Business Today

Unfair Companies Act: What it means for Malaysian Businesses

admin — Tue, 06 Mar 2012 11:33:52 +0000

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OBG’s New Economic Report in Sarawak

admin — Fri, 23 Dec 2011 08:46:27 +0000

The key role that Sarawak’s major infrastructure projects will play in driving forward the Malaysian state’s economic development is explored in a landmark report just published by the Oxford Business Group (OBG).

The Report: Sarawak 2011 provides incisive analysis of the state’s bid to build on the economic growth achieved in 2010 by capitalising on its strategic, geographical location and underutilised land.

It also offers wide-ranging analysis of the expansion expected to take place in the state’s heavy industry and financial services sectors, which are likely to be pivotal in reshaping Sarawak’s economy.

OBG’s second report on the state’s economic development was launched early October in Kuching, in the presence of the Chief Minister of Sarawak Pehin Sri Haji Abdul Taib Mahmud.

Volkswagen Deliveries Go Up

admin — Fri, 23 Dec 2011 08:44:22 +0000

Over the first three quarters of the year, the Volkswagen Passenger Cars brand has continued to grow deliveries, handing over 3.81 (January – September 2010: 3.39; +12.3%) million vehicles to customers. For the month of September, the brand reported 472,100 (September 2010: 415,100; +13.7%) deliveries to customers.

“The positive development in deliveries by the Volkswagen Brand over the first nine months has been very gratifying,” says Christian Klingler, Board Member for Sales and Marketing for the Volkswagen Group and the Volkswagen Passenger Cars brand.

From January to September 2011, Volkswagen Passenger Cars recorded growth in almost all markets. In the Asia/Pacific region, the brand sold 1.44 million vehicles for the said period. This figure included 1.29 million units delivered in China, the largest single market. Deliveries in North America also developed very positively.

Shiver Me Timbers

Nur Atifi — Tue, 13 Dec 2011 09:07:26 +0000

Going back to the 1980’s and 90’s, Malaysia’s timber industry was one of the country’s thriving industries. At one point, it contributed more than 12% of Malaysia’s total export earnings.

The earnings has since dwindled down as the timber industry faced strong allegations and misconceptions regarding its practices globally, especially with the issue of deforestation becoming a topic of choice of late.

Many wonder if an industry profits from timber or wood products, can it then be a sustainable one. After all, the main focal activity is the act of cutting down trees from our lush tropical rainforests.

Speaking to Cheah Kam Huan, Chief Executive Office of the Malaysian Timber Council, Business Today discovers that many perceive the timber industry to be one that clears out the forests, when in fact; there are many protocols and best practices that are put into every step of the way.

Governing Council

The Malaysian Timber Council, or better known as MTC, is tasked by the government to ease campaigns against tropical timber and deforestation, as well as protect the rich biodiversity we have in our tropical rainforests.

“MTC was launched in 1992. Come January next year, we are going to be celebrating our 20th anniversary. We were mandated by the government to help the timber industry in Malaysia to tackle the negative conceptions we received from Western countries mostly,” says Cheah.

“The forest sector in Malaysia was once a very important sector with more than 12% total export earnings in the country. Now it is only contributing about 3%.”

Since then, the roles and responsibilities of MTC have evolved into helping the industry to supplement its raw material supply, in addition to expanding and developing new technologies for the industry.

MTC’s role also includes green advocacy, where the council addresses and tries to curb environmental concerns in the timber industry, such as illegal logging. Cheah adds: “We are also responsible in presenting a proper picture and figures to ensure little to no misconceptions arise (about the local timber industry).”

Trends of the Trade

Comparing the industry now and during its prime 1990’s, the industry has certainly shrunk in terms of volume produced in Malaysia. “Back then, we produced about 40 million cubic metres of timber a year. Now we only produce more or less 20 million cubic metres a year,” explains Cheah.

This is certainly a tangible effort taken by the Malaysian government to cut down log production in the country, as well as a testament to its acknowledgement of the importance of our natural forests.

Cheah also mentions that the production rate every year has seen a reduction. So, who knows we might see less dependency in our timber industry in the coming years.

Rather than to encroach the forest reserves, he explains that more production of logs is coming from tree plantations for industrial trees. “This is a trend we see happening globally. Malaysia is going towards this as well, since we cannot overly depend solely on our tropical forest,” adds Cheah.

Under the Plantation Forestry Programme announced by the government six years ago, there are plantations all over Malaysia, a total of 375,000 hectares, with fast growing tree species, such as rubber and teak, for commercial purposes.

In addition to contributing to the economy, the programme is helping those who are interested in running such tree plantation assistance through soft loans. The programme is set to run until the year 2020.

Says Cheah: “Investors will get a designated plot of land from their respective state governments to start the plantation. These lands are usually abandoned, degraded or idle. Of course, they are of agricultural status.”

Counter-Productive Issues

In recent news, Australia has expressed its interest in prohibiting the import and placement of illegal timber in the country. Other countries, like Japan and New Zealand, are also leaning towards this.

While Cheah agrees that there is a need for some form of regulations and best practices to be adhered to in the industry, he firmly believes that if export regulations imposed are too strict, many timber producing countries may not be able to comply.

The question remains on what the governing bodies consider illegal. Thus far, Malaysia is able to comply with these export regulations.

Stringent Best Practices

The timber industry itself has also evolved over the years, with policies leading towards sustainability. First up, the government enacted the National Forestry Act in 1984. This was followed by an amendment close to 10 years later. The act addresses the different categories of illegal logging, with the punishments becoming increasingly more severe.

For instance, the fine for unlicensed removal of forest produce from permanent reserved forest used to be RM10,000 or imprisonment not more than three years or both. Now, it is RM500,000 or imprisonment not less than a year but not more than 20 years.

For every “harvest” period, there will be an annual coupe determined. Interested parties would have to tender and bid for the contract to log at the designated areas. Even minute details including cutting unmarked trees or not cutting marked trees can land you with a large fine.

It was common to hear about illegal logging in Malaysia back then. “You don’t hear it as much nowadays because the industry is well-regulated. Usually when it happens, they are not from Malaysia. Villagers who are staying in the surrounding areas are also more aware and keen on reporting such incidences,” concludes Cheah.

Empire Halts Operations Temporarily

admin — Wed, 23 Nov 2011 08:58:10 +0000

Acting on the advice of the Fire and Rescue Department Malaysia (FRDM) and in the interest of public safety, the management of Empire Shopping Gallery has taken the decision to halt all operations following the gas explosion at its premises until further notice. Investigations are currently on-going with FRDM’s Forensics expected to release the preliminary report soon.

“We have taken the decision to halt operations as safety is our highest priority. We assure all our tenants that this decision has been made after carefully considering all factors and advise from the authorities. Empire Shopping Gallery prides itself on providing a quality retail experience and we will do whatever is necessary under this circumstance to facilitate that,” says May Woo, General Manager, Empire Shopping Gallery.

May further adds that tight security has been implemented around the premises and urged all affected parties to contact the hotline should they require further information.

BMW Group’s Record Performances

admin — Wed, 23 Nov 2011 08:39:51 +0000

BMW Group recently reported its record performances globally, regionally and in Malaysia for the first eight months of 2011. The results were announced by Guenther Seemann, Regional Director for BMW APAC and South Africa, and Geoffrey Briscoe, Managing Director for BMW Group Malaysia.

So far in 2011, the BMW Group has sold 1,073,363 vehicles worldwide in the first eight months of the year, representing an increase of 16.8% over the same period last year and reinforcing BMW’s position as the world’s largest premium automobile group. Similarly, the APAC region reflected this growth, making the region the fastest growing BMW market globally and the second largest market after Europe.

Seemann shares: “This July, the BMW Group announced that the first half of 2011 was the most profitable six month period in the history of the brand, with our Earnings before Income Tax (EBIT) standing at Euro 4.8 billion, an increase of almost 220% from 2010’s figures. This year is looking to be yet another historic milestone for us, where we manage to meet and exceed the benchmarks in all areas of our business.”

Closer to home, BMW Group Malaysia also reflects the group’s dynamic performances, with a total of 3,711 BMW (including Motorrad) and MINI vehicles sold from January to August 2011, representing a 28% growth over the 2,893 units sold in the same period last year, which in itself was already a record-breaking year for BMW Malaysia.

Passenger Choice Awards for Oman Air

admin — Wed, 23 Nov 2011 08:39:29 +0000

Oman Air’s pioneering inflight mobile phone and Wi-Fi connectivity have been recognised with the award of Best In-flight Connectivity and Communications at the Passenger Choice Awards.

The awards highlights the aviation industry’s finest innovation, products and services and is organised by APEX, the Airline Passenger Experience Association. Each award is determined solely by the votes of the travelling public and voting is tracked by the Neilson Company.

The award was accepted by Oman Air’s Abdulaziz Al Raisi, Chief Officer, Management Affairs, and Linda Celestino, General Manager Onboard Services, at a ceremony held in Seattle.

Abdulaziz says: “Oman Air is committed to being at the forefront of technological innovation within the civil aviation industry and we are delighted that our pioneering in-flight mobile phone and Wi-Fi connectivity has been recognised with this prestigious award. The Passenger Choice Awards are especially notable because they are voted for by the judges whose decisions matter most, air travellers.”

MyKasih Community in Miri

admin — Wed, 23 Nov 2011 08:32:40 +0000

Mubadala Oil & Gas recently unveiled its first local community project in Malaysia in partnership with the MyKasih Foundation. Mubadala Oil & Gas committed RM150,000 to support 100 low income families in Miri through the established MyKasih “Love my Neighbourhood” food aid and training programme.

“By teaming up with the well-respected national non-profit organisation, MyKasih Foundation, our programme not only provides food aid, it also strives to transform the families through skills training and education covering financial literacy, health awareness and life skills for teenagers. Programmes like this are demonstration of our commitment to engage with communities close to our operations and to play our part in contributing to local development,” says Barry O’Donnell, Regional Vice President, Mubadala Oil & Gas.

The funds will reach the family members directly not in cash but in the form of essential food supplies they can purchase from Giant Supermarket at Bintang MegaMall, supported by leading-edge technology via MyKad. Leveraging the use of MyKad allows MyKasih to target welfare aid to the right person, enabling the distribution of welfare aid in an efficient, transparent and secure way.

Rooms from just 2p

admin — Wed, 23 Nov 2011 08:29:48 +0000

To celebrate the launch of Tune Hotels’ second UK property, Tune Hotel Liverpool Street, consumers have the chance to enjoy a night’s stay at just 2p. Opening on 4 January 2012, Tune Hotel Liverpool Street is located on Folgate Street; just a few moments walk from the City of London to the south, the cosmopolitan areas of Spitalfields to the east and Shoreditch to the north. The hotel has excellent transport links with Liverpool Street Station less than 500 metres away. Housing 183 en-suite bedrooms, the hotel will share Tune Hotel Westminster’s core proposition of great value and savings. Mark Lankester, CEO of the Tune Hotel Group, comments: “Following the success of our Westminster hotel, we’re thrilled to be launching our second UK property. We want to share our excitement with our customers, which is why we’re giving them a chance to stay with us for just 2p. “London is a diverse city and a fantastic place to enjoy a holiday or do business. The opening of the Liverpool Street property will provide consumers with a great night’s sleep that doesn’t break the bank.”

Samsung Galaxy S II Continuous Success

admin — Sun, 13 Nov 2011 08:57:46 +0000

The Samsung GALAXY S II achieving 10 million global channel sales, doubling from five million in just eight weeks, leaves the Samsung Electronics Co., Ltd in cloud nine.

Samsung’s flagship smartphone device, the GALAXY S II is a beautifully thin and lightweight dual-core smartphone that combines an unmatched Super AMOLED Plus viewing experience with powerful performance, all on Android, the world’s fastest-growing mobile operating system. This smartphone also includes Samsung’s four content and entertainment hubs, seamlessly integrated to provide instant access to music, games, e-reading and social networking services.

“Since its launch in late April 2011, the GALAXY S II has seen continued sales success, demonstrating Samsung’s industry-leading capabilities in – and commitment to – the smartphone market” says JK Shin, President and Head of Samsung’s Mobile Communications Business.