Merchantrade Asia Sdn Bhd (Merchantrade), Malaysia’s largest currency exchange company brand is partnering loyalty rewards company BonusLink for a campaign to offer its customers over 200,000 BonusLink points when they exchange currency.
Beginning May 1, Merchantrade offers BonusLink points for any foreign currency exchange at their 85 branches nationwide. A total of 200,000 points are up for grabs. To be eligible, customers would need to exchange a minimum of RM500 worth to any foreign currency.
To kick start the collaboration, Merchantrade launched a campaign from May 1 to June 30, to reward the first 1000 customers who exchange RM2,000 or more with an additional 150 points on top of the existing points on offer.
“We have partnered up with BonusLink again to extend the value of our branch service that our digital customers currently enjoy, we feel that by this collaboration will benefit our customers from all walks of life to enjoy the values we’ve created in eForex (online money exchange) and eRemit (online money transfer),” said Merchantrade Founder and Managing Director of Merchantrade, Ramasamy K Veeran.
Merchantrade has a history of three years of collaboration with BonusLink beginning with our online money exchange platform, eForex and extended to eRemit (online money transfer) culminating to its national branch coverage.
Sunway Malls emerge a big winner at the Malaysia Social Media Week (MSMW) Award recently, bagging two awards for two of its malls.
Sunway Velocity Mall is recognised as “Popular Shopping Mall” for the second time in a row and Sunway Putra Mall won the “Community and Social Welfare” category for the “Autsome is Awesome” initiative, earning the mall its first social media award.
Sunway Malls Chief Operating Officer, Kevin Tan, shares that there is a digital transformation plan in place for Sunway Malls and each malls’ social media platform plays an important role as an active engagement and listening tool.
“Our malls each have their individual Facebook and Instagram pages, and we do not have plans to integrate them because we believe they should serve their communities, their loyal shoppers and their purpose. Every time we run a new campaign or when we post an update regarding the outlets in any of our malls, we take into account the feedback, the engagement received and take the opportunity to understand the demands of our communities to translate them into our physical malls,” said Kevin.
With these new awards, Sunway Malls has won a total of seven awards just for its social media engagement and initiatives. Of the seven, Sunway Velocity Mall earned four of the awards, despite opening only in December 2016.
“Sunway Velocity Mall recognised the importance of building a strong and active social media presence from the moment it first opened its doors. Staying in touch with the latest trends in the social media world has enabled the mall to evolve, thrive and remain competitive, keeping abreast of current trends that enables us to maintain effective two-way communication with our followers and shoppers” said Danny Lee, General Manager of Sunway Velocity Mall.
Phang Sau Lian, General Manager of Sunway Putra Mall, said the mall’s Autsome campaign win is proof that they have found success in their community engagement efforts.
“The community recognises our contribution to them through our Autsome campaign and many built affinity with us through this campaign along the way. If it’s not for their support, we wouldn’t have been able to gain the amount of publicity we have had, as well as the reach via social media, from national shores to international attention.”
“We also found that omni-channel communication helps strengthen the credibility of our messages and it is from a great mix of print, broadcast and online media that we gained more interaction from the community, be it through likes, reactions, comments or shares,” she added.
This award would be Sunway Putra Mall’s 12th recognition in just a span of four years.
Organised by Malaysia Social Media Chambers (SMC), a non-profit organisation dedicated to advocate and advance the discipline of credible social media, the MSMW Award is a platform that honours social and digital media enthusiasts in the nation.
Present during the event were YB Senator Yusmadi Yusoff, Parliament of Malaysia; Ned Mohd, Vice President of Malaysia Social Media Chambers and Syed Khalid, Freelance Social Media Analyst of Social Media Malaysia. At the same time, Sunway Malls also won an award at the HR Asia Recruitment Awards for Best Onboarding Experience. Sunway Malls Chief Operating Officer, Kevin Tan, received the award together with the Human Resource department.
The award recognises Sunway Malls’ efforts in welcoming new employees and ensuring they have a smooth transition into their roles in their first year of work with the brand.
Sunway Malls is gearing to be amongst Malaysia’s largest mall owner-operator as existing projects and those in the pipeline now stand at 7.7 million sqft NLA and that figure is planned to be increased to 10.2 million sqft NLA in the next few years to come. The malls are:-
Sunway Pyramid, Sunway City, Kuala Lumpur Sunway Velocity Mall, Kuala Lumpur Sunway Carnival Mall, Penang Sunway Putra Mall, Kuala Lumpur Sunway Big Box Village, Iskandar, Johor Sunway Giza Mall, Kota Damansara Sunway Citrine Hub, Iskandar, Johor
AirAsia has been named the Top Airline by Absolute Passenger Growth (Southeast Asia) at Singapore’s Changi Airline Awards 2019.
The airline recorded a 4.1 percent increase in passengers carried to and from Singapore to 4.5 million pax in 2018, up from 4.3 million pax the year before.
AirAsia was also recognised as having the third-highest airline passenger movements overall in 2018, together with Singapore Airlines Group, Jetstar, Cathay Pacific Airways and Lion Group.
AirAsia Singapore CEO Logan Velaitham accepted the accolade on behalf of AirAsia at an awards ceremony held in Changi Airport’s Jewel Cloud9 Piazza.
AirAsia Singapore CEO Logan Velaitham said, “We are honoured to be recognised once again at the prestigious Changi Airlines Awards. Together with Changi Airport Group (CAG), we have grown Singapore into our third-largest hub, with around 40 flights per day from cities in Malaysia, Indonesia, Thailand and the Philippines. As the largest foreign carrier operating into Singapore, we will continue to link new cities and give travellers here more options.”
In support of CAG’s growth plans, AirAsia launched its first international route from Ipoh, Malaysia to Singapore in 2018.
AirAsia also launched a Holiday Quickies campaign aimed at encouraging Singapore residents to enjoy short but fulfilling getaways to nearby destinations and turn work-life balance into reality.
The Changi Airline Awards, now in its 14th year, recognises airlines for their contributions to strengthening and growing Singapore as an aviation hub.
Allianz General Insurance Company (Malaysia) Berhad is the first insurer to provide three benefits – accident cover, hospital income and an All Special Perils Full Sum-Insured Protection- with its latest product Allianz Motorcycle Plus with no added premium.
“Motorcyclists are very vulnerable on the road. In 2018, motorcycles were the leading cause of motor vehicle fatalities with a total of 3, 179 deaths. Just because you put on a helmet, and buckle up, does not mean you are protected against accidents or injuries. There is just not a lot of protection when you are on two wheels. And as insurers, we had to ask ourselves – what are we going to do about that?” said Horst Habbig, Chief Sales Officer for Allianz General.
“That is why we are going above and beyond what is profitable and coming up with a product that is necessary and looks out for our customers. While conventional motorcycle insurance coverage protects the vehicle, Allianz is doing one better by offering protection for the vehicle and its rider. With Allianz Motorcycle Plus, we are able to offer the millions of motorcycle owners in Malaysia, an affordable product with the best protection and the best coverage that money can buy,” added Habbig.
Motorcyclists can now choose between either Allianz Motorcycle Plus (Comprehensive) which comes complete with Accident Cover of RM5,000 (for death or permanent disablement), Hospital Income of RM50 a day (up to 60 Days) and the All Special Perils Full Sum-Insured Protection (covering flood, landslides or any natural disasters) or Allianz Motorcycle Plus (Third Party Only) which offers Accident Cover of RM5,000 (for death or permanent disablement) as well as Hospital Income of RM50 a day (up to 60 Days) with no added premium.
From 1 May onwards, those riding motorcycles under 245cc can purchase Allianz Motorcycle Plus to enjoy added protection at no extra cost.
Embracing new growth strategies in the face of major shifts and emerging technologies is becoming increasingly crucial for Malaysian companies to be able to compete locally and expand to ASEAN markets, according to a Standard Chartered thought leadership report.
The “ASEAN – a region facing disruption” report also identifies talent, culture, technology,
and capital management as key enablers to support the development of these new
strategies.
The challenge for Malaysian mid-corporates going forward will be how to remain competitive, productive and relevant via three key growth strategies:
• Smart operations: New technologies such as industrial internet-of-things, 3D printing
and blockchain-enabled contracts can improve productivity, optimise supply chain, and
enable more efficient project execution.
• Digital go-to-market: Solutions including micro-segmentation, geo-targeting, and
augmented reality can make touchpoints across the customer journey more targeted and
personalised. They can also optimise the distribution functions to drive process efficiency
and flexibility.
• Cross-border expansion: New sourcing avenues, delivery of products to new market
segments, and entering partnerships can strengthen business growth.
Medium-sized companies account for 98.5 percent of Malaysia’s businesses, 89.2 percent of
which is comprised mainly from the Services sector and 5.3 percent from the Manufacturing sector.
Acting as key suppliers to established global brands and as fast-growing businesses competing for access to the end consumer, mid-sized companies will need to
play a major role in realising ASEAN’s future growth ambition.
As the world’s fifth largest economy, ASEAN will remain a high opportunity market. ASEAN’s
GDP rose to USD 2.89 trillion in 2018, and is expected to surpass the USD 4 trillion mark by 2023. Malaysia’s steady growth in trade with ASEAN is evidenced by its consistent top 20 ranking in the DHL Global Connectedness Index.
Specialised regional partners, including international banks with a well-connected network to finance investments and fund cross-border business expansions can act as growth catalysts to help mid-sized firms explore new sources of finance.
Abrar A. Anwar, Managing Director and Chief Executive Officer, Standard Chartered
Malaysia, said: “Mid-sized companies are crucial engines of economic growth and job
creation across ASEAN, and are increasingly active in global trade. These firms will benefit
from banks with multiple market presence to be able to navigate through new business
environments.”
He adds, “As Malaysia’s first bank with 144 years in the country, Standard Chartered has an unrivalled knowledge of the local market and understands the important role of mid-
corporates in growing the Malaysian economy and their banking needs. We have helped companies internationalise and grow through our network capabilities, market knowledge
and expertise – elements that are crucial for expanding businesses overseas.”
The Report is commissioned by Standard Chartered and carried out by PwC. Find out
more at http://www.sc.com/en/banking/asean.
TM ONE, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM), unveiled its state-of-the-art Klang Valley Core Data Centre (KVDC) to members of the media during a tour of the KVDC recently.
Located in Cyberjaya, Selangor, the KVDC completes TM ONE’s Twin Core Data Centre after the launch of the Iskandar Puteri Core Data Centre (IPDC) in Nusajaya Technological Park in Iskandar Puteri, Johor in November 2017.
The KVDC is a carrier-neutral and green data centre that serves as a regional hub in providing high-value managed services, as well as high speed broadband connectivity to cater for enterprise and business customers particularly in Malaysia and the Asean region.
Speaking at the event, Ir. Ts Azizi A.Hadi, Chief Executive Officer, TM ONE said: “At TM ONE, we are always committed to our role in realising Malaysia’s Digital Nation aspirations, enabling Digital Society, Digital Economy and Digital Government through Connectivity and Digital Inrastructure, in line with TM’s vision, “Making Life and Business Easier, for a better Digital Malaysia.”
“It is therefore our pleasure to announce that with the official opening of KDVC, our Twin Core Data Centre is ready for service. We are fully aware that businesses nowadays are becoming increasingly dynamic and aggresively adopting digital in their operations. Our state-of-the-art core data centres are purposely designed to fulfill the hosting, cloud and Internet Of Things (IoT) requirements of business and enterprise customers, as well as the public sector, towards facilitating their digital transformation journey.”
“This KVDC is certified by the Uptime Institute as Tier III in design and in constructed facility, apart from certified as Threat, Vulnerability and Risk Assessment (TVRA), ISO 27001 and Payment Card Industry – Data Security Standard (PCI-DSS) compliant. These certifications demonstrate TM ONE’s unparalled service quality and uncompromised security standards that will enable us to enhance our customers’ business productivity and market competitiveness,” Azizi added.
Through the Twin Core Data Centre, TM ONE is positioning itself as a comprehensive Information and Communication Technology (ICT) services provider, delivering value added services on top of the Data Centre facility services.
Aside from storing server racks, KVDC offers business suites for its customers to place some of their IT staff at the centre and a disaster recovery suite that allows customers to rent a place to work and connect to servers in the event of disaster.
The KVDC is certified as green building as it uses, among others rain harvesting to collect water for the purpose of cooling down system. As the server rooms are highly sensitive to particulars like dust, the KVDC provides staging area that allows customers to unbox and configure equipments before storing in the server room.
Talking about value added services, the Centre also provides lifting and moving facilities for customers using a special platform at the loading bay that can be adjusted according to the customers’ needs.
HSBC Bank Malaysia Berhad launched HSBC Fusion, a new financial proposition which caters to the needs of small business customers with more clarity into their finances, helping them same time and get ahead with easy access to funding, advice and opportunities.
Tara Latini, Head of Retail Banking and Wealth Management, HSBC Malaysia, says “Malaysia’s small and medium enterprises (SMEs), comprising 98.5 percent of the country’s business community, contribute more than one-third to our economy. They are a key growth engine and HSBC is committed to provide best-in-class financial services to help these business owners succeed.”
“After all, small businesses are not small versions of big businesses. They have distinctive needs, and their owners’ lives are often blended with their business. With an established Retail Banking and Wealth Management franchise, connected to an unparalleled international footprint and a full range of banking capabilities, and a solid commitment to invest here in the long term, HSBC has a unique advantage to support this important segment in Malaysia,” she adds.
HSBC Fusion customers receive the support of a dedicated Relationship Manager to attend to their business and personal banking needs helping them make better decisions. Additionally, they have access to a highly trained Contact Centre team who can help them with both their personal and business needs. The customers can apply for funding as well as take advantage of a single Internet banking platform providing views of their business and personal accounts.
Satyam Agrawal, Regional Head, Retail Business Banking, HSBC Asia-Pacific, says “In the Asia-Pacific region, SMEs comprise 98 percent of enterprises and employ almost half of the workforce. But the reality is most banks do not have a proposition that caters to the unique needs of a SME. As per research, over 79 percent of SMEs are either under or unserved in emerging markets today.”
“At HSBC, we understand that small business owners require much more than just a bank. They need a financial partner who recognises their particular needs and is able to stand with them throughout their journey as a business entrepreneur as well as an individual with increasing aspirations for themselves and their families. HSBC Fusion understands the goals, challenges and everything in-between of a small business owner and we will continue to help them lead fuller lives.”
Fusion also provides customers with a business package, which includes a number of digital banking tools such as HSBCnet online banking portal, essential business solutions related to lending, accounting and merchant payments, as well as employee benefits under HSBC’s payroll service Perks@Work. As their business grows, they can benefit from better rates, access to value-added services and insights, new opportunities to grow, as well as exclusive privileges.
HSBC has successfully introduced Fusion in six other markets globally such as USA, Mexico, Argentina, France, Malta and China.
CIMB Group Holdings Berhad has launched its Future of Work Centre (FOWC), aimed at equipping its workforce with essential skills and opportunities to apply them directly, in preparation for a future that will see them work alongside technology such as AI, robotics and data analytics in a highly digitalised environment.
FOWC is a platform that will facilitate the mobilisation of employees who have been
upskilled/reskilled into their new roles in order for them to fully reap the benefits of their
training.
This follows an earlier announcement on Forward23, CIMB’s five-year transformation plan
which also includes the Group’s RM2 billion investment in technology and data
infrastructure.
Group Chief Executive Officer of CIMB Group, Tengku Dato’ Sri Zafrul Aziz said, “CIMB’s
Forward23 goal to future-proof the Group requires a strong digital workforce and high
operational agility. Our people – our most valuable asset – are key to achieving that goal. Future of Work Centre is part of CIMB’s RM75-million investment to equip them with the
skills to support CIMB’s effort in reaping opportunities in a data-driven, tech-enabled world.
By 2023, our aim is to have at least 15 percent of our workforce equipped with digital skills.”
FOWC is part of the Group’s cumulative efforts to digitally empower its people. The initiative started in May 2018 with training by the 3D (Data, Digital, Disruption) Academy. Modules offered under the academy are tailored to cater to various competencies, from zero knowledge of the digital world to certification level, and offered in region’s local languages. To date more than 15,000 employees across the region have benefited from these trainings.
Leadership in the digital world requires skills such as empathy, collaboration and agility to
successfully navigate new business models, and unconventional modes of employment. To
supplement the technical training offered by the 3D Academy, existing culture and high
potential employee leadership programmes at all levels have also been fine tuned to align with future demands. It now includes digital work experience within and outside the group, as well as networking opportunities with business leaders outside the banking industry.
Employees who have undergone classroom training will be able to apply their new skills and
be mobilised into new roles through various programmes and initiatives under Forward 23.
In addition to existing mobility policies, employees will also have the opportunity to participate in ‘internal internships’. These internal internships provide employees a safe environment for them to “explore”, practise their skills and gain confidence in their new roles. These will be project-based or temporary placements that may lead to different career options.
To supplement internal opportunities, CIMB’s FOWC will also seek external placements that will provide its employees with exposure beyond banking. As such, employees could have a
taste of, appreciate and consider different career options. The intention is to encourage
people to explore new opportunities and be more open when charting their career paths.
As a whole, FOWC supports the sustainability of CIMB Group’s business and enables its
people to weather changes in the age of disruption with transferable skills that will remain
with them.
As digital technologies continue to reinvent how businesses grow and operate, the associated risks and opportunities are prompting companies to expand their cost management strategies.
According to Deloitte’s second biennial global cost survey, “Save-to-transform as a Catalyst for Embracing Digital Disruption,” shows that while traditional cost reduction methods are still crucial, many organisations are also investing heavily in transformative digital technologies to improve operating efficiency and cost savings while also boosting overall performance and competitiveness in an increasingly digital world.
Concurrently, as digital disruption emerges as an impetus for change, cost management remains a strong imperative globally. The survey shows more than 1,200 global executives and business leaders, 71 percent are planning to undertake cost reduction initiatives over the next 24 months. Sixty-eight percent reported total reductions of 10 percent or higher, and nearly one-third (31 percent) have cost improvement targets above 20 percent. Eighty-one percent, however, report being unable to meet fully their cost reduction goals during the past year, 18 percentage points worse than in 2017, due to implementation challenges, lack of effective systems, and infeasible targets.
Digital disruption and cybersecurity rank as leading external risks
Demonstrating the significant role technology is playing in shaping cost management strategies, digital disruption soared to the top of the list as the biggest external risk according to respondents at 61 percent, up from just 6 percent in 2017. Digital disruption was surpassed only by another technology-related risk, cybersecurity, which at 62 percent ranks at or near the top of the risk list globally and in all regions except Latin America. Internally, reliability and functionality of information systems was identified as a top risk.
“In today’s highly dynamic and competitive landscape, digital disruption is changing how companies view every aspect of their business, including cost management practices,” said Omar Aguilar, principal and global strategic cost transformation leader, Deloitte Consulting LLP. “Deloitte’s study shows that businesses are now recognising they must save-to-transform, using investments in digital infrastructure to drive dramatic improvements in future performance, efficiency and market position.”
Digital risks are spurring organisations to use cost reduction as a mechanism to fund technological transformation. Globally, the survey found that application of artificial intelligence (AI) and machine learning is expected to more than double from 25 percent to 63 percent. Findings also show similar growth is expected for automation (25% to 62% ) and business intelligence (35% to 59%). Cloud continues to be the most widely implemented digital technology covered by the survey at 49 percent and is expected to remain popular due to its ability to tighten data security, as well as to reduce costs and improve productivity. However, all technologies in the survey are expected to be implemented at a level of 47 percent or higher over the next 24 months, signaling the widespread business impact of technology innovation.
Revenue growth is on the rise, but companies are cautious
The survey also found that companies are well-positioned to undergo this type of transformation, with 86 percent of respondents reporting increased revenue over the past two years. This optimistic outlook continues into the future, with the same number of respondents expecting revenue growth over the next 24 months as businesses around the world enjoy one of the longest periods of economic expansion in history.
Even with the optimistic outlook, however, forward-thinking organisations are taking a cautionary stance. Economic patterns are cyclical, and potential warning signs are starting to emerge. In particular, the survey data show a 97 percent increase in global respondents who are concerned about macroeconomic risk over the next two years, and a 20 percent increase in U.S. respondents who expect a significant reduction in consumer demand over the same period.
Shifting cost management from growth to transformation
Through years of historic economic growth, cost reduction has evolved into an essential tool to help businesses fund their required growth investments (saving to grow). Now, however, many companies are taking things even further, using digital cost solutions and infrastructure improvements. These include robotic process automation, cognitive technologies, business intelligence and cloud-based enterprise resource planning to lift their efficiency, performance, and competitiveness to a new level (saving to transform).
“The 2019 study shows that companies have an enormous opportunity to capitalise on current economic strengths and leverage cost management practices to transform and innovate their businesses,” said Jason Girzadas, managing principal, Consulting, Deloitte Global. “Our mission at Deloitte is to help organisations around the world implement these transformations and make their businesses more efficient and more successful, now and in the future.”
“Cost management practices and approaches have grown increasingly sophisticated over time, and digital solutions, although still maturing, now represent the most advanced level of cost management,” said Aguilar. “By harnessing the power of digital technology to streamline their cost structures and generate cost savings, companies can take full advantage of the latest digital innovations — becoming the disrupters, rather than the disrupted.”
The LCB Alumni – Malaysia Chapter organised the event at Espace Andre Cointreau at Sunway Le Cordon Bleu Institute of Culinary Arts, held in conjunction with the Blue Ribbon Artistry Photo Exhibition by International Celebrity Photographer Kid Chan, supported by Le Cordon Bleu Malaysia.
The event was graced by the presence of participating Le Cordon Bleu Alumni namely: Datin Su Wai Fun, Dato Fazley Yaakob, Chef Darren Chin, Chef Johnson Wong, Chef Nikom Uatthong and Abang Brian.
These iconic members were part of Le Cordon Bleu Alumni’s first collaboration with Kid Chan, a Malaysian-born famed photographer who has taken photographs of numerous high profile personalities nationwide and the world over.
The Blue Ribbon Artistry is a photo exhibition featuring LCB Alumni in their professional element, highlighting their passion, creativity and talent to the eye. One will witness the process where raw materials transform into gastronomic masterpieces, where emotions are captured on the spur of a moment, or when thought and concentration is taken to a still.
This exhibition puts forward great artistry in both photography and culinary fields, while Kid Chan, Malaysian international celebrity photographer immortalises LCB Alumni. The Blue Ribbon Artistry Photo Exhibition showcases the individual iconic personalities of the Alumni who are now renowned professionals in their culinary journeys. These captivating photographs of six outstandingly and distinguished LCB Alumni captures their emotions and characteristics in action.
“The Blue Ribbon Artistry project hopes to launch a year-long funding campaign, called the Culinary Hearts, a CSR project organized by LCB Alumni in order to sponsor a worthy student to realize his or her dream to be the next culinary great in Malaysia, “said Kid Chan.
This initiative is the beginning of a yearlong funding campaign – Culinary Hearts, a CSR project organized by the Alumni in order to sponsor a worthy cause towards a student who is unable to afford fees. Any short fall of fees to complete a 9 months programme at Le Cordon Bleu Malaysia will be topped up as a scholarship award from the Institute itself to fund the selected candidate.
The support of Le Cordon Bleu Malaysia of the Blue Ribbon Artistry Photo Exhibition by Kid Chan shows its guardianship of the French culinary technique. Through its world-renowned network of educational institutions that offer the highest standards of culinary and hospitality instruction, aspiring chefs are equipped with the necessary skills and experience to launch exciting careers in fields of their choosing.
Le Cordon Bleu is a world renowned network of educational institutions dedicated to providing the highest level of culinary and hospitality instruction through world-class programmes.
Founded in Paris in 1895, today Le Cordon Bleu has a presence in some 20 countries with more than 40 international schools attended by 20,000 students annually.
This prestigious education pedigree is now linked with the Sunway Education Group to create exclusive culinary education opportunities here in Malaysia and Southeast Asia.
The Fourth Industrial Revolution (Industry 4.0) can revolutionise the way we manufacture products today, says Vijay Motwani, Chief Operating Officer for SAP Southeast Asia.
“The concept of Industry 4.0 started in Germany in 2011; the taskforce was led by Prof. Dr. Henning Kagermann, who was the CEO of SAP at the time. I feel very proud that it wasn’t only Germany who contributed towards Industry 4.0; in some way, SAP has contributed to this revolution,” he said at the Asian Innovators Summit 2019 held in Kuala Lumpur recently.
Vijay defines Industry 4.0 as the automation of manufacturing processes and data exchanges throughout these processes using technologies such as cyber-physical devices, Internet of Things, machine learning, artificial intelligence, big data analytics, and mobile and cloud computing, in order to boost productivity beyond the levels seen in the previous three Industrial Revolutions.
Malaysia is one of the largest economies in Southeast Asia; Malaysia’s GDP was growing at 4.7% last year, and this year it’s expected to grow even faster.
“Very soon, it will be a USD1 trillion economy in 2030. Analysts predicted that ASEAN will be the 4th-largest economy, after the US, China, and the EU. So how do we prepare ourselves for the economic boom that’s going to happen in this market and in Malaysia, and are we ready for Industry 4.0?” Vijay notes.
Vijay also notes that the manufacturing sector played a very pivotal role in this growth.
“22% of GDP is contributed by manufacturing; coming out of automobile, electronics, component manufacturers, consumer products, durables, life sciences, chemicals, and so on. Each of these industries and sub-industries will be impacted by Industry 4.0, and manufacturing will probably be hit the most.”
Vijay had earlier delivered the opening keynote address at the Asian Innovation Summit Malaysia 2019
According to Vijay, across all ASEAN countries, the differentiating success factors in the manufacturing sector have been cost and scale.
“Manufacturing moving out of Japan, US, Australia, UK, and moving into the ASEAN countries, China, and India, is finally because of labour arbitrage; the manpower availability and quality availability, but also in the cost advantage. Will we continue to have this advantage in the light of Industry 4.0? What got us here will not take us further.”
He outlined the fact that many of these advantages will disappear with the advent of Industry 4.0. “Cheap labour will become inconsequential; it will no longer be a differentiator. Many of the repetitive jobs in the future will be taken up by robots. And a robot, whether it makes a product in Japan or in China or in India or in Malaysia, will cost the same.
“Henry Ford brought on the Second Industrial Revolution by saying ‘mass production’, i.e. producing the same thing again and again with the same quality and consistency. Today, it will replaced with mass customisation, with a market segment of one. Each Millennial wants the same car but in a different colour, or the same holiday, but with a different customised package, and so on and so forth.
“Looking at 3-D manufacturing, they’re going to be bringing 3-D printers to Mars. They will be so advanced that they can make themselves; you don’t have to maintain or repair one if it breaks down.”
Vijay highlighted predictive maintenance and intelligent robotics as two examples of how Industry 4.0 can improve the business.
“All the manufacturing operations, from planning to shop floor control to execution to supply chain will have sensors for man, machine, and material. There will be 1 billion devices connected to the Internet by 2030.
Those 1 billion devices will generate 47 zettabytes of data. Today, you run a shop floor, you find out which particular machine or assembly line or rotary equipment is breaking, and you would perform breakdown maintenance. Or you might plan a preventive maintenance based on the previous historical cycle. But when you start collecting that data online in real time, in a moment that data gets analysed by machine learning, by historical records of breakdown and preventing maintenance, and can actually predict when your next maintenance is required. So you move along from a sense-and-response to predict-and-respond; you don’t have to wait for it to break down or for your next preventive cycle.
“In terms of robots, the intelligence in robots today is incomparable to the past. 30 years ago, I saw a pick-and-place robot that would simply pick up a finished product and place it in a pallet. Compare that to today’s robots that can de-palletise; that is, take it from a pallet and place it back on a conveyor belt or storage. They can even discern that the next box is different from the previous box, and adjust themselves to cope. Robots are becoming smarter and smarter, and can actually almost replace human beings where intelligence is required.”
However, while ASEAN countries might be aware of Industry 4.0, taking advantage of it is a different story. “McKinsey did a study of the ASEAN countries and discovered that 96% of the respondents in the region understand the importance of Industry 4.0, but only 13% said that their companies have begun embarking on Industry 4.0.”
He outlines several of the challenges that organisations commonly face when starting out on their Industry 4.0 journey. “Most of the SAP customers, when we ask about this, say that they don’t know where to start. What’s the right use case for me? The solution is yes, you should have a long-term plan, but you can start small, you can do a pilot and start somewhere; finally, it will become a virtuous cycle. Start small, but have a long-term mission to move from a shop floor, to a factory, to an enterprise-wide scale.
“The second common issue we have seen at SAP is many of the companies have islands of systems; various solutions that won’t talk to each other. SAP, being the best digital cloud provider and ERP solutions provider, breaks those siloes and gives you an integrated end-to-end solution.
“Mitigating security risks is a big topic for all the nations. Many companies are worried about the security of their data in the cloud, as well as compliance with GDPR and other similar standards. Most of the technology companies including SAP are fully conscious of that, and are making sure that their solutions are fully secure, are compliant, and there is audit traceability for you to see that your data is secure and not breached.
“Last but not least, finding talent. As part of the nation-building exercise, SAP is working with most of the countries in ASEAN to help build ICT-related talent; to help them with vocational training. We’re doing our small part to help nations usher themselves into Industry 4.0.”
Based on the input received from tech and digital industry, the Minister of Communications and Multimedia, through Malaysia Digital Economy Corporation (MDEC) is introducing the Malaysia Innovation Policy Council (MIPC). It is a platform that aims to drive the growth of the tech and digital industry by promoting policies and regulations that will encourage innovation.
A brainchild of YB Gobind Singh Deo, MIPC also aims to streamline the governance of the
industry and ensure systematic processes are in place.
“The establishment of MIPC is a right step towards progress in Malaysia and I am delighted to see that steps are being taken to ensure growth of our tech ecosystem and Malaysia’s digital economy,” said YB Gobind Surina Shukri.
CEO of MDEC echoed and said, “Growing the nation’s digital economy requires deeper collaboration from both public and private sectors. We strongly believe that MIPC will further drive better synergetic partnerships between the sectors as it aims to achieve three objectives – to act as a platform for private sectors to propose Tech/Digital Economy initiatives based on policy and regulatory challenges, to provide advice, input, recommendation and facilitation based on the proposed Tech/Digital Economy initiatives, and to setup and oversee the solutions taskforce related to the policy and regulations pertaining to proposed Tech/Digital Economy initiatives. MIPC will sharpen the nation’s efforts in creating a vibrant and sustainable tech ecosystem.”
MIPC comprises two committees – the Industry Coordination Committee and the Intervention Committee. The Industry Coordination Committee covers matters relating to industry collaboration pertaining to Digital Tech initiatives that comes with regulatory challenges and issues, while the Intervention Committee focuses only on the policy and regulatory intervention.
The terms of reference for the Industry Coordination Committee – chaired by the CEO of
MDEC – include providing advisory, facilitation and alignment between industries for Digital Tech initiatives as well as identifying relevant stakeholders. Convening six (6) times a year, the committee will be made up of invited parties from ministries, agencies and the private sector.
Meanwhile the terms of reference for the Intervention Committee – which is co-chaired by the Minister of Communications and Multimedia (KKMM) together with relevant Ministers – include setting up a taskforce from relevant ministries, agencies and stakeholders to focus on required solutions.
Convening three (3) times a year, this committee will obtain input from the taskforce in
order to make recommendations as well as escalate policy & regulatory issues to the
appropriate authority level including the Cabinet and Parliament, as necessary.
Call-to-Action: Submission of Proposals
MIPC invites tech companies, investors, and relevant industry players to share their point of views and to offer suggestions to accelerate innovation and growth of tech companies, centred on national policy and regulatory changes.
These proposals should meet the following guidelines:
1. Proposal must be related to digital tech initiatives to further improve the tech ecosystem
and grow the digital economy of the country
2. Highlighted the regulatory challenges that comes with the proposed initiatives, and the
economic and social impact if the problems are solve
3. Submission has to come from the private sectors and industry representative – i.e.
associations, foundations or working group of companies.
Every submission will be evaluated by the Council secretariat and further steps will be taken accordingly.
To submit proposals or ideas, please visit MIPC website at www.mdec.my/MIPC for more
information and submission guidelines. For any inquiries on MIPC, please email them to [email protected]
CIMB Group, through its entities CIMB Bank Berhad (“CIMB Bank”) and CIMB
Islamic Bank Berhad (“CIMB Islamic”) have entered into a strategic partnership with Credit
Guarantee Corporation Malaysia Berhad (“CGC”) to provide small and medium enterprises
(“SMEs”) access to RM2 billion in financing through CGC’s Portfolio Guarantee-i scheme.
The strategic partnership was signed by KJ Balan, Head, SME Banking Malaysia, Group
Commercial Banking, CIMB Bank and Leong Weng Choong, Chief Business Officer of CGC,
witnessed by Dato’ Mohamed Ross Mohd Din, Chairman of CIMB Islamic Bank Berhad; Rafe
Haneef, CEO, Group Islamic Banking, CIMB Group; Ahmad Shazli Kamarulzaman, Deputy CEO, Group Commercial Banking, CIMB Group; Choong Tuck Oon, Director, CGC, Datuk Mohd Zamree Mohd Ishak, President/CEO, CGC and Rahim Raduan, Chief Corporate Officer, CGC.
This financing scheme will see CIMB Bank and CIMB Islamic disburse up to RM2 billion through Portfolio Guarantee-i, an Islamic working capital financing where 70 percent of the loan amount is guaranteed by CGC, without collateral. Financing amount is up to RM1 million per customer, with maximum tenure of seven years.
Victor Lee Meng Teck, CEO of Group Commercial Banking, CIMB Group, said, “We’re pleased to partner with CGC in nation building as SMEs are projected to contribute 41 percent to Malaysia’s GDP by 2020. CIMB is also committed to support the SME industry not only in Malaysia, but also across ASEAN, powered by CIMB’s 800 branches and 2,000 relationship managers.
“In line with CIMB’s next mid-term growth plan, our refocused proposition includes an investment of more than RM300 million in the next five years to strengthen our end-to-end tech-driven SME banking solutions to help transform our customers’ business.”
Datuk Mohd Zamree Mohd Ishak, President / CEO of CGC, said, “I am pleased to share that
over the last six years, both CIMB and CGC have successfully launched 13 Portfolio Guarantee Schemes totalling RM1.4 billion, benefiting over 2,000 SMEs.”
CIMB Bank recently announced its commitment to disburse at least RM15 billion in the next two years to help 100,000 SMEs in Malaysia, particularly for financing below RM500,000, in support of the government’s push for an entrepreneur-friendly enabling environment to boost Malaysia’s economy.
CIMB Bank disbursed a total of RM17.8 billion in 2016-2018 to support the growth of 17,000 Malaysian SMEs by providing working capital, asset financing and trade finance. Its latest offerings include leveraging business assets as additional working capital; and extending unsecured loans to SMEs who are awaiting their GST refund. The latter is offered at a lower interest rate, with a flexible payment period and interest servicing up to six months, to help small businesses manage their cash flow.
CIMB also sees huge potential in its unique halal corridor proposition, with its strong ecosystem and regional network that could support SMEs’ venture into the export market beyond Malaysian borders. Focusing on agribusiness, cosmetics, F&B, modest fashion and pharmaceuticals, CIMB’s halal corridor proposition is poised to help SMEs access, for example, the ASEAN-China corridor with a combined customer base of 266 million Muslims.
IDC believes that local organisations are required to become digitally determined as digital
disruption intensifies in Malaysia. To be digitally determined, local organisations require a
blueprint that consists of a unified enterprise strategy, a long-term investment plan based on the principle that digital is inherently valuable to the business, and a single digital platform to scale technology innovations. The key to success in the next few years require changes to organisational structures and mind-sets.
“The digital disruption is becoming obvious in most industries and the pace of digital
transformation (DX) acceleration has heightened. During the first wave of digital transformation, organisations realised that digital technologies should be a core part of any business, and successful strategies. Today, we are entering into a brand new phase where many organisations have recognised the full benefits of DX and are investing in digital innovations with the intention to disrupt the marketplace.,” said Sudev Bangah, Managing Director IDC ASEAN.
Speaking at the annual CIO Summit at the Grand Hyatt Kuala Lumpur recently, Bangah added, “The market is moving along at a pace faster than we all think and it is now driven by a customer-centric and empowered workforce, and processes that fuels more efficient operations, new revenue streams and customer loyalty through use of the technology and data. This is the right time to recognize many organisations are scaling up on innovations where continuous enterprise-wide digital innovation is in place, transforming markets through innovative business models and digitally enabled products and services.”
The IDC CIO Summit 2019 themed “Race to Reinvent: The Digital Determination
Playbook” aims to help CIOs to piece together a playbook for taking their organisation from
being Digitally Distraught to Digitally Determined. The Summit brought together more than 100 regional industry leaders and prominent CIOs across the Malaysia.
The insights offered at this event aims at helping top business leaders plan their strategy in advance to deliver solutions that meet the challenges of today’s disrupted market conditions. Some topics include case studies on innovation, customer centricity, digital business operations, and reinventing the workforce.
Alibaba.com, a global B2B platform of Alibaba Group, is partnering with Exabytes Network Sdn Bhd (“Exabytes”), Malaysia’s leading web hosting and cloud service provider, to
accelerate exports from small-and-medium-sized enterprises (SMEs) in the northern region of Malaysia.
As a part of this partnership, Alibaba.com will appoint Exabytes as an authorised Global Gold Supplier (GGS) membership Channel Partner. The appointment will enable Exabytes to promote GGS memberships in Malaysia and enroll Malaysian SMEs in the states of Kedah, Penang, Perak and Perlis into the platform to help them tap into millions of buyers worldwide and to discover new business opportunities.
The partnership was announced during its launch today in the presence of Yang Amat Berhormat Chow Kon Yeow, Chief Minister of Penang, accompanied by Eric Zhang, Head of Operations, Alibaba.com, Malaysia and Chan Kee Siak, Founder and Chief Executive Officer of Exabytes Network.
Speaking at the ceremony, YAB Chow Kon Yeow, Chief Minister of Penang said, “Malaysia’s digital economy, with e-commerce being one of the key components, is at its fast-growing phase. Against this backdrop, I strongly encourage SMEs and local businesses to innovate and make the most of the benefits available out there. The development of SMEs in tandem with the technology change is crucial, given that SMEs provided two thirds of total jobs in Malaysia and contributed 37 percent of the total GDP in 2017.
“I am hopeful that this partnership between Alibaba.com and Exabytes will further encourage local SMEs to digitise their businesses and achieve bigger goals by making their business successful beyond Malaysia.”
Meanwhile, Joey Zhu, Malaysia Country Manager of Alibaba.com said: “The growing volume and potential of cross-border trade for SMEs makes this partnership very valuable to the local business traders in the Northern region.
“It not only helps them tap into newer markets, but also takes away some of the pain of
digitising their business. Our partnership with Exabytes will help us better serve the needs of local SMEs and businesses as they accelerate and excel in cross border e-commerce. Together with Exabytes, we will be organising a series of educational seminars, workshops and sessions in this region to empower and enable more local SMEs and businesses to benefit from Alibaba’s ecosystem.”
Chan Kee Siak, Founder and Chief Executive Officer of Exabytes Network said, “We are honored to be selected as Alibaba.com’s partner. This partnership is a great opportunity for us to continue on with our mission to make it easy for SMEs to grow business online. We can now introduce to them Alibaba.com, an easy and convenient way to reach to buyers located around the world on a single platform.
In addition, this partnership can help strengthen Exabytes’ position as a leading cloud service provider for SMEs in Malaysia.”
“Going global isn’t just for large enterprises. Our team plans to carry out various programs including organising workshops to share knowledge about global e-commerce trends and we’ll invite local SMEs to attend,” added Chan.
The partnership represents the latest initiative by Alibaba under the Electronic World Trade Platform (eWTP) to help Malaysians SMEs seize global cross-border trade opportunities by taking advantage of the Alibaba ecosystem.
In July 2018, with the support of Malaysian agencies such as the Malaysia Digital
Economic Corporation (MDEC), the Malaysia Investment Development Authority (MIDA), Malaysia’s Trade Promotion Bureau and Tourism Malaysia, Alibaba launched a week-long campaign to promote brand awareness of Malaysian businesses and products on its online marketplaces with more than 50 Malaysian companies participating.
Alibaba.com is committed to help SMEs play an important role in nation building, currently making up over 90 percent of business entities in Malaysia. With digital economy being the growth engine of the nation’s economic growth, Alibaba.com is committed to help these businesses accelerate cross-border e-commerce trade.
PETRONAS Dagangan Berhad (PDB) closed 2018 with a commendable performance, sustaining its Profit Before Tax at above RM1 billion and sales volume at 14.9 billion litres despite continued volatility of the industry and stiff competition. This demonstrates the Company’s resilience in fuelling growth, balancing immediate targets and growing for the future.
With a robust financial year ending 2018, PDB declared a total dividend of 70 sen per ordinary share at the Company’s 37th Annual General Meeting. The dividend represents a payout ratio of 81 percent – the highest dividend payout ratio since 2014.
Speaking at the Meeting, PDB’s Managing Director and Chief Executive Officer Dato’ Sri Syed Zainal said, “Our solid results are attributable to the team’s focused execution of the business strategies, supported by integrated inventory management, efficiency in supply and distribution, and operating expenditure optimisation.”
In 2018, Retail Business continued to enhance its customer experience via aggressive asset refresh, transforming the ambiance of 300 PETRONAS stations and 100 Kedai Mesra nationwide., as well as opening more than 10 new stations. Its non-fuel business recorded a 40 percent growth on food sales. Via its targeted marketing campaign, Mesra Bonanza, coupled with the best-in-industry loyalty programme, the business has successfully increased its Kad Mesra active users by 15 percent and acquired 17percent more new members.
Despite a tougher cost environment, the Commercial Business further solidified its leadership position as a solution partner through a robust marketing strategy and focusing on customer-centricity, with differentiated offerings. This in turn strengthened its relationships with its customers, enabling the business to secure new contracts from airlines.
The LPG Business continued to be the market leader and further expanded its sales channels at selected PETRONAS stations to ensure convenience and product availability. It also commenced the sale of 14kg cylinders for the commercial market segment.
Its Lubricant Business managed to increase its brand presence, recording significant volume increment in the highstreet and OEM segments. The business also successfully secured a new long-term contract with the main rail operator in Peninsular Malaysia to supply locomotive engine oil.
“While we are cautious about the continued volatility of oil prices, we are committed to fuelling the business and accelerating growth by continuing to be customer-obsessed. This customer-first mindset has pushed us to move like never before and will continue to guide us as we go beyond the norm to deliver a seamless and frictionless customer experience,” added Syed Zainal.
In line with this, PDB launched its new fuel early this year, the PETRONAS Primax 95 with Pro-Drive, which has been developed to meet current driving needs and engine requirements. Based on drivers’ testimonials, the new fuel has indeed proven to deliver a smoother, more responsive and efficient drive.
On the digital forefront, the Company also introduced Setel, South East Asia’s first e-payment app of its kind, at the PETRONAS stations. Integrated directly to the fuel pump, Setel allows customers to purchase fuel directly from the comfort of their vehicles. At the end of 2018, Setel has been made available at close to 100 PETRONAS stations in the Klang Valley.
Over and above this, PDB will also continue to leverage on its network of partners, existing and new, to further expand the offerings for its non-fuel business, while enhancing customer experience.
“We have laid a strong foundation for the next phase of growth, and we are optimistic that we will be able to see the return of our investments from this year onwards,” Syed Zainal concluded.
The Hong Leong Group has announced the launch of its innovation exchange, the HLX, which aspires to grow the Malaysian tech start-up ecosystem with Malaysian Digital Economy Corporation (MDEC) as one of its strategic partners at Menara HLA in Kuala Lumpur.
The HLX will be a one-stop facility which converges the corporate and start-up communities under one roof to accelerate innovation and boost the Malaysian start-up ecosystem. This 250,000sq ft exchange located in the heart of Kuala Lumpur will feature a start-up zone with co-working spaces, various event facilities including an auditorium, onsite Makers Lab, restaurants, and a gym.
This innovation incubator will be the focal point for collaborators vital to the growth of the ecosystem such as Venture Capitalists (VCs), mentoring and technology partners, tech start-ups/scaleups, and corporations.
HLX is positioned to focus on the innovation of high technology with an initial focus on Artificial Intelligence (AI)/High Performance Computing (HPC), fintech, and manufacturing tech.
Applauding the launch, Datuk Edmund Kong, Group Managing Director of GuocoLand Malaysia said, “Building on the foundation of our strong entrepreneurial roots, the Hong Leong Group has always focused on nurturing innovation. The creation of HLX is a step in this direction which stems from our commitment to hone the potential of the start-up ecosystem in Malaysia so that it reaps rewards for the economy and society at large. Our strong expertise and in-depth knowledge of the various industries will surely be beneficial to the start-ups that become part of HLX.”
“With HLX, we are bringing together the corporates and start-ups in a unique two-way exchange to give further impetus Malaysia’s economy. On one hand, the start-ups will gain access to a complete innovation ecosystem that will accelerate their transformation, enable innovation and help them scale-up on the value chain, while the corporates will get to engage with start-ups in a more meaningful and sustainable manner,” said Mohd Reezan Mohd Fadzil, General Manager of HLX.
He mentioned that tech start-ups had great ideas and talent while corporations had the avenue where innovative technology can be deployed.
“That is where HLX comes in, by identifying the gaps and connecting the right match of services offered by key partners.”
This project is also a Private-Public Partnership (PPP) with MDEC who is springboarding HLX to be part of the digital economy ecosystem. The objective of this synergy is to accelerate innovation among the start-ups which will help propel the country’s digital transformation efforts in sectors such as manufacturing, agriculture, infrastructure, and services.
“To build a thriving entrepreneurial network may be a daunting task and that is why it has to be a collaborative effort,” said Surina Shukri, CEO of MDEC. “This partnership with HLX is a testament to the potential of what a PPP looks like and can one day achieve”.
On the talent front, the HLX Academy will be the exchange where capacity building takes place with future talents through training, mentoring and industry placements. This learning institution is partnering with technical experts like CXS, BAC Twistcode, and more, to lead certification and talent upskilling programmes. The HLX Academy strives to build a pipeline of industry-ready innovators and creators, at the same time, matching their skillsets to key partners from corporations and the government.
Also present at the launch of the HLX innovation exchange was Minister of Communications and Multimedia YB Tuan Gobind Singh Deo who witnessed the exchange of six Memorandum of Understandings (MoUs) between HLX and tech and talent partners: Twistcode Technologies, Islamic Fintech Hub, Ficus Venture Capital & Helios Orion, BAC Education, 1337 Ventures and CXS.
Another key component of the integrated offering by HLX is the proposed co-living space that will exist within Menara HLA. HLX is exploring collaboration with designers AltSpace to design this space for comfort befitting to the innovative and collaborative persona that embodies the environment. This co-living facility will be available for HLX residents.
The other noteworthy partnership that reinforces HLX’s aspiration to be the convergence between corporate and start-ups is the one with FutureLabs Ventures. In the effort to enhance the innovation process on the corporate front, HLX will draw on FutureLabs’ strength and experience in working with Fortune 500 organizations to co-create multi-industry ecosystem ventures that harness value from big data and advanced analytics that help develop businesses in terms of technology and talent.
The HLX hub will be developed in phases and is expected to achieve full operational readiness by end 2020. Phase 1 of the project will include development of the digital campus, co-working and co-living spaces, venture capital hub, and curated offices which be ready by 31 December 2019, while Phase 2 covers the exhibition space, innovation lab, media lab, and Founder’s bar and will be fully operational by 31 December 2020.
GWS Production AB has announced a new offering and a complete cloud-based IT platform designed to safeguard employees wherever they are – the Safeture Enterprise.
A central part of GWS’s ambition is to evolve its product offering around customers’ needs. Safety and security are critical, and large corporations are tasked with safeguarding their employees whether it is at the office or while on the road traveling. Introducing Safeture Enterprise gives larger corporations the ability to effectively automate safety and security, while seamlessly integrating the software to become a natural part of their internal processes.
The new Safeture Enterprise platform is a complete and cloud-based service to manage risk, safety and crises processes involving employees. The platform has a vast number of functions and components that can be used off-the-shelf, such as mobile apps, travel tracking, flight updates, global real time alerts, e-learning, bulk messaging, country and medical information, all in the same tool. But this is also an open platform, which allows clients to adopt specific internal processes and integrate it with external suppliers, such as assistance providers or other software, including internal employment databases or intranets.
The proven Safeture TRM (Travel Risk Management) software is a part of the Enterprise product and is also available separately for smaller companies. The TRM software has been popular with many customers for years and remains at the heart of the Safeture platform. It is often a starting point for a new customer, before they evolve to use other tools, now available in the Enterprise platform.
“Large corporatations face a tremendous task in ensuring their workers’ safety and security, and the processes today are often ineffective and cumbersome. Our Safeture Enterprise IT platform is easy to integrate and uses automation to improve quality and efficiency, reflecting customers’ true needs,” said Andreas Rodman, CEO of GWS.
“Our new holistic Safeture Enterprise platform is at the heart of our company and our vision of a safe future, so it only makes sense to change our name when we announce the product,” he continued. “With the platform in place and a strong financial position, I look forward to continued progress in the coming years.”
To reflect its product and ambition, GWS plans to change its name to Safeture AB, with a new ticker, SFTR, after the annual general meeting on May 29.
The rise in digital banking has proved to be a double edged sword for financial institutions as there is a great focus from cyber criminals targetting this platform to steal consumers’ financial information.
While the benefits and opportunities presented by digital financial services are clear and proven, according to KPMG’s Consumer Loss Barometer –The economics of trust report, 49 percent of consumers from Malaysia have had their financial information compromised, higher than the global average of 37 percent. The study further revealed that 69 percent consumers globally reporting concerns about their technology being compromised. Respondents in Malaysia are particularly concerned about their apps (95 percent), Wi-Fi (82 percent) and cloud (77 percent) being compromised.
KPMG’s study delved deeper into the economics of trust within the Financial Services sector, and found that 40 percent of consumers in Malaysia believe their financial institutions should have full or joint responsibility for ensuring that mobile devices used for mobile banking are secured.
Adrian Lee, Head of Financial Services at KPMG in Malaysia, urge financial institutions to show that they take the security of their customer’s information seriously, both in their customers’ broader security needs and in their interactions with them.
“Whether or not financial institutions regard it as their responsibility, it is something that they need to be very cognisant about or they run the risk of losing their customers’ trust, which is a priceless commodity. The shift towards digital banking is happening at great speed. A key gateway that promotes this trend is mobile devices because they are seen as a convenient way to cater to potential customers within the unbanked population. Financial institutions that are able to ensure trust will drive customer loyalty and naturally become the preferred choice in this digital age,” says Adrian.
In evince of the proliferation of digital banking trends in Malaysia, Bank Negara had reported that the penetration rate of internet banking and mobile banking subscribers stood at 91.9 percent and 33 percent respectively in February 2019.
Though cash is still Malaysia’s preferred mode of payment, the rise in digital payments demonstrate positive upward trends. Based on the transaction value data recorded for 2018 by Bank Negara Malaysia, internet banking transactions were valued at RM7.6 trillion, mobile banking at RM100.1 billion and e-money at RM11 billion.
Interestingly, KPMG’s study found that 96.8 percent of respondents globally would be willing to remain with their financial services provider if their financial information had been breached, provided the organization took swift and effective measures to address their concerns. This also shows that consumers accept the reality that cyberattacks cannot be completely avoided.
According to Adrian, this sentiment reveals that consumers still trust their financial institutions to be an authoritative figure. It would behove financial institutions well to enhance consumer trust by being more transparent about the data they collect, as well as to proactively demonstrate measures that are put in place to protect the consumers’ infomation.
“Consumers are constantly revising upward their expectations on how organizations deliver digital products and services, and expect security as integral to their experience. Hence, financial institutions cannot afford to be complacent and take their customers trust for granted. To do so would invite the inevitable result of reputational damage and financial loss. Maintaining trust in the digital age is becoming a differentiator for those able to act and demonstrate an understanding of their consumer’s concern,” concludes Adrian.
From now until June 2019, HSBC Bank Malaysia Berhad is hosting thefirst ever HSBC Openlab Innovation Challenge to attract new talents, startups, designers, digital innovators and developers from all industries with innovative digital ideas to solve real-life retail banking challenges.
Be it re-thinking existing banking propositions by building a disruptive digital banking alternative, or re-designing banking processes by leveraging rich data, better UI/UX, and real time risk assessment, or even re-inventing customer engagement through the digitisation of customer service – participants of the HSBC Openlab Innovation Challenge 2019 are given the opportunity to work on their ideas using an openlab sandbox to create a working prototype of their solution.
Different from a traditional Hackathon model, the HSBC Openlab Innovation Challenge 2019 allows participants to work on their solutions from the comfort of their own home/ office and provides them with access to a live sandbox openlab that has 200 Application Programming Interfaces (APIs), software development kit, as well as synthetic data to help them build their prototype.
Commenting on this, Tara Latini, Country Head, Retail Banking and Wealth Management, HSBC Malaysia said, “Malaysia is the first market where HSBC launches such a challenge and this clearly demonstrates the Bank’s commitment to the nation and its talented community of digital innovators. As a global organisation which operates in 66 countries and territories, we at HSBC understand that digitisation is changing financial services at a rapid pace. We see that many of the current banking products, services and processes can be made better and faster via digitisation, better UI/UX and creative use of data. Therefore, through the HSBC Openlab Innovation Challenge, we aim to revolutionise the way financial products and services are designed and delivered to our valued customers.”
Teams stand to win attractive cash prizes for the best digital innovations: the first prize is RM8000, the second prize is RM6000 and the third is RM4000. For registration and more details, visit https://www.eventbrite.com/e/openlab-hsbc-tickets-60266606041?aff=ebdshpsearchautocomplete. The team registration closes on 5 May 2019. Shortlisted teams will be notified accordingly.
