Budget 2020 Outlook: Moderation In Fiscal Consolidation

October 9, 2019

Ahead of the tabling of Budget 2020 on Friday (Oct 11), the Standard Chartered Global Research team is expecting a moderation in the pace of fiscal consolidation. This would be unsurprising, given that the government has hinted at a more gradual fiscal consolidation path.

The 2019 budget targeted narrowing the 2020 fiscal deficit to 3.0 percent of GDP from 3.4 percent in 2019. Standard Chartered Global Research projects the 2020 deficit at 3.2 percent. Nevertheless, it does not expect this to raise rating concerns given the challenging economic outlook, as long as the medium-term fiscal consolidation target is adhered to.

A significant fiscal stimulus package is unlikely given still-resilient growth in Malaysia
and the fall in non-oil related revenue, which can be largely attributed to the goods
and services to sales and services tax (GST-SST) shortfall. Furthermore, the government has said that there are no plans for new tax measures in the 2020 budget.

It expects the government to focus on rationalising expenditure, such as tax incentives, and tightening the administration of revenue collection. Excluding the one-off GST and income tax refunds of 3.5 percent of GDP, operating expenditure declined in first half of 2019, reflecting the government’s commitment to expenditure rationalisation thus far. Development expenditure also remained stable at 3.2 percent of GDP in H1-2019.

Many Malaysians Have No Grasp In Financial Matters

BusinessToday

October 9, 2019

According to the RinggitPlus Malaysian Financial Literacy Survey 2019 (RMFLS 2019), in partnership with Visa, finds that many Malaysians are not managing their finances well.

Close to 70 percent of Malaysians indicated that they are in control of their finances, but an alarming 53 percent of respondents admit they are not able to survive more than three months with their savings and about 43 percent of Malaysians spend exactly what they earn or more.

“Our annual survey plays a critical role in providing us with insights to drive our mission for the nation – saving Malaysia one wallet at a time. With these findings, we are switching gears to place even greater importance on our battle to proliferate the nation’s financial literacy. The strong support from Visa this year has enabled us to tap into a wider audience pool, making our survey results more representative of our population,” said Liew Ooi Hann, Chief Executive Officer (CEO) of RinggitPlus.

“It is time for Malaysians to take action and we hope this year’s results act as a wake-up call. The lack of awareness on personal finance is an ongoing challenge for us all. What’s more alarming to us is that people are in denial of their financial reality. Another insight we learned is that some Malaysians, while knowing the importance of financial management, do not take active measures. For example, we found that 34 percent of the respondents who believe their Employees Provident Fund (EPF) savings is not enough for retirement do not have a retirement plan to compensate for that,” Hann added.

The RMFLS 2019 received over 8,000 responses from people across the country, from which stratified sampling was conducted to achieve a more representative sample of the Malaysian population.

“We are pleased to partner with RinggitPlus to conduct this survey as part of our key efforts in promoting financial literacy in Malaysia. At Visa, improving lives and economies around the world is core to our business,” said Ng Kong Boon, Visa Country Manager for Malaysia.

We have identified the gaps that we need to address and this is important to us, as we strive to create financial education programmes and content that we can share with Malaysians to increase their awareness and knowledge,” added Kong Boon.

Survey key findings:

31 percent of Malaysians admit that they are not in control of their finances, and 43 percent spend exactly or more than they earn monthly.
37 percent of those who earn less than RM2,000 do not save at all.
53 percent of them can survive less than 3 months with their savings, and 20 percent of respondents can survive less than a month.
89 percent of respondents say that EPF savings is not sufficient for retirement, and despite this, 34 percent of respondents do not have a retirement plan.
Only 32 percent of respondents are aware of what a credit score is and the need to check it regularly.

The recent launch of the National Strategy for Financial Literacy 2019-2023 highlights the urgent need to address financial illiteracy in the country.

Digital Wallets: The Reason Millennials Are Going Cashless

BusinessToday

October 8, 2019

Millennials, they’re all the rage these days. And for good reason. It’s also anticipated that, by 2025, millennials will be the highest-earning generation in history. Furthermore, they have been pegged as the generation that is going to disrupt the entire banking industry.

This shouldn’t come as a shock. Back in 2012, Visa released a report entitled, Connecting with the Millennials, which found that a majority of this demographic believed in a cashless future. In fact, eight out of ten millennials reported that someday they will be able to do all of their shopping and pay their bills online, with 73 percent stating that this would be done through a mobile phone.

Since the release of that survey, digital wallets have not only become increasingly more popular and effective, but several countries like Singapore, the Netherlands, France, Sweden, Belgium, and Canada are also making serious headway towards a cashless society. But the question remains: Why are millennials so excited about a cashless future?

Digital transactions are clean, simple, and accurate

With cash, it’s more difficult to budget, monitor, and track your spending. And that’s a major sticking point for millennials. Twenty-six-year-old Sara McGrath told Bankrate that she uses a budgeting app to help keep tabs on her spending, “because of the budgeting software and because of having to really face up to my transactions, I know that I spend less when I’m using cards”.

McGrath adds, “When I have cash in my wallet, I’m like, ‘Yea! I can spend this on anything, and my budgeting program is not going to know about this.’” She says, “it just feels like [it’s] under the radar.”

Unlike cash, digital wallets come equipped with features like the ability to check bank accounts and credit card balances, create budgets, track spending, send money to friends and family, and even pay bills directly from a mobile device.

You don’t earn rewards for using cash

Another perk of digital wallets is that people can earn rewards. Whenever you make a purchase, you may be able to earn two percent on what you buy. However, digital wallets are upping the ante. Take Samsung Pay, for example. Not only can you earn loyalty, membership, and gift cards by using Samsung’s mobile wallet, but users can also now take advantage of Samsung Rewards.

Cash is a liability

Another reason why millennials prefer digital wallets is because they consider cash a liability. Meagan Rhodes, 27, told NerdWallet, “I’m worried I’ll leave my purse in a cab or hanging on the back of a chair and then I’ll never see that money again.” For many millennials like Rhodes, digital wallets give them a peace of mind because if their phone is lost or stolen, their wallet can be easily replaced.

Additionally, digital wallets have beefed up their security by using techniques like biometrics, two-factor authentication, and tokenisation, which means that information, such as your credit card number, is concealed. This makes it more difficult for a third party to steal this vital data. While using digital wallets is still prone to hacking, they’re considered safer than carrying cash.

It speeds up the transaction process

Millennials also love the convenience of digital wallets. Instead of waiting for change or a card to be inserted into an EMV-enabled terminal, they can simply scan their phone or wearable device and be on their way. By using radio frequency identification (or RFID)-enabled wristbands, festival goers could simply tap and pay for food, drinks, and merchandise. Compared to standing in long lines, this sped up the payment process, allowing them to go back and enjoy the show.

Millennials are already leading a digital life

Finally, millennials grew up with technology that previous generations didn’t have access to for their daily needs. Because of this, this new demographic is more likely to embrace new forms of payments that they can access on their mobile devices. In fact, a whopping 73 percent of millennials are excited about the potential financial offerings from innovative companies like Google, Apple, Amazon, PayPal, and Square.

The bottom line

While millennials are expecting a cashless future, cash isn’t completely dead. A recent survey found that 58 percent of millennials still preferred to get paid with cash because there aren’t any transaction fees involved.

However, one in four do favour Google Wallet, PayPal and the likes of it to pay friends or get paid. That figure could rise as long as digital wallets continue to become cheaper and more convenient.

Digital Wallets: The Reason Millennials Are Going Cashless was originally published on the Medium by John Rampton.

Steady Outlook For Malaysian Economy

BusinessToday

October 8, 2019

Malaysia’s economy has held up well amid the global slowdown. Private consumption remains a strong source of growth support, underpinned by a still healthy labour market. However, we expect consumer spending to moderate in H2 due to unfavourable base effects from tax changes.

Malaysia’s manufacturing sector has also fared better than regional peers, due to both resilient domestic demand and the country’s more diversified export structure. Manufacturing grew 4 percent in 7M-2019; the resumption of natural gas production also supported industrial production growth. Services remained resilient, with strength seen across the retail trade, food and beverage, and business services sectors. While construction activity is still slow, the resumption of mega-infrastructure projects after a hiatus due to contract re-negotiations should boost activity in the sector.

The economy is not fully insulated against weak global sentiment, however. Credit growth has slowed – growth in total financing (loans and bonds, excluding household loans) eased to 5.7 percent y/y in July 2019 from a monthly average of 8.6 percent in 2018. Private investment grew just 1.8 percent y/y in H1-2019, slowing by more than half from 3.7 percent in H1-2018. In addition, initial signs of labour-market softness are emerging.

We estimate that nominal wage growth eased to 1.9 percent y/y in Q2, while the ratio of job vacancies to active registrants looking for jobs fell below 1.0. That said, the job market remains healthy, with the unemployment rate steady at 3.3 percent.

Monetary policy
Bank Negara Malaysia (BNM) has room to calibrate its policy response given resilient domestic growth. The central bank already delivered a pre-emptive 25bps cut in May, and maintained a neutral tone in its September monetary policy statement. It made a slightly more negative assessment of global growth conditions, noting increasing spillover from poor external conditions to domestic activity.

However, BNM also highlighted the resilience of Malaysia’s economy, noting that private consumption has held up and that the country’s diversified export structure is moderating the impact of softer global demand. BNM maintained its 2019 growth forecast at 4.3-4.8 percent. The 2020 budget, to be announced on 11 October, will provide a first glimpse of the government’s growth expectations for next year.

With inflation benign, we expect BNM to focus on two broad factors going forward:

the resilience of the local consumer and
the US-China trade war.

BNM will be alert to any weakness in private consumption given its importance to growth; an unfavourable base effect in H2 (due to tax changes that boosted spending from June 2018) could weigh on consumption growth. Given Malaysia’s open economy, a further deterioration in US-China trade relations could increase the negative spillover from the external sector to the domestic economy.

Fiscal outlook
The fiscal consolidation trajectory may moderate due to the soft economic outlook. This should not come as a surprise, as the government has previously hinted at a more gradual fiscal consolidation path. The 2019 budget targeted narrowing the fiscal deficit to 3.0 percent of GDP in 2020 from 3.4 percent in 2019. We now project the 2020 deficit at 3.2 percent (versus 3.0 percent previously). However, we do not expect this to raise rating concerns given the challenging economic outlook, as long as the medium-term fiscal consolidation target is adhered to.

The government has said that there will be no new revenue-generating measures in 2020. Measures introduced in 2019 – including a sugar tax, a departure levy, a broader Sales and Service Tax, and a 6 percent digital service tax – will support recurrent revenue. But given the loss of GST, we expect the government to continue to focus on rationalising expenditures such as tax incentives, and on tightening the administration of revenue collection. Total revenue to GDP (ex-oil revenue) has softened in recent years, to an estimated c.12 percent in 2019.

Market outlook
We maintain our Neutral short- and medium-term weighting on the Malaysian ringgit (MYR). We recently raised our USD-MYR forecast for end-2019 to 4.25 from 4.15 given our expectations of a weaker Chinese yuan (CNY). We continue to expect USD-MYR to range trade. Malaysia’s economic resilience and favourable current account surplus (c.4.2 percent of GDP in H1) should help to counter-balance USD strength.

We stay Neutral on Malaysia Government Securities (MGS). Onshore liquidity remains ample, supporting MYR debt. While valuations now look expensive after a strong rally (the 10Y MGS yield is c.70bps lower YTD), demand for duration remains constructive. Onshore investors are buying LCY government debt on expectations of another potential rate cut this year, a lack of government-guaranteed corporate bond issuance, and healthy cash levels amid subdued credit growth. Foreign investors have turned less cautious on the potential exclusion of MGS from the WGBI index. Continued dialogue between BNM and the index provider suggests that both parties aim to prevent market disruption. As a result, we see the risk of MGS withdrawal from the WGBI index as manageable.

Source: Standard Chartered Global Research 2019

Malaysia’s Digitisation Journey: The Past And Future

BusinessToday

October 8, 2019

By Brian Sim, Managing Director and Country Head Malaysia at Kelly Services

It has been 62 years since we gained independence from the British and within that time frame, Malaysia has rapidly developed its economy, infrastructure and its workforce to become a key player in both regional and global economies.

Today, Malaysia stands at the precipice of the Fourth Industrial Revolution. As the digital landscape continues to expand globally, businesses are looking for ways in which they can benefit from this digital revolution, either by implementing new technologies or by establishing a digital footprint of their businesses via online platforms and websites. From big data analytics to Cloud powered solutions, a wide array of technological tools are now available to businesses who wish to enhance their business processes.

From an employment standpoint, the ramifications of the Fourth Industrial Revolution on the nation’s workforce is one that has both positive and negative aspects to it. But in order to fully appreciate its impact on Malaysia, it is worth looking back at the previous industrial revolutions, and the impact they have had on the workforce at that time.

The First, Second and Third Industrial Revolutions
The First Industrial Revolution began in the 1760s in Europe, whereby a transition took place from traditional craft production methods to machine powered production, giving rise to new manufacturing processes and rapid expansion of factories. The Second Industrial Revolution on the other hand began in 1870s following advancements in pre-existing technologies and the discovery of electricity.

Prior to our independence, the British had incorporated similar industrial processes in Malaysian factories. The tin mining industry for example was a key Malaysian export in the late 1800s, and the mining process was enhanced using the steam engines in what was known as the gravel and pump method. It was this knowledge transfer that enabled Malaysia to go through the first and second Industrial Revolutions. The workforce at that time also adapted to these new technologies, learning new skills in order to stay relevant.

When Malaysia gained independence in 1957, the world was already entering the Third Industrial Revolution, signified by a shift from analogue technologies to digital electronics. Indeed, the rapid advancement in technology was most apparent during the 1980s and 90s, under the leadership of Prime Minister Tun Dr Mahathir Mohamad. In fact, Malaysia’s economic performance peaked in the early 1980s through the mid-1990s thanks to sustained growth that averaged at almost eight percent gross domestic product (GDP) annually. These advancements transformed Malaysia’s export industry as well, shifting from
rubber and tin as primary exports to semiconductor components and electrical goods.

The Malaysian workforce; past, present and future

It is not a stretch to say that Malaysia has thrived through previous industrial revolutions. Businesses have flourished and our economy has likewise benefited from it. While previous industrial revolutions have resulted in jobs being lost, new jobs and opportunities inevitably presented themselves, replacing older jobs that are no longer needed.

This phenomenon of job creation and destruction can be seen throughout the history of mankind. Take for example the ‘Computer’, a term that was once used to refer to a job title of a person who did various forms of mathematical calculations. With the invention of digital calculators and computers, the role of a ‘Computer’ slowly began to become obsolete. This does not mean that technology has replaced human beings, it is simply the task of calculating that has been taken over, thus allowing us to focus on more important tasks.

Similarly, in the Fourth Industrial Revolution, there is a concern among Malaysians that artificial intelligence and automation will replace human beings and cause jobs to be lost. However, based on our Q3 Workforce Insights report, it was discovered that there is actually a positive perception towards automation and artificial intelligence. In fact, 73 percent of Malaysians believe that these new technologies will help make them more productive and perform their job better.

Furthermore, as millennials continue to trickle into the workforce, Malaysia is seeing a steady shift in work culture. Thanks to various government initiatives, the work culture in Malaysia is primed for positive changes that will also see increased participation by women, people with disabilities and special needs as well as older workers. Indeed, these initiatives complement the adoption of technology among businesses as technology has the capability of providing the flexibility and mobility that these group of workers often need in order to stay productive.

At 62 years of age, Malaysia has succeeded in developing its workforce. While there are still some areas for improvement, especially when it comes to nurturing the nation’s digital talent and improving workforce inclusivity, Malaysia is nonetheless on the right track. Our diverse and resilient workforce has proven to be one of the most capable the world has to offer.

Budget 2020: Malaysia Internet Exchange looks forward to continued emphasis on Digital Economy and Internet Connectivity

Business Today Editorial

October 7, 2019

The Malaysia Internet Exchange (MyIX) hopes that Budget 2020 would unveil more incentives to further develop Malaysia’s Digital Economy and Internet Connectivity.

“These are two extremely critical areas for the country’s success in the 4th Industrial Revolution,” said MyIX chairman Chiew Kok Hin.

“MyIX is keenly looking forward to policies around these two areas when Budget 2020 is announced,” he added.

In particular, MyIX believes that the establishment of a new Digital Content Ecosystem (DICE) policy to strengthen the local digital content industry and ultimately position Malaysia as the leader in digital content creation and production in the region is a step in the right direction.

The DICE announcement was made by Minister of Communications and Multimedia Gobind Singh Deo last month.

“Malaysia is attractive to digital content and creative tech studios due to its youthful demographic, access to talent with cultural influences and a higher education system that has a focused tech-track,” Minister Gobind had stated.

Chiew believes that the DICE policy would attract more foreign investments and continue building local talent, while strengthening the ecosystem through government and private sector partnerships.

MyIX is an initiative under the Malaysian Communications Multimedia Commission through the operation of local Internet Service Providers (ISPs) to connect and exchange Internet traffic locally.

It was established to keep Malaysian Internet traffic local by promoting and allowing direct connectivity among local independent service providers (ISPs).

“Today, it is the country’s only non-profit national internet exchange body and operated by industry,” said Chiew.

Chiew is also looking forward to more details about the National Fiberisation and Connectivity Plan to further provide high quality and affordable nationwide digital connectivity.

“The NFCP would serve as Malaysia’s backbone in the 4IR as the world moves into 5G,” he said, noting that, in September 2019, MyIX recorded 500Gbps of traffic, a 25% traffic growth from December 2018.

To date, MyIX has 110 members/peers with 100% coverage for both fixed and mobile service providers, including recently signed-up peers such as Netflix and China Mobile International (M) Sdn Bhd.

“Throughout Southeast Asia, MyIX offers the lowest port fees with capability of reaching to all Malaysian internet users in a single connection,” stated Chiew.

Chiew also shared that MyIX recently completed its network refresh to 100Gps port capabilities: “The upgrade will enable Malaysia’s bandwidth expansion for the next five years, in addition to managing growing Internet usage.”

MyIX is also encouraging international ISPs and content providers to invest further in Malaysia.

“By having foreign ISPs and content providers setting their regional networks here, it will reduce the network charges of consuming international content,” said Chiew.

In November 2019, MyIX with the Malaysia Network Operators Group (MyNOG) will be hosting in Kuala Lumpur Peering Asia 3.0, an event to encourage discussion of contemporary topics in internet interconnection.

“MyIX also helps build essential technical skills across Malaysia, supports Internet infrastructure development, provides public peering and is an active participant in the multi-stakeholder model of Internet cooperation and governance throughout the country,” concluded Chiew.

Japanese Goes Vegetarian At Shiang Hai

BusinessToday

October 7, 2019

Vegetarian food is no longer boring and bland with the opening of a new Japanese Style vegetarian F&B outlet called Shiang Hai. It is not your typical vegetarian restaurant but a restaurant that caters fresh and healthy eats for modern healthy lifestyles.

Customers perception will change when they delight in the colourful and visually appealing vegetarian sushi rolls with all the natural goodness of nature, fillings combined into a perfect blend of tastes made on-the-spot to ensure freshness. Indulge without the guilt – no worry about carbs or salty sauces – rolls filled with healthy green and fruits.

Now, sushi can’t get anymore healthier and exciting to satisfy your gastronomical needs when you dine at Shiang Hai.

In addition, the restaurant currently serves up to seventy types of vegetarian dishes prepared and created by skilled master chef calibre.

For more information go to fb/shianghaimalaysia.

Malaysian Youth Worried About Cost Of Living

BusinessToday

October 7, 2019

Malaysian youths are confident about the state of their country’s politics, especially their place in the ecosystem. According to insights gathered from the 2019 ASEAN Youth Survey by REDHILL, 77 percent of respondents believe that the youth voice is crucial while 84 percent are looking forward to going to the polls during the next general election.

The inaugural edition of REDHILL’s ASEAN Youth Survey seeks to analyse the roles of
Southeast Asian youths as drivers of economic, cultural, social and political change. The
study attempts to take a snapshot of the youths’ aspirations on politics, the economy,
personal security, education, life choices and social media consumption – all through the
lens of nearly 2,000 young people across seven ASEAN nations, aged in between the
crucial 18-35-year-old demographic.

Despite the sanguine sentiments towards the political system, many remain unconvinced
as to how representative it is; with only less than half of those answered being confident
about the inclusive nature of politics and the ease of political mobilisation in the country.
Nevertheless, 60 percent do seem to think that the country is politically stable, however the rest disagree.
On the economic front, Malaysian youths are generally worried about living costs in the
short term. On one hand, 41 percent said that the price of essential goods has become too
high, while there is an even split between those who think they can afford occasional
luxuries and those who could not. Unsurprisingly, the top career concern for Malaysian
youths is salary (34 percent); suggesting that Malaysians require suitable income to get by,
especially as only 37 percent people think that the overall economy is performing well, and the same number thinking it will pick up next year.
In terms of employment, most Malaysians at 41 percent noted that their current career is not their preferred one. Set against this, most of them (73 percent) correlate accessing better jobs with education. For many of them, accessibility of education was slightly positive with 57 percent saying that tertiary education is easy to obtain. However, getting the education they want seems more difficult, with 60% of them saying that it was beyond their financial means.
For media consumption, Malaysians youths are choosing to do it via online channels.
84 percent of them say that they obtain news from social media and other online sources, with most at nearly 60 percent saying that Facebook is their most trusted platform. Interestingly, less than half of them are confident of being able to differentiate factual news from opinions.

At the regional level, ASEAN youths are shown to rate Malaysian Prime Minister Mahathir Mohamed most highly at 43 percent of the vote when compared to all regional state leaders – including second-placed Singaporean Prime Minister Lee Hsien Loong, who
garnered 31 percent.
Placing Malaysia within the regional context, it is seen that political stability concerns are
apparent in sizeable quarters, which follows the trends seen between respondents in other ASEAN states (except Singapore). Also, while there is some hope that the economy will improve in the longer term, short term prospects remain a worry for many.

“The survey’s findings suggest that ASEAN youth – having grown up during a time of
rapid economic growth, fluctuating politics and greater exposure to the world via online
media – are yearning for balance and stability in their lives,” said Jacob Puthenparambil, Partner at REDHILL.

“However, this does not mean that they’d want to take a backseat role. Instead, we see them as having vigour in wanting to instigate change by playing a larger role in their nation’s direction to create sustainable and inclusive societies.”

AIA Goes Beyond Traditional Insurance Business

BusinessToday

October 5, 2019

AIA’s A-Plus MedCare rider is a first-of-its-kind solution which provides its customers exclusive access to Personal Medical Case Management (PMCM) service during some of the most challenging times of their lives. A-Plus MedCare rider, further enhances AIA’s Total Health Solution ecosystem solidifying its commitment to help Malaysians live Healthier, Longer, Better Lives.

When AIA’s customers are diagnosed with a serious or complex condition, a dedicated 24/7 case team will provide guidance and support throughout their entire medical journey from diagnosis, through treatment, monitoring progress, and recovery.

They will gain access to a holistic medical assessment, re-evaluation of their condition, referral for additional diagnostic testing – where needed, ongoing multi-disciplinary consultations with renowned medical experts from around the globe, full care coordination, ongoing guidance and emotional support provided by a dedicated case management team which will support them every step of the way.

According to Ben Ng, Chief Executive Officer of AIA Bhd, the introduction of A-Plus MedCare is an incredibly important opportunity for AIA to bring the best possible experience to its customers. The PMCM service is another demonstration of AIA’s commitment to go beyond the traditional insurance business model by becoming an integral part of its customers’ life journey.

In the event, overseas medical treatment is needed due to a lack of local medical expertise, A-Plus MedCare will reimburse the cost of return flight tickets to the customer and for one companion up to a combined limit of RM10,000 per lifetime.

The new PMCM service is provided exclusively by Medix, a company that specialises in quality global medical management services. This has come off the back of AIA Group’s recent strategic partnership with Medix in a number of markets including Malaysia, in its bid to deliver a differentiated proposition that optimises care and improves medical outcomes for AIA’s customers across the Asia-Pacific region.

With the advances in research and abundance of new treatment modalities and new technologies, Medix’ PMCM service serves as a bridge between the patient and medical world, alleviating the stress and pressure that customers and their families face when dealing with serious medical problems and ensuring access and implementation of quality care.

Through the partnership, Medix hopes to make a genuine difference by providing personalised medical care, empowering patients with the knowledge and tools they deserve to make educated decisions and offer active coverage in the daily lives of each AIA customer. Medix aims to contribute to the overall care experience available in Malaysia.

Many SMEs Unaware Of Industry4WRD Readiness Assessment Programme

BusinessToday

October 4, 2019

The SME Association of Malaysia (SME Malaysia) and BIZSPHERE Brand & Marketing Group – a SME branding and business consulting company jointly conducted an online “SME Industry 4.0 Quick Survey” in the month of September 2019. The survey was distributed mainly through emails to over 10,000 business communities. Galactic Advance Engineering was the strategic partner of the survey. The survey findings were shared in the WIIFM Industry 4.0 Business Forum co-organised by SME Malaysia and the Ministry of International Trade and Industry (MITI) at MITI TOWER in Kuala Lumpur.

Understanding the Concept of Industry 4.0

The study shows that 74 percent of the respondents understand Industry 4.0 as the initiative to leverage on data collected from operation to reinvent processes and workflow to make production & processes smarter, while about 12 percent claim that Industry 4.0 is an effort to automate their production processes.

“SMEs should plan for their digital transformation in order to reap the maximum benefits from Industry 4.0” says Ong Chee Tat, Deputy National President of SME Malaysia.

Implementation of Industry 4.0

The adoption of Industry 4.0 is still very low among SMEs. Only 2.7 percent of SMEs are implementing industry 4.0 initiatives in certain processes of their production while 75 percent of SMEs have not taken any action despite some of them trying to understand more about it.

Yap Keng Teck, Managing Consultant of Bizsphere Brand and Marketing Group were not surprised with the findings. ”Malaysian SMEs have always been in the “wait and see” attitude and lack the drive to find out how can this technological trend help them in gaining competitiveness and grow their business” says Keng Teck.

SMEs – Are they ready?

The Malaysian Government has been playing an active role in driving the industry especially among manufacturers to embark into the Industry 4.0 journey. Industry4wrd – the national level framework to drive this initiative was launched by our Prime Minister, YAB Tun Dr Mahathir Mohamad in October last year and MITI was delegated the task for the transformation. One of the key programmes under the inititive is the Industry4wrd Readiness Assessment.

The programme encourages manufacturers to take up a simple online self-assessment. The Malaysia Productivity Council (MPC), the secretariat for the programme, will then send qualified assessors to conduct onsite assessment and produce a report on their status in Industry 4.0, after which they will make recommendations for improvement. Qualified SMEs do not need to pay as it is fully subsidised by the government.

MITI has been running several roadshows and announcements since early of 2019. Unfortunately, according to the survey, 47 percent of SMEs are still unaware of the programme, with only 3.6 percent in the midst of applying for it.

SME Malaysia wasted no time to increase the awareness of this programme and initiated the “What’s In It For Me – WIIFM Industry 4.0 Business Forum Roadshow, co-organised by MITI, with the help of BIZSPHERE.

“There are 3 forums planned. the first was session was held yesterday at MITI Tower, Kuala Lumpur. The second forum will be held at Batu Pahat on the 8^th October and the third will be held at Seberang Perai on the 15^th October. The participation fee is RM100 but trade associations and its members can apply to SME Malaysia for discounted or complimentary seats.

The event details and ticket reservation can be found at www.bit.ly/Industry4FWD. Should there be any queries, they can contact BIZSPHERE office at 03 78871006 or email [email protected]” Keng Teck explains.

What is stopping SMEs to go for Industry 4.0?

The survey further drills down to what is stopping SMEs from embracing IR4.0. The three main reasons for SMEs not embarking on it or delaying the effort are:

Industry 4.0 requires massive investment which SMEs cannot afford – 54 percent.
Not sure of where to start and who to look for to help – 32 percent and
Unsure whether we they are ready for Industry 4.0 or not – 29 percent

“Most SMEs fear of huge investment. Yet, many SMEs lack the understanding that Industry 4.0 need not be implemented throughout the whole manufacturing process. Instead, SMEs should focus on where the pain points are”. In addition, government offers many incentives which can lower SMEs financial burden.” adds Ong.

The survey also found the top 3 pain points in SMEs manufacturing operations:

Lack of reliable operational data for business decisions – 58 percent,
Shortage and rising cost of labour – 54 percent and
Unpredictable down time – 38 percent

Strategic decisions are based on reliable data. Lack of data may be the main key reasons why SMEs are unable to grow as fast despite with great expertise and product quality in their respective fields. It leads to inability to strategise on where the capability and capacity building to be focused on.

Ong urges SMEs to look into digital transformation as a strategic move to stay competitive. “We can no longer do business ignoring the importance of digital economy, digital operation and transformation.”

Fulfilling SMEs’ Short-Term Financing Needs

BusinessToday

October 4, 2019

Despite its relatively short history in the country’s financial environment, alternative financing platform peer-to-peer (P2P) financing continues to gain upward momentum ever since its introduction by the Securities Commission in 2016.

Evidently, close to RM377 million were successfully raised via the whole P2P financing industry as of June this year, benefiting over 1,100 small and medium enterprises (SMEs). The introduction of P2P financing has no doubt helped to narrow the significant funding gap facing local SMEs by providing them an alternative source of capital to fund business expansion, finance working capital and meet other financial requirements. Contrary to traditional financing avenues, P2P financing is designed to improve efficiency and unnecessary “frictions” in the end-to-end financing application process, particularly for the often-needed short-term financing. These “frictions” range from arduous documentation and collateral requirements to long application process which present hurdles to the SMEs.

It is worth noting that the difficulties faced by SMEs when it comes to securing financing is not a reflection of their businesses being non-viable. Rather, they just don’t seem to fit into the standardised traditional financing products offered by large and traditional financial institutions, including banks, that mostly comprise higher value or longer-tenure products.

Accordingly, due to these structural restrictions, these institutions are unable to provide shorter-term financing options for SMEs, for instance, financing tenure of less than 12 months. This consequently gives no choice for SMEs but to take up longer financing tenure, only to incur excessive costs in the form of additional interest rates due to the longer tenure.

P2P financing: The alternative solution for short-term financing needs

Oftentimes, SMEs are overlooked by traditional financial institutions that consider smaller businesses as not bankable and subsequently hampers SMEs’ chance at securing financing and simultaneously, affecting their day-to-day businesses. Given the advantages which P2P financing has to offer – including easy application process, fast processing time, and collateral-free documentation requirement – this platform is now becoming an ideal avenue for SMEs in need of short-term financing to maintain adequate cash flow and fuel their business growth.

Wong Kah Meng, co-founder and Chief Executive Officer of Funding Societies Malaysia, said, “In most cases, traditional financial institutions will assess financing applications from SMEs by using two metrics: creditworthiness and bankability. First is creditworthiness – can the SME commit to the financing repayment? Second is bankability – the financing amount and tenure applied may be too small or too short and thus not viable for banks to serve. Therefore, P2P financing plays a key role in supporting creditworthy SMEs.”

Mohd Syafiq Aiman Bin Zainal, co-founder of Heron Solutions offering various home and
business security solutions, and a client of Funding Societies Malaysia, stressed the importance of short-term financing for young business owners, “Maintaining cash flow is crucial for all businesses, especially new ones like ours. This is because being at this early stage of business means we have to secure as many customers as we can, and this also means adhering to our clients’ financing terms. Due to this, we need financing support from
time to time to maintain orders, services and operation expenses. Thanks to Funding Societies Malaysia, we are able to secure short-term financing when we need it most to help us managing and growing our business.”

Majority of SMEs supported by Funding Societies come from key sectors of the Malaysian economy, including wholesale, retail trade, and manufacturing, thereby reflecting the broad appeal of P2P financing as a key source of financing for SMEs. In addition, P2P financing platforms have been partnering with corporates and financial institutions to find mutually beneficial ways to serve SMEs and investors.

To this end, Funding Societies is actively partnering with Lazada, Fave, MyTukar and CarlistBid, among others, to offer financing services to SMEs across various industries requiring short-term working capital needs. With customised financing tenures and repayment structures, P2P financing products are tailored to the specific requirements of
SMEs.

As the first and largest P2P financing platform in Malaysia, Funding Societies has achieved notable milestones – including being the first P2P financing platform to raise total RM128 million in Series A and Series B funding, led by leading venture capital companies such as Sequoia India and SoftBank Ventures Asia, all with the objective to serve and foster the growth of underserved SMEs.

Country Needs Prudent Expansionary Fiscal Policy

BusinessToday

October 3, 2019

Economist Dr Jomo Kwame Sundaram says the country urgently needs a developmental, counter-cyclical fiscal policy as there is a clear consensus that the global economic situation is worsening.

He expects Malaysia’s economic prospects to be bleak in the near term; therefore, introduction of a more expansionary fiscal policy is now necessary, one that is nonetheless prudent, and not profligate.

Dr Jomo insists that fiscal consolidation in the face of recession is foolhardy, and that the medium-term fiscal position will be improved by short-term spending. Fiscal spending serves two main purposes, namely to serve as a buffer against the economic downturn in the short-term, as in late 1997, and to lay the foundations for medium-term economic progress.

Noting that public spending will shape growth recovery, he suggests four priorities. Topping the list is social protection. He says effective programmes to improve health, welfare, education and training should be expanded.

In this connection, he argues that the Education Ministry’s school feeding programme has tremendous transformative potential as a school lunch programme. Adequate preparation and good design can ensure that such a programme enhances the nutrition, learning and culture of the next generation.

He suggests that the food procurement policy to obtain safe and healthy local vegetables as well as fruits be used to transform smallholder food agriculture. He also suggests improving social protection and nutrition programmes for pre-school children.

This, he suggests that healthcare should be financed from tax revenue as all insurance options are more costly and most promote opportunistic behaviour.

Lastly, he suggests more effort in investment and technology promotion, especially renewable energy, such as photovoltaic solar panels and palm oil biodiesel, healthy organic biofortified food products as well as generic medicines, especially for tropical diseases neglected by Western pharmaceutical giants.

Jomo warns that poor government spending will discredit public policies and cause further problems later. He cautions that buying over existing assets does not enhance economic capacities, capabilities and output. Citing ECRL as example, he said investing more in the corrupt investments of the previous government will not improve them.

unifi Addresses Business Customers Pain Points

BusinessToday

October 3, 2019

unifi continues #khabarbaik drive with its launch of the unifi Business Club (uBC) for business customers. This event is held at Sunway Carnival Convention Centre, Seberang Perai, Penang.

Since January 2019, unifi has been continuously delivering #khabarbaik to its consumer segment. By launching uBC, unifi is dedicated and committed towards supporting its business customers all the way.

uBC offers solutions for business customers such as digital marketing solutions, financing support, and premium support.

At the launch, Moharmustaqeem Mohammed Acting Executive Vice President of unifi says, ” The SME business community is important to unifi as they are the backbone of the economy and represent a significant force in the country’s drive towards IR4.0. We are rewarding our new and existing customers with ‘Pay Nothing’ monthly subscription fee till 31 December 2019. Apart from this, each of our existing Smart customers will automatically become uBC member.”

uBC solutions are tailored to suit the specific needs of its business customers to avoid business disruption, assist in better cash flow management and increase publicity.

Hence, unifi business customers can expect business-centric solutions such as:

unifi’s integrated Digital Marketing Solution (DMS) which allow members to enhance their digital presence. Members can easily create their own websites using ready-made themes and add on ecommerce features. DMS is seamlessly integrated with Yellow Pages Digital, Instaweb, Google Ads and Facebook Ads.
Free airtime via pod cast or video cast are also available to showcase their business story via unifi Business portal.
uBC members can seek financial assistance via special collaborations between unifi and SME-focused financial solutions provided by SME Bank. This will enable the members to have better cash flow management. Approval for the online loan applications will be received within 48 hours.
uBC ensures there is no business disruption impacting the daily operations of its business customers by offering on-site consulting and servicing support within two hours via unifi Riders.

From 1 October till 31 December 2019, new and existing customers can enjoy ‘Pay Nothing’ for their package plans on selected unifi Home or Business plans.

Malaysian Millennials Are Not Investing Enough

BusinessToday

October 3, 2019

A study survey by Dalia Research for Luno on 7,000 respondents across Europe, Africa, and Southeast Asia including Malaysia to analyse their behavior in terms of financial management, investment, and savings.

Around 31 percent of Malaysian millennials do not have an investment strategy while 43 percent of millennials say they do not invest at all and only 16 percent invest once every one or two years. This shows that Malaysian millennials are still more busy saving than using the money they have for investment.

Malaysian millennials are quite disciplined with their financial budget designs as 90 percent of them have set monthly budgets and 70 percent tend to follow a budget plan. However, many have little to no knowledge on how to invest their money. In fact, 54 percent claim to need more information about how to use their money for investment.

Millennials are a digital savvy generation, so creative information using mobile devices and online platforms needs to be implemented. 54 percent of them seek financial information through online applications and websites.

Interestingly, 100 percent of respondents in this same age group responded that they have a savings account and 82 percent use mobile banking frequently.

The National Strategy for Financial Literacy 2019-2023, a new comprehensive financial literacy program, launched by the Malaysian government sets out priorities and actionable plans to equip Malaysians with the knowledge to make informed financial decisions and to nurture healthy attitudes in financial management.

Malaysia’s millennial population makes up 60 percent of the working population and are seen as the main drivers of the country’s economy. Overall, this indicates that millennials are yet to learn more about the benefits of a structured investment strategy and that there is still a need for financial education.

“The main issue isn’t underbanking but underinvesting concerning Malaysian millennials. Along with the growth experienced by the millennial population, both in productivity and age, they need to start looking for ways to invest their money. Not just for the sake of getting more money, but through investing they will also be working towards financial freedom in the long run. More importantly, this helps ensure they have significant funds waiting for them once they retire, which is one of the goals for millennials,” said David Low, General Manager of Southeast Asia, Luno.

Can We Expect A More Holistic Budget 2020?

BusinessToday

October 3, 2019

Improved Digital Infrastructure For Outskirts of Malaysia

Helping SMEs thrive is a priority as they make up the vast majority of businesses in Malaysia. It’s our passion at Sage, to help businesses grow and we cannot stress enough how crucial a robust digital infrastructure is to help businesses realise their growth potential in today’s rapidly evolving digital landscape. As it stands, much of the digital infrastructure such as the soon to be tested 5G service network, existing fibre optic network and broadband services are often concentrated within the urban areas of Malaysia, however there is a huge potential in the outskirts and the growing states of Sabah and Sarawak.

This is a priority as there are many burgeoning SMEs and even larger enterprises setting up and growing outside of the urban areas. The migration of manufacturing operations to outlying areas such as emerging small towns like Muar has boosted the local economies. It is undeniable that the availability of digital infrastructure is critical in enabling them to adopt new technologies such as IoT, BigData and AI. The growing regions of East Malaysia would benefit from improved infrastructure by leveraging on the greater use of technology to improve productivity and efficiency. As such, gaps in infrastructure and connectivity need to be addressed with urgency.

Supporting Growing Businesses through Development Schemes

All businesses, especially SMEs, struggle with heavy financial cost, lack of visibility, strategic management and the inability to fulfil their potential. Existing development schemes and programmes have been good initiatives but the government should take an intentional effort to review the effectiveness of existing public programmes meant to help SMEs. This is to make the schemes less complex and easier to access and complete via online and mobile capabilities.

The budget should provide support for and setup of more incubation labs and Centres of Excellence (CoEs) which provide real world solutions leveraging emerging technologies such as IoT, blockchain, AI and Machine Learning. This would have a 2-fold impact to the economy by creating home grown IP and innovation specific to the needs of local Malaysian companies. Secondly, such incubation labs will enable local technology adopters to embrace technology quicker, via local use cases (success stories) which can illustrate how a particular technology is able to resolve specific issues for businesses.

Driving The Entrepreneurial Spirit

More effective incentives could be introduced for Malaysians to take the leap into embracing entrepreneurship, given this is vital to the continued growth and evolution of the Malaysian economy. Innovative incentive schemes, tax breaks, grants and educational programs that motivate and support aspiring business owners to start their entrepreneurial journey, should be a further focus.

Entrepreneurship has taken on a heightened global significance for governments looking to boost growth and employment and is also seen as a remedy for socio-economic challenges such as the wide income disparity. Finance Minister Lim Guan Eng’s highlight on innovative financing to help modify the financing ecosystem is one that we applaud as this would help diversify lending and promote borrowing opportunities to SMEs. An SME business-friendly budget policy is one which is highly desirable in realising PM Mahathir’s Shared Prosperity Vision 2030.

Budget 2020 Wish List By Sushil Singh, Chief Growth Officer, Sage Asia

First Robotic Wall Mural In Kuala Lumpur

BusinessToday

October 2, 2019

Drawing inspiration from the vision of future mobility, Bosch Malaysia introduces a new paradigm in technology and art creating Malaysia’s first robotic wall mural. The mural embodies the positive synergy between man and technology, and the possibilities in which it will influence society for generations to come.

Malaysian artist Mohd Zaki Nordin turned Bosch’s vision of an autonomous, connected, and electric-powered shuttle into an artwork. This was then brought to life by Estonian start-up ‘Robot Muralist’ through their smart printing robot, “Albert”.

Bosch believes that the most substantial impact the automotive industry can make is to produce safer vehicles equipped with quality modern safety systems, which enables people to stay safe on the road – no matter whether they are driving, cycling or walking.

“When we combine art with technology, we can make it more accessible and create a positive impact within communities, especially when the artwork carries a positive or important message”, said Simon Song, managing director of Bosch Malaysia.

Bosch is actively making a difference in shaping the future of mobility by developing technologies that will make roads, as well as vehicles safer, and traffic jams a thing of the past.

Automation is one of the main drivers of a new, safe era of mobility. “Today’s mobility challenges will not solve themselves. With this project, we want to show our vision of an accident-free future that is enabled by technology,” added Song. “Autonomous driving technology can be a part of that solution, and will allow us to refocus on quality of life.”

“Showing the future of mobility is one thing – making it a reality is a far harder task to achieve. To realise our vision, Bosch Malaysia, as part of the global Bosch group is doing its part to move society forward with new technologies and innovations”, concluded Song.

The wall mural can be viewed at Wisma Tan Kim San, Jalan Ipoh, 51200 Kuala Lumpur, Malaysia.

Children Has Less Interest In Online Messaging

BusinessToday

October 1, 2019

According to the 2019 report from Kaspersky Safe KidsChildren, children today in Southeast Asia (SEA) use the Internet more on video and music entertainment as well as for software downloads, and lesser for online messaging.

Based on the results in the 2018 and 2019 report, 38.72-60.33 percent of children in Indonesia use the Internet for accessing software, audio, and video websites, 25.41-49.12 percent in Philippines, 25.03-42.32 percent in Singapore, 11.28-37.23 percent in Thailand, and 27.11-50.14 percent in Vietnam.

Only Malaysia scored a slight decrease from 60.08-51.15 percent. This category, however, remains the current top online interest among Malaysian kids.

“Our report showed videos, music, and software are increasingly becoming kids’ favorite activities, and we are fully aware that such sites are plagued with malware, virus, and dangerous content. We hope these findings could help parents in understanding their kids better and in protecting them against the potential dangers in the digital world,” comments Yeo Siang Tiong, General Manager for Southeast Asia at Kaspersky.

“It is an accepted fact that our children are better Internet navigators than us, adults. With their curiosity and quickness in grasping or even making their own online trends, it is undoubtedly important for parents to know their interests and habits.”

The decline in the use of PCs for online messaging, however, reflects the shift in children’s preference in using mobile devices over computers for messaging apps.

With the shift in their online interests, the top three internet activities for kids in SEA for 2019 are software, audio, and video websites; online messaging, and electronic commerce.

More young shoppers, lesser adult content visitors in SEA

The same report also showed a trend of increasing young shoppers in SEA where the year-on-year comparison showed as much as 13 percent increase from January to July 2018 and 2019.

Singaporean kids led the pack tallying 18.82 percent compared with just 5.58 percent of children using the Internet for ecommerce. The Philippines closely followed at 13.21 percent compared with 2.39 percent last year.

Malaysia recorded an increase of over 8 percent, while Indonesia and Thailand increase 4.8 percent and 1.62 percent respectively. Only Vietnam showed a decline from 1.03-1.02 percent of young shoppers online.

Another finding is the decrease in percentage of kids in the region who use the Internet to access adult content. Most countries in the region showed lesser interest for pornography and related content this year. Malaysia posted a very minimal increase of only 0.09 in this category.

“It is encouraging to see that fewer children are interested in online adult content in the region. We credit the steps being done by SEA governments to block easy access to such sites. However, the shift of interest towards online shopping should mark a closer guidance between kids and parents. The risks in ecommerce such as fake sellers, fake products, malware-infected sites, compromised payment gateways, and more, pose a real and costly danger against the family’s financial details. Parents, we urge you to pay attention to this,” adds Yeo.

Hard Rock Strums To Desaru Coast

BusinessToday

October 1, 2019

Recently, Hard Rock International kicked-off its grand opening at Desaru Coast, Malaysia with a star-studded musical performance, live acts and Hard Rock’s iconic Guitar Smash.

A surprise visit by Rita Gilligan, the legendary waitress at the first Hard Rock Cafe in London in 1971, brought even more energy and excitement to the team and fans of the brand.

“Hard Rock International is excited to continue to grow its presence in Malaysia, while celebrating 10 successful years of serving guests in Penang,” said Dale Hipsh, senior vice president of Hard Rock Hotels. “Hard Rock Hotel Desaru Coast is thrilled to bring our one-of-a-kind vibe, signature brand amenities and globally renowned hospitality to this unique piece of paradise.”

Hard Rock Hotel Desaru Coast features an iconic music memorabilia collection. The hotel offers a complimentary tour for guests to view pieces from artists like Elvis Presley, The Rolling Stones, Madonna, Lady Gaga and Rihanna. Amy Search, also graciously donated his microphone stand and jacket during an exclusive donation signing ceremony, to add to the hotel’s regionally inspired collection.

The 365 music-inspired rooms and suites with balconies and over 780 square feet of indoor event space along with three meeting rooms, provide an amplified experience for families, honeymooners, groups and business travellers alike by offering unforgettable amenities and unparalleled services.

With a variety of food and beverage offerings, including the brand’s signature Sessions, an all-day dining restaurant with a world of contemporary flavors is sure to please the palates of the guests.

The Elephant and The Butterfly is the resort’s poolside bar and grill, presenting Latin American-inspired cuisine in a picturesque setting. Another brand signature, Constant Grind^®, allows guests to stop by during any time of day to pick-up a light refreshment or caffeine boost. Guests can also head to GMT+8, the chic lobby bar, inspired by timepieces and time zones, is the perfect atmosphere for socialising or chilling out to daily live music.

The hotel entices guests with an array of signature brand offerings and amenities, including The Sound of Your Stay^® music program, where the mood can be set with a complimentary Crosley turntable or rock out in their room with a Fender guitar, reserved at the front desk complete with headphones for no noise complaints.

There is also the Rock Om in-room yoga program, allowing for guests to relax, refresh and find their zen. Additionally, the property offers a Rock Shop^®selling all brand merchandise, and a Roxity Kids Club^®, as well as a full-service Rock Spa^®, featuring Rhythm & Motion^® – the world’s first fully immersive music-centric spa menu utilising amplified vibrations, pressures and patterns, as the foundation of its treatments.

This groundbreaking experience takes guests on a rhythmic massage journey — bass vibrations ripple through the massage table as treble beats come from above, sending pulses through the body and leaving guests feeling energised and invigorated.

Mindvalley Elevates And Shapes Humanity’s Future.

BusinessToday

October 1, 2019

Established in 2003, Mindvalley, the world’s largest online personal growth platform with over 10 million members worldwide has inspired and transformed lives as it builds itself into the most innovative company in the field of transformational education.

Malaysian-born Vishen Lakhiani, the brain-child of the company, believes in raising human consciousness by evolving the way people learn, grow, work and co-create. His vision has led Mindvalley to inspire people through empowering every area of the human mind, body and spirit, focusing on what is not taught through the traditional education system.

“The key to being extraordinary is knowing what rules to follow and what rules to break,” said Vishen Lakhiani, Founder & Chief Executive Officer of Mindvalley.

Recently, it launched a RM1.3 million 150-capacity state-of-the-art auditorium, Hall of Awesomeness, in Menara UOA, Bangsar in Kuala Lumpur.

The auditorium allows agility in the workplace for more creativity and innovation that stimulate divergent levels of thinking. Mindvalley strives to provide employees with the best working environment that is conducive to their needs. It was built with the purpose of sharing and celebrating company achievements, as well as for social gatherings within the company, and hosting tech and startup events.

A Truly Inspiring Workspace

Mindvalley’s most recent recognition is making it to Inc’s World’s 10 Most Beautiful Offices of 2019 and it has grew to become a company with more than 300 employees from over 59 different nations. The man behind it is Australian Workspace Experience Designer, Luke Anthony Myers, who has created a workplace experience unlike any other.

“More than 30 percent of usable space has been increased in the office by building split-level mezzanine platforms. The space was designed to reflect the company’s values, beliefs and its diversity. With one of our core values being ‘Happiness’ is the new productivity, it’s no surprise you’ll see lots of bright colours and natural light incorporated into the spaces,” said Luke.

Mindvalley’s expansion plans in Malaysia include collaborating with local companies as well as government agencies and to increase performance in key areas of life such as productivity, career, relationships, parenting, mind & spirit, health & fitness and more.

Besides that, Mindvalley has been nurturing and contributing to the local talent pool with a heavy focus on technology through its learning experiences, events and programmes.

Grab Continues Towards Greater Cause

BusinessToday

September 30, 2019

Grab, celebrates ‘Grab For Good’ with its differently-abled partners, stepping up its commitment towards greater inclusivity on its platform for Persons With Disabilities (PWDs).

More than 500 of the nearly 800 PWDs who earn an income on Grab across the region are Malaysians including persons with deafness, cerebral palsy or motor impairments. Malaysia is one of the few countries in the world to have implemented progressive regulations that allow Persons With Disabilities (PWD) to obtain a commercial driver’s licence.

A core focus of ‘Grab For Good’ is to ensure that anyone, regardless of background or ability, is able to benefit from the digital economy. Grab aims to do so by cultivating a seamless Grab experience for differently-abled driver-partners, delivery-riders, merchants and users alike.

Sean Goh, Country Head of Grab Malaysia said, “Our driver-partners and delivery-partners inspire us everyday with their strength and dedication. Last year, we introduced ‘Break the Silence’, in partnership with the Malaysian Federation of the Deaf (MFD), to improve the experience for drivers who are deaf and hard-of-hearing. Since then, we’ve grown from serving 245 PWD partners to over 500. As we celebrate Break The Silence once again this year, we hope to reach even more communities with different abilities, and to serve them better. Ultimately, we believe that Malaysia was born under an imperative to be an inclusive nation, and that every Malaysian deserves an equal opportunity.”

“We hoped to build a platform to improve livelihoods. But ultimately, it was our PWD community that spotted the opportunity for themselves; they’re the ones who showed us what was possible, and still do every day. All we hope for is to do more to help them along the way, even in little ways. We’re so proud of their passion to serve, and humbled by their strength in overcoming challenges. We hope to keep learning from them, and to do better for our community,” added Goh

“We commend Grab’s efforts to encourage a more inclusive environment for the deaf community in Malaysia. Through their initiatives over the course of the year, deaf and hard of-hearing drivers will be able to work with peace of mind, knowing that someone is looking out for them. We are also proud to be able to assist them expand their efforts to their community of differently-abled partners on their platform,” said YM Tengku Arman Harris Tengku Ismail, President, Malaysia Federation of the Deaf.

This year, Grab is introducing three new pillars:
● Extend support to PWD enterprises This year, Grab will include diferently-abled merchants on GrabFood and GrabPay within Break the Silence. Users can now learn more about these merchants and play an active role in helping them grow their business right on the Grab app. Some of the merchants users can expect on GrabFood and GrabPay in the coming weeks are The Bassment Cafe, Deaf-In-Business (DIB) Restaurant and RC Deaf Missions Malaysia while Grab works to onboard additional merchants with different abilities by the end of the year.
● Introduce the Driver Representative Committee (DRC) for PWDs To assist the growing number of PWDs on the platform, Grab appointed 19 differently-abled driver and delivery-partners to be a part of their Driver Representative Committee (DRC). The committee acts as a bridge between Grab and their community of driver and delivery partners to better understand their needs. Moreover, the committee will also seek to gather and provide insights on how Grab can further enhance drivers’ experience earning an honest income on the platform.
● Conduct driver training on how to better serve users with disabilities Grab will organise monthly training sessions for driver-partners to equip them with the skills needed to better assist passengers with physical impairments such as those who are wheelchair bound. To date, Grab has trained a total of 85 driver-partners and will run these training sessions twice a month while expanding it nationwide to upskill at least 1,000 driver partners by the end of 2020.

Moving forward, Grab will be developing further tech enhancements to support deaf and physically-impaired partners to enhance their experience earning an income on the platform:
● In-app cards to notify users if a driver-partner is deaf (an upgrade from the current automated GrabChat notification).
● GrabChat as default communication channel for users who are paired with a Deaf partner.
● In-app communication guides for passengers to interact better with the Deaf driver partner.

Haymasuthan A/L Periasamy, a deaf driver-partner in Grab’s Driver Representative Committee (DRC), said, “Changing the way people see my disability isn’t easy. And that is why I keep working with Grab to shift the perspective many still have about the deaf and hearing impaired community. I am thankful for the opportunity to work closely with Grab to assist others out there achieve financial independence.”

Grab launched ‘Break The Silence’ in 2018 in Malaysia. This year, Grab is expanding the impact of Break The Silence to other countries in Southeast Asia.

Russell Cohen, Grab’s Regional Head of Operations, says, “We are very proud of what our driver partners of different abilities were able to achieve with their hard work and determination. Their passion has inspired us to support the community in more countries across the region. With the foundation that was built locally here, we are planning to double the number of differently-abled partners on the platform over the next year.”