the business
Q2/2014
ADVOCATE
"The Premier Advocate for the Business Community"
FOOD &
BEVERAGE
Why Understanding
Regulations
Equals Profits
KDN NO. PP 5124/06/2012 (029800) / VOL.16
Franchising A Great Method for Business Expansion.
But Do It Wisely
CEO Profile
• Mondelez Malaysia
• Nestlé Malaysia
Daily Dairy
with SID
Malaysian International Chamber of Commerce and Industry ( 16841-V )
President's Message
Is your full product range within the
reach of the consumer... all the time?
President's Message
Over the last few months, we have celebrated a string
of festivities and in Malaysia that simply translates into an
endless feast of gastronomic delights! Food, is very much part
and parcel of the Malaysian culture, and we are never in short
supply of mouth-watering choices.
No...?
Did you know that Asia’s leading route-to-market
specialist is KL based?
In fact, the Food &
Beverage sector in
Malaysia is the one
sector that continually
thrives whatever the
economic climate of the
nation, and rightfully so,
as it is one of the most
important and highdemand industries in
the country.
What sets the Malaysian
F&B industry apart is
that it is as diverse as
our multi-cultural
heritage. It is
also the one
industry that
is constantly
and rapidly
evolving
to meet the
changing trends
and taste buds
of Malaysians. It has
flourished considerably
over the last decade to
infuse Asian palate with
contemporary gourmet
fares. In fact, “fusion”
has become a style and
cuisine of its own in
Malaysia.
Growing consumer
awareness of nutritional
values and the necessities
of a healthy diet and
lifestyle is
another key
factor which
will impact
the face of
the F&B
industry,
and with
growing
concern at
rising levels
of obesity, diabetes and
high blood pressure, the
F&B industry will need
to respond accordingly.
With a clear need for
healthier food, the
F&B sector must take
note and invest in the
wellbeing of consumers,
who are also increasingly
becoming more global
and brand conscious in
their choice of food. The
burgeoning demand
for more sophisticated
and imported products
is also steering the
F&B industry in a new
direction, while having
at the same time to
respond to a growing
demand for improved
quality and integrity in
the food supply chain.
Local food
manufacturers are now
constantly challenged to
generate new products
or at least mimic local
versions of choice
imports, just to stay in
the game. In this issue,
we will be discovering
the F&B industry in
Malaysia and delve into
the key sectors that
make this industry
flourish. We will focus
on the rising organic and
agricultural sector, which
is identified as a National
Key Economic Area; the
food processing industry,
which is predominantly
Malaysian-owned; and
the importance of the
Halal Food sector, which
is expanding to meet the
needs of both Muslims
and non-Muslims alike,
both in Malaysia and
overseas.
We hope you enjoy
reading the nuggets of
information that these
articles present, as much
as we enjoyed bringing
them to you.
Call us for an intelligent discussion on your
future sales and distribution network.
Ng Li Wah +6012 290 2629
John Talbot +6012 290 2625
CLOUD BASED DISTRIBUTOR SOFTWARE
www.logisticsconsulting.asia
lcateam@logisticsconsulting.asia
Simon Whitelaw
President MICCI
www.lucialink.com
luciateam@lucialink.com
Transport Development • Distributor Visibility & Control • Outlet Universe Mapping • Route-to-Market & Cost-to-Serve
Warehouse Design & Operations • Sustainability • Forecasting, Inventory & S&OP • Network Design & Simplification
3
Contents
PRESIDENT'S Message
03
Simon Whitelaw
CHAMBER Chatter
05
Stewart J.Forbes
COVER Story
06
Organic Growth
10-23
Why Understanding Regulations Equals Profits
25
Interview with the Region Head of Nestlé Malaysia & Singapore
29
MEMBERS News
MICCI News
33-37
33
38-46
10
The General Trade Sales and Distribution Channel has Stagnated
13
Developing The Local Dairy Industry
16
Franchising - A Great Method for Business Expansion. But Do It Wisely
19
Wine Country
21
Asia's Halal Hub
22
C-8-8, Block C, Plaza Mon’t Kiara
2 Jalan Kiara, Mon’t Kiara
50480 Kuala Lumpur
.MICCI is an organisation representing the majority
of international corporations currently in Malaysia.
It aims to promote, protect and advance free enterprise and in particular
the interests of the international investment community. Being the oldest
private sector business organisation in Malaysia, it maintains a constant
evaluation of the business climate and enjoys an excellent dialogue status
with the government .DISCLAIMER All opinions and views expressed in this
publication do not necessarily reflect the views of MICCI. The publisher shall
not be held liable for any error or inaccuracy. No parts of this publication
may be reproduced in any form without the publisher’s permission.
4
25-30
Interview with the Managing Director of
Mondelez Malaysia Sales Sdn Bhd
New Members
MICCI Features
CONTACT
Malaysian International
Chamber of Commerce
and Industry (MICCI)
CEO Profile
Regional Focus
Chamber Chatter
47-50
Daily Dairy with SID
48
SABAH: The Food Sector Shows Promise
49
Chamber Chatter
Meaningful Support and Constructive Criticism
Throughout its 177 years championing business in Malaysia,
MICCI has been prepared to offer support and acknowledge
success when the government has acted in the best interests of
business and industry. Equally the Chamber has not held back
from pointing out weakness or inconsistencies when business
interests have been seen to be compromised or threatened.
There is a delicate
balance however
between offering
support without
appearing to be
subservient or
criticising without
appearing to be
unnecessarily
negative. At times
critical commentary
can be interpreted as
destructive and provoke
a negative response or
in a worst case scenario,
some form of ostracism
or even retaliation.
Similarly, supporting
the authorities is not
always perceived as
rational and well
intentioned,
rather it is
seen as
“currying
favour”.
Thus on occasions, we
may opt for silence
when we should be more
outspoken, rather than
invite misinterpretation.
A possible case in point
concerns the current
TPPA negotiations.
MICCI is openly in
favour of free trade
and liberalisation and
has spoken in favour of
this latest FTA in many
forums and dialogues.
Yet we are not unaware
of the sensitivities
that surround this
new model agreement
and the need to avoid
undermining important
national socio-economic
programmes or
priorities. So the
Chamber’s public
support for TPPA
has been less than it
might have been, even
while chief negotiator
MITI has come under
pressure and attracted
criticism from some
NGOs and business
groups with specific
agendas to pursue.
As a result, MICCI may
not have fulfilled its
business support role as
well as it might. TPPA
will provide valuable
opportunities for new or
increased business for
Malaysian and foreign
companies and the areas
of concern must not
simply be used as an
excuse to repudiate the
Agreement. It should
rather be seen as an
opportunity to refine
and revise national
programmes so that
they continue to play
their part in Malaysian
development but also
help in the economic
transformation of the
nation into a modern,
global powerhouse.
MICCI will continue to
espouse the benefits of
economic progress and
business liberalisation
and support agencies such
as MITI in their efforts to
create the best trade and
investment environment.
That does not mean the
Chamber will shirk its
responsibility to question
and oppose policies that
we consider detrimental
but we must recognise
positive actions when we
see them and declare our
support openly.
On June 24th 2014
following our AGM,
MICCI will launch a
comprehensive “White
Paper” identifying
critical issues and change
policies for positive and
sustainable economic
development. Rest
assured however the
Chamber will also give
credit where credit is due.
T: +603 6201 7708
F: +603 6201 7705
.PUBLISHER Sandeep Juneja Holdings Sdn Bhd,
Suite C-07-09, Plaza Mont’ Kiara, No.2 Jln Kiara,
Mont’ Kiara, 50480 Kuala Lumpur, Malaysia.
T: +603 6201 9766 F: +603 6201 9767
W: www.sandeepjuneja.com .CREATIVE Sandeep Juneja Agency
.EDITORIAL stewart j forbes, sandeep juneja, jude liew, rishab kumar
.PRINTER Percetakan Skyline Sdn Bhd (135134-v) No 35 & 37 Jalan 12/32B,
TSI Business Industrial Park, Batu 6 1/2 Off Jalan Kepong, 51200 Kuala
Lumpur. T: +603 6257 4846 / 1217 F: +603 6257 7525 / 1216
W: www.skylineprintpress.com
Stewart J. Forbes
Executive Director
MICCI
5
Business Advocate
Cover Story
Organic Growth
The government’s focus on the agricultural sector, by
identifying it as a National Key Economic Area, and the rising
trend for healthy food has given a robust boost to the local
organic sector, which means good news to local farmers.
Organic farming is an agricultural method that employs
a holistic production management system. It promotes
and enhances agro-ecosystem health including
biodiversity, biological cycles and soil biological activity.
In organic farming, the use of synthetic materials
is replaced with cultural, biological and mechanical
methods to fulfill any specific functions within the
system. Production must conform to established organic
standard and certified by a recognised licensing body
for any product to be considered organic.
In Malaysia, all farmers
and processing plants
are required to adhere
to a certification called:
Malaysian Standard,
MS 1529: 2001 - The
Production, Processing
Labeling and Marketing
of Plant-based
Organically Produced
Food, which makes it
compulsory that food
labeled ‘organic’ are
produced according to
the rules laid down by
the stipulated regulation.
For the longest time, most
Malaysian consumers
were not entirely aware
of what organic food is,
what nutritional value it
carries and how it differs
from other agricultural
products.
In fact, most consumers
did not even know that
such an option existed.
Naturally, this ignorance
and lack of public
knowledge significantly
affected this sector of
agriculture in Malaysia,
because most farmers
simply could not sell
6
what consumers knew
nothing about. Although
the pioneering initiatives
for the organic sector in
Malaysia began in the
early 1990s, they did not
make much headway or
gain momentum. This
was partly due to the fact
that these early initiatives
faced the double
challenge of developing
organic practices, as well
as devising means to
establish their markets.
However, over the
years, the Malaysian
government has placed
considerable importance
on agriculture and
organic farming, which
has significantly changed
the face of the organic
food sector. With the
agricultural sector
identified as a National
Key Economic Area
(NKEA), there has been
a concentrated effort
made on transforming
a traditionally smallscale, production-based
sector into a large-scale
agribusiness industry
that can contribute to
economic growth and
sustainability. This
transformation is based on
an integrated and marketcentric model that focuses
on economies of scale and
value chain integration.
One of the significant
milestones in the
Agriculture NKEA was
the development of an
incentive procedure that
allowed the private sector
to undertake the planning
and implementation of a
desired project. The focus
of the Agricultural NKEA
was mainly on selected
sub-sectors including
aquaculture, organic
farming, seaweed farming,
herbal products, fruits and
vegetables and premium
processed food which have
high-growth potential.
The growing demand for
these high value products
provided opportunities
for farmers to increase
their income. Clearly, the
Malaysian government
has acknowledged the
environmental and
economic benefits of
organic farming, which
has led them to introduce
several initiatives to boost
production and sales
within this sector.
During the 9th Malaysian
Plan (2006-1010), the
government made plans
to increase organic food
consumption by 20 percent
a year, and expected sales
to reach $210 million in
2010. The Ministry of
Agriculture also planned to
increase organic farmland
by 4,000 hectares a
year under the Plan.
Additional government
spending on organic
farming and organic food
production also effectively
backed these initiatives.
Aside from that, the
Ministry implemented
a certification process
that allowed accredited
farms to carry an “Organic
Malaysia” logo on their
products, to add credibility
to Malaysian produce.
development of local
food processing that
is contributing to the
overall growth within
the organic food sector,
as many local retail
bakeries and food stores
use organic ingredients.
Small-scale processing
initiatives using organic
ingredients are replacing
the use of tofu, soymilk,
soy sauce, tempeh,
various sauces and
pickles – all which points
to a solid future for the
organic food sector.
While sold through
organic and health food
stores, local processed
products are generally
still not sold and labeled
as organic processed
products. Generally,
organic products are
handled separately
from other products,
as the majority of
organic importers and
distributors are fairly
new companies that
are specifically set
up to handle organic
products. Conventional
food importers and fresh
produce wholesalers still
have not expanded their
repertoire to include or
integrate organic product
lines into their existing
operations.
This means that more
and more players are
stepping into the game,
which is creating quite a
diverse industry overall.
As the local organic food
sector slowly grows and
gains a following, the
overall understanding of
the wholesome benefits
of organic food have
also flourished. More
and more Malaysian
consumers are now
shopping for organic
foods and products in the
supermarkets and opting
for organic ingredients
when cooking at home.
This has led to the need
for imported organic
processed products to be
made widely available in
the markets.
These imports consist of
vegetables, fruits, as well
as processed products
that are shipped in from
Thailand, United States
of America and Europe.
Fresh produce on the
other hand, is mainly
imported from Australia
and New Zealand. The
main import items that
have a demand locally
are grains (wheat, beans),
pasta, juices, cereals,
beverages, fresh fruits and
vegetables. Although the
domestic organic market
in Malaysia may still be
considered undeveloped,
compared to many other
nations in the world,
nevertheless, the growing
demand for organic
produce makes this sector,
however small it may be,
a growing niche market
with endless potential and
opportunities for growth.
With these efforts in
place, a gradual shift
surrounding the organic
farming sector began
to occur. Consumer
awareness about the
nutritional value of this
sector automatically
increased, which in turn
created the demand for
functional and healthy,
minimally processed,
fresh, organic and natural
food from plants and
seafood. The demand for
organically produced fruits
also slowly mounted.
Today, there are homebased distributors,
dedicated organic and
health food shops, and
supermarket chains that
carry organic products.
There are also health food
and vegetarian restaurants
that have begun using
organic ingredients in
their meals. There is
even a small emerging
7
8
Business Advocate
Features
Why Understanding
Regulations Equals Profits
by Adrienna Zsakay
Food and agricultural products account for the second
largest exchange in global trade after energy and mining.
Proving this point with valuable statistics is not important.
What is important is how we trade these agricultural
food products, and by this I mean not the physical
requirements of logistics and distribution. Benjamin
Franklin famously said “In this world nothing can be
said to be certain, except death and taxes.” Today that
quote could be re-written as “Nothing can be said to be
certain, except death, taxes and regulation.”
If regulations have now
become a fact of life,
and more and more
food is set to be traded
globally as populations
increase, why do so many
companies, especially
SME’s still leave much
of this responsibility
to their distributor?
Often justified as a lack
of resources the answer
does not need to be a time
consuming exercise.
Before launching into
the practicalities of why
keeping up to date with
regulation can increase
your bottom line, let’s
look at the weaknesses of
distributors. Everyone’s in
business to make money
and international trade
has made the world a
richer place. Yet not all
distributors are created
equal. Most of them are
good at distribution, and a
select few are also good at
the sales and marketing.
Their job is to understand
enough of the regulations
to import your product
and fulfil all the
requirements to put your
product on a shelf or
usable for food service.
This may also include the
basics of any advertising
regulations to facilitate
Ms. Zsakay has lived in India, South Korea, Singapore and currently
resides in Thailand. She has an Asian Studies degree from the
University of Western Australia & National University of Singapore
complimented by post-graduate studies in International food law
and Asian food law from the State University of Michigan.
10
sales if there is a budget for
this activity.
However it never ceases
to amaze just how many
companies hand over much
of the responsibility of all
the import requirements,
sales and marketing to
a distributor and then
complain when things are
not going well.
When an exporter does
get involved, it is usually
to drive sales and, whilst
regulations may be part of
the mix, often not enough
attention is paid to the
regulatory landscape. Here
is why that should change.
Some years ago, I ran a
small food import business
in South Korea. Part of
our product mix included
Kalamata olives which we
brought from an Australian
company, who brought in
bulk and repackaged under
their own brand. We had
a virtual monopoly and it
was a lucrative product
for us.
One day the Australian
company decided to buy a
cheaper Kalamata look-alike olive from Argentina.
The Argentinians used a
particular preservative
that was banned in South
Korea. These new olives
were being exported to
us as Kalamata olives,
and during the renewal
of the three-year product
registration license for
that particular product,
the banned preservative
was discovered.
The conversation with the
Australian company was a
blame game of who takes
responsibility? We were
blamed for not providing
adequate regulatory
information, whilst the
Australian company had a
policy of outsourcing their
export sales to 3rd party
operators who knew the
regulations.
We received a $20,000
fine, and had no legal
avenues to pursue for
compensation from the
Australian company.
Yet we did not lose our
business, we just shifted
it elsewhere. We brought
less expensive and better
quality Kalamata olives
directly from Greece and
made more profit. The
Australian company lost
all future sales.
Whereas this is not a
common story, the pursuit
of profits can be lost in
how we generate those
profits and this is what
separates companies in
the long-term goal for
success. Yet this very story
does play out time and
time again, in different
markets and in different
ways.
entry into the Japanese
market. A very large
Australian food company
lost huge potential
sales by their lack of
interest to adjust their
product formula to meet
regulatory requirements
in some overseas markets.
Certainly it is not easy
to adjust formulas and
any decision to do so
must be backed up by
potential sales. However
this argument can
apply to packaging and
labelling as well. In a
recent trip to Myanmar,
almost no imported food
product had any Burmese
language labels. The
lack of regulation does
not help, yet surely any
entrepreneur can see this
opportunity a mile away.
For an incredibly small
amount of money, print a
Burmese language label
and not only increase
potential sales, but also
get the jump on your
competition and build
brand loyalty early. In
the absence of regulation,
take the initiative. Use
some common sense and
keep it simple, which can
reduce risk later on when
regulation does become
part of the food landscape
in Myanmar.
Let’s consider the sales
and marketing side of
the equation. If any food
exporter decides to work
with their distributor
to drive sales take some
time out to consider the
regulations and not just
consumer preferences.
For example, the Thai
FDA website simply states
“An advertisement is one
of the most important
measures for educating
consumers in order
to provide knowledge
about particular food
items. Therefore, food
advertisements must
be correct and fair to all
concerned.” And goes
on to say how a food
company can comply with
regulations.
In a market like India,
just 1% market share can
equal 10,000,000 units.
To capture the hearts
and minds of that 1%, an
advertising campaign
could certainly be a good
return on investment.
Recently the Indian
government released a
new policy to empower the
consumer. To understand
how this looks, consider
these early statistics.
Currently the Indian
advertising regulatory
environment is out dated
and relatively weak.
Make no mistake all that
will change. Empower a
civil society and the next
call will be for tighter
regulations. Add in
social media and you
have a potential recipe
for disaster.
•
export market (and
not just the labelling
regulations)
Work with your
distributor better by
showing you share
the same regulatory
environment.
Support your sales and
marketing and protect
your brand by knowing
what you can and cannot
say.
In conclusion, regulations
are constantly changing.
Once you make
understanding regulations
So here are the three simple part of the DNA of your
company, you reduce
rules:
the risk and create more
• Take the initiative opportunity for sales and
to know the a better relationship with
regulations in the your distributor.
Nestlé, the owner of Power
Bar adjusted the formula
of their product to gain
11
Features
The General Trade Sales and
Distribution Channel has Stagnated
In this article the author argues that the General
Trade is critical to the success of manufacturers – but
that it is massively underperforming. The problems can
be overcome and the General Trade revived, but only if
manufacturers are willing to break with tradition and
fundamentally restructure their distribution networks.
Background:
• Incur 15% higher
Fast Moving Consumer Goods (FMCG) manufacturers
reach the consumer through 2 main channels:
• Modern Trade – international and local supermarkets
or convenience chains
• General Trade(1) – local retailers serviced by territorial
distributors with agency rights
As modern retailers have
grown their market share,
they are increasingly
flexing their muscles and
driving down manufacturer
margins. Looking to resist
this margin squeeze, there
is growing consensus
among manufacturers
that maintaining a vibrant
General Trade is the only
sustainable defence against
this Modern Trade squeeze.
The author is a Partner with Logistics
Consulting Asia. Logistics Consulting Asia
works with FMCG manufacturers and
distributors in the development of supply
chain capabilities and technologies to serve
emerging markets.
www.logisticsconsulting.asia
hardly evolved in the past
50 years. A few computers
and smartphones
have been thrown at
the problem... but no
fundamental upgrades
have been attempted.
Today, the typical sales
and distribution network
looks something like the
depiction in Diagram 1.
In our experience, these
General Trade networks
This is not just a
usually:
defensive move. Across
Asia, hundreds of millions • Hold up to 45% more
inventory than required
of people are gaining
disposable income and
an appetite for packaged
Diagram 1 : Today’s Model
products. General Trade
sales and distribution
networks are the natural
conduit to reach these ‘new’
consumers.
operating costs than
required
• Deliver low product
availability - rarely
exceeding 80% (when
measured objectively)
• Blur the true demand
picture – making
planning a hit & miss
affair
In short – these networks
are approaching
obsolescence.
So, what’s the solution?
Imagine that you are
appointed Country Manager
of an FMCG manufacturer.
Your customers and current
market share already exist,
but you are magically
granted a clean slate to
create the optimal sales and
distribution infrastructure
to underpin sustainable
sales growth.
We believe that you would
end up selecting something
like the depiction in
Diagram 2. We’ve termed
this the Clockwork Model
(because it operates exactly
the same way, everyday,
minimizing opportunity for
error).
You’d choose this
infrastructure because it:
1. Lifts sales through:
• Consistently making 98%
•
•
of your product range
available for sale
The servicing of more
outlets from more sales
points
Distributor relationships
focused solely on sales
effectiveness
So where’s the problem?
Until now, lack of
urgency on the part of
the manufacturers has
meant that General Trade
distributor networks have
Distributors are contracted to hold inventory. This adds cost (warehousing and working capital) to the network, makes planning prone to
the 'whiplash effect' - reducing product availability for sale. The preoccupation becomes inventory (too much; too little; wrong product;
aging; damage; returns) rather than the selling of fresh product.
13
Distributors are contracted to hold inventory. This adds cost (warehousing and working capital) to the network, makes planning prone to
the 'whiplash effect' - reducing product availability for sale. The preoccupation becomes inventory (too much; too little; wrong product;
aging; damage; returns) rather than the selling of fresh product.
Business Advocate
Diagram 2 : Clockwork Model
or alternative route-tomarket models, it has won
hands-down – delivering
consistently better service
at a lower cost. This has
been the case whether
we were dealing with
high or low value goods,
ambient or temperature
controlled, regulated or
non-regulated.
Inventory is centralized and only sold on to the distributors once they have made a retail sale. This increases product availability and
simplifies planning processes. It also allows the distributors to focus on their real purpose – selling product. Penetration can be enhanced
by opening (stockless) sales offices with better proximity to the customers.
• Mobile technology
driving the right
behavior at the point-ofsales
2. Reduces operating costs
through:
• Stockless distributors
•
•
accepting reduced
margins
Reduced pipeline
inventory
Lower logistics costs
(transport costs may
rise, but are offset by
lower costs elsewhere)
to support such a highly
responsive network is
only newly available/
affordable. With mobile
technology having
progressed massively in
the past few years, it is
now possible to geo-code
every outlet, optimize the
salesman’s route, track his
movements, enhance his
performance at the outlet
(2)
and upload his orders in
time for evening picking
and overnight dispatch
from the DC.
So, if the Clockwork
model is so good, why
has it not taken root?
The second reason is that
to eradicate inventory at
the distributors means
taking an equivalent
hit on sales. This is
something that is difficult
to justify to shareholders
during a global economic
downturn. However, a new
option may be emerging.
By transferring ownership
of the centralized
inventory (housed in the
Distribution Centre) to a
third-party investor, the
manufacturer can avoid
taking the sales hit while
removing a substantial
amount of working capital
off the books.
The first reason is that
the technology required
The third reason is simply
lack of management
3. Protects your brand
through:
• A high degree of
product care, rotation
and traceability –
from factory to retail
shelf
• Facilitating new
product launches or
the phase-in/phase
out of re-launches
• Maximizing your
flexibility to adapt
the network to serve
the evolving market
14
bandwidth. Businesses
run leaner now, and few
manufacturers have the inhouse skills and resources
available to visualize plan
and implement such a
transformation.
The fourth reason is the
good, old-fashioned, “Let’s
wait for someone else to
do it first”. This reason is
the sad one – as it is gifting
market domination to the
modern trade retailers
and condemning Asia
to homogeneous chains
of branded outlets. The
General Trade can still be
reinvigorated now – but if
it is allowed to wither, there
will be a point of no return.
Our prediction………
Every time that we’ve
compared the Clockwork
model to either current
And it is WIN-WIN for all
parties in the chain:
• Manufacturers increase
sales though better
product availability and
market penetration
• 3PLs get to add value
- running missioncritical, fast-response
Distribution Centres
• Distributors get to
reduce their working
capital and work their
assets harder (3)
• Local retailers are better
serviced and they stay
competitive with the
Modern Trade
We predict that first
movers to the Clockwork
model will certainly gain
competitive advantage
that will drive growth.
However, there are no
major barriers to entry
(outside of people’s
perception) so within
5-6 years we believe that
almost everyone will
have moved across to this
model.
Notes:
(1)
Sometime known as the “Traditional Trade”
(2)
While this article focuses heavily on the supply chain aspects of distributor
networks, FMCG leaders will point out that it is the effectiveness of the
salesman at the outlet that will be the fundamental driver of growth. We’ve
heard respected industry leaders state that there is potential to grow sales by
30% if you can turn distributor ‘order-takers’ into ‘real salesmen’. Wellconfigured mobile technology (with integrated training and motivation) is the
perfect tool to drive this change.
(3)
Distributors hate inventory. Ask any distributor if he is in favour of a stockless
model. He will ask how soon you plan to introduce it - and will usually
volunteer to be your guinea-pig.
Business Advocate
Features
Developing The Local
Dairy Industry
Malaysia has seen a steady growth in the consumption of
dairy products over the years. In 2005, consumption of milk per
capita was 34.25 litre. This number has steadily increased since,
with 36.63 litre in 2006, 40.07 litre in 2007, 42.52 litre in 2008
and 45.74 litre in 2009.1
From 1990 to 2005, per capita consumption of fresh whole milk
had also increased 33% from 32.9 kgs to 43.5 kgs. 2
The steady increase in dairy consumption in Malaysia
can be attributed to many factors. For one, globalisation,
overall economic growth and urbanisation have
exposed more consumers, especially affluent ones,
to Western diets that include higher amount of dairy
products. With the internet, consumers are also
becoming more educated and health-conscious, leading
them to choose more organic and natural products.
Additionally, more
and more studies are
revealing the startling
findings involving
nutrition and children.
The latest South East
Asian Nutrition Survey
(SEANUTS) found that
one in 10 children are
undernourished, lacking
production of dairy. In
2009, production of fresh
milk was 62.3 mil litre,
compared with 34.06
mil litre in 2005.4 Selfsufficiency levels have
also increased, from 3.85%
in 2005 to 4.88% in 2009.5
in micronutrients, giving
rise to greater focus on
healthy foods like dairy
among children.3
Despite these
improvements, challenges
abound in the dairy
industry in Malaysia.
To meet with the
increasing demand, the
Malaysian government
has stepped up efforts
to increase domestic
Demand for dairy and
liquid dairy products is
projected to continue to
increase due to population
and income growth. At
the same time, changing
weather patterns, limited
land availability and
high milk production
cost are preventing the
growth and sustainability
of the dairy industry in
Malaysia.
There is also room for
improvement among local
farmers in the areas of
farm management skills,
animal welfare, breeding
and feeding.
A Perak-based farmer who benefited from the DDP Programme.
16
This results in low yield
per cow (average of 8 litres
per day versus 15 litres
in Indonesia) and poorer
milk quality.6
The population of dairy
farmers is also slowly
declining, as fewer
and fewer Malaysians,
especially the younger
generation, are choosing
to become dairy farmers.
To arrest this challenge,
the Malaysian
government has
introduced various
initiatives and
programmes to improve
the productivity of the
dairy industry.
The Ninth Malaysian
Development Plan
focused on growing
domestic dairy
production through
large-scale commercial
farming and value-adding
processes.
Most recently, in the 10th
Malaysian Development
Plan (2011-2015), the
government is focused on
strengthening technical
dairy service and
upgrading dairy service
centres.
As the leading dairy
company and the largest
purchaser of local fresh
milk in the country,
Dutch Lady Malaysia
introduced its Dairy
Development Programme
(DDP) in 2008 to promote
sustainability among
businesses of local dairy
farmers.
With collaboration
with the Department of
Veterinary Services and
the Netherlands Embassy,
the DDP comprises
various initiatives aimed
at helping local farmers
increase their production
of milk in both quality and
volume while ensuring
sustainability of milk
supply.
During the early stages
of DDP, it was observed
that milk quality was
not up to standards due
to high levels of bacteria
(total plate count) and low
nutrient composition,
such as calcium and
protein. The level of milk
production was also very
low due to inconsistency
in feeding and nutrition
supply to cows.
“Through the DDP, we
hope to help farmers
improve the local dairy
farm’s efficiency and
output so in the long
run, it will contribute to
competitive milk prices,”
said Rajesh Kallickal
Rajasekharan Pillai,
operations director of
Dutch Lady Malaysia.
Through the DDP, Dutch
Lady Malaysia focused
on increasing milk
quality and volume via
educational programmes
that offer additional
insights and information
on milk handling, hygiene
and cleaning.
In the Farmer2Farmer
programme under the
DDP, for example, three
Dutch farmers visited
local Malaysian farmers
in mid-2013 to share best
dairy farming practices,
knowledge with local
farmers in both Perak and
Malaca. As a result, local
farmers saw immediate
Perak farmers receive new churns from Dutch Lady Malaysia as a part of the DDP programme.
results such as higher
volume of fresh milk
produced per day.
The DDP also provides
gap analysis by auditing
participating farms
according to the Hygiene
Standard to improve fresh
milk quality and quantity.
“To date, more than
200 farmers in Perak,
Malaca, Johor, Pahang and
Selangor have benefited
from the DDP. With the
DDP, there have been
vast improvements in
quality of milk produced
and the relationship and
collaboration between
local farmers, thereby
enabling an exchange of
best farming practices,”
said Kallickal.
increasing total fresh milk
production to 120 mil
litres and self-sufficiency
level to 8%.7 With
availability of the volume,
research and development
and marketing innovation
can also help to create
demand and ensure intake.
With the vision and
support of parent
company Royal
FrieslandCampina, Dutch
Lady Malaysia could help
the local dairy industry
raise the level of local
fresh milk production to
a significant level, helping
the DVS’ 2020 target of
Notes:
(1)
Department of Veterinary Services
(2)
Boniface, B., Umberger, Wendy J. (2012). Factors influencing Malaysian
consumers’ consumption of dairy products. Australian Agricultural &
Resource Economics Society.
(3)
Dr Parikh, Panam (3 Sept 2013). British Journal of Nutrition. Vol 110, Sup: 3.
(4)
Department of Veterinary Services
(5)
Department of Veterinary Services
(6)
Department of Veterinary Services
(7)
Department of Veterinary Services
Dutch and local farmers share knowledge during a hands-on
training at a farm in Perak.
With these efforts,
combined with
government initiatives,
it is hoped that quality
and quantity of milk
will improve and cattle
farming will become more
sustainable and profitable
in Malaysia.
17
Business Advocate
Features
Franchising – A Great Method
for Business Expansion.
But Do It Wisely
Most of us would agree that among all the business strategies
for expansion, franchising is one of the most effective and popular
choices, especially in the food and beverage (F&B) industry. Such
a business expansion method has been proven successful by
both local and international brands alike, namely McDonald’s,
Subway, OldTown White Coffee and Bangi Kopitiam.
However, it is important to note that the one of the
most basic elements before you start a franchise
business of your own would be to protect your
intellectual property rights – and your brand name,
needs to first be protected via a trademark registration.
The subject on
trademark in itself, is
quite an elaborate one
so for the purpose of
this article, we will
only focus on – the
importance of choosing
a strong mark.
When starting a new
business, pick a name
that is distinctive.
Distinctiveness may
serve as a requirement
to obtain protection
through the registration
of a trademark by the
Intellectual Property
Corporation of Malaysia
(MyIPO). A mark needs
to have a characteristic
that makes it distinct
from others of its kind.
A mark is "inherently
distinctive" if it is:
• Invented, or
completely made up
(e.g. KODAK, XEROX
or NIKE);
18
• Arbitrary, having
common meaning but
unrelated to the nature
of business (e.g. DELL
for computers, CAMEL
for cigarette); or
• Suggestive, requires
some imagination to
reach a conclusion as to
the nature of the goods
(e.g. CADBURY for
chocolate).
Trademarks that do not
fulfill the above may
become distinctive
through extensive usage
and/or advertising.
When that happens,
the trademark fills
the marketplace and
gains a requisite level
of market recognition
among consumers after
a long period of time,
the trademark is said to
have acquired secondary
meaning. Eventually,
the trademark will be
granted registration as
an inherently distinctive
mark.
When it is not distinctive,
it is considered as a
generic mark. Generic
marks (that are almost
entirely referenced to
the product or service)
will never be distinctive
and is not protectable,
no matter how widely
recognised they are by
consumers. Examples such
as – Restaurant, Bistro,
Café or Kopitiam – those
are generic names which
cannot be registered.
Moving on, entrepreneurs
who wish to step into
franchising have to
understand and be willing
to adopt a new mindset
or approach – that it will
never be as how they used
to operate their business.
Entering into the world of
franchising is a doubleedged sword, full of great
opportunities yet threats
lie ahead. In order to be
successful and to be able to
have the staying power in
your franchise business,
we would advise you to
keep these 10 franchising
pillars in mind.
Ray Low – Principal Franchise Consultant & Alex Neoh –
Trademark Director Intellect Group of IP Companies.
Intellect Group provides intellectual property consulting in
areas such as trademark, copyright, patent, industrial design,
franchising and licensing.
19
Business Advocate
Features
Pillar 6: Management
Team
No matter how great the
franchise system is, it still
needs to be operated and
executed by people. Even
if the franchise system
may not be very good at
the beginning, as long as
the right people are there
in the system, eventually
the system will be
improved and successful.
Many successful F&B
franchises are being lead
by competent leaders
and followed by people
with a passion towards
their jobs.
Pillar 1: Legalities
A great franchise system
needs to be able to be
executed within the
confinement of the law.
In Malaysia it will be
very relevant as we are
among the only three
countries in the world
with a Franchise Act.
Hence proper franchise
agreements which consist
of all the terms related
to the collaboration
between the franchisor
and franchisee and
all the other relevant
legalities issues should be
documented.
truly stand out from the
rest.
Pillar 3: Business
Concept
If the business concept
is to be an outlet where
patrons could chill and
chat then its interior
design and menu mix
should be done right,
to truly create that
environment. F&B
entrepreneurs need to
always be able to deliver
their concept rightly and
have the ability to adapt
to the ever-changing
market demand.
Pillar 2: Unique
Selling Proposition
Pillar 4: Franchise
System
An F&B entrepreneur
needs to ask himself this
question – What is SO
special about his product
or service? It could be
his secret recipe, system,
advertising efforts, etc.
There must be a strong
and distinctive USP in
order for your business to
Franchising is basically
leveraging on the power
of duplication hence in
order for the business
expansion to grow
successfully, it must
possess a solid franchise
system. Without a strong
foundation, it will be
near impossible to grow.
20
A franchise system may
be complex but it should
not be too complex to
the extent that it makes
it difficult for all its
franchisees to run their
outlets smoothly.
Pillar 5: Accounts &
Finance
Many F&B-related
businesses failed due
to accounting issues
and franchising is
no different in this
manner. Entrepreneurs
will need to do costing
and projection of sales
revenue versus overheads,
while considering their
own margin as franchisor
and the margin of its
franchisee in order for
the whole franchise chain
to operate with profits.
In any F&B franchise
business, food wastages,
pilfering and poor
managing of stocks could
be some of the major
factors contributing to
their downfall if they are
not managed effectively.
Pillar 7: Innovation
Did you ever notice that
successful F&B franchises
always bring a wave
of fresh new dining
experiences in their
outlets? This is because
the franchise business
owner understands
the importance of
staying relevant in
the market. Research
and development
of the product mix,
technologies, knowhows, ambience of the
outlet and marketing
campaign need to be done
periodically. Without
innovations, these
businesses are at risk of
being eliminated by the
competition eventually.
Pillar 8: Support
Infrastructure
Many franchise
businesses failed
because the franchisees
had very little support
from their franchisors.
With the intention
of branching out, the
entire programme needs
to be planned properly
– considerations about
franchisees must not be
compromised. No matter
where the franchisees
are at – locally or
internationally, no matter
what problems they
have – from machine
breakdowns to insufficient
raw supplies, a franchisor
must be able to provide
continuous support and
assistance.
and a conventional
business in the eyes of
the consumers lies in
their marketing efforts. A
franchise business needs
to leverage on its strength
in number of outlets.
So a good investment
for a franchise business
would be on branding and
marketing efforts. Failure
to incorporate these
activities will affect the
business negatively.
Pillar 9: Marketing
Pillar 10: Relationship
Management
The difference between an
F&B franchise business
This is one pillar with
the utmost importance,
Wine Country
The wine market in Malaysia is a very
niche and import-dependent market, and
its increasing popularity is continually
fuelling the growth of this sector.
Over the last five years alone, Malaysia has experienced
a surge in consumer habits towards drinking wine. It
has not only become an important social drink at homes
and private parties, but it has gained popularity in many
restaurants, pubs and bars, as well as wineries. More and
more Malaysian are opting to have a glass of wine or two
with their meals when they dine out.
The rising appreciation for
wines has also driven the
number of wine-tasting
events by wineries to
increase. Even an evening
out to most of the art
openings at local galleries
now serve wines. In
recent years, the Malaysia
International Gourmet
Festival also feature
wine selections, which
further boosts this sector
and increases consumer
in order for the rest of
the pillars to be executed
effectively and smoothly.
Managing relationships
has three phases – (i)
manage the franchisor’s
own internal management
team; (ii) manage the
relationship between
the franchisor and its
franchisees; and (iii)
manage the relationship
with the customers.
To conclude, a trademark
is the key aspect to look
into before venturing
into an F&B business.
Understanding the
importance of the
intellectual property rights
is vital. After securing
one’s intellectual property
rights, entrepreneurs
may look into expanding
their business through
franchising; a method
with proven success if
everything is done
in order.
Important note:
The opinions regarding these two huge
subjects expressed in the above article
are those of the authors. There are many
more elements involved in a trademark
registration and franchising as a way
of business expansion. Therefore, we
would like to emphasize that it would
be best to seek advice from professionals
before any action is taken.
Passport study concluded
that the sales value of
sparkling (champagne and
others varieties) and still
wines (red, white and rosé)
increased from RM548.7mil
in 2006, to RM844.9mil by
2011, representing a 54%
increase.
by about 70 per cent to
30 per cent. Although there
is no detailed studies done
on which region’s wine is
the most popular among
consumers, import data
show that the top three
regions are Australia,
France and Italy.
Large selections of the wine
imports to Malaysia are
primarily from Australia,
France, Italy, Chile, South
Africa and New Zealand.
Generally, it seems that
Malaysian consumers
tend to prefer red wines
to white or rosé wine
Currently, the largest
supplier of grape wines
is Australia and the
stipulation under the
Malaysia-Australia Free
Trade Agreement, which
gives Australian wines a
“Most Favoured Nation”
status and guarantees the
knowledge about this
choice drink.
According to the
International Trade Centre,
in 2011 alone, the Malaysian
wine market was estimated
at USD69.6 million.
Since then, the value is
gradually increasing as
more and more Malaysians
indulge in wine as their
choice alcohol. A 2012
Euromonitor International
21
Business Advocate
best tariff treatment from
the Malaysian Government,
allows for wine imports
from this region to grow
considerably.
Although Australian
and French wines have
gained wide popularity
in the local market over
the years, Italian wines
have been experiencing a
surge in demand in recent
years. The burgeoning
interest in Italian cuisine
and growing number
of Italian restaurants in
Malaysia has fuelled this
growth. Many hotels have
also opted to change their
in-house restaurants from
French to Italian cuisine and
subsequently adding Italian
wines to their wine list. This
has also added to the growth
of import from this region.
Aside from the palate
preference of consumers
that dictate which region is
favoured for wine imports,
Features
prices of wine selection
and promotional offers
also play a vital role in
wine sales. Generally,
wine sales in Malaysia are
divided between off-trade
channels by wine retailers,
which account for 60%
of the sales, and on-trade
channels by hotels and
restaurants, which account
for the remaining 40%. The
competitive prices tend to
steer the off-trade channels
that prefer the low to midpriced wines, while on-trade
is driven by exclusivity,
which makes the mid to
higher priced wines more
suitable.
be growing with the market.
These are mainly imported
from Australia and Chile.
wine bottles as an antitempering mechanism.
This is mainly to reduce
wine counterfeiting and
There is also a shifting trend smuggling into the country.
towards South African
wines that offer good value
There are also stringent
varieties within this price
regulations concerning the
range. Finally, the premium packaging and labelling
priced wines that cost
of wine bottles that are
RM110 and above, which are imported. Bottles must
opted only by a small group state specific description of
of connoisseurs, are still
the product, the alcoholic
very much dominated by
content in bold-faced
Old World wine producers
lettering of a non-serif
and selections from France
character not less than
and Italy.
12-point size lettering,
stating the words “ARAK
MENGANDUNGI__%
Similar to all other alcohol,
ALKOHOL” (i.e. Liquor
wine imports are also
containing__% Alcohol).
subjected the same strict
Each bottle must
regulations. The Royal
Customs and Excise
also include detailed
contact information of
Department of Malaysia
requires all wine importers, the manufacturer and
distributors and retailers to importer, country of origin,
primary ingredients
complete an import permit
used in production and
application and ensure
the minimum content by
that all their products
volume.
are labelled with security
stamps on the cover of
Currently, the more popular
lower range wines that
retail from RM35 to RM50
per bottle are dominated
by New World selections
from Australia, Argentina,
Chile and South Africa.
Wines in the mid-price
range, between RM60 to
RM110, are also proving to
Asia’s Halal Hub
The worldwide Halal food sector is a thriving industry
and Malaysia is perfectly positioned to be the regional hub
for this sector, offering endless possibilities, and investment
opportunities to global players.
From the time the 2006
Third Industrial Master
Plan (IMP3) was set in
motion, Malaysia has
harboured aspirations
to become a global hub
for the production and
trade of halal products
and services. Since then,
Malaysia has thrived
economically and emerged
22
as a progressive Islamic
country with unparalleled
potential, offering business
opportunities to both
Muslims and non-Muslims
alike.
With a majority of Muslim
population, the demands
and expectation of halal
standards have increased
over the years. It has also
extended from meat and
meat products to non meatbased products such snacks,
confectionery, dairy, bakery.
The fact remains that halal
is fast becoming recognised
as a new benchmark for
quality, hygiene and safety.
Malaysia holds many
advantages to be the
hub in developing and
promoting Halal products;
its strategic position
within Asia Pacific,
which provides easy
in-roads to emerging
markets in Asia, is a mere
small facet. In terms
of Halal Certification,
Malaysia provides
one of the globally
recognised accreditations,
endeavouring to
standardise the halal
certification process across
the world with guidelines
for a four-module Global
Halal Standard. Malaysia
also works closely with
the Organization of
Islamic Conference (OIC)
countries to promote the
Malaysian Halal Standard
positioning Malaysia as
an international Halal
hub, means good news
for local food processing
companies. In order to
seize the Halal market
abroad, they are able to
leverage on the strength
of Malaysia’s Halal
certification, as well as the
government's promotional
efforts.
as the benchmark for
international standard for
halal products.
There is added marketing
value to food products
and ingredients that
have halal certificates.
Hence, most retailers,
foodservice operators and
food manufacturers are
inclined to ask for halal
certificates for non-meat
based food products
and ingredients.
Thus far, the Malaysian
government has placed a
lot of effort and focus on
promoting the local halal
food industry. Application
processes for halal
certification and other
related enquiries have
been made more accessible
and simplified through
their online e-Halal
portals. This channel
connects to the various
regulatory bodies that can
disclose the Halal status
of any food processing
company, which makes
the whole process and
procedure all the more
transparent and easy
to navigate.
This makes it easier for
halal food manufacturers
to comply with global
market requirements.
Currently, there are
processing plants
in Australia, the US,
Argentina, Brazil,
Uruguay, South Africa,
New Zealand, Thailand
and China that are
certified by Malaysia.
Malaysia also has the
ability to offer end-toend Halal services that
allows for sophisticated
research and development
activities.
The high technology,
knowledge-based
and capital-intensive
industries that fuel our
export-driven economy
makes this entirely
plausible. Moreover,
Malaysia provides a
conducive operating
environment with
efficient institutional
infrastructures, trade
policies and tax incentives
to foreign investors,
which allows for a robust
development within
any industry – Halal or
otherwise.
Over 60% of the global
market for Halal products
is derived from the food
sector, which includes
primary meat, processed
goods, bakery food and
confectionary. Typically,
the highest awareness
and observance of Halal is
revolved around food and
beverage, which means
Halal compliance in this
sector is vital.
Thus, Malaysia, as a
Muslim country, is
perfectly placed to be the
centre for the promotion,
distribution and
production of Halal food.
It also allows Malaysia to
showcase some of its best
culinary products. The
crucial aspect of Halal
requirement within the
industry is compliance at
all stages of the production
and supply chain,
including procurement
of raw materials and
ingredients, logistics and
transportation, packaging
and labelling.
The focus of the Malaysian
government on increasing
food production and also
In fact, there are
already many local food
manufacturing and
processing companies
gaining clout from
Malaysia’s strength as a
halal hub, and achieving
more international interest
for investment within the
local halal food sector. Just
in the last few years, many
foreign companies from
within the region have
invested billions in the
local halal sector, causing
a surge of increase in the
production of halal food for
export.
Currently, there are many
countries worldwide that
import and sell Malaysian
processed foods that are
halal certified. This has
opened a floodgate of
opportunities for local food
manufacturers to make
their mark abroad and
create a global awareness
of local brands. All these
efforts only make Malaysia
a stronger centre for halal
foods and an even more
attractive prospect for
foreign investors. A more
liberal industrial sector
will draw more foreign
participation, encourage
R&D for innovative halal
products, and push for
global adoption of
halal standards to
facilitate trade.
23
CEO Profile
Interview with the Managing
Director of Mondelez Malaysia
Sales Sdn Bhd
MICCI speaks with Sunil Sethi on Mondelez Malaysia's
position in the FMCG industry.
1
On 1st of July
2013, Kraft
Foods Malaysia
officially changed its
name to Mondelez
Malaysia Sales Sdn
Bhd. Understand
that the rebranding
direction came from a
global office in the US
but since the rebrand
in July in Malaysia,
has the brand faced
challenges with
Malaysian consumer
awareness and
product sales?
On 1 October
2012, we
completed
the split
of Kraft
Foods Inc. into two
companies, enabling
us to create two strong,
but distinct portfolios:
a global snacks and
confectionary business
to a new company called
Mondelez International
Inc whilst Kraft Foods
Group Inc focuses on the
North American grocery
business.
Mondelez International
Inc. is one of the world’s
largest snack companies
with a single focus in
mind: to create delicious
moments of joy by
sharing the world’s
favorite brand. The
change officially took
place in Malaysia on the
1st of July 2013 where
we are now known as
Mondelez Malaysia.
As this is a legal
name change
there is no change
to company
officers, assets,
or business
activities.
Sunil Sethi
Managing Director, Mondelez Malaysia
Sunil Sethi is the Managing Director of Mondelez Malaysia. In
this role, he is responsible for managing & developing Mondelez
Malaysia’s business and operations in the country. Sunil has rich
and varied experience in sales, marketing and general management
in the FMCG industry across many Asian markets.
24
The shift to Mondelez
International is merely
a legal name change
in the market. We still
carry forward the
values of our legacy
organisation and the
rich heritage of our
iconic brands. Our
values remain the same
but our dream is new.
We have become a whole
new company with
new aspirations and
new ideas. Consumer
remember you for your
brands and Mondelez
International serves as
an umbrella for a wide
array of iconic global
power brands - such
as Oreo, Tiger, Jacob’s,
Chipsmore, Cadbury
Dairy Milk, Choclairs
and Twisties which have
long and proud heritage
in Malaysia.
We look forward to
accelerating our growth
momentum with
continuous innovation
which tailors to our
consumers’ taste
buds and winning in
the marketplace by
capturing the new idea
of “creating delicious
moments of joy.” There
is nothing more local
than taste, and we
believe we do this better
than anyone else.
2
How will you
intend to
continue the
local momentum
going for the next
couple of years under
the new brand name
Mondelez Malaysia
Sales?
In the past year, we've
learned a lot about our
company: who we are,
what we stand for and
what we believe in. We’ve
uncovered an important
belief. One that’s central
to our unique strengths,
core to our untapped
potential, and crucial
to our competitive
advantage: “The power of
big. And small.”
The good thing is nothing
fundamentally changed
with the split, but our
resources grew and that
will certainly help us
develop our categories
into their potential. It’s
the power of big and
small – we have the
expertise, resources,
people and technology
of a global powerhouse,
but we need to leverage
that with agility,
flexibility and speed
of an entrepreneurial
organisation.
When we defined
the purpose for the
Malaysian organisation,
we fell back to our
25
Business Advocate
values and objectives,
which is to do our best
to engage and uplift the
spirit of Malaysians by
contributing to the joy
and wellbeing of our
consumer. This is what
we do, it’s written into
the very foundation of
the company: we create
joy. We achieve this by
carrying products of the
best quality, incorporating
local talent, building an
empowering working
environment and giving
back to society. It’s an
ongoing holistic journey
that makes us among the
top employers of choice.
We have brands that truly
create delicious moments
for our customers. In
Malaysia, we are the
leader in biscuits and
chocolates, and we have
a very strong position in
salty snacks. I am proud
to share that Mondelez
Malaysia has retained its
various brands’ current
market share and secure
industry recognition,
for various consumer
campaigns and we are
proud to be ‘Malaysia’s
Favorite snacking
company’. Our brand
makes Malaysians smile
and we as a company will
keep on striving to do so.
3
How do you
retain talent
within your
corporation?
We are selective about
our team at Mondelez
Malaysia, we aim to
only get the best. It’s like
constructing a building,
laying brick by brick. You
26
CEO Profile
don’t want pieces that
don’t fit; you want ‘bricks’
that are on the same brain
wavelength and creative
capacity. Essentially, to
retain talent, we first
need to place greater
emphasis on engaging
and learning about
what motivates the next
generation of leaders.
Talents at different levels
in the organisation are
at different stages of
their lives and would
value things differently,
which is why, Mondelez
Malaysia develops
diverse approaches, tools
and processes to hone
their skills, manage their
career and reward them
with exciting and tasty
opportunities.
Within our corporation
we pride a special talent
platform called the
EVP (Employee Value
Proposition) which
has two purposes, to
attract and unleash.
Our EVP liberates, not
restrains. It is a catalyst
for a movement and a
spark for creativity. Our
internal goal is to create
a great place to work
and make Mondelez
Malaysia a compelling
talent destination so our
associates are proud to be
part of our organisation.
We want to build a
future where our talents
are driven to achieve
great things through
collaboration and
confidence. Essentially,
our end objective is to be
perceived by our external
stakeholders, prospective
employees, the media,
our vendors and
consumers as a “Great
Place to Work”.
4
How would
you describe
Mondelez
Malaysia’s corporate
culture in the food
industry?
The corporate culture
at Mondelez Malaysia is
indeed very strong. If I
was to enumerate some
of our values I hold as
Managing Director of
Mondelez Malaysia, I
would say we are about
inspiring trust – we
tell it like it is, we act
like owners, we keep it
simple, we are open and
inclusive, we lead from
heart and head, and
we discuss, decide and
deliver. Those values
have held us despite of all
the acquisitions that we
made and that’s helped us
drive a common culture
towards a common
purpose. It has been a
very exciting journey
thus far.
However, to establish a
good corporate culture,
you need to determine
what is at the core of
the company, and at
the heart of ours is
people performance.
It’s the people who
deliver the performance
and performance is
ultimately derived
from the people. We
ensure this philosophy
is deeply entrenched in
our operations, and are
guided in the day-to-day
behavior by our company
values and long-term
by the implementation
of several programmes
and practices that make
Mondelez Malaysia a
great place to work.
5
These sales and
manufacturing
business are
quite separate, which
one is the most
profitable one, in
terms of return capital
employed?
We look at it as a
complete business. It’s
not manufacturing as a
separate entity or sales
as another separate
entity. We perceive our
business as one entity. We
operate on an end-to-end
business. We manufacture
our products, we market
and sell them. We never
make it a choice between
what is more profitable.
What we have always
driven is what we have
driven end-to-end
optimisation to ensure
that we get best returns on
the money that we spent
in the business.
In terms of looking at
the whole ASEAN region,
we are number one in
biscuits. We operate in
the four core segments
in biscuits which are
crackers, plain sweet,
cream sandwich, and
cookies. In Southeast
Asia, we are the only
business which has
presence in all four
segments which forms
about 75 to 80 per cent of
the biscuits category. In
chocolates, we’ve got a
huge leadership through
our Cadbury Dairy Milk,
which is a big global
brand. We are the frontrunners and you would
see that as we bring in
innovations, Malaysia will
be leading the innovation
agenda in Southeast Asia.
6
What is your
consumer
spending like
at the moment in
Malaysia?
Based on our conclusions
last year in 2013 within
the last quarter, consumer
spend confidences was
slightly lower compared to
the previous quarters. As I
read the research reports,
there was slight concern
on the inflation that is
currently occurring in the
country. Consumers are
becoming more conscious
and savvy but the good
news is that whenever
consumers become overconscious, they go back
to their trusted brands.
Consumers will always
return to the brands
they are familiar as they
want to be very sure
of every cent that they
spend and that’s where
our brands like Oreo,
Jacob’s, Chipsmore, Tiger,
Twisties and Cadbury
Dairy Milk play a huge
part in their lives, because
these are brands which
are most trusted.
7
Describe to us
your personal
work ethic and
leadership strategy?
I knew I had
a purpose bigger
than just myself, and
recently unconsciously
found a new purpose;
influencing other and
helping them unlock
their full potential. I
focus on empowering and
encouraging others - I’ve
discovered that the more
I help my colleagues the
better the business grows,
which happily serves
both the company’s
and my personal goals.
You have to approach
relationships and roles
with sincerity and you
will be surprised at how
people will reward you. I
spent more than 40% of
my time here on peopleoriented tasks. However,
like all good leaders, it’s
good to have a healthy
dissatisfaction to keep
you focused on remaining
strategically ahead.
occasionally place first.
You need to constantly
shift your paradigms
because contexts keep
changing. You must keep
looking in the mirror
and reinvent yourself to
stay relevant and ahead.
I want us to be the
benchmark, not be part
of the competition in a
series of races where we
27
CEO Profile
Interview with the Region Head
of Nestlé Malaysia & Singapore
MICCI chats with Alois Hofbauer on
the F&B industry in Malaysia.
1
How do you find the
Malaysian business
scene ever since
assuming your current
position at Nestlé
Malaysia Berhad?
around the world as we
are the Halal Centre of
Excellence for the Nestlé
world.
I have found Malaysia
to be a very conducive
place for companies such
as Nestlé to do business.
Supportive government
policies, attractive
business incentives, the
good infrastructure and
the market-oriented
economy make Malaysia
a very competitive
for manufacturing,
marketing and export.
What are the
key challenges
for the F&B
industry for the year
ahead?
Malaysia being the
Halal hub for the
region also provides
great opportunity
for Nestlé Malaysia to
serve other Nestlé
affiliates
2
Firstly the escalating
prices of key commodities
such as milk powders,
coffee beans and others.
Secondly is the
weakening
of Ringgit
against other
currencies.
Both are
having an
adverse impact
to our input
costs.
Alois Hofbauer, an Austrian national, was appointed the
Managing Director of Nestlé Malaysia and Regional Head of
Nestlé Malaysia/Singapore on 1st February 2013. He also assumed
his position on the Company’s Board of Directors on 22 February
2013 and is also responsible for the Singapore Region.
28
However we will continue to
leverage on our continuous
improvement in operational
efficiencies and other
cost reduction initiatives
under the umbrella
of Nestlé Continuous
Excellence (NCE) to ensure
the operations are cost
competitive and to offset
some of these cost increases
to our best ability.
3
What are some
of the more
significant
changes that the
Malaysian F&B industry
has experienced in the
last 5 years?
The landscape has changed
whereby there are many
more local and regional
players in the market.
Another, is the changing
of consumer lifestyle and
demand. More consumers
are looking for convenience,
as well as increase in the
out-of-home consumption.
They also demand for a
more healthy and nutritious
products.
As the leading food
company in Malaysia, we
are focused on Nutrition,
Health and Wellness, and
we have been actively
promoting healthy living
as well as innovating and
renovating our products to
make them healthier and
more nutritious without
sacrificing on taste and
value.
We are continuously
striving to live up to our
mission to provide “Good
Food, Good Life” to all
Malaysians.
4
Can you tell us
how the F&B
industry is
adapting to meet the
demands of changing
food trends in
Malaysia – especially
with the rising
demands of healthy
food?
To be sustainable in our
business we have to
adapt with the evolving
demands of changing food
trends and needs stages of
our consumers. At Nestlé,
we believe that continuous
innovation and renovation
of our products, are key to
maintain our competitive
advantage. We have the
largest private Research
29
Business Advocate
Nestlé globally has the
largest private R&D
network and we are
continuously innovating
and renovating our
products to reduce sugar,
salt and fat content in
our products without
sacrificing the taste.
7
Which sector
within the
F&B industry
in Malaysia is the
biggest contributor to
economic growth?
and Development
network in the world,
where we carry out
research to develop
healthy new products,
as well as making our
existing products more
nutritious without
sacrificing on taste.
5
How has
the recent
implementation
of the Goods and
Services Tax (GST)
and sugar subsidies
affected the F&B
industry as a
whole? And how
has it affected food
manufacturers such
as Nestlé?
We are all gearing up
to the implementation
of GST in 2015, and
we do not expect a
significant impact as the
Government has been
playing its’ role well
in creating awareness
and getting the public’s
30
understanding of the
implementation of GST.
Speaking for Nestlé
specifically, the
recent sugar subsidy
rationalisation have no
impact as the company
has not been enjoying the
sugar subsidy since 2012.
6
Statistics from
a 2012 survey
by the National
Health and Morbidity
Survey indicated that
15% of Malaysians aged
18 and above suffer
from obesity. Can you
tell us how Nestlé is
responding to this
concern, especially
within sectors that
focus on R&D?
As the leading Nutrition,
Health & Wellness
Company in Malaysia,
we have the obligation to
help educate consumers
on the problems relating
to obesity and Non
Communicable Diseases,
besides looking at ways on
how we can continuously
improve our products to
make them more healthy
and nutritious. We also
have an obligation to help
to educate consumers on
healthy lifestyles.
It is crucial to educate
children and adolescents on
the importance of healthy
eating and active lifestyles,
as this would affect their
growth and development
for their future as adults.
Our Nutrition, Health and
Wellness strategies go
beyond the production of
healthy and nutritious food.
We have also embarked
on various educational
initiatives for children and
youths.
One such initiative is the
global “Nestlé Healthy
Kids Programme”. The
Programme aims to raise
nutrition and health
knowledge and promote
physical activity among
school-age children around
the world.
As the country developed
and consumer trend
evolved, we do expect
the overall F&B industry
in Malaysia to continue
to grow well within the
GDP growth. There is also
trend of the out-of-home
sector to grow faster due
to this evolving trend that
more and more people eat
outside their homes and
cook less themselves at
home.
There is also a huge
opportunity in the export
of halal food business
especially with Malaysia
focused on being the halal
hub for the region.
From the Nestlé
perspective, we remain
the Halal Center of
Excellence for the
Nestlé world and we are
benefitting strongly from
the growing demand for
halal manufactured food
not only in the traditional
Muslim countries, but in
markets with a growing
Muslim population in
Europe and other parts of
the world as well.
31
Members News
MICCI Welcomes its
New Members...
Company:
ACE PRIMA RESOURCES SDN BHD
Name:
Lee Shashitheren
Designation:Director
Address:
Suite 1113, Level 11, Block A4
Leisure Commerce Square
Jalan PJS 8/9, 46150 Petaling Jaya, Selangor
Tel/Fax:
012-527 5082 / 03-7865 6920
Business Sector:Chemicals/Minerals
Company:
AHMAD ABDULLAH & GOH
Name:
V. Venkatachalam
Designation:Partner
Address:
Suite 1705, Level 17, Menara Landmark
12 Jalan Ngee Heng,
80000 Johor Bahru, Johor
Tel/Fax:
07-224 1117 / 07-224 9591
Business Sector: Consultancy/Business Services
Company:
AIA BHD
Name:
Bill Lisle
Designation:
Chief Executive Officer
Address:
Level 29, Menara AIA
No. 29 Jalan Ampang
50450 Kuala Lumpur
Tel/Fax:
03-2056 1089 / 03-2056 2992
Business Sector:Banking/Insurance
Company:
AMD CONSTRUCTION SDN BHD
Name:
Balamurugan Subramaniam
Designation:Director
Address:
44-3-1 & 46-3-1, Jalan Medan Putra 3
Medan Putra Business Centre
Bandar Sri Menjalara, Off Jalan Sri Damansara
52200 Kuala Lumpur
Tel/Fax:
03-6273 2772 / 03-6273 6772
Business Sector:Construction/Engineering
Company:
CONDITION ZEBRA (M) SDN BHD
Name:
Wilson Wong
Designation:
Managing Director
Address:
Level 3A-10, Block F
Phileo Damansara 1
Jalan 16/11, Off Jalan Damansara
46350 Petaling Jaya
Tel/Fax:
03-7665 0911 / 03-7665 2022
Business Sector:ICT/Communications
Company:
FIRST SOLAR MALAYSIA SDN BHD
Name:
P'ng Soo Hong
Designation:
VP-Site Manager
Address:
8 Jalan Hi-Tech 3/3
Zon Industri Fasa 3,
Kulim Hi-Tech Park
09000 Kulim, Kedah
Tel/Fax:
04-401 6776 / 04-401 6800
Business Sector:Energy/Utilities
Company:
FOCAL CONCEPTS SDN BHD
Name:
Susan Chyntana
Designation:
Creative Director
Address:
38 Contonment Road
10350 Penang
Tel/Fax:
04-210 3898 / 04-210 3893
Business Sector: Media / Advertising
32
33
Business Advocate
34
Members News
Company:
GAMLITE (M) SDN BHD
Name:
Daphne Fu
Designation:
Admin. Accounts & Finance Manager
Address:
Lot 24 Taman Sri Kulombong
Jalan Kolombong, Inanam
88450 Kota Kinabalu, Sabah
Tel/Fax:
088-382 290 / 088-380 290
Business Sector:ICT/Communications
Company:
LOKLI SDN BHD
Name:
Ang Wei Tat
Designation:
Chartered Accountant
Address:
No. 2 Jalan IKS PTI
IKS Padang Temu
75050 Melaka
Tel/Fax:
019-628 7779 / Business Sector: Consultancy/Businese Services
Company:
GENISIS TECHNOLOGY SDN BHD
Name:
Sivakumar Selvaraju
Designation:
General Manager
Address:
The C.E.O Suites, 31-12-12
Lebuh Nipah 6, Bayan Lepas
11950 Penang
Tel/Fax:
04-642 0642 / 04-643 6066
Business Sector:Construction/Engineering
Company:
MALAYAN BANKING BERHAD – Kota Kinabalu
Name:
Liew Kui Choi
Designation:
Regional Director
Address:
2nd Floor, Maybank Building
No. 1 Lorong Kemajuan, Karamunsing
88000 Kota Kinabalu, Sabah
Tel/Fax:
088-217 013 / 088-234 743
Business Sector:Banking/Insurance
Company:
HENRY BUTCHER MALAYSIA (SABAH) SDN BHD
Name:
James Lo Thhu Phin
Designation:Director
Address:
Suite 326, 3rd Floor, Wisma Sabah
88000 Kota Kinabalu, Sabah
Tel/Fax:
088-255 000 / 088-257 333
Business Sector: Property/Real Estate
Company:
M.E.T. MOTION ENGINEERING & TRADING SDN BHD
Name:
Yeong Kai Kun
Designation:
Manager Director
Address:
No. 8 Lorong Ceri 4
Taman Aman Jaya
Jalan Raja Uda, Butterworth
12300 Penang
Tel/Fax:
04-333 3130 / 04-323 7630
Business Sector:Construction/Engineering
Company:
INTI INTERNATIONAL COLLEGE PENANG
Name:
Dr. Michael Yap
Designation:
Chief Executive/Principal
Address:
1-Z Lebuh Bukit Jambul
11900 Penang
Tel/Fax:
04-631 0138 / 04-631 0065
Business Sector:Education/Training
Company:
Name:
Designation:
Address:
Tel/Fax:
Business Sector:
Company:
ITCO NIAGA SDN BHD
Name:
Anita Aqeela Hiong
Designation:
Managing Director
Address:
Suite 129, No. 38A-1 Jalan PJU 5/9
Dataran Sunway, Kota Damansara
47810 Petaling Jaya, Selangor
Tel/Fax:
012-2896203 / 03-6140 3731
Business Sector:Food/Beverages
Company:
PRINCE OF WALES ISLAND INTERNATIONAL SCHOOL
Name:
Philip Peter Couzens
Designation:
Chief Executive Officer/Principal
Address:
1 Jalan Sungai Air Putih 6
Bandar Baru Air Putih
11000 Balik Pulau, Penang
Tel/Fax:
04-868 9999 / 04-868 9900
Business Sector:Education/Training
Company:
KINSLAGER (M) SDN BHD
Name:
Niels Strohkirch
Designation:
Chief Executive Officer
Address:
Lot FF-08 Waterfront @ ParkCity
No. 5 Persiaran Residen, Desa Parkity
52200 Kuala Lumpur
Tel/Fax:
011-1158 1128 / 03-6280 8258
Business Sector:Retail/Wholesale
Company:
RAM HOLDINGS BERHAD
Name:
Datuk Dr. K. Govindan
Designation:
Group Chief Executive Officer
Address:
Level 20, The Gardens
South Tower, Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
Tel/Fax:
03-7628 1000 / 03-7620 8254
Business Sector: Others (Unspecified)
P & B METAL COMPONENTS (ASIA) SDN BHD
Paul Bushell
Managing Director
PLO 258 Jala Firma 3
Kawasan Perindustrian Tebrau IV
81100 Johor Bahru, Johor
07-360 7000 / 07-360 7001
Metal Manufacturers
35
Business Advocate
Members News
Company:
Name:
Designation:
Address:
Tel/Fax:
Business Sector:
36
SAMANEA PR SDN BHD
Aisha Rashid MA, APR, FIPR
Chairman & Principal Consultant
19-3 Block 1A Jalan Wanga Delina 13
Wangsa Link, Wangsa Maju
53300 Kuala Lumpur
03-4149 8193 / 03-4149 8349
Consultancy/Business Services
Company:
TIARA LABUAN HOTEL SDN BHBD
Name:
Chai Tze Khee
Designation:
Managing Director
Address:
Tiara Labuan Hotel
Jalan Tanjung Batu
P.O.Box 80537
87015 .T. Labuan, Sabah
Tel/Fax:
087-414 300 / 087-427 541
Business Sector:Hotels/Tourism
Company:
SERI ALAM PROPERTIES SDN BHD
Name:
Freddie Lee
Designation:
Executive Director
Address:
8 Jalan Suria, Bandar Seri Alam
81750 Masai, Johor
Tel/Fax:
07-388 1111 / 07-386 5160
Business Sector: Property/Real Estate
Company:
TRAVELEX MALAYSIA SDN BHD
Name:
Rakesh Aravind
Designation:
Chief Executive Officer
Address:
3.01A. Menara BRDB
285 JalanMaarof,Bukit Bandaraya
59000 Kuala Lumpur
Tel/Fax:
03-2281 3000 / 03-2281 3111
Business Sector:Banking/Insurance
Company:
SIAM CONNECTION SDN BHD
Name:
Wong Wai Jo
Designation:Director
Address:
No. 2 Jalan 19/1
46300 Petaling Jaya, Selangor
Tel/Fax:
03-7960 5055 / 03-7960 5054
Business Sector: Consultancy/Business Services
Company:
TRC GLOBAL SDN BHD
Name:
Yohan Dulip Martin Goonetilleke
Designation:
Chief Executive Officer
Address:
A-3-06 SME Technopreneur Centre
2260 Jalan Usahawan 1
63000 Cyberjaya, Selangor
Tel/Fax:
03-8322 6761 / 03-8322 6760
Business Sector:Food/Beverages
Company:
SINAR PEMBANGUNAN SDN BHD
Name:
Julius Kong Yik Liang
Designation:Director
Address:
P.O. Box 10827
88809 Kota Kinabalu, Sabah
Tel/Fax:
088-218 281 / 088-244 373
Business Sector: Property/Real Estate
Company:
TROPICAL WEALTH SDN BHD
Name:
Chuan Campbell
Designation:Director
Address:
Suite 23-05, 23rd Floor, Menara MAA
No. 15 Jaan Dato Abdullah Ahir
80300 Johor Bahru, Johor
Tel/Fax:
02-6469 9760 / 02-6469 9412
Business Sector: Others (Unspecified)
Company:
SOUTH WIND RISKS MANAGEMENT SDN BHD
Name:
Tay Ah Leng
Designation:
Managing Director
Address:
132-A Jalan Sri Pelangi, Taman Pelangi
80400 Johor Bahru, Johor
Tel/Fax:
07-335 5836 / 07-332 2205
Business Sector:Banking/Insurance
Company:
VRM BIOLOGIK SDN BHD
Name:
Kenneth Michael Bellamy
Designation:Director
Address:
12 Lorong Saga Jaya 2
Taman Perindustrian Saga Jaya
13600 Prai, Penang
Tel/Fax:
04-3806332 /03-380 6331
Business Sector: Others (Unspecified)
Company:
SUNWAY HOTEL SEBERANG JAYA
Name:
Ben Ho
Designation:
General Manager
Address:
11 Lebuh Tenggiri Dua
Pusat Bandar Seberang Jaya
13700 Penang
Tel/Fax:
04-370 7788 / 04-370 0555
Business Sector:Hotels/Tourism
Company:
YATHA INTERNATIONAL SDN BHD
Name:
Gameel Thabet
Designation:Director
Address:
Level 16, Pavillion Tower
Jalan Raja Chulan
50200 Kuala Lumpur
Tel/Fax:
03-2182 9634 /03-2182 9734
Business Sector:Textiles/Garments
37
MICCI
NEWS
MICCI News
Seminar On Personal
Data Protection Act
Cheah Lan presented on
the impact of PDPA on
businesses and key issues
to implementation. Siew
Ling then delved into a
number of case studies
The Personal Data Protection Act (PDPA) 2010 came into force Realising that there are
on the implementation
on 15 November 2013 to remedy the mischief of rampant and still many questions and
of the Act before all three
unregulated misuse of personal data in Malaysia.
uncertainties about the Act,
speakers were joined by K.
the Chamber organised a
Mohan, Head of Data Users
half-day seminar on PDPA to
Affairs Unit, Personal Data
inform and assist its Members Protection Department for a
on the required compliances.
panel discussion moderated
A total of 85 participants from by Ms. Su. It was indeed
various industries attended
an interactive seminar as
the seminar at the Istana Hotel, participants had substantial
Kuala Lumpur on 22 January
time in raising their concerns
2014.
and queries to the panel.
Tn. Hj. Abu Hassan Ismail,
Director General of the
Personal Data Protection
Commission delivered the
keynote address before three
speakers, Siti Dinar Othman,
Head of Risk Assessment
Unit, Personal Data Protection
Department, åCheah Chiew
Lan and Su Siew Ling, both
Partners at Tay & Partners took
the floor.
Siti Dinar provided an
overview of the PDPA while
The registration deadline for
businesses was 15 February
2014 and is compulsory
for entities involved in the
processing of personal data
for commercial transactions
from 11 sectors namely,
banking and financial
institutions, communications,
direct selling, education,
health, insurance, real
estate, services, tourism and
hospitality, transportation
and utilities.
Kuala Lumpur
Trust School Programme –
Can it Transform Malaysia's
Education System?
The Chamber's Education Focus Group organised a briefing
session on the Malaysia Education Blueprint with particular
focus on the Trust School Programme (TSP) on 25 November
2013. The briefing was presented by
Dr Norhayati Ismail of the Education Performance and
Delivery Unit (PADU).
jointly managed by qualified
The Trust School Programme private partners or sponsors
and civil service principals
is a response to the
government's call for greater under the umbrella of the
Ministry of Education
Public-Private Partnership
(MoE). MoE provides a
(PPP) in the education
trust school with greater
sector towards improving
student outcomes and school decision-making freedom
management capabilities. It is such as the autonomy in
budget allocation and cocurriculum, flexible class
timetable, engaging more in
project work and classroom
activities.
Lumpur have been placed
under its pilot project. The
trust school selection was
based on several criteria
such as geographical
locations, dimensions of
the schools and school
types, schools with greatest
transformational potential,
a combination of rural and
urban areas, a combination
of high and low performing
schools and on balance
social equity.
Yayasan Amir, a foundation
under Khazanah Nasional
Bhd, has been mandated
to drive this programme
that will run for a duration
of 5-years. Thus far, 13
government schools of
which, 5 from Johor, 5 from
Sarawak and 3 from Kuala
MICCI believes the TSP is a
positive initiative that will
bring much needed change
to our education system, and
the Chamber will continue
to work closely with MoE
and PADU towards greater
collaboration efforts in
support of this programme.
Kuala Lumpur
38
39
Business Advocate
MICCI News
Shell Refining Company Conferred
Prime Minister’s Hibiscus Award
“
2012/2013
Shell Refining Company Bhd topped a list of companies in
the oil and gas, plantation and manufacturing industries
that were honoured at the Prime Minister’s Hibiscus Award
(PMHA) 2012/2013 for their green and sustainable efforts
in business held on 24 January 2014, Istana Hotel Kuala
Lumpur.
The PMHA has a longestablished reputation as
the premier private sector
environmental award for
business and industry in
Malaysia. It was initiated
in 1996 with the goal of
advancing the sustainability
agenda
by encouraging business
and industry, big and
small, to be pro-active in
environmental management
and performance.
Deputy Prime Minister YAB
Tan Sri Dato' Hj Muhyiddin
Asean Bintulu Fertilizer Sdn
Bhd (silver award) and Sony
EMCS (Malaysia) Sdn Bhd
(bronze award).
The state awards recognising the best performers from
participating states were
accorded to: bin Mohd Yassin presented
the PMHA Exceptional
Achievement Award and
• Petronas Penapisan
the elegant hibiscus copper
(Terengganu) Sdn Bhd
sculpture challenge trophy
(Terengganu)
to Shell Managing Director,
• Nestlé Products Sdn Bhd
Dato’ Rozano Saad who
(Selangor)
received the award on behalf
• IOI Oleochemical
of the company.
Industries Sdn Bhd (Pulau
Pinang)
Kota Kinabalu-based Hijauan
• Shangri-la’s Tanjung Aru
Bengkoka Plantation Sdn
Resort & Spa (Sabah)
Bhd took home the SME
• Shell Refining Company
Special Award while in the
Bhd (Negeri Sembilan)
Special Project Award, Sime
Darby Kempas Sdn Bhd was
In another highlight of
declared the gold recipient,
the evening, The Star was
judged the inaugural winner
of the Environmental
Journalism Award that was
launched to recognise the
highly important role the
media plays in pursuit of
business and environmental
sustainability.
Congratulations to the Winners of the
PMHA 2012/2013
Prime Minister's Hibiscus Award 2012/2013 Awardees
Exceptional Achievement Award
1 Shell Refining Company
(FOM) Berhad
We may have come a long way since
1996, when the Award
was launched, but
the road towards real
sustainability remains
a very long and a
never ending one.
Challenge Trophy Winner
Notable Achievement Award
1 BASF Petronas Chemicals Sdn Bhd
2 CCM Chemicals Sdn Bhd
3 Hijauan Bengkoka Plantation Sdn Bhd
4 Hitachi Electronics Products (M) Sdn Bhd
5 IOI Oleochemical Industries Sdn Bhd
6 Kualiti Alam Sdn Bhd
7 MTBE/Propylene (M) Sdn Bhd
8 Nestlé Products Sdn Bhd
9 Nets Printwork Sdn Bhd
10 Omron Malaysia Sdn Bhd
11 Petlin (Malaysia) Sdn Bhd
12 Petronas Carigali Sdn Bhd (SBO)
13 Petronas Chemicals Derivatives Sdn Bhd
14 Petronas Penapisan (Melaka) Sdn Bhd
15 Petronas Penapisan (Terengganu) Sdn Bhd
16 Shangri-La's Tanjung Aru Resort & Spa
17 Sime Darby Jomalina Sdn Bhd
18 Sime Darby Kempas Sdn Bhd
19 Sony EMCS (Malaysia) Sdn Bhd -(Bangi)
”
Tan Sri Mustafa Mansur
Environmental Journalism Award
1 The Star
2 Berita Harian
3 The Star
In his speech, Chairman
of the Organising Committee
Tan Sri Mustafa Mansur said:
“As with every successful
conclusion of the Award,
which takes place every two
years, we take another step
forward, towards our goal of
welding sustainability
to development.”
“But truth be told, the
Organising Committee is of
the view that while much has
been achieved in terms of
private sector performance
in sustainable practices, a lot
more needs to be done.
Tan Sri Mustafa said the
Organising Committee
would like to get more
sectors of the economy
involved in this voluntary
evaluation exercise,
especially key sectors
such as construction and
infrastructure development.
Trophy Winner
Honourable mention
Honourable mention
Kuala Lumpur
Welcoming the
Year of the Horse
MICCI welcomed close to 80 members and guests to its New
Year Get-Together at the Sime Darby Convention Centre on
16 January 2014.
The Chamber was delighted
that most of its invitees
and members turned up
despite receiving news that
the traffic congestion on
the day was particularly
dreadful. Held at the rooftop
of the convention centre
that overlooked the greens
of its neighbouring golf
club (KLGCC), the evening
was indeed a Thursday to
unwind.
The evening commenced
with MICCI Executive
Director, Stewart Forbes
presenting a brief
introduction on the
Chamber’s priorities for
2014. On the advocacy front,
MICCI will be prominently
looking into the areas of
taxation, labour reforms,
new business opportunities
and liberalisation while
continuing its efforts in
addressing members’
concerns with the relevant
Head of States and GLCs.
On business related
events, a string of training
programmes, seminars,
business luncheons and
social gatherings are already
being geared up for the
benefit of members.
With the business
formalities aside, laughter
was amidst the evening
as old friends were seen
joyously catching up while
many new acquaintances
were equally forged.
MICCI extends its sincere
appreciation to Guinness
Anchor Berhad for
sponsoring the beverage for
the evening and its gratitude
to all members who flattered
us with their presence.
Kuala Lumpur
40
41
Business Advocate
MICCI News
Visit by the Canadian
High Commission
MICCI Perak and InvestPerak co-hosted a delegation from in cutting and polishing
the Canadian High Commission led by Douglas Bingeman, granite stones into
Senior Trade Commissioner from 4-5 December 2013.
marble slabs for local and
international export.
The entourage also
organised in conjunction
included Ross Firla, Trade
with the delegation’s visit.
The second visit was to
Commissioner (Education), The first was a site visit
Tenby International School
Denise Westerhout, Trade
to Sri Martek Marble
that was graciously hosted
Commissioner (Aviation)
Industries (M) Sdn Bhd
by MICCI Perak committee
and Sharon Fam from the
in Keramat Pulai, Perak
member, Gina Chan. The
where the delegation was
Secretariat.
delegation was impressed
briefed on the business
with both the marbleoperations of the factory
On the first day, two
processing factory and
that is primarily involved
appointments were
state of the art facilities and
modern infrastructure of
the international school.
That evening, InvestPerak
hosted a dinner for the
delegation at the Impiana
Hotel.
The following day,
InvestPerak had a meeting
with the delegation at
their premises where Mr.
Bingeman highlighted
that there were two
potential investments from
Canada to the State. One
company was exploring
the possibility of the
quarry business and the
other involved in naval
logistics was already
in collaboration with a
local company in Perak.
Following the meeting, the
Canadian delegation then
departed for a visit to the
Lumut Port accompanied
by InvestPerak
representatives marking
the end of the official visit.
Perak
Half-Day Seminar on PDPA
42
comply with its regulations
nonetheless.
In the second session, Chiew
Lan provided an insightful
overview of the impact of the
PDPA on businesses where
she particularly highlighted
on areas such as the key
issues to implementation,
enforcement and scope of
the Act, data protection
principles, allowed
MICCI in association with over twenty Chambers of
Commerce and trade associations in Kota Kinabalu, Sabah
jointly organised the “Aku Janji” Dialogue specifically
focusing on the economy and business in the State. Closed
to 50 principals of these associations were represented at
the dialogue which was officiated by Y.B. Tan Sri Datuk
Seri Panglima Joseph Kurup, Minister in the Prime
Minister’s Department.
The dialogue featured two
presentations by Yap Chee
Boon, Secretary General of
the Federations of Sabah
Industries (FSI) titled
“Improved Opportunities”
and “Reduce Cost of
Business / Consumers Cost
of Living. Some pertinent
matters highlighted in
the presentation included
exemptions, transfer of
data outside Malaysia,
offences under the Act as
well as the Regulations and
Order as provided therein.
Siew Ling then took the
floor to share a number of
case studies concerning the
various industries.
Overall, the seminar
proved to be instrumental
as many questions were
raised throughout the
sessions before ending
with an interactive panel
discussion.
Perak
the Cabotage Policy,
infrastructure in the State,
disruptive power supply,
high cost of labour and
measures to improve
government delivery
systems.
The dialogue concluded
with many questions and
recommendations from
the floor, particularly
on lowering the current
25% corporate tax rate,
the need to have special
economic zones for
designated areas with tax
incentives on machinery,
deregulating the Cabotage
Policy, encouraging landsustainable programmes
and the necessity to
develop idle state-lands for
affordable housing.
Sabah
Briefing on the Tourism Industry
& New Year Get-Together
MICCI Sabah organised a briefing on the “Latest
Developments in the Tourism Industry” in line with Visit
Malaysia 2014 on 21 January 2014. A total of 75 members
and guests attended the event which also served as a New
Year Get-Together for MICCI members.
MICCI Perak organised a half-day seminar on the “Personal
Data Protection Act 2010" on 12 February 2014 at the
Impiana Hotel. A total of 50 participants attended the
seminar which featured three speakers namely Dr. Zainal
Abidin Sait, Deputy Director-General from the Personal
Data Protection Commission, and Su Siew Ling and Cheah
Chiew Lan both Partners from Tay & Partners.
In the first session,
Dr. Zainal covered the
background of the Act,
its implementation,
enforcement, and ongoing
registration exercise. He
emphasized that only
companies that were
caught by the Act had to
compulsorily register with
the commission while those
that fell outside the ambit
of the Act were required to
“Aku Janji”
Dialogue
Datuk Seri Panglima Wong
Khen Thau, President of
the Federation of Sabah
Manufacturers welcomed all
in attendance and explained
that the aim of the dialogue
was to coordinate a platform
for the business community
to raise their issues and
to suggest how best to
implement the manifesto of
‘Aku Janji’ announced by the
Prime Minister last year.
The briefing was carried
out by Datuk Irene
Benggon Charuruks’,
General Manager of
Sabah Tourism Board
(STB). Datuk Irene stated
that the high achieving
arrival of 3.5 million
visitors last year with a
yield of 6.6 billion from
the tourism industry
was largely contributed
by an increase in visitors
from China making up
more than 30% of total
arrivals.
Some of the key issues
highlighted during
the briefing included
the congestion and
cleanliness at tourists
spots, poor maintainance
of infrastructures and
the availability of hotel
accommodation. To
this end, Datuk Irene
encouraged tourism players
to promote other towns
such as Sandakan and
Tawau where availability of
accommodations were less
of a concern.
She added that the Sabah
Development Corridor’s
(SDC) initiative to develop
the north-west coastal
area from Tanjung Lipat
to Kudat would eventually
attract more high quality
hotels and resorts. The
briefing drew to a close
with a networking
evening in celebration of
welcoming 2014.
Sabah
43
Business Advocate
MICCI News
10 Inter-Chamber Unity
Golf Tournament
th
Close to 50 members and guests turned up for a Chinese
New Year luncheon hosted by the Chamber’s Johor branch
on 17 February 2014 at the Marina Seafood Restaurant,
Straits View Hotel, Johor.
The 10th Inter Chamber
Unity Golf tournament
teed off on 23 Novembr
2013 at the Sabah Golf
and Country Club, Kota
Kinabalu. The event which
attracted 120 golfers from
six chambers of commerce
in the State, was officiated
by the Chief Minister of
Sabah, Y.A.B. Datuk Seri
Panglima Musa Haji Aman.
Emerging joint champions
with a total score of 391
points were the Dewan
Perniagaan Melayu
Malaysia Sabah Branch
(DPMM) and Sabah
Bumiputra Chamber of
Commerce (DPBS). The
Kadazandusun Chamber
of Commerce & Industry
(KCCI) and Sabah United
Chinese Chamber of
Commerce (SUCCC)
respectively took 3rd
and 4th place while the
MICCI team led by branch
Vice Chairman and team
captain, Datuk C.K Tan
settled for 5th place.
MICCI team members
Peter Tan and Chin
Chen Fui also picked
up individual prizes for
2nd place in the Gross
Category and 2nd place
in the VIP Category
respectively.
Datuk Seri Musa stated
that such a tournament
would bring about positive
interaction among people
from diverse professionals
and corporate
backgrounds while
encouraging meaningful
cooperation through
exchange of ideas and
networking. He affirmed
that the State government
values the contributions
by the various chambers
and hopes to receive
continuous support and
engagement towards the
development of the State’s
economic wellbeing and
the welfare of its people.
Sabah
Chinese New Year Lunch
Close to 50 members and guests turned up for a Chinese
New Year luncheon hosted by the Chamber’s Johor
branch on 17 February 2014 at the Marina Seafood
Restaurant, Straits View Hotel, Johor.
The afternoon provided
an opportunity for the
branch to highlight some
of its upcoming initiatives
scheduled for the first half
of the year in addition to
furnishing all present with
latest news from the various
government bodies. The
government representatives
in attendance were Noor
Aini Samoon, Director of
MIDA, Aida Syukrena Mohd
Idris, Director of MITI,
Azamimah Azam, Manager
of the Johor State Investment
Corporation, and Iswazar
Aminuddin, Assistant
Director of Matrade.
Moreover, the luncheon
allowed for members
and guests to establish
new business contacts
and more importantly,
to express their business
issues directly to the top
management of these
government agencies
in the State.
MICCI Johor branch
chairman, Nora Lam stated
that the branch was always
accessible and favourable
in assisting its members
with any concerns they
may have with regards to
their businesses.
MICCI Penang Annual
Dinner & Dance 2014
Carrying the theme “Sea of Change”, MICCI Penang’s
annual dinner and dance was held on 28 February 2014
at the Eastern and Oriental Hotel, Penang. The Chief
Minister of Penang, Lim Guan Eng was the guest of
honour with 280 members and guests in attendance.
In his welcome address,
MICCI Penang branch
chairman, Brian Tan,
thanked everyone for their
presence and in particular
Dr Mary Ann Harris and
the organising committee
for their invaluable efforts
in putting the event
together. Touching base on
the branch’s vision for the
year, Brian stated that a
diverse range of activities
such as networking events,
business luncheons,
seminars and briefing
sessions were already
being lined up for the
benefit of members.
the capital dredging
of the North Channel,
North Butterworth
Container Terminal
and Prai Wharf. These
funds were approved
under the 10MP but due
to the privatisation of
the Penang Port, the
Ministry of Finance has
withheld its release.
Under the proposed
capital dredging exercise
the depth of the North
Channel has to be
deepened to 14.5 metres
from its current depth of
11 metres, so as to allow
container vessels of the
Post-Panamax class with
capacity of up to 5,000
TEUs to call at Penang
Port. The business
sectors in Penang believe
that this dredging
exercise is crucial for
the improvement of
businesses in the region
with the future of the
island dependent on the
vibrancy of the port.
Brian was also proud to
announce that Guardian
News, UK had voted
Penang as the 8th best
tourist destination in
the world while Lonely
Planet named Penang as
the top street (hawker)
food destination in 2014.
Moreover, with the recent
opening of the Sultan
Abdul Halim Muadzam
Shah Bridge (Penang
Second Bridge), the State
now boasts the longest
bridge in Southeast Asia.
The Chief Minister
in his address, drew
attention to the strong
working relationship
between the State
government and MICCI.
The availability of human
talent, 40 plus years of
manufacturing experience
and good governance
has helped Penang
to become a premier
location in attracting
new investments in
high-tech, high valueadded and knowledge
based industry. Penang
is presently considered
the administrative and
manufacturing hub
for many companies
with Shared Services
Outsourcing (SSO)
operations in human
resources, procurement,
data processing, credit
transaction, finance,
accounting and
information technology.
On the government
engagement front, the
branch has been lobbying
for the release of RM350
million in funds for
Johor
44
45
Business Advocate
REGIONAL
FOCUS
Sabah
Today, the outsourcing sector
provides high-salaried
employment to some 7,000
Penangites. With such
promising expansion, the
Penang State Government
has announced plans for a
Business Process Outsourcing
(BPO) hub in two phases over
the next five years across 7
hectares, offering 1.7 million
square feet of office space in
Bayan Baru and Bayan Lepas.
Concluding his speech, the
Chief Minister hoped that
MICCI would continue to
provide relevant support to
the activities and aspirations
of the State Government and
promote businesses in the
region.
The evening drew to an end
with a comedy sketch by
Comedy Court’s “Allan & Indi”.
Penang
Networking Evening on Board
Superstar Libra
offered by Starcruise
Travels and the facilities
available on board.
To celebrate the New Year, Starcruise Travel Services
Sdn Bhd generously hosted a networking evening for
MICCI Members in Penang on 23 January 2014. The
event took place on board the Superstar Libra and was
attended by close to 70 members and guests.
Upon arrival, guests were
treated to a short tour of
the cruise liner to get a
glimpse of its facilities
before being escorted
to the Boomers Lounge
for some refreshments.
MICCI Penang branch
chairman, Brian Tan
welcomed those present
with a brief new year
message after which the
cruise Hotel Manager,
Dodie Rosacay expounded
on the various cruises
Also in attendance were
three new members
of the Chamber, The
Prince of Wales Island
International School,
Focal Concepts Sdn
Bhd and VRM Biologik
who were handed their
membership certificates.
As the evening descended,
the guests moved to
the outdoor platform to
enjoy the cool evening
breeze overlooking the
breathtaking view of
the port.
Penang
46
47
Business Advocate
Regional Focus
Daily Dairy with SID
MICCI in conversation with the general manager
of Sabah International Dairies.
Sabah International Dairies Sdn. Bhd. (SID) is the
only manufacturer in the region of East Malaysia and
Brunei with an Ultra Heat Treatment (UHT) processing
plant. Over the years, SID has focused dilligently on
the National and Sabah School Milk Programme, and
has been an active participant in the manufacturing
and packaging of 200ml UHT flavoured milk, as well as
its own commercial pasteurized fresh milk and 1 litre
UHT milk, under the brand name “Daily Dairy”.
1
When was the
School Milk
Programme first
initiated in Sabah
and what was its
primary goal? How is
SID involved in this
programme?
It was first initiated
in 1980 by the Sabah
State Government to
improve the livelihood
of local cattle farmers
and nourish our children
because at that time,
Sabah was one of the most
impoverished state in the
nation.
SID purchases all the
fresh milk produced by
the farmers under the
purview of the State
Veterinary Department
and supplies UHT
Fresh Milk and UHT
Chocolate Milk, which
is funded by the Sabah
State Government, to all
primary schoolchildren
from kindergarten to
primary 3.
2
Is the
School Milk
Programme
currently monitored
and regulated by any
government bodies?
Yes. It is constantly
monitored by the State
and Federal Education
Ministry. SID’s clients
also send their audit
teams to ensure that
there is no compromise
in the manufacturing
of their respective
brands. To increase
consumer confidence,
SID is currently working
towards achieving MS –
ISO certification.
3
How has
the State
Veterinary
Department assisted
in fueling the growth
of dairy production
in Sabah?
The State Veterinary
Department has
provided great support
and guidance over
the years, which
has tremendously
improved the quality
of milk in Sabah. Most
of the farmers are
now able to achieve
the highest grade
possible. Furthermore,
production output of
milk by the farmers
have grown steadily
from 3.8 million litres
to 8.25 million litres of
milk annually. Sabah
is now the main dairy
producing state in
Malaysia due to the
efforts of the State
Veterinary Department.
Johan Nasir Yeo is the General Manager for Sabah
International Dairies Sdn. Bhd. based in Kota Kinabalu,
Sabah. He received his B.IB degree from Switzerland and
has worked at the company since 2009.
48
4
Does SID
address
consumer
concerns on food
safety and quality
assurance, and
adhere to regulatory
standards? How does
the company remain
competitive and
ensure its growth
within the industry?
SID complies with
all regulatory
requirements under the
strict enforcement of
the Ministry of Health
and international
auditors. The Ministry
of Health constantly
cross checks and
audits the quality of
raw materials, and
finished goods. SID is
also HACCP and Halal
certified.
Over the years, SID has
expanded and doubled
its manufacturing
capacity with newer
and more advanced
filling machinery
provided by Tetra Pak, a
multinational company
based in Sweden and
one of the largest “ready
to drink” processing
and packaging solutions
provider in the world.
Working with them was
crucial for our growth
because SID caters to
a large consumer base
from urban areas to
the highly inaccessible
interiors in Sabah. This
required SID to look for
robust liquid packaging
material, which allowed
us to maintain the high
nutritional quality that
we set for our products.
SID also upgrades its
facilities annually to be
at par with international
standards. With
advanced technology
and processes,
manufacturing lines
have become more
automated, which allows
us to remain competitive
despite the rising costs of
doing business in Sabah.
What are
SID’s current
strategies for
expansion?
5
and Singapore for
multinational companies,
and SID is also embarking
to supply to hypermarkets
in Peninsula Malaysia.
SID now undertakes
contract packing for
other commercial
companies. Most of
the goods are exported
to Brunei, Vietnam
6
Do the
expansion
plans include
any new ventures?
SABAH: The Food
Sector Shows Promise
Malaysia is one of the few countries in the world with a
rich and diverse source of food. With the diverse mix of cultures
and people in the country comes a mesmerizing range of food
and beverages with unique flavors and textures that truly
excites the tastebuds. After all, Malaysia is well known for
being a must visit destination for any foodie with an appetite.
Sabah covers the Eastern portion of Malaysia along
with Sarawak and the islands of Borneo. Sabah is
very culturally diverse with more than 30 different
ethnic groups and 80 dialects spoken. These ethnic
differences provide the basis for the diverse mix of
cultural traditional and the wide range of food that
comprise the Sabah food experience that is unlike any
other state in the country.
Each community is
well known for their
traditional dishes
while some groups
provide an entire
culinary experience.
The Kadazandusun
people of Sabah form the
majority of the state and
have a number of mouth
watering dishes including
the Bambangan, Butod
and the Pinasakan while
the Bajau people, which
makes up the second
largest group, have the
Kuih Cincin, Sagol Pari
and a special recipe called
the Kuih Penyaram, also
fondly known as Kuih
UFO. The other ethnic
groups also have their
own special blends and
dishes including the Jaruk
dish, Ambuyat, Tuaran
Noodle and many more.
Now, Sabah sees a
stable economy and
a growing food and
beverage industry as
poultry, shrimp and
other products are being
produced efficiently.
Surrounded by water
around about 80% of it’s
land, fresh fish and other
wild edible plantlife
only found around this
small region is abundant.
Many replanting
activities are being
extensively conducted
to ensure the cultivation
of future stock remain
of the highest quality.
The Malaysia National
Plan has also helped
bring investment into
SID is currently
researching on new
products such as ice
cream and hoping to
gain support from our
various stakeholders and
customers, so that we
can continue to grow and
provide quality goods,
and service for the nation.
the region by many
companies while
existing companies
began to increase
production. In 2012,
the food and beverage
industry in Sabah was
the second highest after
the metal industry,
showing it’s tremendous
growth potential.
Sabah, like many other
states, loves it’s food
which comes in a wide
variety of dishes. Food
and beverage guides can
be easily found which
highlights restaurants,
cafes, bars, pubs as
well as festivals held
in and around the
region. As the night
comes around, the city
comes alive with many
opportunities to indulge
in the night markets
and bazaars which
provide many unique
food and drink options,
at times, only open and
served at that hour.
Over the past few years,
the state has diligently
focused on promoting
this sector. Many of
these strategies have
49
Business Advocate
been implemented
through policy while
others have gained pace
in spreading awareness
about the industry. The
Sabah Food Industry
Expo (SFIE) is an annual
event held in conjunction
with the Kota Kinabalu
Food Festival (KK Food
Fest). The KK Food Fest
is a one month showcase
gathering of all major
food and beverage
manufactures and
suppliers in Sabah and
includes food academies
participation as well.
The festival began
in 2010 and is one of
many efforts to spread
awareness and promote
the industry.
Related sectors such
as the Agriculture and
Food industry has taken
steps to increase the
50
production of wet rice
(padi) and rubber. The
investment will be worth
RM302 million with the
government providing
support by inserting
RM 504 million to
redevelop rubber land.
The ministry is also
focusing on using a
more biotechnological
approach to future
production. Another
noteworthy example
would be the Halal
industry in Sabah.
Competing for
international export
opportunities, Malaysia
and Bangladesh are
currently in talks of a
huge investment that
would establish a strong
halal food industry. This
investment would also
provide Malaysia to be
the sole exporter of halal
food to Bangladesh.
Today, lifestyle
changes and consumer
awareness have
changed the perception
for many consumers
who now focus on
nutrition and quality
of the food. This has
increased the demand
for organic and fresh
foods. Currently Sabah
is providing a centre
for research to provide
high yielding planting
materials combined
with the best practices
in the industry to
ensure the state has
a strong position on
food quality and yield.
The government is
also supporting this by
instilling programmes
designed to provide
support and provisions
to rural farmers
including infrastructure
and equipment.
The landscape of this
industry is ever-so
changing. Palm oil (33%
exported), rubber, cocoa,
coconut and padi are
significant products
that continue to help the
economy of Sabah flourish.
Also these products usually
have the best yield in
Sabah alone. For the future,
Sabah has aimed to be the
center of agricultural ad
high-value diversified food
products in Asia by 2025.
This would multiply the
value of the industry by
atleast four times while
reducing the dependency
on food import by 60%. As
many local players also do
their part to promote the
industry, Sabah continues
to be a wondrous and
exclusive destination for
food that you may not be
able to find anywhere else
in Malaysia.
Delivering solutions.
DB Schenker new logistics facility at Melaka, represents
its strategy of expanding warehousing foot print in
Central Malaysia serving solar, semi-con
and
d chemical
h i l market.
k t
www. dbschenker.com.my
Schenker Logistics (Malaysia) Sdn Bhd