahl.
The new casting announcement gives the film a broader ensemble ahead of its 2027 release, with Coughlan, Winslet and Bonham Carter among the latest additions.
Netflix has also announced plans to expand the franchise through merchandise tied to the film, including a toy line from Moose Toys and a range of Wonka-branded food products from Ferrero. Those products are separate from the film itself, with the toy line planned for 2027.
Samchem Holdings Bhd’s profit after tax (PAT) surged more than five-fold to RM49.9 million for the six months ended June 30, 2026 (1H26), from RM9.88 million a year earlier, driven by stronger gross profit margins.
Revenue for the period edged up 0.53% to RM570.80 million from RM567.79 million in 1H25.
The stronger half-year performance was underpinned by a sharp improvement in the second quarter, when PAT jumped to RM35.12 million from RM5.68 million in the corresponding quarter last year.
Second-quarter revenue increased 8.1% to RM302.7 million from RM280.03 million, supported by higher average selling prices.
Looking ahead, Samchem said it continues to operate against an uncertain macroeconomic backdrop, with US trade policy, geopolitical tensions and volatility in crude oil, petrochemical feedstock and freight costs affecting customer purchasing patterns.
Customers have generally adopted a more cautious approach, purchasing closer to immediate requirements and contributing to softer demand conditions.
The group said it will maintain disciplined inventory management while leveraging its diversified customer and product base, Southeast Asian regional presence and established supply-chain capabilities.
Samchem is also proceeding with its planned terminal project, which it expects to provide a more stable recurring income stream while strengthening supply-chain resilience and positioning the group to capture opportunities from a recovery in demand and shifting regional trade flows.
AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) posted a 53.5% increase in net income after taxation to RM6.6 million for the six months ended June 30, 2026 (1H26), from RM4.3 million a year earlier, supported by stronger rental income across its property portfolio.
Cumulative rental revenue rose 15.6% to RM45.1 million from RM39 million, driven by improved contributions across its property segments and additional income from its newly acquired industrial property in Telok Panglima Garang.
The industrial asset, acquired in mid-December 2025, began contributing full rental income from January this year, strengthening the REIT’s recurring income stream.
Property expenses increased 10.2% to RM16.8 million from RM15.3 million, mainly due to revised tax assessments and higher building maintenance costs.
Trust expenses rose to RM7.5 million from RM6.2 million, reflecting higher manager’s fees, agency fees related to securing new tenants and other professional expenses. Borrowing costs edged up to RM13.9 million from RM13.2 million following higher borrowings for asset acquisitions.
For the second quarter, AmanahRaya REIT recorded total revenue of RM21.9 million, up from RM19.1 million, while net income after taxation increased 20% to RM1.2 million from RM1 million.
Looking ahead, the REIT is focusing on asset enhancement, cost optimisation and portfolio rejuvenation.
Rental income from the revamped former Holiday Villa Alor Star, which will reopen as Serasi Padi Hotel, commenced in June, while efforts are underway to secure tenants for its Cyberjaya office property.
The manager is also looking to divest ageing assets and redeploy the proceeds into higher-quality properties as part of its strategy to strengthen recurring income and improve the overall quality of the portfolio.
Bursa Malaysia closed lower on Aug 13 as selling pressure in oil-related counters weighed on the broader market, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) retreating 6.90 points, or 0.4%, to 1,734.71 after the previous session’s rally.
The FBM KLCI traded between an intraday high of 1,742.79 and a low of 1,732.83 before settling below its Aug 12’s close of 1,741.61.
Weakness was broad-based across the key indices, with the FBM 70 fell 105.60 points, or 0.57%, to 18,330.21, after trading between 18,314.77 and 18,443.57. The F4GBM declined 5.03 points, or 0.48%, to 1,043.22, with an intraday range of 1,042.18 to 1,048.88.
The FBM Emas shed 60.15 points, or 0.47%, to 12,858.55, while the FBM Emas Shariah recorded the steepest percentage decline among the major indices, falling 75.90 points, or 0.59%, to 12,694.98.
Trading activity was led by Key Asic Bhd, which surged 4.5 sen to eight sen after trading between four sen and 9.5 sen, with 216.97 million shares changing hands.
SC Estate Builder Bhd slipped half a sen to 0.5 sen, with 68.96 million shares traded, while HHRG Bhd was unchanged at 15.5 sen on 64.34 million shares.
Dagang NeXchange Bhd declined two sen to 51 sen, after trading between 51 sen and 53.5 sen, with 53.81 million shares transacted. NationGate Holdings Bhd was unchanged at RM1.56, having traded between RM1.49 and RM1.59, on volume of 46.12 million shares.
Overall market turnover eased to 3.51 billion shares worth RM3.05 billion compared to 3.7 billion shares valued at RM3.27 billion on Aug 12.
Heineken Malaysia Berhad has appointed Datuk Iain John Lo as its new Chairman of the Board of Directors, succeeding Dato’ Sri Idris Jala with effect from Aug 15, 2026.
Lo, 64, will serve as an Independent Non-Executive Chairman, bringing more than three decades of corporate and industry experience, largely gained during his career with Shell.
He served as Country Chairman of Shell Malaysia Limited from 2012 until his retirement in March 2021. During his career with Shell, Lo held various leadership positions spanning exploration and production, gas and downstream operations in Malaysia and overseas.
He also served as Chairman of Shell Refining Company (Federation of Malaya) Berhad until its sale in 2016.
Beyond Shell, Lo currently sits on the Board of Guardians of the Sarawak Sovereign Wealth Future Fund, where he chairs its Risk Committee. He is also an Independent Non-Executive Director of RHB Bank Berhad and RHB Investment Bank Berhad, as well as a board member of Sepang International Circuit Sdn Bhd.
His previous directorships include the Singapore Economic Development Board, Shell Refining Company, Sapura Energy Berhad, Digi.com Berhad and CelcomDigi Berhad.
Lo holds a Bachelor of Science and Master of Science in Civil Engineering from the University of California, Los Angeles.
Lucy Davis, who played Dawn Tinsley in the original UK version of The Office and the hopeless romantic Dianne in Edgar Wright’s Shaun of the Dead, has revealed she has “incurable” breast cancer.
A post from the 53-year-old actress on Instagram on Tuesday said: “I wanted to share something with you all that I’ve kept to myself for a while but for various reasons would like to share now.
“A year-and-a-half ago I was diagnosed with stage 4 breast cancer, which has metastasized [spread] to my bones. Specifically to my spine, right hip and my ribs. The cancer is incurable, and too late for chemo.”
She added: “The initial lump that I felt, wasn’t a ‘lump’ as such; rather a kind of hard spot. Really tiny.”
The actress noted how she “almost didn’t bother getting it checked”, urging followers not to “ignore anything” and to “get everything checked out”.
She continued: “As of now, I’m trying to live out whatever might be left of my life in as fun a way as I possibly can. I always like to find the teachable moments in anything negative that happens. And cancer has not disappointed in that regard; there’s a lot I have learned from it, and I’m grateful for that.
“I’m not scared of whatever comes next. I’m at peace with it. I’ll see my [late dog] Gracie sooner than expected, and for me, leaving my physical body just means going home. Any and all grieving is for my family; it’s far harder for them than for me.”
Davis added: “I still would like to keep working. I’m perfectly able to do so, and acting is one of the biggest joys in my life.”
Her post received and outpour of support from friends and past colleagues.
The Office US star Jenna Fischer wrote: “Beautiful post. Love you lots. And yes to working with cancer! Let’s spread that message far and wide! How working is such a comfort!”
Fischer played the shy but well-meaning receptionist Pam Beesly on the subsequent American version of the show, with Davis playing the UK counterpart.
Birmingham-born Davis played Dawn, who was also the love interest of Tim Canterbury, played by Martin Freeman in Ricky Gervais’s classic TV sitcom – which last month celebrated its 25th anniversary.
Gervais replied to her Instagram post by dropping a love heart emoji in the comments section.
Davis might be more known to nerds as Etta Candy in 2017’s Wonder Woman and Hilda Spellman in the Netflix horror series The Chilling Adventures of Sabrina.
More recently, she played Eva in the Disney Channel’s action-comedy series The Villains of Valley View.
We can only wish the best for her and to make the most of her life.
Maxis Bhd has appointed Chief Executive Officer Goh Seow Eng as Executive Director, expanding his leadership role to the telecommunications group’s board.
Goh, 62, has led Maxis as CEO since Dec 1, 2022, after joining the company as CEO-designate a month earlier.
The latest appointment places Goh on the board while he continues to helm the group’s operations and strategic direction.
Goh brings extensive experience across telecommunications, technology, media and financial services.
Before joining Maxis, he was President and Chief Operating Officer of Advanced Info Service Plc (AIS) in Thailand, where he was responsible for its operating businesses, including mobile, fibre broadband and enterprise operations.
He previously served as Managing Director of Singtel’s Home Business in Singapore and held senior roles at Astro Malaysia and Tanjong plc. His earlier career also included corporate and consumer banking positions with Citibank across several international markets and a role with Wells Fargo Bank in San Francisco.
Goh holds degrees in Economics and Computer Science from the University of Pennsylvania and an MBA from the University of California, Berkeley. He also completed the Advanced Management Programme at Harvard Business School.
The appointment strengthens Goh’s role within Maxis as the group continues to pursue growth across connectivity, enterprise solutions and digital services.
