1

2016 APRC Conference, Tokyo

Presentation by

Datin Kalavalli SethuPresident of Marketing Research Society Malaysia

Founder and Managing Director of Compass Insights Sdn Bhd

2

Theme 1 : Inviting Inbound Work Into Malaysia

Attractiveness of Malaysian Market

• economy-socio-demography

• major consumers trends

3

Macro view of the Malaysian economy (Q1’16) – more gloomy than glowy

CSI CSI dips q-o-q to 73.6. Jobs improved,

but fears of rising prices remain. As such Consumers may watch their spending. Job worries weigh on consumer sentiments

BCI dives below threshold point to 83.9.

Business condition remains challenging with slow down in sales & production, decline in local and export orders and rising stock levels.

Consumer price decreased to

115.3 Index Points in Sept 2016 from highest 115.6 Index Points just a month earlier.

Inflation rate roses 1.5% YoY in

Sept’16, slowing from a 4.2% increase in Feb’16. Price increase in food, housing & utilities eases while while transportation cost declines.

GDP expanded 0.7% in Q2/2016 over

previous quarter. GDP growth rate averaged 1.28% from 2000 until 2016; all time high of 5.9% in Q3/2009 and record low of -7.6% in Q1/2009

Ringgit is expected to trade at 4.3 by

end of 2016. MYR reached all time high of 4.71 in Jan1998 and record low of 2.10 in Oct 1978

4

Malaysian consumer confidence remains stable at the start of 2016, at 79% (dipping one point from previous quarter).

SOURCE: NIELSEN CONSUMER CONFIDENE REPORT

5

With no real changes in economic outlook, Malaysians’ confidence remains low.This trend is expected to continue until the pressure on the Ringgit eases. Priority will be on savings rather than spending

SOURCE: NIELSEN CONSUMER CONFIDENCE REPORT

6

CPI for food categories (i.e. Food & Non-Alcoholic Beverages, Food at home & Food out from home)

have registered slight uplift.

100

105

110

115

120

125

130

Jan'1

3

Feb'1

3

Mar'13

Apr'13

May'1

3

Jun'1

3

Jul'13

Aug'1

3

Sep'1

3

Oct'13

Nov'1

3

Dec'1

3

Jan'1

4

Feb'1

4

Mar'14

Apr'14

May'1

4

Jun'1

4

Jul'14

Aug'1

4

Sep'1

4

Oct'14

Nov'1

4

Dec'1

4

Jan'1

5

Feb'1

5

Mar'15

Apr'15

May'1

5

Jun'1

5

Jul'15

Aug'1

5

Sep'1

5

Oct'15

Nov'1

5

Dec'1

5

Jan'1

6

Feb'1

6

Food

Food At Home

Food Away From Home

Consumer Price Index (CPI)

Oct –

Dec 14

Index

Jan –

Mar 15

Index

Apr– Jun

15 Index

Jul-Sep

15 Index

Oct-

Dec’15

Index

Jan-

Feb’16

Index

Total 111.7 110.5 111.6 113.8 114.6 114.5

Food &

NA Bev.115.9 117.4 117.2 120.4 121.1 122.2

Food At

Home115.6 117.9 114.4 120.3 120.8 122.8

Food OOH 117.7 118.4 116.2 121.9 122.8 124.1

Rest. /Hotels 118 118.9 120.1 122.8 123.5 124.2

SOURCE : Department of statistics, Malaysia, http://www.statistics.gov.my/

7

Both individuals & businesses are facing challenging times Rising cost of living (i.e hike in transportation fare, toll rates, natural gas, cigarette taxes, removal of rebates for electricity)

Declining purchasing power

Besides the GST, Malaysian consumers and businesses have had to contend with the hike in public transportation fares, natural gas tariff hike for commercial and industrial users as well as higher toll rates for certain major highways in and around the KlangValley.

The drastic rise in cigarette taxes from Nov 4 was felt by smokers and showed up in the November consumer price index (CPI).

Starting from January, heavier users of electricity would have to pay more, as rebates would be cut.

“We expect Malaysian consumers’ purchasing power will decline further. The recent toll hikes will lead to another round of price increases in the next few months”.

Budget 2016 did not provide incentives that will spur consumers’ spending in next year’s first half.

8

Households with kids struggle to keep up with price increase for children’s essential items (e.g. uniforms, stationery, canteen food, bus fares).

As children across the nation scurry back to school, parents struggle to keep up with the various price hikes that the new school year presents.

These price hikes include the cost of school supplies like stationery and uniforms, tuition fees, bus fares and even canteen food.

Parents may face additional financial burden next year as school bus operators look to hike their fares to cope with the Goods and Services Tax (GST).

9

Among Chinese consumers CNY vendor sales dipped by >30%. Retailers are less hopeful as the unfavourable economic prospects and diminishing purchasing power are making consumers more cautious in their festive season spending

“While (demand for) quite a number of items, like Mandarin oranges, dried meat and canned seafood, are always on the rise during the festive season, I do expect some consumers like myself to settle for cheaper grades of items this time around.”

10

Seeing students struggling in universities due to lack of money (even to eat) is not new.But with the rising cost of living, it is a serious issue now.

A survey of 25,632 students in six public universities found that 96% of students questioned felt burdened by the economic situation and 74% had no money to buy meals.

More than half of respondents could only spend MYR5 / day eating (44% only eat rice with fried egg and 41% only eat instant noodles).

11

Malaysian consumers are getting fast entrenched into mobile technology and digital world

12

Malaysia is among the most connected markets globally – Internet use is well into the mainstream

Internet penetration (weekly internet usage) bell curve for 48 markets

Users predominantly early

adoptersUsers now

mainstream

Users now close to total

market, including late adopters

0% Internet

penetration

100% Internet

penetration

Users predominantly

higher income

India 22%

Vietnam 50%

UK80%

Norway 92%

Malaysia 201455%

Malaysia 201567%

Source : 2014 - 2015 Google CCS ProgramFull methodology in full report (Appendix)

MCMC : 68%

13

Smartphone penetration growth is pronounced since 2014, with all other devices seeing uptake as feature phones further die out

Device ownership%

Malaysia 2014:Average number of devices owned*

Malaysia 2015:Average number of devices owned*

2.9

33

76

45

69

45

Feature phone Smartphone Tablet Laptop Desktop

21

95

48

74

4922

97

62

81

56

Ownership + Intention to buyOwnership

3.0

SOURCE: TNS CONNECTED LIFE REPORT 2015

14

Malaysia is the strongest Leader market globally!(in terms of how socially active they are on internet and instant messaging)

Fragmentation of social and IM platformsAverage number of platforms used daily

0

1

2

3

4

5

Kenya

Philip

pin

es

Indonesia

Vie

tnam

Nig

eria

South

Afr

ica

Ghana

Thailand

Chin

a

Turk

ey

Colo

mbia

Mexic

o

Saudi Ara

bia

Japan

Fin

land

Denm

ark

Hungary

New

Zeala

nd

Gre

ece

Czech R

epublic

Germ

any

Sw

itzerland

Sw

eden

Fra

nce

Austr

ia

Belg

ium

Neth

erl

ands

Slo

vakia

UK

Port

ugal

Canada

USA

Norw

ay

Austr

alia

Spain

Italy

Russia

South

Kore

a

Isra

el

Taiw

an

Hong K

ong

UAE

Sin

gapore

Mala

ysia

2014 2015

Leader Observer ConnectorFunctional

Based on 3 Social Engagement Attributes and 7 Digital Influence Attributes Base: Global 2015 (53,495) | Global 2014 (49,302)

SOURCE: TNS CONNECTED LIFE REPORT 2015

15

Top 5 consumer trends in Malaysia

Facing multiple financial issues, many consumers cut spending

Tougher credit requirements place home ownership out of reach for many

Consumers’ desire for home ownership unabated by rising property prices

Households cutting spending to counter rising energy costs

Consumers increasingly shopping online

Holiday-makers increasingly opting for domestic destinations

Consumers preparing more meals at home, cut spending on dining out

Consumers adopting healthier eating habits

Greater demand for halal foodSOURCE: EUROMONITOR

16

Halal is big business in Malaysia

• Halal means ‘permissible’ in Arabic.

• Large majority of the population in Malaysia comprises of Malay Muslims.

• Malaysia is leading global halal hub with an annual export value of RM35.4 billion for halal products, which

contributes approximately 5.1% of the total exports for the country.

• Estimated global market value for Halal business is USD2.30 trillion.

• JAKIM (Department of Islamic Development Malaysia) was world’s first halal certification body responsible

for monitoring halal industry leading to amendment of Malaysia’s Trade Description Act in 2011 this

gives JAKIM much stronger mandate to regulate the halal industry

• Malaysia plays host to 2 most important annual halal events, playing pivotal role in building Malaysia’s

reputation as global reference and trade centre for new mainstream halal industry since 2003

1. Malaysia International Halal Showcase (MIHAS)

2. World Halal Forum (WHF)

• With government’s full support and heavy involvements, Malaysia’s credibility and leadership in the halal

sector is recognised by Organisation of Islamic Cooperation (OIC).

• Malaysia provides the world’s first halal in-flight catering on board its national carrier, Malaysia Airlines.

• Malaysian halal standard is now widely used by even renowned MNCs such as Nestlé, Colgate Palmolive

and Unilever.

• Malaysia’s halal portfolio expanded beyond food and beverage into cosmetics, logistics, pharmaceutical,

banking and tourism sectors

Source:

1. http://www.itc.gov.my/tourists/discover-the-muslim-friendly-malaysia/malaysia-the-worlds-leading-halal-hub/

2. http://www.panduanmalaysia.com/2013/01/statistik-terkini-penduduk-malaysia.html

67%

25%

7%

1%

Malaysians' Population As At 2010

Bumiputera

Chinese

Indian

Others

17

Malaysia is conducive for foreign investors

Source: Guide On Pharmaceutical Industry In Malaysia Page12

18

Malaysian officials visit bigger countries seeking for bilateral trade deals

19

Theme 2

Expectations Or Interest of Malaysians Towards Japan

• Products/Services

• Tourism

• Cultural

20

Malaysia imports from 202 countries, so it is no surprise share of Japan is only around 8% but that accounts for RM632mil

65,512,585,012

53,749,883,784

53,902,368,428

54,038,528,673

64,388,618,951

62,773,469,253

63,512,811,287

64,799,147,106

64,877,777,412

54,316,356,633

66,534,799,058

65,362,011,452

62,373,529,599

56,359,919,975

54,711,779,150

53,588,318,998

245,946,283,255

226,479,209,241

249,188,097,064 262,499,324,501

335,243,551,977

370,097,328,410

414,635,111,277

437,245,477,236 454,926,516,305

380,353,445,650

462,293,384,279

508,264,314,900

544,303,420,207

592,334,953,332

628,225,368,157 631,802,391,983

311,458,868,267

280,229,093,025

303,090,465,492316,537,853,174

399,632,170,928

432,870,797,663

478,147,922,564

502,044,624,342519,804,293,717

434,669,802,283

528,828,183,337

573,626,326,352

606,676,949,806

648,694,873,307

682,937,147,307685,390,710,981

0

100,000,000,000

200,000,000,000

300,000,000,000

400,000,000,000

500,000,000,000

600,000,000,000

700,000,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Japan

Other 201 Countries

Total Imports

Total Import of Malaysia from Japan 2000-2015 By SITC Categories (RM)

Source: http://trade.stats.gov.my/tradeV2/

21

Import from China and Singapore is growing over the years

65,512,585,012 53,749,883,784 53,902,368,428 54,038,528,673 64,388,618,951 62,773,469,253 63,512,811,287 64,799,147,106 64,877,777,41254,316,356,633

66,534,799,058

65,362,011,452 62,373,529,599

56,359,919,975 54,711,779,150

53,588,318,998

12,320,512,241 14,472,692,194 23,329,083,573 27,630,431,79839,273,724,993

58,259,604,954 64,712,667,982

66,853,661,263

61,025,653,24766,429,785,195

66,429,785,19575,706,497,649 91,863,923,782

106,264,794,115115,513,139,845

129,360,046,611

51,743,942,073 44,881,336,691 49,554,925,911 48,716,711,159 57,862,911,691 55,869,132,835 60,068,051,79254,157,662,985 56,134,953,663 48,833,532,956

56,258,883,735 55,405,489,08349,088,619,686

50,682,391,593 52,374,544,962

55,331,761,817

44,695,546,086

35,351,973,518 36,249,538,785 37,141,635,943 44,277,686,556

50,586,222,489 55,843,996,150 57,559,498,749 57,056,399,579 49,359,109,156 60,277,770,309

73,699,477,84880,476,342,355

80,249,180,736 85,886,980,81382,096,523,706

137,186,282,855 131,773,206,838 140,054,548,795

149,010,545,601

193,829,228,737 205,382,368,132

234,010,395,353

258,674,654,239

280,709,509,816

215,731,018,343

279,326,945,040

303,452,850,320 322,874,534,384

355,138,586,888 374,450,702,537

365,014,059,849

311,458,868,267

280,229,093,025

303,090,465,492 316,537,853,174

399,632,170,928

432,870,797,663

478,147,922,564

502,044,624,342 519,804,293,717

434,669,802,283

528,828,183,337

573,626,326,352

606,676,949,806

648,694,873,307

682,937,147,307 685,390,710,981

0

100,000,000,000

200,000,000,000

300,000,000,000

400,000,000,000

500,000,000,000

600,000,000,000

700,000,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Japan

China

USA

Singapore

Other 196 Countries

Total Imports

Total Import of Malaysia from Japan & Other Countries 2000-2015 By SITC Categories (RM)

Page 22

31

1,4

58

,86

8,2

67

28

0,2

29

,09

3,0

25

30

3,0

90

,46

5,4

92

31

6,5

37

,85

3,1

74

39

9,6

32

,17

0,9

28

43

2,8

70

,79

7,6

63

47

8,1

47

,92

2,5

64

50

2,0

44

,62

4,3

42

51

9,8

04

,29

3,7

17

43

4,6

69

,80

2,2

83

52

8,8

28

,18

3,3

37

57

3,6

26

,32

6,3

52

60

6,6

76

,94

9,8

06

64

8,6

94

,87

3,3

07

68

2,9

37

,14

7,3

07

68

5,3

90

,71

0,9

81

Malaysia’s biggest import is Machinery & Transport Equipment followed by Manufactured Goods, Mineral Fuels, Lubricants etc and Chemicals

Total Import of Malaysia 2000-2015 By SITC Categories (RM)

3% 3% 3% 3% 3% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2%

6% 6% 6% 6% 6% 5% 5% 5% 6% 6% 6% 6% 6% 6% 6% 7%

63% 61% 62% 62%58% 57% 56%

53%49% 51% 49%

45% 44% 43% 42%43%

10%10% 10% 10%

11% 11% 12%13%

13%12%

12%

13% 12% 13% 13%13%

7%7% 7% 7%

8% 8% 8%8%

9%9%

9%

9%9% 9% 10%

10%

0.2%0.3% 0.4% 0.4% 1%

0.5% 1% 1%1%

1%1%

2%2% 1% 1%

1%

5% 5% 5% 6% 6% 8% 9% 9%11% 8% 10%

12% 14% 16% 17%12%

2% 2% 2% 2% 3% 2% 3% 3% 4% 3% 4% 4% 4% 4% 3% 3%

0.2% 0.3% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.4% 0.5% 0.4% 1% 1% 1% 1% 1%

4% 4% 4% 4% 4% 4% 4% 5% 5% 6% 6% 6% 6% 6% 6% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Code 0:Food

Code 1:Beverages & Tobacco

Code 2:Crude Materials, Inedible

Code 3:Mineral Fuels, Lubricants, Etc.

Code 4:Animal And Vegetable Oils & Fats

Code 5:Chemicals

Code 6:Manufactured Goods

Code 7:Machinery & Transport Equipment

Code 8:Miscellaneous Manufactured Articles

Code 9:Miscellaneous Transactions & Commodities

TO

TA

L b

y Y

EA

R

Page 23

From Japan, Malaysia biggest import are Machinery & Transport Equipment followed by Mineral Fuels, Lubricants +

Total Import of Malaysia from Japan 2000-2015 By SITC Categories (RM)

2% 3% 4% 4% 4% 4% 5% 6% 4% 3% 1% 1% 1% 1% 1% 1%

6% 6% 7% 8% 8% 7% 6% 5% 6% 8% 11% 12%9% 8% 8% 9%

70% 67% 65% 65% 64% 64% 60% 60%59%

60% 58% 54%57%

54% 54%57%

14% 15% 15% 15% 17% 17%19% 20% 22% 18%

20%22% 22%

24% 23% 19%

7% 7% 8% 7% 7% 8% 7% 8% 8% 8% 8% 9% 9%9% 10% 10%

0.03% 0.03% 0.04% 0.03% 0.03% 0.02% 0.03% 0.03% 0.05% 0.03% 0.03% 0.03% 0.05%0.02% 0.03% 0.04%

0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% 0.2% 0.2% 0.4% 0.2% 0.4%3% 2% 1%

1% 1% 1% 1% 1% 1% 1% 1% 1% 2% 1% 2% 1% 2% 2% 2%0.02% 0.03% 0.02% 0.02% 0.03% 0.03% 0.03% 0.02% 0.02% 0.03% 0.06% 0.05% 0.04% 0.04% 0.06% 0.1%0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% 0.3% 0.3% 0.3% 0.4% 0.4% 0.4% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Code 0:Food

Code 1:Beverages & Tobacco

Code 2:Crude Materials, Inedible

Code 3:Mineral Fuels, Lubricants, Etc.

Code 4:Animal And Vegetable Oils & Fats

Code 5:Chemicals

Code 6:Manufactured Goods

Code 7:Machinery & Transport Equipment

Code 8:Miscellaneous Manufactured Articles

Code 9:Miscellaneous Transactions & Commodities

TO

TA

L b

y Y

EA

R

65

,51

2,5

85

,01

2

53

,74

9,8

83

,78

4

53

,90

2,3

68

,42

8

54

,03

8,5

28

,67

3

64

,38

8,6

18

,95

1

62

,77

3,4

69

,25

3

63

,51

2,8

11

,28

7

64

,79

9,1

47

,10

6

64

,87

7,7

77

,41

2

54

,31

6,3

56

,63

3

66

,53

4,7

99

,05

8

65

,36

2,0

11

,45

2

62

,37

3,5

29

,59

9

56

,35

9,9

19

,97

5

54

,71

1,7

79

,15

0

53

,58

8,3

18

,99

8

24

Japan is only one of several countries Malaysia imports Machinery and Transport Equipment, so plenty of opportunity for Japan to increase its share

65,512,585,012

53,749,883,78453,902,368,428 54,038,528,673 64,388,618,951

62,773,469,253 63,512,811,287 64,799,147,106 64,877,777,412

54,316,356,633

66,534,799,058

65,362,011,452

62,373,529,599

56,359,919,975 54,711,779,150 53,588,318,998

6,333,176,814 8,764,724,152 14,833,662,77218,137,522,847 26,466,971,490

34,820,433,302 40,417,666,574 42,266,825,222 42,561,556,414 40,670,967,353 39,845,624,272 44,141,887,079

56,506,371,981

62,096,083,834 63,983,859,578 67,150,985,412

39,294,659,811

32,974,882,699 38,880,374,32838,370,439,578 44,023,226,010

41,684,490,369 43,851,475,278 36,706,428,66939,003,657,563

34,038,277,774

38,236,616,39436,229,993,975 30,730,781,805

32,596,048,213 33,662,540,034 35,072,088,434

27,374,541,370

20,264,289,023 19,760,529,82018,605,392,880

20,692,803,90723,183,942,834 25,871,288,492

24,633,819,38220,544,447,296

22,669,684,333

24,676,034,80728,700,006,862

26,242,321,303 22,342,355,771 25,083,868,092 32,091,353,001

57,213,024,394

53,855,215,745 60,592,303,286 66,176,648,608 76,919,676,614 86,305,189,805 93,009,746,782 98,943,462,140

87,295,532,314 70,668,853,810 92,298,038,555 80,845,845,140 90,616,845,436

102,883,568,672 108,105,531,271 109,161,542,848

195,727,987,401

169,608,995,403

187,969,238,634 195,328,532,586

232,491,296,972 248,767,525,563

266,662,988,413 267,349,682,519 254,282,970,999

222,364,139,903

261,591,113,086 255,279,744,508 266,469,850,124

276,277,976,465 285,547,578,125

297,064,288,693

0

100,000,000,000

200,000,000,000

300,000,000,000

400,000,000,000

500,000,000,000

600,000,000,000

700,000,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

JapanChinaUSASingaporeOther CountriesTotal Imports

Total Code 7: Machinery and Transport Equipment (RM), Import of Malaysia 2000-2015

25

714,099 679,393

352,676 295,826

357,783

432,883

561,489 546,503 538,727

615,701

551,571 572,101

681,786

546,451

676,662

779,481

667,046 682,932

847,194

774,239

658,239 705,848

648,548 689,679 668,610

729,460

857,024

923,017 875,408

901,066

1,003,032

906,379 866,966

928,560

839,891 864,491

944,009

880,020

1,050,559

1,231,471

1,097,211 1,055,273

1,270,048

1,109,569 1,099,102

1,271,705

1,168,427

1,236,073 1,218,393

1,386,982

1,525,879

1,764,691

1,641,734 1,602,198

1,918,356

1,817,023

1,612,208

1,829,265

1,647,550

1,773,130

505,543 506,441

190,730

108,820

183,799

282,118

396,559 373,195

323,947

404,377 358,056

423,650

486,156

364,800

452,710

582,655

473,792 511,443

666,603

592,809

430,025 480,255

455,666

544,731

456,009

559,949

624,502

719,277 676,551

720,877

819,985

716,059

627,679

702,911

628,688

710,030 730,519 688,902

802,434

1,020,474

892,577 866,883

1,080,552

903,919 846,241

1,029,922

943,831

1,074,350

978,476

1,207,242 1,236,489

1,528,848

1,411,626 1,398,845

1,712,803

1,584,484

1,346,488

1,564,772

1,399,516

1,599,537

111,444 109,951 75,953 56,643

89,301 101,352 108,056 88,945 117,300

143,498 140,783 100,286 98,143

123,709 130,166 124,113 128,430 120,258 120,411 91,020

126,883 145,637 137,739 96437110,762 104,275 126,504 125,646 128,235 126,044 120,915

94,015 128,692 144,808 151,752

103,202 108,493 118,741 139,879 128,180 129,963 128,535 123,751 100,213

135,563 158,451 158,866 106,479 122,506 114,641

151,984 139,608 142,464 138,697 131,296 114,132 134,254 166,456 173,986

111,276

97,112 63,001 85,993

130,363 84,683

49,413 56,874 84,363 97,480

67,826 52,732 48,165 97,487

57,942 93,786 72,713 64,824 51,231 60,180

90,410 101,331 79,956 55,143 48,511

101,839 65,236

106,018 78,094 70,622 54,145 62,132

96,305 110,595 80,841 59,451 51,259

104,997 72,377

108,246 82,817 74,671 59,855 65,745

105,437 117,298 83,332 65,730 55,244

117,411 65,099

137,406 96,235 87,644 64,656 74,257

118,407 131,466 98,037

74,048 62,317 -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2011

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2012

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2013

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2014

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2015

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

Total Tourist Business Others

Visitors’ Arrival to Japan – Total vs By Type

Source: www.tourism.jpwww.tourism.jp/wp/wp-content/uploads/2012/11/JTM_inbound20160526.xls

Visitors arrival to Japan is on the increase driven by Tourists

26

Visitors’ Arrival to Japan – Total vs By Country

714,099 679,393

352,676 295,826

357,783

432,883

561,489 546,503 538,727

615,701

551,571 572,101

681,786

546,451

676,662

779,481

667,046 682,932

847,194

774,239

658,239 705,848

648,548 689,679 668,610

729,460

857,024

923,017 875,408

901,066

1,003,032

906,379 866,966

928,560

839,891 864,491

944,009

880,020

1,050,559

1,231,471

1,097,211 1,055,273

1,270,048

1,109,569 1,099,102

1,271,705

1,168,427

1,236,073 1,218,393

1,386,982

1,525,879

1,764,691

1,641,734 1,602,198

1,918,356

1,817,023

1,612,208

1,829,265

1,647,550

1,773,130

6,789 9,133 5,483 3,462 4,139 4,683 5,730 5,219 8,540 7,042 7,724 13,572 8,876 7,354 11,748 12,222 12,731 8,445 7,905 7,734 9,442 11,335 15,170 17,221 7,609 10,982 13,401 14,716 15,013 9,802 9,929 10,951 11,681 17,760 26,153 28,524 13,961 14,109 23,372 25,166 22,607 17,029 16,249 9,938 16,083 24,020 27,682 39,305 12,312 19,269 28,193 29,556 25,797 18,525 19,954 12,301 21,307 28,488 39,481 50,264

268,368 231,640

89,121 63,790 84,014 103,817

140,053 147,030 122,436 132,259 134,009 141,536

173,000 169,025 150,291 152,323 157,141 152,131 189,701 201,764

145,742 168,150 183,557 199,950 234,456 234,390

206,946 204,229 228,670 211,465

243,992 215,498

164,499 158,273 170,901 182,846

255,517 231,502

192,078 193,998 195,263 207,588 250,741 251,428

217,689 249,577 239,029

270,903

358,093 321,576

268,156 304,619 315,389

251,504

343,799 390,971

301,645

370,842 359,845 415,656

99,131 105,362 62,450 76,164 58,608 61,419

86,963 102,640 112,493 106,174 92,154 79,688 136,665

81,966 129,302 148,793

112,152 125,983

204,270 190,254

121,673 69,713 51,993 52,336 72,301 80,903 102,265 100,160 81,571 98,996

139,905 162,288 156,201 121,335 101,940 96,572

155,605 138,236 184,064 190,558

165,784 173,046

281,309 253,802 246,105 223,214 207,462 189,973

226,214

359,080 338,121

405,731 387,170

462,248

576,868 591,510

491,201 445,562

362,950 347,034

339,811 333,258

195,622 152,410

211,022 262,964

328,743 291,614 295,258

370,226 317,684 337,305

363,245

288,106

385,321

466,143

385,022 396,373 445,318

374,487 381,382

456,650

397,828 420,172

354,244 403,185

534,412

603,912 550,154

580,803 609,206

517,642 534,585

631,192

540,897 556,549 518,926 496,173

651,045

821,749

713,557 657,610

721,749

594,401 619,225

774,894

694,254 735,892

621,774

687,057

891,409

1,024,785

913,378 869,921

977,735

822,241 798,055

984,373

885,274

960,176

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2011

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2012

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2013

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2014

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2015

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

Total Visitors Malaysia Korea China Other 41 Countries

Source: www.tourism.jpwww.tourism.jp/wp/wp-content/uploads/2012/11/JTM_inbound20160526.xls

There are 44 nations visiting Japan; Malaysia has a weak minority share. While weak currency is a potential issue, plenty can be done to induce Malaysian tourists

27

714,099 679,393

352,676 295,826

357,783

432,883

561,489 546,503 538,727

615,701

551,571 572,101

681,786

546,451

676,662

779,481

667,046 682,932

847,194

774,239

658,239 705,848

648,548 689,679 668,610

729,460

857,024

923,017 875,408

901,066

1,003,032

906,379 866,966

928,560

839,891 864,491

944,009

880,020

1,050,559

1,231,471

1,097,211 1,055,273

1,270,048

1,109,569 1,099,102

1,271,705

1,168,427

1,236,073 1,218,393

1,386,982

1,525,879

1,764,691

1,641,734 1,602,198

1,918,356

1,817,023

1,612,208

1,829,265

1,647,550

1,773,130

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2011

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2012

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2013

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2014

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

2015

Jan．

Fe

b．

Mar．

Apr．

May．

Jun．

Jul．

Aug．

Sep．

Oct．

Nov．

Dec．

Visitors’ Arrival to Japan – Total

11 March 2011 - Tōhokuearthquake & tsunami

11 April 2011 -Fukushima earthquake

July – Summer, Mount Fuji open for climbing

April – Cherry Blossom Season (Sakura)

Cherry Blossom Season appears to sharply drive visitorship to Japan, an opportunity to promote that in Malaysia

28

• Obon is a Japanese Buddhist custom to honor the spirits of one's ancestors

- Has evolved into a family reunion holiday

- people return to ancestral family places

- visit and clean their ancestors' graves as spirits of ancestors are supposed to revisit their household altars.

- It has been celebrated in Japan for more than 500 years and traditionally includes a dance, known as Bon-Odori.

• Started in Malaysia 1977• Celebrated yearly at Esplanade (Padang Kota Lama) Penang, Matsushita Corp Stadium in Shah

Alam and Universiti Malaysia Sabah

• Major attraction for Selangor, brain child of Japanese Expatriate & Immigrant's Society

- Less associated with Buddhism and more with Japanese culture.

- To expose locals to a part of Japanese culture,

- To promote and strengthen cultural ties between Malaysia and Japan

- Estimated over 30,000 people participate in the celebration

At traditional culture side, Bon Odori has some good opportunity for communal bonding in Malaysia

Source: http://dancelessons.net/dancehistory/HistoryofBonOdoriDance.html: http://www.tourismselangor.my/event/bon-odori-festival-2015/

29

Source:http://www.businesswire.com/news/home/20160329006679/en/PanaHome-MKH-Malaysia-Adds-Malaysias-Housing-Industry: http://www.my-panahome.com.my/eco-ideas-house/: http://news.panasonic.com/global/stories/2016/45009.html

• Property purchase decisions in Malaysia typically involve 2 steps

1. buyer first purchases house from developer with minimal interior finishing

2. then engage interior designer to customise lighting and built-in furnituresaccording to preference and budget

• Provision of PanaHome MKH Malaysia’s construction and Living Design Package is one-stop solution for potential buyers, offering a building framework with compatible interior furnishing

• Three Japan-quality PanaHome technologies is employed

1. Wall Pre-cast Concrete (W-PC) which is cost competitive, leveraging on construction expertise & know-how in Japan

2. PURETECH ventilation system filters dust and air pollutants

3. “Kajiraku2” is intelligently-designed house layout and efficient space utilisationwhich enhances security, safety and communication among family members

At traditional culture side, Japanese Concept House has clear lifestyle benefits to property buyers

30

At Pop Cultural end, Animé has big demand

Source: http://www.kcpstudentlife.com/culture/anime-and-manga/

• Animé (short for animation), Japanese animated cartoons

• Animé is usually hand-drawn, but techno-trends have introduced computer assisted illustration into the genre

• Has a huge following in Japan, gaining worldwide recognition.

• Distributors can now release animé via

• Television

• Video

• Theatres

• Online

• Phenomenal success of Nintendo’s Pokémon franchise was helped by the spinoff 1990s animé series.

31

Source: http://www.kcpstudentlife.com/culture/anime-and-manga/

• Manga is Japanese graphic novels or comics.

• Spans many genres

• Romance

• Sports

• Games

• Sci fi

• Fantasy

• Adventure

• Horror

• Sexuality

• Business and so on

• Manga artists work with few assistants in a studio under guidance of publishing company’s creative editor.

• In Japan alone, manga as an industry reached $3.6 billion in 2007.

• Japan has also begun opening manga kissa, cafées where customers sip cappuccinos and read their manga.

• Webmanga are popular now with online viewing portal to buy in graphic novel form.

At Pop Cultural end, Manga has big demand

32

Source: http://www.travelchannel.com/destinations/japan/articles/harajuku-culture-and-trends

• Harajuku Culture started during the postwar Allied occupation of Japan

• The movement got a boost when 1964 Tokyo Olympics brought in waves of tourists and shops that catered to them.

• Some of the more popular and enduring styles

• Cosplay

• Lolita

• Punk

• Gyaru

• Ganguro

• Yamanba/Manba

• Visual Kei

• Harajuku fashion and culture has gone international

• Regular Harajuku-style meetings in many countries including Malaysia

• Fashion stores (eg. Aeon) are already offering Harajuku brands in Malaysia

At Pop Cultural end, Harajuku Culture and Trends also has some opportunity here

33

Thank you