malaysia.ahk.de JULY/AUGUST 2010 Volume 16, No. 4 KDN PP 8818/3/2010

QUARTERLYThe Business Magazine of the Malaysian-German Chamber of Commerce and Industry

In Conversation with Andreas Prinz,Managing Director of Volkswagen on

Sustainable Growth in the Automotive Industry in

Malaysia

Mercedes-Benz : A Brand Built on “Transfer of Knowledge”

Economic & Financial Developments in Malaysia Q1 2010

Malaysia - Kfz-Industrie und Kfz-Teile

Malaysia Enacts Competition Law

malaysia.ahk.de JULY/AUGUST 2010 Volume 16, No. 4 KDN PP 8818/3/2010

QUARTERLYThe Business Magazine of the Malaysian-German Chamber of Commerce and Industry

Mobility is in our nature.And nature is what drives us.We have a clear objective: to reduce emissions substantially right now and to eliminate them completely in the future. This is why Daimler is developing e�cient internal combustion engines and hybrid drive systems as well as locally emission-free electric vehicles powered by the battery or by the fuel cell. For individual mobility, local public transport and goods transport. After all, we invented the automobile – now we‘re shaping its future. Road to emission-free mobility.

www.daimler.com

“Besides quality products, they are able to present us with new perspectives in terms of warehouse space layout and optimization.”

Mr. Thomas NeffCountry Logistics Manager

DKSH Vietnam

Originated from Germany in 1937, SSI SCHAEFER has been established in Asia Pacific and Middle East region for close to 25 years, with 2 manufacturing plants and 17 offices spanning over 12 countries.

From simple plastic bins, pallet racking to automated industrial storage systems, we have all the solutions you need under one roof. As a matter of fact, SSI SCHAEFER have been ranked the “World’s Largest Material Handling Systems Supplier” twice in a row since 2006.

Interested to find out more? Call us today, or visit us at www.ssi-schaefer-asia.com

SSI SCHAEFER SYSTEMS (M) SDN BHD (Company no. 226345-M)

Suite G-2, N-Tatt Building, No. 2, Jalan TP 5Taman Perindustrian UEP Subang Jaya47600 Subang JayaSelangor Darul EhsanPhone +60/ 3/ 8024 6373 Fax +60/ 3/ 8024 6273 eMail malaysia@ssi-schaefer.com.my www.ssi-schaefer.com.my

(Penang Office)Phone +60/ 4/ 645 6033 Fax +60/ 4/ 645 6032

(Johor Office)Phone +60/ 7/ 755 7451 Fax +60/ 7/ 755 7184

Solutions That FitProfessional, Experienced & Reliable

MGCC_217x304_DKSH_MY.indd 1 1/22/2010 2:25:48 PM

BOARD OF DIRECTORS2009-2011

AndreAs PrinzPRESIDENT

P. KAndiAhVICE PRESIDENT

ALeXAnder sTedTFeLdEXECUTIVE DIRECTOR

dATo’ roberT Teo Keng TuAnTREASURER

dATuK MuhAMMAd FeisoL b. hj. hAssAn

TAn sri dATo’ g.s. giLL

LiM KhiAng huA

rAyMond yeoh

yusoFF Md sAhir

yee boon yeow

hArALd e. burchArdT

KnuT herzer

PeTer T. honegg

bernhArd rAcK

dATo’ herberT weiLer

PeTer zuber

J U L Y / A U G U S T 2 0 1 0

MGCC QUARTERLY

is published six times p.a. by theMalaysian-German Chamber of

Commerce and Industry.

PUBLISHER

Datuk Muhammad Feisol Bin Haji HassanIt is distributed free of charge to members

and qualified non-members in Malaysia and abroad.

MALAYSIAN-GERMAN CHAMBER OF COMMERCE AND INDUSTRY

(171131-U)Supported by the Federal Ministry of Economics and

Technology based on a resolution of the German Bundestag.

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50450 Kuala Lumpur, Malaysia.Tel : 603-9235 1800

Fax : 603-2072 1198homepage : malaysia.ahk.de

e-mail : info@malaysia.ahk.de

* All opinions expressed in articles do not necessarily reflect the views of MGCC.

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UR GRAPHIC SDN. BHD.No. 8, Jalan PBS 14/6,

Taman Perindustrian Bukit Serdang,43300 Seri Kembangan,

Selangor Darul Ehsan, Malaysia.Tel : 603-8945 8640

QUARTERLYThe Business Magazine of the Malays ian-German Chamber of Commerce and Industry

focus 6 In Conversation with Volkswagen Group Malaysia: Sustainable Growth in the Automotive Sector

10 Solar Photovoltaic – Plug into the Sun Part 3

13 The Importance of Trademarks & Branding Part 3

training 18 Mercedes-Benz: A Brand Build on Transfer of Knowledge

members 20 Siemens Paints Businesses Green in Brunei

22 SSI Schaefer Impresses Guests at the Halal Supply Chain 2010

24 MOX-Linde Celebrates 50 Years of Growth with Malaysia

26 TIL Successfully Completes Movement of CSD 500

28 DHL Organises Golf for its Guests in Penang

29 Micro-Medical Showcases Free Oxygen Radicals Monitor

32 Malaysian Delegation Visits Q-Cells HQ in Bitterfeld-Wolfen, Germany

34 Rohde & Schwarz and IGTEC Forms Joint Venture Company – RSI Technik Sdn Bhd

35 Bayer Young Environmental Envoy Hopefuls Complete Eco-Camp in Sarawak

36 Rittal Systems Conducts Seminar on Energy-Efficient Data Centre Infrastructure for Green Buildings

38 MGCC Welcomes New Members

events 40 MGCC Annual General Meeting 2010

42 MGCC Organizes SOCSO Briefing for Members

44 Sundowner @ Mezzo Bar, Renaissance Hotel

economics 46 Malaysia - Kfz-Industrie und Kfz-Teile

50 Economic And Financial Developments In Malaysia In The First Quarter Of 2010

52 News from the German Federal States

legal 53 Fairness Comes First – Malaysia Enacts Competition Law

education 54 DSKL and Mercedes Benz Malaysia present Open Stage No. 7

trade fairs 55 IFA 2010

56 bauma China 2010

57 InnoTrans 2010

58 IFAT ENTSORGA

59 MHX 2010

upcoming 60 Trade Fairs in Munich, Nürnberg and Berlin September 2010 – March 2011

7/8 2010 MGCC Quarterly4

EDITORIAL

The recently revised NAP or National Automotive Policy of the Malaysian government has received some thumbs-up by foreign automakers with business interests in Malaysia, and rightfully so. It is another policy move in the right direction. However, it can only be considered as another step. More need to be taken. Among these are some, which the Malaysian government cannot take alone but will need to do so together with its ASEAN partners.

Once a truly common market in ASEAN is achieved, investments in the automotive sector will follow bringing in more high-technology ventures to the region. And a good payback: Qualified and well-paid jobs, economic growth and know-how transfer, important contributions to achieve the agenda 2020 which includes becoming a high-income country.

It will also mean embracing competition as the true economic scenario. Improvements in the competitiveness of its own industry are what the Malaysian government has already envisaged. It is one of the main elements in pursuing the goals portrayed in the New Economic Model (NEM). The NEM acknowledges the need to keep the competitive advantages over other countries in the Asian region and recognizes the requirement of improving high-potential knowledge and cutting-edge technology. To open the roads for contributions by foreign partners has been a smart choice. It would also be so in the automotive sector. A prerequisite would be to create an environment that is conducive to such engagements in Malaysia. It is obvious that the interest is there, but there are still some missing links.

What needs to be done is rather simple to describe in the economist’s terms: Open and liberal markets. However, when talking about automotive policies, politically sensitive issues come into play. Some can be resolved on national level others involve a regional stage.

And what a market it would be. With a population of almost 600 million people with a total GDP of 1.5 trillion USD car sales in the ASEAN region has surpassed 2 million units in 2008 and is set to double over the next 10 years. These figures show that there is a market large enough to attract foreign automotive investments on a larger scale, meaning full-fledged production facilities But today, in the automotive sector we are still looking at individual ASEAN markets, which, while some having a significant size, are individually not large enough to merit such engagements.

The benefits of opening up are manifold. In terms of employment, training, economic growth and technolo-gical development. This holds equally true for car manufacturers as for OEM suppliers, which often follow the car manufacturer. It will also create opportunities for local suppliers. But it also creates opportunities for local suppliers. In other sectors German companies with production facilities in Malaysia have created many successful partnerships with Malaysian companies to supply them with components. Partnerships, which have lead to additional business opportunities for such Malaysian firms in foreign markets that were out-of-range before, including high-technology Europe.

And it is not a one-way road. Companies like Proton or Perodua have shown their abilities to successfully build cars. Malaysia was the first developing country to comprehensively master the know-how to build a car from scratch. With Proton taking over the sports car manufacturer Lotus, the company has moved closer to high-technology know-how. Proton may well take it a step further in developing the capabilities to tap foreign markets, eventually also in Europe. One indicator that this is not a utopia are existing sales in Great Britain. Malaysia will also benefit from increasing its competitive edge on home turf. So, nothing to be worried about or as we say in Germany: Competition is good for business! ▼

MobilityAbout cars andpolicy movements

Alexander StedtfeldExecutive Director

FOCUS

Q WhatisVolkswagen’sresponsetothe New Automotive Policy (NAP)that came into force in January?Whatareitsbenefitstotheautomotiveindustry?

A The revised NAP is definitely a boost to the local automotive industry because it includes incentives and fresh measures, not only to attract new investments but also to encourage expansion of existing operations in order to ensure the development of the local automotive industry.

For foreign car manufacturers like us, we were not expecting too much from the revision of the NAP, however, we appreciate the government’s move to introduce EURO 4M quality petrol and diesel by 2011 under the review of the NAP. The government’s move is an encouraging and proactive mea­sure to further promote clean and sustainable technology in the Malay­sian automotive industry. Whether

In Conversation with Andreas Prinz,Managing Director of Volkswagen Group Malaysia Sdn. Bhd.

Q Volkswagen has introduced aninitiativeonelectricalvehiclesattheHannoverFair2010.DoyouseethatthisconceptcouldalsobeappliedinMalaysia?

A Volkswagen Group’s focus on becoming an economic and environ­mental leader in the global automotive industry remains one central element of our Group’s ‘Strategy 2018’. Volkswagen has set its sights on new environmental bechmarks with regards to alternative drive trains and engine development, geared to a systematic downsizing i.e setting new standards in both efficiency and environmental performance.

The Volkswagen Group invests 5 billion Euro every year in Research and Development and our E­Mobility concepts play a key role. We have experts in America, Europe and Asia who closely work together to make

this can be realistically implemented in 2011, however, needs to be proven. This is a definite boost for us to introduce our innovative range of highly fuel efficient and extremely low emission engines, combined with maximum performance of our famous TDI diesel cars.

Today, the Volkswagen Group already offers two dozen models with emission values of less than 120 gramme CO2/km. A total of more than 105 models already meet the strict Euro 5 and Euro 6 emissions standards. Further, new models will bring a marked increase in the number of vehicles emitting less than 100 gramme CO2/km in 2010.

However, we would have appreciated lower import duties and taxes, so that our Malaysian customers would benefit and enjoy our products at prices we are offering in other parts of the world.

FOCUS

Establishing the Successful Volkswagen Brand in Malaysia

Andreas Prinz was appointed Managing Director of Volkswagen Group Malaysia in 2008. MGCC had the opportunity to talk to Andreas on his views on achieving sustainable growth in the automotive industry

7/8 2010 MGCC Quarterly6

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downturn, the past year has not been easy for the automotive sector as a whole. Having already been in Malaysia for 4 years (after 3 years of operational retail and wholesale business), we took the opportunity to consolidate our Sales and After Sales dealer network on the one hand, and we are also currently expanding with new partners all over Malaysia. These partners are very excited to do business for and with us, even during these difficult times. They know that we are an important, reliable and successful brand to deal with.

sure that the heart of Volkswagen will also beat electrically in the future. Finally we want to offer electrical cars in every segment. It will still take some time, but we want to have those electrical cars also one day in Malaysia.

Q What are Volkswagen’s latestdevelopments to promote clean andsustainableenergy?

A Apart from electric traction, the continuous optimization of energy­efficient and low­emission vehicles powered by combustion engines is a firm part of Volkswagen’s sustainabi­lity strategy.

Various technologies are com bined as Volkswagen’s “BlueMotionTechnolo­gies” – our umbrella brand. This can be found both in the automobile pro­duction and in the vehicles them­selves.

The BlueMotionTechnologies label covers all of Volkswagen’s production­mature or near­production technolo­gies and products that significantly reduce fuel consumption and CO2 emissions. Technology such as TSI and DSG which are part of BlueMotion Technologies, are already available in our cars sold here in Malaysia.

a small brand in Malaysia to a level where we want to be as successful as we are in most parts of the world. We have an extremely positive image here in Malaysia, which is a solid foundation, but we also know that we have to establish an excellent infra­structure and services here.

Q ArethereanyVolkswagenmodelsassembledinMalaysia?Arethereanyplans to have certain modelsassembledinMalaysia?

A Currently, all our Volkswagen models are imported. Regarding any plans to assemble cer tain models in Malaysia, we continuously investi­gate local market opportunities on a worldwide scale. With regards to Malaysia, there are neither definitive developments, nor any agreements yet in place.

Q Which are Volkswagen’s bestsellingmodels?

A To date we have put more than 3,200 cars on Malaysian roads within more than 3 years of operational business.

The government’s move to introduce EURO 4M petrol and diesel is an encouraging and proactive measure to further

promote clean and sustainable technology in the Malaysian automotive industry.

The legendary Scirocco

Establishing the Successful Volkswagen Brand in Malaysia

This streamlining finally leads to a more sustainable growth and business. This ultimately ensures that our customers will always be assured of the highest level of service expected from Volkswagen. We still have an excellent starting point to grow from

Q What is the impactof theglobalfinancial crisis on your businessoperationsinMalaysia?

A While Volkswagen Group Malaysia was not directly affected or impacted by the global economic

7/8 2010 MGCC Quarterly 7

FOCUS

Late last year we introduced 3 new models ­ the Passat CC, Scirocco and the Golf GTI Mk6 and till today bookings and sales continue to be very positive.

Understandably, in Malaysia our famous Golf GTI is an iconic and best­selling model and so is the New Beetle. However, I am pleased to say that all our other Volkswagen models are gaining popularity and are doing well, such as the Tiguan, Eos, Touareg and our latest addition – the Passat CC, Scirocco and the 6th generation Golf GTI as well.

Q Whatareyourfuturemodelstobeintroducedinthefourthquarteroftheyear?

A New model launches that can be expected this year would be the award winning Polo 1.2l (Car of the Year as well as the World Car of the Year 2010); the Golf 1.4l (World Car of the Year 2009 and safest car 2009 under a more extensive EuroNCAP crash testing procedure) and the Scirocco 1.4l (awarded 5 star, the highest Euro NCAP safety rating)

All three models will have the world­leading technologies from Volkswagen – the award winning TSI family of engines and the Direct Shift Gearbox DSG. The TSI offers drivers a miracle of

The perfect combination of TSI and DSG results in excellent consumption figures and convenience levels, com­fort and driving enjoyment, showing once again that Volkswagen is consistently committed to making highly innovative environmentally friendly technologies available to everyone.

Q Where do you see VolkswagenGroupMalaysiainfiveyears?

A The Volkswagen brand is a lot more visible now that we have

Golf 1.4l. Coming soon to Malaysia

The iconic New Beetle

We are here to stay and grow our business in

Malaysia as strong as we are all over the world.

performance, delivers maximum power and minimum fuel consumption without compro mising on performance and driving pleasure.

The DSG transmission technology, on the other hand, offers the driver smoother and faster gear shifting, with more driving pleasure and lower fuel consumption.

presence in Malaysia than previously. Of course we have to do more for our brand and with a clear focus on our customers, especially in the areas of sales and after­sales service.

As for now, we concentrate on the completely built­up (CBU) business and supporting our dealers to ensure that they have a sustainable business. Each dealer operates in a different consumer market and therefore, they have different needs. Now that we have an even better feel of the various regions, we are in a better position to offer even stronger market support. We are here to stay and grow our business in Malaysia as strong as we are all over the world. ▼

7/8 2010 MGCC Quarterly8

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Out of curiosity, an informal survey was carried out in Malaysia to find out the reasons why building owners install solar PV systems in their house/office buildings. The survey showed that these owners do so for the following several reasons:

i) Leverage on existing government incentives for solar PV;

ii) For retirees, having a BIPV house will help to hedge against future electricity price increase;

iii) Environmental conscious;iv) For home buyers, having a BIPV

house will help create a point of differentiation by being a clean micro IPP (independent power producer);

v) For commercial entities, the in­stallation of PV systems in the buildings helps create an image of corporate responsibility.

How much does it cost? One of the frequent questions raised is the cost of installing grid­connected buil­ding integrated photovoltaic (BiPV) systems. Globally, the prices of PV modules have seen a decline over the past 2 years. This is largely due to economic crisis which forces some key markets to revise their policy mechanism to accommodate their national budget. In Malaysia, we have recorded a steady decline of BiPV pricing (see http://www.mbipv.net.my /content.asp?zoneid=4&categoryid =12). As of December average cost 2009,the average cost of a grid­connected PV system (based on standard PV module) is RM 20,000 per kWp ± 10 %. 65 – 70% of the total cost is on PV modules, inverter accounts for 10 ­15% of the total cost and the remaining cost is for the balance of system (BoS), design &

Solar Photovoltaic – Plug into the Sun

Welcome back to the final part of the 3-part series of article on solar photovoltaic. Quick recap: Part 1 focused on background information on solar photovoltaic, policy mechanism and market condition while part 2 focused on photovoltaic technologies and their different applications. The concluding series will focus on the practical issues concerning installing solar photovoltaic for both the end-users and those interested in venturing into solar business in Malaysia.

installation fees and typically one year warranty on worksmanship from PV service provider. Balance of sys­tem covers cabling (ac and dc), junction boxes, switches (ac and dc), fuses, surge protection devices and mounting structure. This price is expected to vary with the types of modules (standard or customised), the size of PV system (larger system can achieve economies of scale), com­plexity in installation and local con­dition (e.g. windy, proximity and ease to delivery).

Approved Photovoltaic Service Provider: If you are interested in installing a PV system for your home or commercial building, it is strongly recommended that you contact an Approved PV Service Provider(APVSP). Companies listed with MBIPV Project as APVSPs have complied with requirements to reduce the risk of potential PV buyers. This includes the requirement for companies to have at

least an employee who has passed the rigourous exam for grid­connected PV training (ISP). This is to ensure companies have theoretically compe­tent designers and installers for grid­connected PV systems. The list of APVSP with their ratings can be found in http://www.mbipv.net.my/rating.asp?zoneid=10&categoryid=61. When you contact an APVSP, a good APVSP should:

• Respondtoyourenquirywithin48hours;

• Explain how a PV system works,the concept of net metering for direct and indirect feed, expected energy output and the Ringgit Malaysia equivalent based on existing tariff;

• Advise you on any possible sha­dowing affecting the performance of PV system (e.g. growing trees, new construction site);

• Advise you on the fire and theftinsurance to cover your PV system;

by Chen Wei Nee, Technical Advisor, MBIPV Project

Part 3:

Source: Bukit Damansara, 4.2 kWp, Kuala Lumpur, Malaysia.

7/8 2010 MGCC Quarterly10

FOCUS

• Conduct at least one site visitbefore producing a quotation. Once the quotation is presented to the customer, the APVSP will explain about the quotation, what can be expected during pre­installation, installation and post­installation of the PV system, the warranties of equipment and workmanship, the operation and maintenance (O&M)of the PV system;

• Not criticise the workmanship orsystem design of another APVSP.

What should the quotation for a solar PV system include? The quotation from the APVSP should minimally include the following:

• Full specifications of the systemoffered (quantity, manufacturer, model number of the solar modules & inverter including the IEC or related standards complied with);

• Warranty information for eachitem;

• Minimum 1 year warranty oninstallation workmanship of the system;

• A firm quotation which includesall equipment and installation charges and services during the warranty period;

• PVmoduleandinverterauthorisa­tion for channel distributor or resellership.

• Anestimatequotationforcall­outservices after the first 12 months warranty period on workmanship has expired,

• Validityperiodofquotation;and• Importantly, the quotation should

be accompanied by an estimate of

the yearly energy output of the system. If the output from the installed PV system should fall consistently below the estimated output, the client should request the APVSP to investigate and account for the lower than expected energy output.

Guidelines for sales contract for solar PV system: Each sale of solar PV system should result in a formal contract between the customer and APVSP. This will save some headache during implementation especially when contract and work schedule or plan are completely mis­sing. The contract should be signed once the customer has decided to purchase the PV system. The contract should include supply, installation and commissioning of the solar PV system. A copy of the contract should be retained by the customer and the other by the APVSP. The contract should include PV product manufac­turers’ names, pro duct ratings & model serial numbers, international manufacturing stan­dards, materials deli­very schedule. Instal­la tion work plan which should corres­pond to progress pay­ment schedule. The APVSP should in­clude an estimate price for call­out services once the initial 12 months war ranty period on work manship has

expired. The con tract should include terms specifying: the customer’s and the APVSP’s rights, changes to specifications, agreed penalty charges (if any) for clauses pertaining to early termination of contract, delayed deli very, dama­ging of owner’s properties and injury resulting from lack of safety measures taken during installa­tion.

During the installation of the PV system: A good APVSP should update the customer on regular basis the progress of the installation. The APVSP should ensure safe working environment for customer as well as workers, examples of safety issues include scaffolding and roof covering. The APVPS should ensure that their workers who are responsible for the roof and structural installation work possess current CIDB Green Cards (as applicable). The company should only engage electricians having valid wireman certificates to do the electri cal installation. The APVSP must not tamper with TNB installation and the company should follow all the requirements of MS 1837: 2005 on Installation of Grid Connected Photo voltaic (PV) System during the installation of the PV system. After the installation is over, the APVSP should test to ensure there is no roof leakage and to leave the premise in a tidy order. If there is any damage to the property as a result of the installation of the PV system and the customer is able to prove that there is an element of negligence in

PV Service Provider should advise customers of any potential shading which will affect the performance of PV system.

Solar Path Finder : Check shading of proposed PV Site

Safetyness for both the installers and customers are important during installation period.

7/8 2010 MGCC Quarterly 11

FOCUS

the APVSP, then the APVSP shall repair any damages to the property.

Testing and commissioning (T&C) of the system: Once the PV system has been installed, the system is ready to go ‘live’. Before the PV system is commissioned, projects which are co­funded by MBIPV Project will require the APVSP to submit 3 types of forms: one for MBIPV Project, power utility (TNB) and Suruhanjaya Tenaga (Energy Commission) at least 3 weeks before the proposed T&C is scheduled The PV System owner or representative, APVSP, power utility, Mounting Structure Quality Control Centre (MSQCC represented by IKRAM) and PV Monitoring Centre (represented by UiTM) must be present during the T&C. The APVSP shall explain to the customer the equipment installed including interpreting the PV meter.

After the PV system has been commissioned: For projects co­funded by MBIPV Project, the APVSP is required to submit the T&C report to MBIPV Project within 3 weeks of T&C. The APVSP should follow up with the customer to verify satisfac­tory performance of the system in­stalled and its performance against the declared performance for at least the first 12 months. The APVSP should respond to after sales service calls within 24 hours and provide support to the customer when a product fails under warranty. This support will include liaising with the manufacturer or equipment agent on behalf of the customer. The APVSP should attempt to solve all complaints in a professional manner and directly with the customer to avoid the com­plaint being formerly lodged to the Quality Assurance Scheme (QAS) Secretariat (MBIPV Project). MBIPV Project will randomly audit BIPV sites (which received financial incentives under the Project) and will inform the APVSP with a copy of the report to the customer on any corrective mea­sures to the PV system. PV Systems receiving funding from SURIA 1000

will be monitored on monthly basis for three years. The PV Monitoring Centre will contact the cus­tomer to arrange for a method most suita­ble for the PV meter recording (telephone call, SMS or email). The performance of your PV system can be viewed at http://pvmc.uitm.edu.my/pvmc/ between one to two months after T&C. The website will also be able to show how well your PV system is performing. On six­monthly or annual basis, arrange with your PV Service Provider for a scheduled system inspection (electrical connections, any rust on racking system, fuses, condition of conduit, clippings). The cost of inspection for the first 12 months should be part of the sales contract. Customer is advised to keep a log book to record each PV Service Provider’s visit and if your surroundings are dusty (e.g. located next to construction site), follow the instruction from the manufacturer to remove dirt from the PV modules.

If you suspect your PV System is faulty: If the failure occurs in the 12 month installation workmanship warranty period then the customer should attempt to diagnose the problem with guidance over the phone by the APVSP. If the diagnosis is not successful, then the APVSP is obliged to inspect the PV system to determine the fault and then rectifying the fault as soon as possible. If it is a fault in installation workmanship then it is the APVSP’s responsibility to rectify the problem. If it is a fault in the equipment then the APVSP should liaise with the equipment manufacturer to fix the product as soon as possible. The cost for the APVSP in providing this service (i.e. cost incurred in removing, returning and then re­installing the product) should either be paid for by the manufacturer or by the APVSP. If the

failure is after the 12 month warranty period, then the customer should attempt to diagnose the problem with guidance over the phone by the APVSP. If the diagnosis is not successful, then the APVSP is obliged to inspect the PV system to determine the fault and then rectifying the fault as soon as possible. A fair price should be quoted to the customer for the call­out as per agreed in advance. If it is a fault in installation workman­ship then the APVSP should provide the customer a quotation for repairs. If it is a fault in the equipment then the APVSP should liaise with the equipment manufacturer to fix the product as soon as possible. The cost in providing the repairs shall be quoted to the customer. If equipment is still under warranty the cost should just be for the time spent travelling to/from site and on site when under­taking the replacement (or repairs) of equipment unless this will be paid by the manufacturer. ▼

This concludes final part of 3-part series on Solar Photovoltaic-Plug into the Sun. I hope this short series has been enlightening to you. The materials and references for this series can be found in www.mbipv.net.my. Comments please email to weinee@mbipv.net.my. Wei-nee Chen is the Technical Advisor (Strategic Communica-tions) of MBIPV Project.

Source: http://pvmc.uitm.edu.my/pvmc2010/, assessed January 2010

7/8 2010 MGCC Quarterly12

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The Importance of Trademarks & Branding

Don’t stop using your Trademark!Let’s say you came up with a unique and catchy brand and want to use it as your trademark for the goods you sell or propose to sell. You conduct a search at the Malaysian Trademark Office and come across an identical or a very similar trademark which has been registered for the same type of goods. What happens now? Will the earlier mark be a barrier to the use and application of your catchy brand?

Definitely. If there is an identical or very similar trademark which was applied for at a date earlier than your trademark application, your applica­tion will be objected to by the Exami­ners at the Trademark Office on the basis that both marks cannot co­exist as the co­existence will confuse cus­tomers. Priority will be given by the Examiners to the mark which has an earlier filing date.

At this stage, you have two options;

You can change your trademark, (i) which would be a shame as you would have to brainstorm all over again to come up with another catchy brand for your goods – and we all know how hard it is to create brands that are memorable and well­liked!

Or,

You can investigate whether the (ii) earlier mark is still in use by the owner of the mark. If the mark has been registered but has not been used (without good reason, i.e., factory burnt down, lack of raw material, discontinuance of the business, and so forth) for the past three consecutive years, then the mark can be removed from the Register.

In our previous articles, we stated that registered trademarks last for a lifet­ime if their registration is renewed

every ten years. Unfortunately, if the mark has not been used for three years in a row, a third party can have the mark removed from the Trademark Register. This leaves the mark free for all to use. Usually, the person who initiates the action in Court to remove the registered mark from the Register will be the one who has interest in owning the trademark, either because it sounds catchy, is easy to pronounce or suits the particular type of business.

Many countries allow for trademarks which are not used for a period of time to be removed from the country’s Trademark Register. This particular law may not be favourable to trade­mark owners, but the reasoning behind it is that the monopoly given by the Government is being misused by the trademark owner when he registers a mark and chooses not to use it. It is not fair for the owner to hog the mark and keep the public from using it.

What is considered a long period of non­use differs from country to country. Malaysia is one of the many

countries which requires three years of uninterrupted non­use without proper reason, before a cancellation action can be taken whereas some countries require five years of non­use (e.g., Singapore and the UK).

It is therefore very important for all brand owners to take note of the above. The Courts, when considering whether the mark has been “used”, will analyse the use shown by the owner and will decide whether the use was “genuine” use or merely “token” use to avoid their mark being cancelled.

In Malaysia, the use of the mark GOODKNIGHT was found by the High Court to be merely token use as the timing of the use was very question­able. It was close to the date the action was taken by the new user of the mark. The Judge in the case commented that “the [trademark owner] has clearly slept on their rights during the material period of time and to blame the [new user] now would be unfair and unkind”.

Thus, brand owners should be careful.

by Geetha K., Director of Trademarks and Industrial Design, KASS International Sdn Bhd

Ms. Geetha K. joined KASS International after completing her pupilage at a reputable law firm in Kuala Lumpur. She handles domain name disputes and all aspects of trade marks in a variety of industries, including those in the pharmaceuticals, foods & beverages and apparel industries, and has experience in handling international portfolios.

She read law at the University of Bristol where she was awarded a bursary. Her final year dissertation was on the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs), where she analysed and dissected the advantages and disadvantages TRIPs brought to many developing nations.

Upon graduation, she pursued the Bar Vocational Course at the University of the West of England, Bristol, and completed the course with a Very Competent grade. She attended training with a well-established IP firm in France for a month in April 2007 where she trained under European Trademark Attorneys.

Part 3:

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Yes, trademark registrations can last infinitely, but on the condition that the mark is used!

First to Use VS First to FileWhen it comes to rights to a trademark, who would you think has the upper hand – The first person to USE the mark (in Malaysia) or the first person to FILE the trademark application with the Intellectual Property (IP) Office?

Malaysia adopts the “first to use” principle. Basically, the first user of a trademark is considered the true owner of the mark, not the first person who runs to the IP Office to file a trademark application. Owners of trademarks who failed to register their trademarks or registered their trademarks late still have some trade­mark rights (we call it “unregistered rights” or “common law rights”).

Now why should anyone bother to register their trademark in Malaysia if the first person to use the mark has better rights to the mark? Why incur cost when the money can be used elsewhere in the business?

This is why:

REGISTERED TRADEMARK

UNREGISTERED TRADEMARK

Clear evidence of Ownership of

the mark

No official document proving Ownership

Certificate of Registration

issued

A lot of evidence will be required dating back to as early as possible to prove Ownership of the mark

Compare the problem faced by a person without a land title deed (issued by the Government) and a person with a land title deed. Just as the title deed is an important docu­ment to prove who the lawful owner

of the land is, the Certificate of Trademark Registration is also instru­mental in proving who the lawful owner of a trademark is. With out a title deed, many parties can claim ownership of the property. Conse­quently, substantial and signifi cant evidence will be required to prove who the true owner of the land is.

This is why trademark registration is always recommended, as unregistered rights are often difficult to prove, and involve lengthy, expensive Court trials. Registered rights are more straightforward, as they are governed by the Trade Marks Act 1976, and are usually first instance evidence of ownership of the mark.

In the unfortunate event where the owner of the trademark failed to register his mark, we would advise that he keep records of relevant information relating to the use of the trademark. The owner should keep the invoices issued which display the trademark and keep track of the date the signage was put up, the date the trademark was placed on the labels of the products, the advertising expendi­ture in promoting the mark, etc. This information will be handy if the owner’s mark is ever challenged. Then, the first­user rights can be claimed and evidence of use and records relating to the first­use date for the products can be adduced in Court to prove the rights.

A point to note for business owners who are venturing into overseas markets is that not all countries practice the principle of first­to­use. Some countries adopt the first­to­file system, for instance, China, Korea, Japan, and a large number of coun­tries in South America and Africa. A first­to­file system of trademark protection basically means that the first person to file a trademark appli­cation in a particular country will be considered as the rightful owner of that trademark – NOT the first user of the mark. Therefore, someone who has merely been using a trademark, but did not register it, will not have

any unregistered rights in the mark. This allows the possibility of the original owner being forced to withdraw his usage of the trademark, once it is registered by a competitor.

Therefore, business owners that intend to expand their business into foreign countries need to make sure that their trademark rights are fully secured, instead of having all their efforts in building a brand and reputation for themselves end up in the hands of a clever copycat!

The golden rule is to file a trademark as soon as possible and not wait until others start using the same trademark. A trademark application, which is inexpensive, can be filed even before the mark is actually used on the products.

Famous? Then you enjoy better trademark rightsOwners of well­known and famous brands have more rights than owners of unknown brands. By “well­known and famous brands”, it is meant that the fame of the brand must be world­wide, not just local, within Malaysia. This means that MERCEDES BENZ, ALFA ROMEO, and TOYOTA have better and wider trademark rights than PROTON, PERODUA and NAZA.

Now why do famous brand owners enjoy extra benefits or special privi­leges? Well, think about it – when you go to Petaling Street, what do you find there? PRADA bags, GUESS purses, ROLEX watches, CHELSEA foot ball club jerseys and NIKE shoes? Or do you come across brands you have never heard of? The fact that you find imitations of famous brands so easily shows how goods with famous brands are in demand and sell well.

As the likelihood of these marks being copied by others is much higher than an ordinary trademark, the trademark law of most countries awards the owners of famous brands with more protection. According to Dr. Tay Pek

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San, a senior lecturer at the University of Malaya, in her book “Protection of Well­known Trade Marks in Malay­sia”, there are a number of justifica­tions for the “special privileges” fa­mous brand owners enjoy – amongst them is an ethical and moral one:

“Since the ability of a well-known trade mark to draw consumers is usually attained after a period of careful nurturing and promotion of the trade mark by its owner, it is only ethical and moral that third parties do not take unfair advantage of the achievements of another’s hard work.”

Many countries, including Malaysia, are bound by international treaties to ensure their national trademark law includes the necessary provisions for well­known trademarks.

The special privileges that well­known marks enjoy are as follows:

registration of a mark identical or (i) substantially similar to the well­known mark for the same type of goods/services, is not allowed, regardless of whether the well­known mark is in use in the country or not. An example here would be the DISNEYLAND trade mark used on a theme park in Malaysia;

registration of a mark identical or (ii) substantially similar to the well­known mark, in a different and unrelated category of goods/ser­vices, is also not allowed. For instance, the KODAK trademark used on shoes or cutleries; and

there is no need for the owner of (iii) a well­known mark to prove likelihood of confusion in the public.

In the business world, this means that well­known marks have a wider monopoly and protection. The owners of the well­known marks do not need to secure registration in a particular country to protect their marks from being copied. (Despite this fact, most trademark owners register their marks

to avoid the risk of their marks being found “normal” and “not well­known” by the Courts in different countries.)

That well­known marks enjoy a wider protection worldwide means that a Malaysian who visits a foreign coun­try and chooses to adopt a trademark he/she fancies from that country has to carefully consider his/her decision. The question the Malaysian has to ask is: “Is the mark well-known in Malay-sia?” Even if a trademark search is conducted in Malaysia and the search reveals that the well­known mark has not been registered, a corresponding application made at the Trademark Office may be rejected. In the event that it is not rejected, chances of the owner of the well­known trademark preventing the Malaysian trademark application from proceeding to regis­tration are very high.

For this reason, it is advisable for business owners in Malaysia to invent their own unique trademark. Some examples of invented trademarks are depicted below:

Business owners can take the business concept that they wish to adopt from a successful business in a foreign country but instead of using the identical foreign trademark as their own mark, they should adopt a mark which they have created themselves.

Can you make money out of your Trademark? How?By selling, licensing or franchising of course!

Once you have created your trademark and have built your business up to a level where the public recognises your

goods or services and values them for their quality, you can choose to sell the trademark, together with the reputation of the mark, to the buyer with the highest offer (“selling”). Alternatively, you can give permission to others to use your mark and collect an annual license fee from them (“licensing”), or give them permission to use your trademark, business con­cept and characteristics of your busi­ness and collect a franchise fee and license fee from them (“franchising”).

As selling a trademark together with the business is quite straightforward – and since franchising also involves the “licensing” of a trademark – let’s take a closer look at trademark licensing.

Licensing trademarks can be a smart move on the part of trademark owners to expand their existing markets or enter new markets, without incurring substantial investment and risk. However, before embarking on any licensing deals, trademark owners should consider the practical strategies required to properly benefit from the licensing.

Pertinent issues that trademark owners should consider when licensing their trademark to a third party are briefly explained below:

1. Maintaining brand value

Firstly, the owner has to be aware of the importance of the trade­mark and its associated brand value. The licensing arrangement must be designed to maintain the brand value and allow for licensed goods or services that maintain the consistent quality expected by consumers of the brand.

Conversely, maintaining too much control over the quality of the licensed goods can interfere too much with the licensee’s busi ness. Accordingly, special care should be taken to craft quality control

Note: The trademarks referred to in this article belong to their respective owners. KASS does not claim any proprietary right whatsoever. The marks are used in this article purely for educational purposes.

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FOCUS

provisions that preserve the value of the mark, while allowing the licensee the ability to operate the business as he/she deems appro­priate.

2. Choosing the right licensee

The licensor must be certain to select a manufacturer that has similar goals, effective support teams and management infra­structure, financial stability and distribution channels that are commensurate with the brand. Clearly, it is not a good idea for a trademark owner to license the brand to a manufacturer whose products directly compete with those of the trademark owner, as this would reduce the market shares of both the trademark owner and the manufacturer.

3. Guidelines on how the trademark should be used

It is always advisable for the licensor to provide an electronic version of the trademark and any artwork, designs, logos or stylized typography to be used by the

licensee, so that the licensee is not creating his/her own version of the trademark. This is especially important when the mark contains a design element, logo or stylized font, and will ensure that the proper size, spacing, color and typography are used. The license agreement should clearly state that copies of the mark may be made only from the artwork pro­vided by the licensor. Any modifi­cations made to the trade mark by the licensee must be approved by the licensor in advance of any use by the licensee.

The license agreement should also specify that the trademark must always be used in its entirety, without any separation of diffe­rent portions of the mark or any abbreviations or variations thereof.

In addition, the licensor should always require that the appropriate notice symbol, such as ® or ™ be used alongside the trademark any time the mark is used, including directly on the product and on packaging, hang tags, advertising,

user or instruction manuals, pro­motional materials and point­of­purchase displays.

Apart from the above, it is crucial that the licensee’s compliance to the rules in the licensing arrangement is sustained. This can be done by including a term in the licensing agreement providing the licensor with the right to periodic inspections of the licensee’s manufacturing faci­lities.

The agreement should leave no room for ambiguity and all terms should be clearly defined. It is advisable that parties that decide to enter into licensing agreements seek professional advice before signing any agreement, as without the right terms supporting your rights as a licensor, your po­tential success as a licensor could backfire, leaving you with a worthless trademark. ▼

Geetha K can be reached at geetha@kass.com.my.For more information, please visit www.kass.com.my.

MGCC Handbook & Directory 2010/2011- Malaysian & German Economic Reports- Chamber’s Activities- Market Watch Malaysia 2010- Members’ Directory

Within Malaysia - RM150 / copyDelivery charges:(Add RM20.00 for courier charges)(Add RM6.00 for normal postage)

Orders outside Malaysia - EUR 60 / copy(Inclusive of delivery charges)

To get a copy of the Handbook & Directory, please contact:Ms. Surayah Mohd SallehTel: +603-9235 1813 Fax: +603-2072 1198E-mail: surayah.msalleh@malaysia.ahk.de

7/8 2010 MGCC Quarterly16

7/8 2010 MGCC Quarterly18

Theautomotivebusinessanditsretaillandscapehaveseengreatchangesinrecentyearsandisforeseentoundergoevenmorechangesinthefuture.

ThisisparticularlyrelevantinthefieldofAfter-Salesasitrepresentstheongoingrelationshipbetweenourbrandandourcustomersasservicesextendthroughouttheproductlifecycle.Thebondbetweenourcustomersandourbrandgoesbeyondsimplefascinationforthevehicle.AtMercedes-Benz,theroleofafter-salesistooptimizeourcustomer’sownershipanddrivingsatisfaction.Toachievethis,weincorporatevariousfactorsincludingcontinualimprovingourhumanresourcedevelopmentandtrainingprogramstoupgradetheskillsofalllevelsinourservicenetwork.

It’s all about the people

For our customers, their cars represent their mobility, independence and self­expression. As Mercedes­Benz owners, they have high expectations from us in the After–Sales department to manage their servicing, maintenance and customer service needs.

It is our responsibility to assure that all after­sales services, be it technical or otherwise are met with the superior quality and standards that are on par with the Mercedes­Benz brand. Equally important are the people who deliver the after­sales services to our cus tomers. We have a team of well­trained technical ex perts who are equipped with the knowledge and expe rience to diagnose and service all our vehicles. Besides our technicians, we have individuals who are speci­fically trained in handling queries, complaints and emergencies.

At Mercedes­Benz, we place high priority in continuously improving

our expertise and we strongly believe in the transfer of knowledge; training being the platform through which this is realized.

Our training philosophy is based on continuous self­development and life­long learning. This is a necessity as it is the only way to keep pace with the rapid rate of change in automotive technology. The Mercedes­Benz training programmes encompass a vocational training program which developes highly skilled technicians, ongoing training and certification programmes for existing personnel and ancillary schemes to encourage an ongoing advancement within our network.

The beginning, the foundation: Vocational Training

Our vocational training program and training center began twenty­five years ago in 1984. It was the first technical institute of its kind at the time set up by a private motor

A Brand Built On “Transfer of Knowledge”

Learning how to learn - source for knowledge independently

TRAINING

7/8 2010 MGCC Quarterly 19

company supported by the German government, Daimler (known as Daimler Benz AG at the time) and the­then General Distributor (Cycle & Carriage Bintang Berhad) in collabo­ration with the Skills & Development Department of the Human Resources Ministry of Malaysia.

The training program started as mechanical­based training. With the rapid pace of change in vehicle technology, and with the ever increasing amount of electronics and com puterization in new vehicles, the training program evolved in 2003 to a 3­year Automotive Mechatronic program. Besides the content, the pedagogy of the training over time also emphasized more on self­organization, interactive discovery learning and group learning to instill a self­reliant learning and positive working attitude and charac ter in all our trainees.

Each year, only 28 trainees are selected from hundreds of applicants nationwide who have to undergo a stringent pre­qualification test thus assuring that only best candi dates enter the program.

To date, almost 600 trainees have completed this program and today, many of Mercedes­Benz Malaysia and

our retail mana­gers come from this select group.

Continuous qualification and certifica­tion: C­Service Program

Mercedes­Benz knows full well that learning does not stop once the people are on the

job but only the beginning. In this regard, Mercedes­Benz has an international qualification and certification program known as the C­Program (Certified Program), which comprises the C­Service for personnel in the after­sales sector, C­Sales for

sales personnel and C­Management for our retail management. In fact, we ensure our own trainers are subjected to the same rigorous standards with the C­Trainer certification require­ment.

Under the C­Service umbrella there are various programs – C­ Main­tenance Technician (CMT), C­System Technician (CST), C­Diagnostic Technician (CDT), C­Service Advisor (CSA), and C­Parts Process Specialist (CPPS) to reflect the diversity of the roles and responsibilities within the after­sales service sector. C­Service is a platform through which Mercedes­Benz can ensure the quality of its

people with international training and certification standards.

The eco­system: fostering an environment and spirit of life­long learning

Formal training programs are only one part of the equation. In order to inculcate a life­long learning spirit among our people, other capacity enhancement initiatives and schemes are continually put in place.

One example, Mercedes­Benz Malay­sia continuously strives to roll out programs such as the Mercedes­Benz Malaysia Skills Competition which held its inaugural session in 2008. The competition proved a success in providing a platform to reward and motivate our people to constantly

improve themselves. The first of more to come, this competition will be held every 2 years.

People development remains a top management priority for Mercedes­Benz. It is key to our business that the treatment and service a Mercedes­Benz owner receives is unparallel and one­of­a­kind, just like our cars. People who opt for our luxury cars expect much more than just a vehicle – and we will continue to provide quality after­sales service to our customers through the continuous pursuit of excellence in our processes and our team. ▼

Mercedes-Benz Malaysia Skills Competition - Quiz session for the Certified Diagnosis category

Trained to analyze and make decisions

Mercedes-Benz Malaysia Skills Competition - The top three winners from the Certified Diagnosis Technician and Certified Maintenance Technician category

TRAINING

7/8 2010 MGCC Quarterly20

MEMBERS

entrepreneurs and business owners at a platform which focused on establishing a two­way commu­nication between Siemens and its stakeholders, to ensure that Siemens business is in line with the needs of its customers.

Siemens also unveiled its new organi zation structure to its stakeholders in Brunei where Siemens is structured into three core business sectors of Industry, Energy and Healthcare. The clustering of sectors into 17 groups of countries integrates the various competencies and ensures that Siemens moves nearer to customers.

In fiscal 2009, Siemens generated revenue of €23 billion with products and solutions from its Environmental Portfolio.

The Siemens Brunei Customer Gathering is Siemens Brunei’s largest engagement with its stakeholders, the first of its kind to engage customers and business partners from all sectors.

STAEDTLER (Malaysia) Berhad Announces the Appointment of Peter Xavier as CEOSTAEDTLER (Malaysia) Berhad is delighted to announce that Peter Xavier has joined the company as CEO on June 1, 2010.

Peter Xavier will succeed Mansour Assim. Prior to his appointment in STAEDTLER, Peter has held several positions in multinational entities which included stints as country gene ral manager, regional business manager (Asia) and as a director of experiential marketing, thus accentua­ting his diverse experiences and

management roles especially in sales and marketing of branded products.

With his expertise in the areas of marketing and as an analytical and out of the box strategist Peter will continue to lead STAEDTLER, one of the market leaders in the writing instruments sector with high quality products, an excellent product port­folio and a strong global brand.

Peter will also continue to ensure that our customers’ expectations of high

Sharing its technological solutions, Siemens introduced the latest in its ‘Green Technologies’ during the Siemens Brunei Customer Gathering as part of its commitment to reduce carbon footprint emissions in the ASEAN region.

Present to officiate the inaugural event was Yang Mulia Dato’ Paduka Timothy Ong, Acting Chairman of Brunei Economic Development Board. Also present were Mr Lothar Herrmann (Chief Executive Officer, Siemens, ASEAN Cluster and Chief Executive Officer, Siemens Industry Sector, ASEAN Cluster) and Mr M. Prakash Chandran (President & Chief Executive Officer, Siemens Malaysia and Executive Vice President and Head, Siemens Energy Sector, ASEAN Cluster) who shared insights to Siemens’ breakthrough business and solutions.

Held at the Empire Hotel & Country Club, the Siemens Brunei Customer Gathering was attended by some 200 customers, government offi cials,

It is one of many efforts by Siemens to strengthen its local relationship with customers and partners.

Siemens has been answering the world’s toughest questions facing challenges of its time for more than 160 years. It is the current world leader in environmental technologies. ▼

Visit www.siemens.com

Siemens Paints Businesses Green in Brunei

Peter Xavier – Chief Executive Officer, STAEDTLER (Malaysia) Berhad

quality and services are met as he is well experienced in the field of strategic planning, advertising, media, retail, branding, business development and quality control. ▼

Visit www.staedtler.com.my

From left – German Ambassador to Brunei Dr Thomas Bruns, Mr Lothar Herrmann,Chief Executive Officer, Siemens, ASEAN Cluster and Chief Executive Officer, Siemens Industry Sector, ASEAN Cluster,Yang Mulia Dato’ Paduka Timothy Ong, Acting Chairman of Brunei Economic Development Board, Mr M. Prakash Chandran, President & Chief Executive Officer, Siemens Malaysia and Executive Vice President and Head, Siemens Energy Sector, ASEAN Cluster, and Mr.Amarjeet Singh, Vice President, Business Development, Siemens Pte Ltd, Brunei Branch Office at the Siemens in Brunei Customer Gathering.