malaysian indian business magazine july 2014 issue
TRANSCRIPT
CHAIRMAN & MANAGING EDITORRasa Rasik
[email protected] 711 4236
MANAGING DIRECTORR Surangi
BUSINESS DEVELOPMENTDarrshan
[email protected] 201 4236
SALES & MARKETINGJayasree Vijian
[email protected] 213 4236
ADMINISTRATION & CIRCULATIONPetaling Jaya Office
Pungkodi [email protected]
Johor Bahru OfficeShila
EDITORArikrishnan Subramanian
WRITERSThevi Sinnadurai
Prasath KanagarasJeyaraman Seenivasagam
Gursharan SinghPalani Murugappan
Ganesh Murugan
CONCEPT & GRAPHIC DESIGNKugan Rengasamy
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DISCLAIMER:
The views and opinions expressed in the articles published are thoseof the authors and do not necesarily refl ect the views of MIB. While every reasonable care is taken in compiling this publication, MIB does not accept any liability whatsoever for possible errors, inaccuracies or omissions or the consequences thereof. The Publisher also accepts no liability in respectof the content of any advertisement in the magazine.
All rights reserved. The reproduction, duplication, or republicationof this magazine or any part thereof in any form whatsoever without the expressed written permission of the publisher is prohibited.
editor's note
People of Islamic faith are to welcome the holy Ramadan, a period of strict fasting and increased religious devotion. The word Ramadan comes from the
Arabic ramida, which meant “intense heat, scorched ground and shortness of food and drink”. Malaysian Indian Business wishes all our Muslim readers,
The July 2014 edition cover story brings Mr. R V Ganesh whom runs very specialized Boutique Private Bank and Financial Advisory Services. The down to earth and high caliber person very much passionate in guiding Malaysian Indian business persons on their Banking & Finance matters. Readers are encouraged to make an appointment with the Head of Retail & SME Banking Advisory of Mortgage Guru Sdn Bhd on how they could assist your business and personal fi nancial remain sustainable. In this edition, Malaysian Indian Business [MIB] gives special attention on business strategy by identifying current and past leader’s key strategic traits. We analyze the business strategies employed by Shri Narendra Modi that brought him tremendous victory by winning over the hearts of some 370 million voters whom decided to choose his BJP party.
This month MIB Forum seek views from our readers about Goods and Services Tax [GST] that to be implemented from April 2015 onwards. Take a look at their views, some especially the younger generation really concern on the impact of GST implementation to our community.
Read about Roles of Financial / Accounting professionals, some exercises to rejuvenate your inner wisdom and how humor create buzz in Advertising written by our professional contributors. Continue to browse and read as there’s a lot more valuable information for your business growth.
Drop us an email or put your comment at our Facebook page on how we can further enhance the content of your Malaysian Indian Business. Happy Reading.
eople of Islamic faith are to welcome the holy
06 LEADERSHIP
Business Lesson From NaMo Wave
09 EVENT COVERAGE
Organ Donation
10 FINANCE Roles of 'Financial'/'Accounting' Professional in Construction 'Projects'
14 MALAYSIA BUSINESS NEWS
18 MANAGEMENT SOFTWARE
Utilizing Microsoft Excel For Marketers
22 EVENT COVERAGE 12th Global Indian Festival
24 STRATEGY
Ahead Of Time Strategies
25 DID YOU KNOW?
26 MIB FORUM
28 LIFESTYLE
Stop & Think!
From NaMo Wave
Professional in Construction 'Projects'
For Marketers
12th Global Indian Festival
06
09
22
24
CONTENT
32 ENTREPRENEURSHIP
Entrepreneur Framework
34 MARKETING
Using Humor In Advertising
40 BOUTIQUE PRIVATE BANKING & FINANCE ADVISORY SPECIALIST R V GANESH PRAKASH MORTGAGE GURU SDN BHD
48 FACTS & FIGURES
50 SINGAPORE BUSINESS NEWS
54 MIB CALENDAR OF EVENTS
55 INTERESTING FACTS
Today I Learned
56 TECHNOLOGY
Nano Technology
60 INDIA BUSINESS NEWS
62 LEARNING
Speed Reading
56
CO
VER
STO
RY
LEADERSHIP
BUSINESS LESSON FROM
NaMo WAVE
During his tenure as Chief Minister the Gujarat government won over
300 awards from domestics and international including World Bank Green Award, Commonwealth Association of Public Administration and Management (CAPAM) Award and United Nation (UN) Sasakawa Award.
Fondly known as NaMo, Narendra Modi is the third child born to Damodardas Modi and Hiraba Modi, on 17 Sept 1950, that makes him to be the fi rst Prime Minister born in independent India . The out of box thinking India’s new Prime Minister got married during his childhood to Jashodaben Chimanlal Modi. It was a child marriage and Modi never met his wife again as ‘Gauna’, ceremony to send bride from her natal home never happened hence he remain
bachelor dedicating his youngness to the Rashtriya Swayamsevak Sangh (RSS), a movement based on the principle of selfl ess service to the nation.
Modi’s victory is an interesting subject for businesses to study how his marketing strategies won t h e h e a r t s and minds of I n d i a ’ s 5 5 1 mi l l ion voters t h a t c a s t t h e i r v o t e s . Malaysian Indian Business tries t o i d e n t i f y key business strategies that possibly gave Mr. Modi the edge over his opponent.
ACHIEVEMENT AS BRAND
His success in delivering and transforming Gujarat state as India’s economic growth engine based on the principle of “Antyodaya” or serving the very last person in the queue has became talking point all over the country. The Gujarat
Dynamic, dedicated and determined Narendra Damodardas Modi the Varanasi member of parliament was sworn as 15th Prime Minister of India on 26th May 2014. The Bharatiya Janata Party (BJP) leader has been Chief Minister of Gujarat for record four terms since 2001.
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LEADERSHIP
model on his achievement be it government policies, development of Infrastructures or education turned to a brilliant brand. Knowing his target audience – the rural population, youth , middle class and diaspora and their need Modi capitalise Gujarat model achievement and brand awareness by promising to replicate the model across India. Oh yes! He start walking the talk, a prime principle of leadership. At time of writing this article press reported high powered team from India’s central government departments visited Gujarat to study the model.
ACTION ORIENTED
“The need of the hour is a bureaucratic shift! Governments boast of giving people the new rights but the Constitution of India has already provided us with many rights. What we need are not more new Acts – we need action”- Narendra Modi.
In December 2013, The Economist quoted Mr. Modi has a record from a dozen years as a chief minister. Gujarat, a state of 60million people, has boomed as he has cut red tape and built roads and power lines. Business has fl ourished and investment has poured in. Gujarat accounts for just 5% of India’s population, yet produces nearly a quarter of its exports. He is a man of action and an outspoken outsider
in a political system stuffed with cronies. His immediate action of sending SMS to Tata Group Chairman, Ratan Tata when farmers in West Bengal, backed by fi rebrand politician Mamata Banerjee, now the state's chief minister, had been protesting land acquisition for the plant by Tata Motors. Modi provided the company land and other incentives almost overnight. The action that seen some Rs 34,000 Crore (approx. USD5.74 Billion) Investment by Tata Motors alone.
SET THE RIGHT AGENDA
Realizing how the 2002 godhra episode had damaged his reputation in certain sections of society. Modi had to fi nd an alternate way to build his reputation. And he chose to focus on strength to succeed, the path of development and stayed away from communal agenda. When his people asked “we want electricity at least when we have our dinner” he went extra mile by providing uninterruptible power supply that not only gave an impetus to the economic landscape also for his achievement brand.
He nurtured ambitions of being the PM ever since Vajpayee's defeat in 2004 and patiently waited for his moment and worked towards it. He set the right agenda by focus towards the women and the 150 million fi rst time voters. He perfectly knew that ladies vote based on issues which affect their livelihood, budget and less on matters of caste or religion.
He went on to tackle seriously women’s literacy and health by introducing several schemes such as ‘kanya kelavani”- encouraging formal education for girls. Sending a simple clear and right message - “Ladies’, I care for you”. The usage of basic marketing principle of targeting by age, gender, income and place of living matched with persistent promotion had earned him lots of dedicated voters.
SOCIAL MEDIA PRIME MINISTER
The 2014 India’s electoral battle recognize role of social media by making American owned platforms as the real winner. A Twitter released data indicates that some 58 million election related tweets sent since start of 2014 until May 12, 2014 the last day of election. Mr. Modi’s victory message “India has won!’ has become the most retweeted post in Indian history with more than 71,000 sharing. Mr. Modi understood the value of technology and social media, something which would appeal to
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the youth and place from where he can take direct feedback from. It also helped him spread his message quicker and cheaper. He has taken potshots at his political rivals, showcased his methods and results and has connected to a segment of the population that is rarely given too much attention – the aspirational middle class. His use of 3-D hologram technology turned out to be a huge hit, Financial Times blog reported that Modi was present simultaneously at 150 locations thanks to the technological development that created images for his public meetings. He successfully did it; his messages were floated all around social media in no time. His social media followers commented on his views and ideas, and shared them with their peers. The exchange of Modi’s social media messages by his supporters reach the mass even to areas where he could not directly barge in. Modi became the brand people want to talk about it ultimately social media Prime Minister.
RIGHT PERSON IN RIGHT JOB
We Can't Solve Problems by Using the
Same Kind of Thinking We Used When We
Created Them - Albert Einstein.
Chuck Russell wrote in Right Person-Right Job “Core personality is made up of traits that have been conditioned over many years. Such traits are critical in assessing a candidate’s ability to perform virtually any aspect of any job”. The Common Man (CM) who became Prime Minister, Mr. Modi is master of assigning the right person in the right job. He sent his right hand man, Amit Shah to revive BJP's fortunes in Uttar Pradesh which won a record 73 seats out of 80 seats in the state. His election public relation campaign was entrusted to industry bigwigs like Piyush Pandey and Prasoon Joshi for TV, print and radio campaigns, and a host of smaller agencies to cover major media vehicles, including social media.
HE CONQUERED PEOPLE’S HEART
Upon being selected by BJP as next Prime Minister, Mr Modi reported to have covered some 300,000 kilometers crisscrossing the country to win people’s heart. He well aware that when someone has made name in certain field, more and more people love him, love his work and eventually endorsement the person. He started to use social media as
early as 2009 that gave him a clear advantage to win first time and young voters.
His achievement as Chief Minister, fast implementer with clear cut agenda together with let the people know what you are, what you had done strategy made Mr. Modi as prime choice of people of India.
INDIA ELECTION:STRANGE BUT TRUE FACTS---------------------------------• 814 million voters are eligible to vote
in five-week-long polling process.• A record 551 million or 66.38%
voters cast their ballots. • More than 313 crore rupees (about
US$52 m) in cash seized by Election Commission.
• 22.5 million litres of liquor also seized by Election Commission.
• 168 Million First Time Voters.• Ten million people directly involved
in conducting the 2014 election.• A whopping US$5 Billion expenditure
estimated. • Approximately 28,314 transgender
eligible to vote.• First time Indian Voter able to
exercise none of the above (NOTA) option.
• 3.6 million electronic voting machines at 919,000 polling stations.
• CNN says 30% of the parliament candidates face criminal charges.
• Parliamentary Constituency with largest number of electors – 3,368.399 (Outer Delhi).
• Out of 543 elected Member Parliaments, 45 are women.
• The Oldest MP Elected was Ramchandra Veerappa, 94 elected for Bidar, Karnataka.
• The youngest MP elected - 26 years Sachin Pilot in Dausa, Rajasthan.
• Madras South par l iamentary constituency saw the fight with 35 candidates.
• For the first time Election Commission introduce photo voters' slip to ensure only genuine voters get to exercise right.
• Election Commission approved Chappals, Green Chili and Pen Nibs with Seven Rays as symbols.
LEADERSHIP08
| JULY 2014
HEARTIEST CONGRATULATIONS to M. Ramesh who made it into the Malaysia Book of Records for successfully getting 595 people to pledge their organs on June 7 and 8, 2014. Knowing less than 1% of Malaysian, had pledged their organs Ramesh and his team of volunteers managed to register a total of 870 pledges during 5 days Global Indian Festival which was held at the Midvalley Megamall, Kuala Lumpur.
“We just need to approach and invite people to fi ll up the pledge, rest happens automatically” says Ramesh when Malaysian Indian Business Magazine asked about this feat. He added most people are confused with the term ‘pledge’ and ‘donour’ and both are different. The authority still need to get the concern from pledgers family upon his death.
LARGEST REGISTERIN AN ORGAN TRANSPLANTCAMPAIGN
Ramesh received Malaysia Book of Records certifi cate from Organ Donation Public Awareness Action Committee chairman Tan Sri Lee Lam Thye on June 13, 2014 at National Transplant Resource Centre[NTRC]. Also present NTRC Chief National Clinical Manager Datin Dr Fadhilah Zowyah Lela Yasmin Mansor.
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FINANCE • by Gursharan Singh C.M.I.I.A
The general perception of the role of Financial & Accounting Professionals [‘F/AP’] and
their departments in respect Construction Projects [’Projects’] has generally been that of a recorder of fi nancial transactions pertaining to the respective components of ‘Projects’ that include Construct ion Works [ ‘Works’ ] , Services of Technical Professionals [‘Consultants’] and Procurement of Assets & Services [‘Procurement’].
These ‘F/AP’ generally accept without questioning the technical documents that have fi nancial implications (Valuations, Variations, Progress/Interim Payments, Claims, etc) as certifi ed by the relevant designated professionals and other professionals. Similarly Internal Auditors [‘Auditors’] may also tend to limit the scope of their audit to compliance of fi nancial standards and for the benefi t of their respective employers/clients. These and other
comments are applicable to Owners [‘Clients’] and Contractors/Suppliers and Sub-Contractors/Suppliers [‘Contractors’].
The ‘F/AP’ and ‘Auditor’ have further strengthened this general perception of their limited role by their hands-off approach on the aspects of ‘Works’ implementation. The justifi cation provided is that the various aspects of ‘Works’ are the responsibilities of the relevant experts involved in the
ROLE OF ‘FINANCIAL’/’ACCOUNTING’
PROFESSIONALSIN CONSTRUCTION
‘PROJECTS’
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FINANCE
management, planning, designing, evaluation, pricing, implementing, supervising, monitoring, etc. The relevant Technical Professionals include Architects, Engineers, Quantity Surveyors, Land Surveyors, Landscape Architects, Interior Designers/Decorators, Project Managers [‘Consultants’] and Other non-technical professionals include Lawyers, External Auditors, etc. who are responsible for their specific fields of expertise. The ‘F/AP’ and ‘Consultants’ are generally correct in this view but to a limited extent only and thus may have neglected the function of providing financial implications of their advise an monitoring the varying financial aspects of ‘Works’ including where they could play a positive role in the effective pricing and implementation of ‘Works’ to effect savings or reduction of costs.
ROLE OF FINANCIAL AND ACCOUNTING PROFESSIONALS
The ‘F/AP’ is part of the management team that should be involved from the inception of any ‘Works’. They should advise on various financial aspects that would include the sources & cost of funds that will finance the construction, budgetary controls, cash flow projections, accounting & classification of transactions, best tax treatment of the disbursement and economic viability of the ‘Works’. The role of the ‘F/AP’ is thus relegated and limited to that of examining the financial transactions and record keeping only after a decision has
been made by the ‘Clients’. Thus the possibility of recovery of any over/wrong/fraudulent payment would be greatly reduced if and when the loss is ever discovered. The case of CIDB Levy [‘Levy’] and Stamp Duty [‘S/D’] are good examples of how the ‘F/AP’ can contribute their knowledge positively at the inception stage of planning as these can result in prevention of wrong computation methods that may result in overpayments that may not be recoverable subsequently. The ‘Client’ is not directly responsible for payment of ‘Levy’ on the contract sum and the ‘SD’ on the contract document. This is because the ‘CIDB’ and the Inland Revenue Authority have mandated the ‘Contractor’ to pay these charges. Consequently the assumption that these payments are to be borne by the ‘Contractor’ is a fallacy as ultimately it is borne by ‘Client’. Thus the ‘Client’ or his ‘F/AP’ may neither be inclined nor interested to scrutinize the computation basis and the quantum of the ‘Levy’ and ‘SD’ payable. The ‘SD’ comments will also apply to Agreements for ‘Consultants’ and ‘Suppliers’ of Assets-Goods-Services [‘ASG’].
The aspects highlighted in respect of ‘Levy’ would also apply to the ‘SD’ Rate which has been fixed as AD-VALORUM of 0.5% with effect from 1.1.2011 for the main contract and is legally prescribed to be borne by the Main Contractor where as the Sub-Contracts are subject to a flat rate of RM50.00 per contract. The
adverse financial effects for ‘SD’ are very substantial compared with that of ‘Levy’ and thus needs serious attention of the ‘F/AP’, Management, Internal Auditors [‘Auditors’] and other Professionals of both the ‘Client’ and ‘Contractors’ involved in implementation of ‘Projects’.
The ‘Auditors’ have a limited but positive role in the monitoring process as they can contribute their expertise accumulated through years of audit of ‘Projects’ by giving advice to the ‘F/AP’ prior the approval on financial aspects being given and thus contribute to effective management and implementation of ‘Works’.
In some cases, individual ‘F/AP’ have gone beyond this limited role due to their personal or other interest in ‘Works’ by including monitoring as part of their functions in the implementation processes and thereby helped in preventing or minimizing losses. The ‘F/AP’’ of most construction industry players are provided with, or have access to, all the relevant documents with financial implications pertaining to the ‘Works’. These include the following;
• Budgetary approvals,Tendering process and Management of implementation;
• ‘Works’ Contract documents and Appointment Agreements in respect of ‘Consultants’;
• Performance Bonds/Insurance Policies together with any extensions granted;
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FINANCE
• Cash Advances, Payments, Recoveries, Penalties, Claims, Final Accounts;
• Utilities costs, Facilities provided, Reimbursable Claims. Variations approved;
• Local Authorities/other payments – Advances, Deposits or Fixed Charges; and
• Periodical progress/site visits/monitoring reports and briefi ngs.
The ‘F/AP’ is the last stage in the approval process of all fi nancial t ransact ions part icular ly the payments before the funds are disbursed or recovery of advances or any charges that may be levied. They are in a unique position to prevent/minimize/mitigate any over/wrong/fraudulent payment. However, they may not be held responsible for any such loss where the payments have been subjected to prescribed and approved internal controls and the payment certifi cate approved and certifi ed correct by the relevant appointed ‘Consultants’. The possibility of any recovery would be substantially reduced if and when the loss is subsequently discovered.
SCOPE OF EXAMINATION BY THE ACCOUNTING/FINANCIAL PROFESSIONALS
It is not the intention to suggest that the ‘F/AP’ take over the role of others who are designated or responsible for managing/monitoring any aspect of the implementation of ‘Works’. The objective is that the ‘F/AP’ should supplement and co-operate with others for the common benefi t
of the organization. The ‘F/AP’ should examine those documents that have direct fi nancial implications and would include, among others, those listed in forth paragraph above.
The ‘F/AP’ may not be responsible for the custody or maintenance of the Contract Register [‘CR’] but has access to it at all times. They should base their examination on the information that is required to be recorded in the ‘CR’ that is an important internal control and essential for monitoring the fi nancial and physical progress of any ‘Works’. Comprehensive and up to date ‘CR’ would provide particulars about mandatory compliance terms and conditions of contracts and assist in risk management. The aspects would include, among others, the following:
• Basic information about the Contract/Agreement Security Clauses [Perf. Bonds/Guarantees/Retention Moneys/Advances]
• Insurance Policies [Fire, Workmen Compensation, Public Liability or C.A.R.]
• Mandatory Compliances for Payments [KWSP, PERKESO, CIDB/’SD’/Others]
• Payments to Contractors/Suppliers & Sub-Cons/Suppliers [Interim, Final, Advance]
• Contract Cost [Variations Costs, Escalation and other Claims]
• Penalties for Delays [Liquidated & Ascertained Damages]
ROLE OFCONTRACTORS
It is the responsibility of any ‘Clients’/‘Contractors’ to provide to their respective ‘F/AP’ the necessary support in the form of training opportunities in respect of various aspects of managing or monitoring of ‘Works’. The ‘Clients’/‘Contractors’’ can thus better monitor and control the fi nancial & physical implementation progress of the ‘Works’. Appropriate preventive measures to reduce costs and delays [that also cost money] to some extent can be taken in the early stages. This will benefi t the ‘Clients’/‘Contractors’’ in creating another internal control stage in minimizing if not preventing mismanagement, over/wrong/fraudulent payments, corruption opportunities and better manage risks that exist in implementation of construction ‘Works’.
RECOMMENDATIONS
There may be a possibility of identifying losses and s o m e r e c o v e r i e s i f t h e ‘Cl ients ’ / ‘Contractors’ subject the ‘Works’ to comprehensive and cont inuous monitor ing. However this possibility is also very remote because the limited
of the organization. The ‘F/AP’ should examine those documents that have direct fi nancial implications and would include, among others, those listed in forth paragraph above.
The ‘F/AP’ may not be responsible for the custody or maintenance of the Contract Register [‘CR’] but has access to it at all times. They should base their examination on ROLE OF
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FINANCE
interest, knowledge, expertise, awareness and willingness to take this additional role of monitoring in respect of ‘Works’. Generally those in authority are more inclined to be fi nance orientated and may not give due attention to the ‘Works’ even when the core activity of the ‘Clients’/‘Contractors’ is in the construction business in their respective roles.
It is important and long overdue for the ‘F/AP’ and ‘Clients’/‘Contractors’ to support and play a more proactive and comprehensive role and add
value to their services by being involved in monitoring the many aspects of high cost ‘Works’. They should not be over dependent on others but equip themselves with knowledge about the varying aspects in ‘Works’ and their implications. This would assist in upgrading the quality of their duties and add value to their contribution to their respective Clients’/‘Contractors’ besides enhancing career prospects of the personnel involved.
The ‘F/AP’ generally may not possess in-depth knowledge about the technical aspects of ‘Works’ and their fi nancial implications. Similarly other Professionals have the expertise in their respective professional disciplines but not many have in-depth knowledge about fi nancial/legal aspects in
the technical documents and implications of their technical based decisions and that they depend on others who may also have limited knowledge. Thus it is not in the interest of the ‘F/AP’ to have blind trust in other professionals but they should be aware of the many adverse possibilities. They should be able to ask some commonsense questions from the ‘Consultants’ and other professionals either on their own or with the advice of their colleagues within the organization. Thus, when the ‘Consultants’ are aware that the ‘F/AP’ are alert and
knowledgeable, the possibility of over claims/payments/fraudulent or mismanagement will be prevented or minimized with better risk management.
The ‘Auditor’ should also equip himself with knowledge relevant to the various aspects of the construction industry if they are to justify their post and their function. He should also s h a r e h i s knowledge with ‘F/AP’ and other d i s c i p l i n e s including legal, c o m p a n y secretary and others by giving p e r i o d i c a l t r a i n i n g programmes,
briefi ng or writing articles which can either be distributed to all the company human resources or published in the company newsletter if there is one. The ‘Auditor’ should be accessible and work with the other professionals not just live in his own cocoon or mix with his own kind. There should be a regular mix of the ‘Auditors’ and their ‘Auditees’ to build a report whereby the ‘Auditor’ will be looked upon as a friend and colleague who can be approached for advise and not be perceived as a witch-hunter looking for their mistakes.
Finally the ‘Clients’ and their ‘F/AP’ should realize that their failure to scrutinize and ensure that any of the two payments could result in action against the ‘Contractor’ if he were to default as it could result in stoppage/delays in completion of ‘Works’ and/or fi nancial/legal penalties that could ultimately result in additional costs to the ‘Client’.
Gursharan Singh C.M.I.I.ATrainer, Knowledge Sharer, Audit Offi cer has over 37 years of experience in auditing of construction projects . He conducts training seminars periodically for Bursa Malaysia listed construction & property Development since 2000. His articles appear on both local publications and foreign websites includes Malaysian Builders Journal. He can be reached at:
BE AWARE and KNOWLEDGEABLE and AVOID BLIND TRUST andBE PROFITABLE Especially in current times when the cost of ‘Works’
is in Billions And Facing Uncertain/Difficult Times with Rising Costs of ‘ASG’ and thus Construction
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MALAYSIA BUSINESS NEWS
MICRO BORROWERS, SME OWNERSSTILL NOT AWARE IMPORTANCE OF GOOD CREDIT STANDING
Many micro borrowers and small and medium enterprises (SMEs) are still not aware of the importance of a good credit standing
and its value threshold, says Credit Bureau Malaysia (CBM). Its Chairman Datuk Wan Azhar Wan Ahmad said micro borrowers and SMEs must have information on their loans and a sound direction for the loans. "The impact of not realising the information and direction for the loans include individuals resorting to credit cards or in other
words use debt to run their businesses. It's a wrong way of doing business. "There are differences between personal borrowings that utilise credit cards and loans that are meant for businesses. "Business borrowings are more straight forward," he told a press conference at the signing of a memorandum of understanding between CBM and the Association of Development
Finance Institutions of Malaysia (ADFIM). The MoU is to formalise a strategic collaboration to enable sharing of credit information between members of the two organisations. The MoU also facilitates greater ease to obtain credit facilities for micro borrowers and SME operators. The collaboration enables ADFIM members access credit reports provided by CBM which include business registry, banking credit and trade credit information. Wan Azhar said this would result in a speedier decision-making when processing loan applications from SME entrepreneurs and micro borrowers. In 2012, 320,000 credit reports were issued and last year 625,000 credit reports were issued by CBM, indicating that the reports issued by CBM were well accepted and the reports are expected to increase in the years ahead, he added. CBM, established in 2008, is a central databank for comprehensive and reliable credit information and ratings on SMEs, while the 20-member ADFIM is expected to further assist the SMEs and micro borrowers to instil a strong credit culture.
GOVERNMENT TO LAUNCH SUBSIDY FOR GST SOFTWARE PACKAGE:AHMAD MASLAN
The government will launch the subsidy for goods and services tax (GST) software package for small and
medium enterprise (SME) in the near future, said Deputy Finance Minister Datuk Ahmad Maslan. He said out of the RM150 million allocated by the government, a subsidy worth RM1,000 would be given to each SME to enable them to update their accounting system. "The government will launch the subsidy possibly in June or July," he said to reporters after launching the national forum on GST titled "Preparing for Malaysia GST Implementation 2015" here today. To disseminate information and exposure on the GST, the government has set aside an allocation of RM250 million, out of which RM100 million is to provide training for SMEs while the remaining RM150 million has been allocated for the SMEs to update their accounting software. Ahmad said about half of the RM100 million allocation had been used, and he urged the other SMEs to come forward to utilise the balance of the grant totalling RM50 million to enable them to acquire a deep understanding on the tax system which would replace the sales and services tax. He also said the government is currently working to look for more vendors to supply the GST software compared with 55 to date. The software price was around RM1,200 each, he said. "The government will also come out with a goods price list early next year. To date, the prices of some 689 goods have been fixed and there's about 255 more goods whose prices have not been adjusted," he said. Ahmad said some 10% of the goods in the list would be see a price increase such as processed food, 48% would see an unchange in price such as hotel services and fast food and 42% would see a decrease in price (clothing and furniture).
VIJAY ESWARAN WINS SPECIAL AWARDFOR EDUCATION ENTREPRENEURSHIP AND LEADERSHIP
Q I G r o u p E x e c u t i v e Chairman, Vijay Eswaran was bestowed the ‘Special Award for Education Entrepreneurship and Leadership’ at the 18th Malaysian Education Summit, organised
by the Asian Strategy & Leadership Institute (ASLI). Malaysia’s Minister of Education ll, Dato Seri Idris Jusoh presented the award held at the SWAN Convention Centre here. The award recognises Eswaran for his vision, innovation, leadership and success in navigating Quest International University Perak (QIUP) to rapid growth during the last 3 years. Notably, the university, a joint venture between the QI Group and the Perak state government, is expected to surpass the 1,000 mark student population and extend the programmes offered to 24 by end of this year. Eswaran, who is also the University Council Chairman for QIUP, wins this award for showing fine entrepreneurial skills and exceptional management expertise as well as for his role in the development of professional education, education reforms and innovation. Under the leadership of Eswaran, QIUP is today one of the fastest growing universities in the country, currently offering 20 programmes including medicine and post graduate. “From its humble beginning in 2011, the QIUP saga is a story of the hunger for excellence and the thirst for achievements. The far-sightedness, courage and determination on the part of the University’s management team in identifying an industry niche and capitalising on core competencies are the mainstay in our quest to turn QIUP into an education hub in the country. Speaking as a Panelist at the Summit on the topic of “Transforming Malaysian Education in the 21st Century, Eswaran said English language proficiency is fundamental to the transformation of the Malaysian education sector. “English proficiency in the country has reached a critical level that it can undermine the well-being and international standings of this country in the absence of genuine efforts to curb its decline. It is difficult to conduct economic and commercial activities without a strong command of English. “The poor, especially those in the rural areas, will suffer from the lack of proficiency in English. Malaysians need to be able to find employment anywhere in the world and proficiency in English can provide access to the international job market, which undoubtedly can help the poor get a decent, good paying job,” explained Eswaran. The Malaysian Education Summit brought together key stakeholders in Malaysian Education to brainstorm on how best to further enhance the quality of education as well as to discuss critical issues on the implementation of the new education blueprint. The Summit also discussed key trends and identified new opportunities in the education sector.
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MALAYSIA BUSINESS NEWS
MALAYSIA PUSHES FOR BETTER OFFERS IN MARKET ACCESS FOR SPECIFIC SECTORS
Malaysia is pushing for better offers in terms of market access in specifi c sectors in the Trans-Pacifi c Partnership negotiations as discussion zeroes in on market access at the ministerial meeting which kicked off today. International Trade and Industry Minister
Datuk Seri Mustapa Mohamed said there has been a lot of progress in terms of market access talks since the past six months with participating countries expressing their interest. "On market access, generally with all the 11 other countries, we have made a lot of progress. "We are getting what we have asked but there are some specifi c areas that we would like to ask from, for example, Japan, Mexico, where we are asking better offers (but) offer here means faster rate of duty elimination," he told Malaysian journalists on the sidelines of the fi rst day of the TPP ministerial meeting here today. Among the specifi c sectors include wood and plywood, textiles, palm oil which are considered as "big ticket items" for the country as well as automotive components. Referring market access as "bread and butter" at the end of any free trade agreement talks, he said there had been a growing realisation for the participating countries to push further talks on market access for the past six months. "In earlier rounds, there are bilateral discussion on market access. Now, they want transparency on what others are giving in order for them to also make offers... (so) the linkages are coming," Mustapa said. The minister held bilateral talks today with Japan, Australia, Mexico and the United States. "From December, there has been growing realisation for us to push for market access especially our people back home on what is there for Malaysia in terms of employment, growth and incomes," he said. "There has been more momentum (and) as we begin to engage, it was dawn upon us that there's a lot of work to be done (on market access)," Mustapa added. Asked whether US President Barack Obama's visit had somewhat speed the talks, Mustapa said there had been some momentum from his visit to Malaysia last month. "There are some understanding. First, Obama recognised Malaysia's sensitivities and there has been further exchanges of views on those sensitive issues and better understanding by Americans on our positions on these issues. That's the impact of Obama's visit for us in Malaysia," he said. Among the issues raised by the US included Bumiputera as well as state-owned enterprises. On another issue, the minister said that the government would carry out a proper rigorous qualitative analysis on the benefi ts of the TPP once the talks settled with agreement to be signed. "The government has decided that we should do a proper analysis of the benefi ts of TPP once it is completed and this will be shared with people and it will be very useful when the debates in Parliament are being conducted," he said. However, a thorough analysis would only be done at a later stage on the trade benefi ts of the market opening that the country is going to get from TPP, he said. The ministerial meeting was represented by seven ministers including Ambassador Michael Froman from the US. Hosted by Singapore, those who attended included Singapore Trade and Industry Minister Lim Hng Kiang, Australian Trade and Investment Minister Andrew Robb, Japanese Economic and Fiscal Policy Minister Akira Amari, New Zealand Trade Minister Tim Groser and Peru Foreign Commerce and Tourism Minister Magali Silva Verlande-Alvarez.
FIREFLY LAUNCHES NEWTRAVEL PORTAL
Malaysia's premium short-haul airline Firefl y offi cially launched a new travel portal called
Firefl y Holiday, offering convenience from the time of booking to arrival at the preferred destination. "When Firefl y Holiday fi rst started, we had an average of 300 bookings a day. "With the expansion of offerings now, we hope we can grow fi ve times if not more in terms of volume and sales," Chief Executive Offi cer Ignatius Ong was quoted as saying in a statement. Since its inception in April 2008, Firefl y Holiday has evolved from offering only Malaysian and regional packages to more than 65 destinations worldwide. The portal enables customers to customise and select their preferred fl ight timings and hotels and complement their holidays with optional transfers and tours. The airline will launch two new routes in September this year, connecting Penang with Krabi, and Johor Baharu with Ipoh.
CRADLE AND GOLDEN GATE VENTURES TO BRIDGE FUNDING GAP
Early stage ecosystem infl uencer, Cradle Fund Sdn Bhd (Cradle), has joined forces with Singapore-
based seed fund provider, Golden Gate Ventures Pte Ltd (GGV), to co-invest in Malaysian early-stage technology companies to fund their global expansion. The agreement involves a one-to-one match in funding amount."This means that every amount GGV provides in funding, Cradle will fund an equal amount into selected technology start-ups without taking any equity in the invested company, said Cradle Fund Chief Executive Offi cer Nazrin Hassan in a statement today. He said the working relationship with GGV would give Malaysian technology start-ups the extra edge as they prepare to compete at a global level. "This will be a boon for our entrepreneurs who are seeking to raise further funds to support their business growth as they will not have to venture across Malaysian shores to seek for investors," he said. Under the agreement, Cradle and GGV would fund up to fi ve companies a year with an annual total allocation of RM2.5 million. Selected technology starts-ups would each receive a maximum of RM500,000 or the equivalent amount in Singapore dollars. Nazrin said Cradle's expansion into the co-investment was one step to attract foreign investors, especially venture capitalists and angel groups, to invest in technology business deals in Malaysia. The Cradle-GGV co-investment initiative, he said is the fi rst of its kind for Cradle and plans are in the pipeline to forge similar partnerships with local venture capitalists and angel syndicates. "Cradle planned to channel 50% of its funding allocation to co-investing initiatives by 2017. "Such initiatives are timely as we prepare for the gradual reduction of government grants towards supporting early stage start-ups,” he added.
Cradle Fund Sdn Bhd (Cradle), has joined forces with Singapore-
15
| JULY 2014
MALAYSIA BUSINESS NEWS
MALAYSIAN INVESTORS WORRY MOST ABOUT HEALTHCARE COSTS IN RETIREMENT: SURVEY
Malaysian investors are more concerned
about the affordability of healthcare in retirement than deteriorating health in old age, says a survey by Manulife. "This is in contrast to Malaysian investors' peers elsewhere in Asia for whom declining health is the main concern," the company said in a statement. Findings from the Manulife Investor Sentiment Index (MISI) survey for the 2014 fi rst quarter show Malaysians (51%) to be the least concerned about declining health in retirement of all the markets in the region. In contrast, investors (64%) across Asia cite this as their number one concern as they look ahead to retirement, Manulife said. The survey indicates that Malaysian investors' focus on healthcare costs rather than their actual health suggests concern about medical infl ation, the impact it will have on their savings and also refl ects on their perceived state of good health. Manulife Holdings Bhd Group Chief Executive Offi cer Mark O'Dell said the concerns about health costs could be part of the response to a government move late last year that paved the way for private medical fees to be raised. "Having kept a lid on prices for the previous 12 years, the move is having a ripple effect and it's really just a symptom of the underlying medical infl ation that people are noticing," O'Dell said. During retirement, Malaysian investors estimate that healthcare and medical expenses will make up 13% of their total monthly expenses. Those investors intending to maintain their medical insurance in retirement expect to spend a further 10% on premiums for health and medical insurance. About half of those surveyed in Malaysia said they have personal health or medical insurance at present and of these, about half expect to maintain their insurance during retirement, while just over a third said they won’t. Overall, about two-thirds of respondents said they will rely on the public health system in retirement, which is about average for the region. Manulife's Investor Sentiment Index (MISI) in Asia is a quarterly, proprietary survey measuring and tracking investors' views across seven markets in the region on their attitudes towards key asset classes and related issues.
MDV ALLOCATES RM1.45 BILLION THIS YEAR FOR TECHNOLOGY SECTOR
Malaysia Debt Ventures Bhd (MDV), the nation's leading technology fi nancier, is allocating RM1.45 billion in fi nancing for all technology sectors this year. MDV is collaborating with the Northern Corridor Implementation
Authority (NCIA) and Universiti Sains Malaysia (USM), with which it shares the same goal of accelerating economic growth to become a high-income advanced economy and promoting long-term sustainability and socio-economic well-being, Senior Vice President of Business Division Aimi Aizreen Nasharuddin Aimi said in a statement. MDV held its fi rst ‘MDV Tech Funding Day’ today at USM in Penang for technopreneurs and technology companies in the northern region. USM Deputy Vice Chancellor (Research and Innovation), Prof. Datuk Dr Muhamad Jantan, when launching the event, said the long process of commercialisation in the high-technology sector requires fi nancing from agencies such as MDV, NCIA,SME Corp and Collaborative Research in Engineering, Science and Technology(CREST). MDV has disbursed over RM7.0 billion worth of fi nancing to 600 technology start-ups, with more than 70% of the approvals to small and medium enterprises.
SME CORP TO HAVE 100 FIRMS CERTIFIED WITH NATIONAL MARK OF MALAYSIAN BRAND BY YEAR-END
SME Corp Malaysia is on track to achieve a total of 100 companies certifi ed with the National Mark of Malaysian
Brand, a certifi cation that depicts quality, excellence and distinction of products and services by local fi rms, by year-end. Its Chief Executive Offi cer Datuk Hafsah Hashim said as of April this year, another seven companies had received their certifi cation, bringing to 92 the total number of companies that had been certifi ed with the mark since its inception in 2009. "Some eight companies are in various stages of being certifi ed with the National Mark of Malaysian Brand and are undergoing verifi cation processes with SIRIM QAS International Sdn Bhd, our certifi cation partner," she told reporters at SME Corp's Branding Seminar 2015. She said the companies had to go through stringent standard assessment processes, and through the certifi cation, the government hoped to change the perception that SME products are of lower quality, reliability and with low packaging standards compared with other big brands. Apart from that, she also said SME Corp had introduced the merger and acquisition incentive for small and medium service providers in an effort to encourage them to merge. "In order to create a more stable and stronger entity in facing increasing competition, we have introduced nine sub-sectors that the small and medium enterprises (SMEs) are able to merge into. "These services are accounting, taxation, specialised medical practice, specialised dental practice, skills training, engineering, architectural, courier and private technical and vocational secondary education," Hafsah said. She said the sub-sectors might be broadened as there are manufacturing companies which are interested to be part of the incentive. "Under this incentive, the merged company will be eligible for a fl at tax rate of 20% on all taxable income for a period of fi ve years, as well as stamp duty exemption on merger documents," she said. With the reduced tax rate of 20% from the current 24% imposed on companies, it would attract and entice the SMEs to take up this incentive, she added. The National Mark of Malaysian Brand, or generally known as the Malaysian Brand, is developed by the government through the International Trade and Industry Ministry and SME Corp Malaysia with SIRIM QAS as the certifi cation partner.
SME CORP TO HAVE 100 FIRMS CERTIFIED WITH NATIONAL MARK OF MALAYSIAN BRAND BY YEAR-END
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| JULY 2014
MALAYSIA BUSINESS NEWS
EPF'S TOTAL INVESTMENT ASSETS INCREASE 11.27 PCT IN Q1 2014
The Employees Provident Fund (EPF) announced that positive net contributions from members and employers, as well as, encouraging
investment performance has increased total investment assets to almost RM600 billion. As at March 31, 2014, the pension fund's investment assets stood at RM597.02 billion, up 11.27% or RM60.47 billion, from RM536.55 billion recorded in the same corresponding period in 2013. Chief Executive Offi cer Datuk Shahril Ridza Ridzuan said that the government agency remained focused on its objective to generate stable investment returns that consistently beat the rate of infl ation. "Based on the rapid growth in our investment assets, which average between 10 and 11% annually, we will continue to strategically diversify our long-term investment activities across different markets and sectors in accordance with our Strategic Asset Allocation," he said in a statement. Shahril Ridza said depending on the market direction, the EPF would continue to capitalise on opportunities that arise in order to rebalance its portfolios for risk and return optimisation. For the fi rst quarter ended March 31, 2014, the EPF reported an investment income of RM8.83 billion compared with RM5.60 billion in the corresponding quarter in 2013. The more than 50% increase in investment performance was primarily driven by returns derived from equity investments. The report also revealed that 52% of EPF funds had been invested in secure and low-risk fi xed income instruments, 43% in equity investment and the balance in money market instruments, real estate and infrastructure, it said. On outlook for the rest of the year, Shahril Ridza said: "Although we are optimistic that the Malaysian economy will record better growth this year on expectations of export recovery supported by resilient domestic demand, we remain vigilant, particularly over the uncertainties surrounding the movements of capital as long-term interest rates adjust following recovery in key markets. "In order to optimise returns, we hold fi rm to our prudent and long-term investment approach and we will always ensure that preservation of capital and value enhancement of members' savings remain as the fund's primary objective," he added.
AIRASIA INDIA: TICKET SALE STARTS TODAY, FLIGHT ON JUNE 12 ONWARDS
AirAsia India is set to fl y Indian
skies from June 12, giving budget fl yers more choices at possibly lower fares. The airline will start operations with two daily fl ights on Chennai-Bangalore-Chennai route and a daily on Bangalore-Goa-Bangalore sector on the one aircraft it currently has, the Times of India reported. AirAsia group chief executive offi cer (CEO) Tan Sri Tony Fernandes announced on Twitter commencement of sale of tickets for these fl ights. The directorate general of civil aviation (DGCA) had given AirAsia India licence to fl y on May 7 and cleared its schedule (timetable) on May 29. AirAsia India CEO Mittu Chandilya has promised to offer 35% lower fares than current levels, said the report. Low-cost carrier (LCC), IndiGo is the market leader in India in terms of domestic passenger carriage. The other LCCs are SpiceJet, JetKonnect, GoAir and Air India Express (which currently fl ies mainly between south India and the Gulf). AirAsia has one Airbus A-320 and plans to induct an aircraft every month.
MATRADE URGES MALAYSIAN F&B COMPANIES TO FOCUS ON PRODUCING HEALTHY PRODUCTS
The Malaysia External Trade Development Corporat ion (Matrade) has urged local food and beverage (F&B) companies producing and exporting
food allergy and food intolerance products to focus on allergy-free, gluten-free or organic produce. This is due to the strong market demand for such healthy products, especially in European countries like Germany. "It makes a lot of strategic sense for more Malaysian exporters to explore this growing market as Asian suppliers are clearly under-represented and there is much scope for strong future growth. "The market continues to register healthy growth despite the economic crisis as consumers try to reduce their medical bills by opting for healthier food options," Matrade Frankfurt's Trade Commissioner, S.Jai Shankar said in a statement. He also said several Malaysian exporters of F&B products had already started exploring this lucrative market after participating in the Matrade-organised ANUGA 2013 trade fair. This October, the national export promotion agency will be organising a national pavilion at the forthcoming SIAL Paris Trade Fair and hopes the Malaysian companies will focus more on healthy products, he added.
TOURISM, OIL AND GAS SECTORS TO BE JOHOR ECONOMIC DRIVERS IN FUTURE: MUHYIDDIN
Tourism and oil and gas sectors are seen as the future economic drivers for Johor's economy,
Deputy Prime Minister Tan Sri Muhyiddin Yassin said today. He said that with the tourism lure such as the Pinewood Iskandar Malaysia Studios, Legoland and Hello Kitty Town theme parks, the sector has high potential for expansion.He however, said the challenge to develop the southern Johor area, which has become a tourist attraction, must be tackled with wisdom. "Among the challenges are building more hotels to sustain the demand for another 5,000 rooms," he told reporters after visiting Kota Iskandar, the state administration centre, here. Muhyiddin was responding to reporters' questions on the development of new sectors as proposed under the second Comprehensive Development Plan for Iskandar Malaysia. The plan, being prepared by the Iskandar Region Development Authority (IRDA), will be ready next month.
17
| JULY 2014
UNDERSTANDING THE MARKETING PROCESS
In the quest for knowledge, it is often the one who has the vision to seek meaningful and current information and the ability to analyze it quickly will be a step further than the competitors. One needs to understand the market needs and wants and package it in an innovative manner to achieve high growth. Successful marketers know what information is important and how to get the information together.
To reach the end users a resourceful marketer understands the mindset of existing customers and provides products and services that fulfi ll their requirements based on a changing lifestyle. Here is why for anyone to be successful in marketing, one should understand the simple logic of the marketing process as follows:
In the Market Research stage, data is collected via means of primary and secondary data collection. The primary data includes direct customer interviews, online surveys, etc. Secondary data collection usually is via research articles and/or compiled statistics from reliable sources. It can also incorporate an organization’s sales data history.
In the segmentation process, existing customer and prospects are categorized into segments. A profi ling is done on them based on factors such as geographical location, industry, etc. However, to create new and profi table segments, this needs to be analyzed in more details.
The next stage of Targeting the customers, after segmenting them, requires you to look deeper into the group’s vital statistics such as sales, profi tability, product/services offered, etc. and determine which will be most successful. The marketer needs to know which of these groups the ideal customer is. This is where a compilation of past customer data behavior will greatly help to show future indicators.
Once customers have been segmented and targeted, the next stage is to position them. After gathering the data and analyzing it, you are ready to position the chosen segment targeted in terms of various strategies such as pricing and innovation. Marketers
UtilizingMicrosoft Excelfor Marketers
MANAGEMENT SOFTWARE • by Palani Murugappan18
| JULY 2014
MANAGEMENT SOFTWARE
will position the product/service in a way that the alternatives may not appear attractive or appealing. This is where the collection of past data behavior helps.
Upon positioning the customers, the Marketing Mix (Product, Price, Place and Promotion, or also known as the 4 P’s) is to be applied. These four ingredients of the marketing mix focuses only on these four items and nothing else. Marketers need to have a good understanding and grip on these four items.
The next implementation stage requires a strategy. How will you make it happen? This is where advertisements, trade shows, exhibitions, billboards, online bulletins, all come in place. Note that these activities are supposed to be done after all the analysis and planning, not before.
You will note that in every of the marketing process steps above, data analysis is required. An existing tool to perform the analysis is utilizing Microsoft Excel.
HOW EXCEL CAN HELPIN MARKETING
When you have data, it can be formatted and presented in different ways. However, to draw conclusions from data, analysis has to be performed. Let us look as to in what ways Excel can help us in marketing data analysis:
• Budgeting for a new product (and product launches)
• Performing competitive analysis
• Creating a marketing plan• Performing market and
marketing research• Analyzing pricing analysis and
strategy• Seeking new customers• Identifying market trends and
emerging markets• Monitoring trends• Customer satisfaction analysis• Analyzing new opportunities
Besides the above, we can further look into product management too:
• Pricing and margins expected• Future sales estimates• Forecasting• Launching a product• Tracking and monitoring new
product introductions• Analyzing sales reports• Scheduling and rescheduling of
new product introductions
ANALYZING SALESAND MARKETING DATA
The sample data based on the different regions below illustrates quarterly sales figures for the first 12 months of the year. This is raw data compiled for the first year of operations of an organization.
What analysis can we perform from the above? Let us create a criteria as defined in cells I2 to J3 as illustrated below.
We want to Excel to give us details of North Region with Quarter 3 sales figures greater than 200. In other words, let us say the management requires the following details:
1. The average sales figure for the North Region with sales exceeding $200.
2. The total number of months in the North Region with sales exceeding $200.
3. The total amount in the North Region for sales exceeding $200.
4. The maximum value in the North Region for sales exceeding $200.
5. The minimum value in the North Region for sales exceeding $200.
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| JULY 2014
MANAGEMENT SOFTWARE
First and foremost, one has to understand what the question requires. Upon understanding, most users who do not have sufficient knowledge in terms of application of functions will sort the data by Region and attempt to perform calculations of the above.
Excel has an amazingly quick way of solving the above problems. By utilizing the Database function category, the problems can be solved quickly with the following answers.
Note that besides solving the problems quickly, the user also has the option of changing the Region from one to another as illustrated below. This is achieved by using a built-in feature of Excel.
The above produces yet a different set of answers for the same formulas.
Now, we are not limited to just changing the region. The user also has the option of changing the Quarters from 1 to 2, 3, or 4, using the same built-in feature of Excel.
This produces a different set of figures once again.
Finally, we also have the option of defining our own “logical tests” below the selection of Quarter header. Again, this utilizes the same feature of Excel as that used for the selection of Region and the different Quarters.
PRESENTING THE DATA
Many Excel users utilize the various built-in functions to perform specific calculations. However, Excel is capable of analyzing data based on the combination of built-in functions and features as in the illustration below. A drop down list is created where the user has the option of selecting any of the 12 months by clicking on a specific month, or scrolling the vertical scroll bar and selecting a month. In the illustration below, the selection of August displays the four quarter results.
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| JULY 2014
MANAGEMENT SOFTWAREBy scrolling to the bottom of the list and selecting December, the four quarter figures are updated automatically as below.
One of the quickest way of analyzing raw data in Excel is the use of Pivot Tables. By applying the Pivot Table, we are able to summarize our raw data to be presented by Region as follows:
Notice that despite performing a summary using the Pivot Table, the “oomph” factor appears missing. To incorporate this, another built-in feature of Excel can be applied to enhance the appearance of the above Pivot Table as illustrated.
VISUAL PRESENTATION OF DATA
The saying “A picture is worth a thousand words” cannot be truer. Excel perfects this statement when a user is able to convert the analysis of data and present it in a graphical manner, such as chart. In the illustration
below, the user has the option of changing the month by clicking on the drop down arrow and scrolling through the list. The display for the Quarter 3 sales figure is plotted on a column chart with the value inserted within the column.
Should the user change the Quarter to another, the column chart updates itself automatically, with the corresponding changes to the Y-axis as illustrated.
Palani MurugappanT h e e x a m p l e s illustrated above is a snapshot of what the author covers in some of his 2-days training sessions. Having been a corporate trainer for the last
14 years, Palani specializes in training participants how best to perform data analysis from company’s raw data and concluding from the information gathered by harnessing Excel’s built-in functions and features. A HRDF certified trainer and author of 51 books to-date on various software applications, Palani is passionate on what Excel can do, and how best to present data in different formats.More information is covered in his website. He can be reached at:
www.avimursolutions.com
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| JULY 2014
The r e c e n t l y concluded Global Indian Festival 2014 [GIF 2014]
recorded 15% growth on Malaysian entrepreneurs participation. The grand shopping festival held from June 4 - June 8, 2014 at Mid Valley Exhibition Centre, Kuala Lumpur antipicated to have recorded sales up to RM20 million.The South East Asia’s Largest Festival of Indian Products was offi ciated by Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah on Friday June 6, 2014. According to the organiser ASC Agenda Suria Communication Sdn Bhd, this year event was patronized by more than 350,000 visitors well above their target. Entrepreneurs seeking trade opportunities as well as shoppers were treated to over 270 booths featuring elegant antiques, h a n d l o o m p r o d u c t s , handycraft, textiles and jewelleries specially fl own in from India, Pakistan, Sri Lanka and Nepal.GIF 2014 provided a platform for SMEs from South Asian Countries to introduce their products and services to 600 million ASEAN market. Business matching session held alongside the festival furnish opportunities for Malaysian to expand their network.
| JULY 2014
EVENT 23
| JULY 2014
STRATEGY
Konosuke Matsushita a fi rm believer of p r o d u c i n g b e t t e r product at much
cheaper price identifi ed that demand for bicycle lamp was enormous. He developed battery powered lamp requiring only 120-130 milliamperes that could last for 30-50 hours at cost lower than candles. Matsushita made agreement with supplier to a minimum order 2000 unit wooden lamp casing, a huge commitment for small fi rm in 1920’s. To his dismay their existing electrical distributors declared lamp would not sell.
Matsushita had so much faith on his new product, instead of cutting back his production he invested into new strategy. He told his salesmen to put one lit lamp on display at bicycle
retailer shops, a distribution channel identifi ed by Matsushita together with few samples without asking any payment. Seeing the lamp lasted more than fi fty hours, retailers showcased the new product to their customers that resulted sales skyrocketed surpassing their 2,000 units per month.
In 1926, Matsushita cancelled distribution agreement of bicycle lamp with Yamamoto by paying 10,000 yen. Matsushita Electric began to venture into its own distribution system an action that was unusual at the time in Japanese consumer product industries. Sony followed the same path twenty years later.
No matter how deep a study you make. What you
really have to rely on is your own intuition and when it comes down to
it, you really don't know what's going to happen
until you do it.Konosuke Matsushita
KONOSUKE MATSUSHITA: AHEAD OF TIME STRATEGIES
onosuke Matsushita a fi rm believer of p r o d u c i n g b e t t e r product at much
cheaper price identifi ed that demand for bicycle lamp was enormous. He developed battery powered lamp requiring only 120-130 milliamperes that could last for 30-50 hours at cost lower than candles. Matsushita made agreement with supplier to a minimum order 2000 unit wooden lamp casing, a huge commitment for small fi rm in 1920’s. To his dismay their existing electrical distributors declared lamp would not sell.
In 1926, Matsushita cancelled distribution agreement of bicycle lamp with Yamamoto by paying 10,000 yen. Matsushita Electric began to venture into its own distribution system an action that
KONOSUKE MATSUSHITA: AHEAD OF TIME STRATEGIES
onosuke Matsushita a fi rm believer of p r o d u c i n g b e t t e r product at much
cheaper price identifi ed that demand for bicycle lamp was enormous. He developed battery powered lamp requiring only 120-130 milliamperes that could last for 30-50 hours at cost lower than candles. Matsushita made agreement with supplier to a minimum order 2000 unit wooden lamp casing, a huge commitment for small fi rm in 1920’s. To his dismay
retailer shops, a distribution channel identifi ed by Matsushita together with few samples without asking any payment. Seeing the lamp lasted more than fi fty hours, retailers showcased the new product to their customers that resulted sales skyrocketed surpassing their 2,000
In 1926, Matsushita cancelled distribution agreement of bicycle lamp with Yamamoto by paying 10,000 yen. Matsushita Electric began to venture into its own
AHEAD OF TIME STRATEGIESonosuke Matsushita a fi rm believer of p r o d u c i n g b e t t e r product at much
cheaper price identifi ed that demand for bicycle lamp was enormous. He developed battery powered lamp requiring only 120-130 milliamperes that could last for 30-50 hours at cost lower than candles. Matsushita made agreement with supplier to a minimum order 2000 unit wooden lamp casing, a huge commitment for small fi rm in 1920’s. To his dismay
skyrocketed surpassing their 2,000
In 1926, Matsushita cancelled distribution agreement of bicycle lamp with Yamamoto by paying 10,000 yen. Matsushita Electric began to venture into its own
AHEAD OF TIME STRATEGIESonosuke Matsushita a fi rm believer of p r o d u c i n g b e t t e r product at much
cheaper price identifi ed that demand for bicycle lamp was enormous. He developed battery powered lamp requiring only 120-130 milliamperes that could last for 30-50 hours at cost lower than candles. Matsushita made agreement with supplier to a minimum order 2000 unit wooden
retailer shops, a distribution channel identifi ed by Matsushita together with few samples without asking any payment. Seeing the lamp lasted more than fi fty hours, retailers showcased the new product to their customers that resulted sales skyrocketed surpassing their 2,000 units per month.
In 1926, Matsushita cancelled distribution agreement of bicycle lamp with Yamamoto by paying 10,000 yen. Matsushita Electric
AHEAD OF TIME STRATEGIESKONOSUKE MATSUSHITA: KONOSUKE MATSUSHITA:
STRATEGY: INNOVATIVE BETTER PRODUCT CHEAPER PRICE RISK TAKER NEVER GIVE UP NEW MARKET MANAGE SUPPLY CHAIN
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| JULY 2014
DID YOU KNOW?
DID YOU KNOW?HSBC BANK MALAYSIA BERHAD IS COUNTRY’S OLDEST BANKAlthough Standard Chartered Bank presence in Malaysia dates back to 1875 with its fi rst branch opened for business at Downing Street, Penang. HSBC Bank that established its fi rst offi ce on the Island of Penang in 1884 is Malaysia’s Oldest Bank. During 1959, then known as Hongkong and Shanghai Banking Corporation Limited acquired The Mercantile Bank which started operations in Malaysia in 1860 .
THE STORE IS OLDEST SUPERMARKET IN MALAYSIAThe Store Corporation Berhad is the oldest existing supermarket cum departmental chain in Malaysia with retail outlets established in every state of the Peninsular Malaysia. The company started fi rst outlet in Bukit Mertajam, Penang on 3rd March 1968 also recognized at the largest supermarket and departmental chain by The Malaysia Book of Records since 2001.
F & N IS OLDEST FOOD & BEVERAGE PRODUCER IN MALAYSIAFounded in 1883 by John Fraser and David Chalmers Neave , the F&N Group is the oldest Food & Beverage producer in Malaysia. The brand F&N enjoys a special place in the hearts of Malaysians as almost everyone has had consumed it.
MALAYSIA’S OLDEST PLANTATIONS OPERATED BY SIME DARBY BHDMergers and acquisitions made Sime Darby Berhad technically as oldest Malaysian Plantation Company. In 2007 Guthrie Group founded in 1827, Golden Hope previously trading as Harrisons and Crosfi eld and Sime Darby established in 1910 by William Sime and Henry Darby merged to form Synergy Drive which later renamed as Sime Darby within 10 months.
GREAT EASTERN LIFE IS OLDEST LIFE INSURER IN MALAYSIA Great Eastern Life which began its operations in 1908 was certifi ed by the Malaysia Book of Records in 1998 as the "Oldest and Largest Life Insurer" in Malaysia. As of 31st December 2013, the company has RM63.5 billion in assets, over 2.9 million policies in force and a network of 17,000 agents nationwide.
EU YANG SANG IS OLDEST TCM COMPANY IN MALAYSIA Eu Yang Sang is the oldest Traditional Chinese Medicine (TCM) company in Malaysia and one of Asia’s leading integrative healthcare company. Founded in 1879 with opening of fi rst shop Yan Sang in Gopeng, Perak Eu Yan Sang (Malaysia) is a member company of Eu Yan Sang International Limited which is listed in the Singapore Exchange. With over 1,000 types of fi nest raw herbs in the store, and more than 300 products under the Eu Yan Sang (EYS) brand, EYS is probably the best-stocked TCM retailer outside China. The company has more than 80 retail outlets throughout Malaysia.
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| JULY 2014
FEEDBACK #1
GST is a consumption based tax. What does that mean? It is a tax system to tax on consumption, unlike income tax which is
taxed on income. Though may have implementation challenges in Malaysia, like any other worthy initiatives, when implemented well, GST is a fairer tax system and promotes savings.
Let me illustrate: If you earn RM5,000, you spend RM4,000 and you save RM1,000, you will be taxed for RM5000 on income tax and RM4,000 on GST (consumption tax). Suppose you only spend RM1,000 and you save RM4,000 instead, you tax will be on the RM5000 and RM1,000 (GST). Effectively, you are incented to save in this system. However, I must agree that with GST, all price will inevitably increase due to snowballing effect of leakages in business, even though this tax should only be imposed on consumers. Business could recover GST paid but due to initial leakages that render to higher opex, this is eventually passed to consumer. So while it is not going to be easy on all, especially the middle class, we need to consciously fi nd every opportunities to save. The more you spend, the more you are taxed!
Ultimately, the issue most of us have in mind is, will the govt reduce income tax with GST (though there were talks but uncertain if it will happen and its quantum). Secondly, a perennial question in all our minds, what will the govt do with the huge income, expected to be about RM30billion/year. Where and how (or who <s>) will the money be spend?
FEEDBACK #2
GST may end up as multiple taxation which ultimately will be borne by the rakyat, The rich and in power normally have their purchases
charged to the accounts of their companies or organizations or employers [as it could be included under perks].
Service Tax implementation is perceived to lack effective enforcement as is evidenced by non-many display of the license by the business owners who collect Service Tax and thus the customers have no way of confi rming the validity of the collection. Some charge all-in price and thus do do not show in the invoice the Service Tax as an item. It had been reported in the media that professionals also have been found to be collecting without being licensed
and this I had seen personally during my audit service in 2003-2005, The newly proposed GST may suffer the same fate if enforcement is weak and also provide greater number of opportunities for fraud by those with intent resulting in losses in quantum that may be many times higher than that of the Service Tax it is replacing.
Follow Singapore where enforcement is effective and penalties deterrent on those caught. Sadly Malaysia has the culture of weak enforcement and discounts on delinquents as happens in the case offenses pertaining to traffi c, quit rent, assessment, licenses etc.
FEEDBACK #3
As GST applies to consumption in Malaysia, it taxes both citizen and non-citizen residing here in Malaysia the moment consumption
of goods or services begins. Malaysian earning above RM3,000 monthly are subjected to income tax, effectively making GST as second tax to be paid by citizens of this country. Non Citizen includes semi skilled and non skilled workers from Indonesia, Myanmar, Nepal, India, Vietnam that already prepaid their levy has to poke out more when they purchase items not exempted by the GST. Businesses or Corporate Companies effectively don’t pay any GST as they collects back from end consumer. I wonder why businesses being an offi cial registered entity get’s such exclusive treatment compare to human being.
FEEDBACK #4
At the mention of taxes, we notice many shying away and quietly going missing. It is a norm I guess, but in reality the ones who will be
mostly affected, is you and me?
First of all, I quote the gstmalaysia.com website: “GST or Goods and Services tax or Value Added Tax is a consumption based tax charged on all taxable supply of goods. There are a few “Zero Rated Supple” group of items is exempted from GST which includes Basic food items (fl our, rice), Public Transportation and Healthcare and Education”. GST Registration is required for any company with yearly revenue of RM 500,000. This actually means any manufacturer or supplier who could possibly make that much, will register so that they can charge the consumer; and
MIB FORUM - GST
KUMARAVELLEntrepreneur, Selangor
3
SATYA NARAYANANPrincipal Consultant atFoqual Consulting, Kuala Lumpur
1
GURSHARAN SINGH C.M.I.I.A.Freelance Trainer-Knowledge Sharer-Auditor, Kuala Lumpur
2
GST is a double taxation of income and it expected to increase infl ation. What is members opinion?:
26
| JULY 2014
at the end, we see consumers paying a must higher GST than of the GST paid by the manufacture. Does this not seem like an increase in expenses for the public? So, Malaysia’s infl ation as measured by the consumer price index is expected to increase once the GST takes effect, now how does this benefi t the citizens who will then have to take out more money than before to get the very same items they have been getting all this while? Doesn’t that infl ation caused by the GST bring about a vast change into the expenses of the public, be it the higher or lower income? There are some basic things that are mentioned to be exempted of the GST such as medical fees. How about drugs? Wouldn’t the manufacturer be incurring the GST when they selling the drug Having paid that extra amount for purchasing the drug, am sure the drug price will increase, will it not? It is more known that the lower income category spends a larger portion of their income than the higher income, and it is clear that the more you spend the more GST you pay. In terms of household, many a times we see a lower income household having more people to feed for than those of the higher income. Defi nitely the lower income household will be forking out much more than the higher income household.
JEEVITHAN P. GANASAN Founder & President Malaysian Community Development Organisation (M-CEO)
4
RENGANATHAN KANNANPartner Tratax,Petaling Jaya
5
SUBSCRIBTION FORM
It is of my opinion that if the government is adamant to implement the GST they should then at least make increase the salaries of the employees. Otherwise, this GST increase will take a toll on the public. Price of goods will increase in turn if the GST goes up. The poor will basically get poorer whilst the rich richer.
FEEDBACK #5
GST is not a double taxation. GST is a consumption tax based on a business turnover and substitute of present sales and service taxes. Price hike is expected which will
burden the consumers, government will be implementing anti profi teering act and we're unaware about the enforcement part.
MIB FORUM - GST 27
| JULY 2014
Question Your Self. What is your intention in doing what you are doing?
It’s quite a powerful question. Does answering the question make you feel quite tense or more relaxed? If it makes you feel tense, is it possible that your awareness is telling you to dig deeper or maybe to be more honest with yourself?
Exercise #1
1. Throughout the day, continually ask yourself about your underlying motivation: Why are you doing what you are doing?
• Is it for selfi sh, manipulative or fearful reasons? • Is it for honest service with integrity? • Maybe you do not know - maybe you will see that much of your activity lacks purpose.
This is a great way to enhance your awareness and be more conscious. Your intention and motives are fundamental to the results you will achieve. Set high intentions and your life will blossom.
• I don’t even know what I want • I’m not sure who I am anymore • I’m not sure what to do
Underneath all the confusion and chaos that you currently believe is “YOU,” there lay a deep inner wisdom. It knows your purpose. It knows you are here for a reason. It knows what you’re capable of doing, and it has the creativity, strength, and resourcefulness to help you achieve it. Yet, if we’re not intentional about listening to it, it gets drowned out by our own chaotic thinking, the demands of everyday life, and the voices of others. The good news: your inner wisdom is still there, ready to help and guide you to a more fulfi lling life. You just need to learn how to listen.
Here are some ways to start:
Remember a Time You Felt Fully Alive
It’s easier to fi nd something when you know what you’re looking for. The times in your life when you have felt most alive are those where you were strongly aligned with you inner wisdom. Remembering those times can help you reconnect.
Exercise #2
1. Find a quiet space where you won’t be interrupted, and close your eyes. Think back to a time when you felt a powerful sense of joy, excitement, and purpose.
• What were you doing? • What were you thinking and feeling? • What made this experience so meaningful?
STOP & THINK! Draw Out Your Inner Wisdom
LIFESTYLE • by Thevi Sinnadurai28
| JULY 2014
Replace Self-Judgment and Criticism with Curiosity
We can be quick to judge our thoughts, feelings, and desires that make us uncomfortable. Yet they often hold valuable information about our core needs and values. While we probably shouldn’t act on every emotion, craving, or impulse we have, we can gain access to our inner wisdom by exploring them.
Exercise #3
1. Next time something pops into your head that that seems selfi sh, unrealistic, mean, or just plain wrong, get curious!
Ask questions like:
• What’s important about this? • What am I longing for right now?• What need am I trying to meet?• What am I afraid of?
The not-so-obvious answers might surprise you.
Do Something Different
Our inner wisdom doesn’t usually communicate with words. It often speaks to us through strong desires, gut feelings, or baffl ing emotional “tugs.”
Too often, we dismiss this kind of communication simply because it doesn’t make sense to our logical/analytical thinking. Yet, if we’re going to connect to our inner wisdom, we need to learn to trust these wordless messages.
Start now: think of something that unexplainably interests you and pursue it.
>> A Cup of Tea
Nan-in, a Japanese master during the Meiji era (1868-1912), received a university professor who came to inquire about Zen. The master places a teacup in front of the professor. While the master quietly served tea, the professor talked about Zen. The master poured the visitor's cup to the brim, and then kept pouring. The professor watched the overfl owing cup until he could no longer restrain himself. "It's overfull! No more will go in!" the professor blurted. "You are like this cup," Nan-in replied, "How can I show you Zen unless you fi rst empty your cup." The master compares the professor’s mind to the teacup – so full it doesn’t have room for anything new. We also need to create some open space in our minds for our inner wisdom to fl ow into. Meditation is a great way to do this.
Meditation: in its most basic form, you simply focus on observing your breath. When thoughts arise, acknowledge them and then gently return your focus to your breathing. By not getting caught up in these habitual thoughts, we make room for new insights and awareness.
Focus on “What,” not “How” Sometimes our inner wisdom starts to give us a glimpse of what we want, but instead of taking the time to fully listen, we immediately start drowning it out with worries about the possible challenges that could prevent us from attaining it. We are naturally creative and resourceful, we can rise above most challenges we face. But fi rst we need a clear and compelling vision to inspire us. This requires temporarily letting go of the question of “how?” and allowing ourselves to really explore what it is we really want.
Exercise #4
1. Get out three sheets of paper and write one of these questions at the top of each page.
• What do I want to do?• What do I want to have?• What impact do I want to have on others and world around me?
Too often, we dismiss this kind of communication simply because it doesn’t make sense to our logical/analytical thinking. Yet, if we’re going to connect to our inner wisdom, we need to learn to trust
Start now: think of something that unexplainably
Nan-in, a Japanese master during the Meiji era (1868-1912), received a university professor who came to inquire about Zen. The master places a teacup in front of the professor. While the master quietly served tea, the professor talked about Zen. The master poured the visitor's cup to the brim, and then kept pouring. The professor watched the overfl owing cup until he could no longer restrain himself. "It's overfull! No more will go in!" the professor blurted. "You are like this cup," Nan-in replied, "How can I show you Zen unless you fi rst empty your cup." The master compares the professor’s mind to the teacup – so full it doesn’t have room for anything new. We also need to create some open space in our minds for our inner wisdom to fl ow
LIFESTYLE 29
| JULY 2014
2. Then write as many things as you can think of. Let yourself dream big.
3. Afterwards, use what you’ve written to start visualizing what you want your life to look like 3 years from now.
“For the past 33 years, I have looked in the mirror every morning and asked myself: 'If today were the last day of my life, would I want to do what I am about to do today?' And whenever the answer has been 'No' for too many days in a row, I know I need to change something.” - Steve Jobs
Exercise #5
1. Look at yourself in the mirror.
Describe the person you see in the mirror using 15 meaningful adjectives. Use both good and bad ones; remember this is a truthful exercise. Dig down deep, be honest, this is not an exercise for who you want to be; this exercise is for the person staring at you now. Be daring. Allow yourself to rediscover a few lost truths.
Now that you have looked at who you see reflected in the mirror, it is time to reflect on your likes and dislikes.
This is important to allow you to identify potential issues and assist you in getting to the root cause. Understanding why a phrase or an action can effect you in a negative way helps you prevent repeating poor behavior. Remember: If we fail to face our past, we are destined to repeat it. Look for ways to cope with these stressors.
Exercise #6
• What activities do you like to do?• What type of books do you enjoy reading?• What can you not tolerate • What makes you sad?
For each answer, explain why. Explore the depths of why and not just the surface.
• Identify what makes you happy beyond compare.• In life we should be passionate about what we
are doing, or why do it?• What motivates you to get out of bed each day• This would be your passion. Your desire to live -- this will cause you to spring into action even when you are physically, emotionally and mentally exhausted.
Don't go theway life takes you.
Take the life the way you go. And remember you
are born to live. And not living because
you are born– Owm’r Faruuk
Thevi Sinnadurai is a Practitioner in Clinical Hypnosis, Practitioner in Cognitive Behaviour Hypnotherapy, NS-NLP Master Practitioner, Certified Law Of Attraction Trainer and Emotional Freedom Technique Practitioner (EFT). She can be reached at:
LIFESTYLE30
| JULY 2014
AGENCIES FUNCTIONSCradle Fund Sdn Bhd [Cradle], is a not-for-profi t organisation that has managed RM150 million Cradle Investment Programme since its inception in 2003. Through the Cradle Investment Programme aim to:1. Create an ecosystem that supports a strong and innovative business-building environment for technology entrepreneurs.2. Achieve commercialisation effi ciency and sustainable entrepreneurship for budding technology entrepreneurs per our credo of Catalysing Sustainable Technopreneurs.3. Provides funding of up to RM150k, as well as monitoring, mentoring, access to market and supply chain, and training for 12 months in ICT and non-ICT sectors (i.e. biotech, renewable energy, life sciences, etc.) 4. CIP 500 fund for technology/ commercialization Grant up to RM500k for ICT and non-ICT sectors for 12 months.
Malaysia Venture Capital Management Berhad [MAVCAP] was established in 2001. Today, we are the country’s largest venture capital (VC) company with investments in the ICT sector and other high-growth industries. MAVCAP makes investments through following programs: 1. Direct Investments -invest directly and participate actively in the management and operations of the investee companies.2. Outsource Partners Programmes - through these programs, a signifi cant amount of capital allocated to VC fund management companies, who in turn invest in high-growth businesses.
Perbadanan Nasional Berhad [PNS] was mandated to lead the development of Malaysia's franchise industry. PNS aims to develop the franchise industry while increasing the number of franchise entrepreneurs through its expertise in providing quality service and products. PNS plays a role in spearheading the growth of the country's franchise industry in order to fulfi ll their goal of producing more franchise entrepreneurs in the business world. One of the main objectives of PNS is to develop local products and market them abroad. PNS also provides guidance and special schemes for franchisors and franchisees and welcomes franchise partners to Malaysia.
Malaysia Debt Ventures [MDV] is a Premier Innovative Financier and Development Facilitator for the ICT, Biotechnology, Green Technology and emerging technology sectors in Malaysia. Incorporated on 23 April 2002, MDV has been entrusted to provide fi nancing for projects in these sectors at the point of commercialization. With a fund size of RM4.1 billion, MDV offers innovative fi nancing solutions and nurturing initiatives to spur the growth of these sectors based on client’s needs. MDV prides itself with fast loan approval and hassle free processes in its various products.
Credit Guarantee Corporation [CGC] main objective is to play a developmental role in supporting the country’s economic development agenda by assisting marginal but potentially viable small and medium scale enterprises (SMEs), particularly enterprises without collateral or with inadequate collateral and track record, to obtain fi nancing from the fi nancial institutions. CGC facilitates SMEs access to fi nancing through its guarantee schemes. To date, CGC have been instrumental in the establishment of more than 420,000 SMEs, guaranteeing close to RM51.4 billion.
MINISTRY OF FINANCE
Malaysia’s Vision 2020 established entrepreneurship as fundamental of economic policy to achieve economic growth in order to achieve the high income nation goal. The 10th Malaysia Plan 2011-2015 provides specifi c entrepreneurship measures i.e.
i. Plan, Creating an Environment for Unleashing Economic Growth ii. Moving Towards Socio-Economic Development. We extracted and summarize the prime role of agencies under two main ministries entrusted to achieve these objectives.
A Joint Entrepreneurship Education by :
ENTREPRENEURSHIP FRAMEWORK (Part 1)
ENTREPRENEURSHIP32
| JULY 2014
AGENCIES FUNCTIONSMalaysian Investment Development Authority [MIDA] incorporated in 1967 assists companies which intend to invest in the manufacturing and services sectors, as well as facilitates the implementation of their projects. MIDA provides information on the opportunities for investments, as well as facilitating companies which are looking for joint venture partners.
Small and Medium Enterprise Corporation Malaysia [SME Corp. Malaysia] implements SME Development programmes such as :1. Business Accelerator Programme (BAP)2. Enrichment & Enhancement Programme3. Shariah Compliant SME Financing Scheme4. SME Competitiveness Rating for Enhancement (SCORE)5. Soft Loans for SMEs6. SME Emergency Fund7. The National Mark of Malaysian Brand8. Enterprise 50 Award9. SME@University Programme10. Skills Upgrading Programme11. SME Mentoring Programme
SME Bank or Bank Perusahaan Kecil & Sederhana Malaysia Berhad commenced operations on October 3, 2005. The Bank was established to function as a development fi nancial institution to nurture and meet the unique needs of small and medium enterprises (SMEs) through the provision of fi nancial and non-fi nancial services to SMEs. SME Bank provides :1. ACCESS TO FINANCING -Ensure that creditworthy SMEs have access to fi nancing for working capital and investment.2. LEGAL AND REGULATORY ENVIRONMENT - Ensure that legal and regulatory environment is conducive for the formation and growth of SMEs, while protecting the broader interest of society.3. HUMAN CAPITAL DEVELOPMENT - Enhance human capital and entrepreneurship development among SMEs.
Malaysia External Trade Development Corporation [MATRADE] has several programmes to assist Malaysian companies to equip themselves with knowledge and skills. Those are:1. Exporters Development2. Export Promotion3. Trade & Market Information4. Trade Advisory & Support
Malaysian Industrial Development Finance Berhad [MIDF] was incorporated on 30 March 1960 for the purpose of ensuring access to fi nancing for manufacturing-based small and medium enterprises (SMEs), and as part of Malaysia’s post-independence strategy to accelerate development of the industrial sector. Over the years the Malaysia’s maiden development fi nance institution, MIDF has evolved and transformed itself into a diversifi ed group providing fi nancial services namely investment banking, development fi nance and asset management.
Malaysia Productivity Corporation [MPC] which was formerly known as the National Productivity Corporation was established in 1962. Some of the functions of the Corporation are as follows:1. To establish an information and reference centre for productivity indices for the country and for management systems and case studies;2. To generate local expertise in the fi eld of productivity, quality, management and entrepreneurship;3. To enhance the development of human resource both at the supervisory and management levels in the country;4. To assess and certify supervisory and management training programmes, entrepreneurship programmes and productivity and quality management programmes conducted by the private sector for the public;5. To conduct training or other programmes relating to productivity, quality, management and entrepreneurship;To provide consultancy services relating to productivity, quality, management and entrepreneurship.
Established on 18 September 2006, Halal Industry Development Corporation [HDC] coordinates the overall development of the Halal industry in Malaysia. Focusing on development of Halal standards, audit and certifi cation, plus capacity building for Halal products and services, HDC promotes participation and facilitates growth of Malaysian companies in the global Halal market.
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY
ENTREPRENEURSHIP 33
| JULY 2014
Do you like to laugh? Of course you do! Who doesn't like it? Everybody likes to laugh. It is the best way to feel better (even though a doctor
that prescribes laughter as a cure is likely to be called a clown...)!
Have you watched the recent ads by Alagappa’s on Astro? They used our local artist Denes, Tamil actor Vadivelu look alike together with a kollywood actress, Poonam Bhajwa. I believe these series of ads turned out to be a great success. Why? It was a humor-based advertisement, which were displayed (I think it’s still going on!) several times on Astro Indian channels.
Yes, that’s the topic for this time!
If you could recall, many of the most memorable ad campaigns around tend to be funny. Advertisers use this strategy to attract customers to their product. Audiences like to be entertained, but not pitched. Think about “I follow you”, the Digi Campaign.
WHY ADVERTISE WITH HUMOR?
The practical fact is people will pay more attention to a humorous commercial than a factual or serious one, opening themselves up to be influenced. The key to funny advertising is assuring the humor is appropriate to both product and customer.
The balance between funny and extremely unpleasant ads can often be delicate, and a marketer must be certain the positive effects outweigh the negative before an advertisement can be introduced. Besides, the best products to sell using humor tend to be those that consumers have to think the least about. Products that are relatively inexpensive, and often consumable, can be represented without providing a lot of facts, and that's where there's room for humor.
Drinks, food, alcohol, tobacco and toys/entertainment related products have proven to benefit the most from humor in their campaigns. One of the most important things to keep in mind is relevance to the product. Another point to consider when using humor in advertising is that different things are funny to different people. A commercial that may leave one person gripping their sides from laughter may leave a bad taste in another's mouth. The target market must always be considered. What's funny in a client presentation may not be funny on an airplane, at a country club or in a hospital.
MOVING FORWARD, HOW TO DIGEST THIS?
The most important aspect of using humor in your advertising knows your audience. What kinds of jokes would your audience find funny? Is there any type of humor they would find offensive? Take all of these questions into account when you inject a little humor
USING HUMORIN ADVERTISING?
MARKETING • by Prasath Kanagaras34
| JULY 2014
into your marketing messages. All of the benefi ts of using humor in your marketing won’t amount to any real gains if you can’t connect with your intended audience.
Next, it should come as no surprise that the humor you include shouldn’t come out of left fi eld. It has to relate to your business, your products and services, or the offer on the direct mailer. The best humor relates to the specifi c campaign that it’s featured on, but a well-crafted campaign can incorporate humor related to your business or industry that can span multiple marketing messages, and create a compelling story arc for your brand.
The most important aspect of using humor in advertising is staying away from offensive words or humor, and beyond that, you should also keep the humor brief. When was the last time you laughed at a long, drawn-out joke? Lastly, keep your language positive for the most impact.
DON’T BE AFRAID TO THINK OUTSIDE THE BOX!
The key to using humor as a weapon is to understand your customer so well you know the things that they hate. If you can get them to laugh at the things they dislike, you can get them to like you more. If you do this, you're one-third of the way there (people buy from people they know, like and trust).
This is where you really need to get creative!
Prasath KanagarasBrand StrategistPoint Blank Media works
MARKETING 35
| JULY 2014
According to a survey by Yodle’s First Annual Small Business Sentiment Survey,
42% of SME business owners are worried about fi nding new customers compare to only 21% of them cited competition as something to be worried. What makes business owners to have such high concern on fi nding new customers, marketing? They often get confused between marketing and selling. The Chartered Institute of Marketing had clearly explained that marketing is sometimes wrongly defi ned within the narrow context of advertising or selling. Marketing is a key management discipline that enables the producers of goods and services to interpret customer wants, needs and desires and match or exceed them, in delivery to their target consumers. Traditionally marketing strategies consist of 4Ps namely product, price, place and promotion. An addition 3 Ps – people, process and physical were added as marketing became more sophisticated.
In this article, we shall refrain from discussing the 7Ps by focusing into more practical and applicable marketing strategies for Malaysian Indian SMEs in creating positive cash fl ow.
BE CLEAR
Most successful businesses fi nds out what are customers need or want prior developing the right product. SME management particularly their marketing personnel’s must be very clear on what they are offering to solve their consumer’s problem. In other word a prefect product must provide clear value for your customer. There is no point in developing a product or service that no one wants to buy, yet many businesses decided to offer fi rst and the hope to fi nd a market for it afterwards.
Once, you’re c lear on your customers’ needs and how your products fi ll in the need gaps the next step is to allocate your resources.
ALLOCATE PROPER RESOURCES
Well, SMEs in Malaysia particularly the Indian Business usually down plays the marketing efforts. For them, day to day operations, lack of resources and skills overshadow the need to proper marketing planning. Businesses tend to forget that the 80/20 rule derived from the broader Pareto Principle concept introduced by Italian economist Vilfredo Pareto in 1906 applied in a number of business and resource allocation methods, including marketing. In general, 20 percent of marketing messages produce 80 percent of your campaign results. Understanding which of your investments produce the greatest results lets you eliminate some of the costs associated with
TURN YOUR MARKETING INTO
CA$H MACHINE
As businesses stepping into second half of 2014, it’s time for Small and Medium Enterprises (SMEs) to analyze effectiveness of their marketing strategies and ways to improve it. In Malaysia, SMEs are classifi ed as businesses whose annual turnover less than RM50million per annum for manufacturing sectors while for the services sector it’s capped with revenue not more than RM20million per annum.
MARKETING36
| JULY 2014
less productive techniques. This improves your marketing effi ciency and returns. As rule of thumb, it is suggested during the early brand building year’s businesses to allocate up to 20 percent of sales on marketing. BE UNIQUE
Look at your business from a different perspective and start thinking outside of the box on how to reach target audience and achieve your marketing goals. A good promotion is not one-way communication; it must paves way for a dialogue with customer. Do ensure your marketing promotion communicate the benefi ts a customer can obtains from your product, not just simple explain its features.
It can be daunting to try unfamiliar marketing tactics and not really know what to expect. But, as they say, without pain there is no gain. The Starbucks coffee company and its successful marketing strategies are defi nitely something that anyone interested in business can learn about. The fact that it started with one coffee shop in Seattle, USA it was able to continuously multiply over the years can be a huge motivation for small businesses anywhere in the world. One such marketing strategy Starbucks focused was on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. For years, this has been uniquely Starbucks, and it has played a huge part in making Starbucks Coffee Company a success.
BE CONSISTENT Giving a consistent message to your prospects is vitally important because no matter what kind of businesses you are involving or what kind of products you are selling, people buying because
it’s BRAND. Let’s refer back to Starbucks that delivers consistent message to their customers. Not only the logo, the decoration, the color tone, but the smell of the coffee beans, the choices of food and the services provided. Being consistent in your marketing maintain and delivery similar message to all your customers. ESTABLISH YOURSELF AS EXPERT
Becoming an expert in your fi eld can be invaluable to your business. You’ll be more likely to receive referrals, charge higher fees and get to that most revered state of being able to pick and choose your clients. Speaking engagements, publication articles and volunteer leadership roles can all help label you as an expert in your fi eld.
BUILD STRATEGIC ALLIANCES
Forging a strong strategic alliance with another business offers many benefi ts, including reducing risk, sharing costs and the opportunity for co-branded marketing efforts. It's best to fi nd a partner who is not a direct competitor and always go into the relationship understanding your partner's "must have" list. Use a Memo Of Understanding [MOU] to clarify roles in your alliances.
SEGMENTISE YOUR CUSTOMER
First and foremost before your sales team get into the street, start to list out all the different types of customers that your product or services able to solve their problems. Once done, you can start to portrait of these customers. Segregate then by location, social standing for example, high net worth individuals tends to live in certain postcodes.
Group them by market sector such as manufacturers, traders, wholesales , service provider such as recruitment agents, and so on.Ask yourself other types of relevant questions about these people. Are they married? Are they male or female? Do they play golf? Defi ne them in as many relevant ways as possible.
ASK FOR REFERRALS One of easiest way to target your prospect clients with highest possibilities of closing sales is through asking for referrals from your existing customer. When your customer puts in his words that means he is putting his reputation and trust build on you. If you don't regularly ask your satisfi ed customers for referrals because you don't know how or feel awkward doing it then you may need to put higher marketing budget. One way of getting referrals is through joining business networking session organized by business groups or clubs such as Business Network International or Rotary International.
MARKETING 37
| JULY 2014
“Can you imagine what I woulddo if I could do all I can?”
You are g�eater than you can ever imagine. Whether you accept or deny
this t��th will still deter�ine the roads you’ll end up in life.
“If you know the enemy and know yourself you need not fear the results of a hundred battles.”
If you know all that needs to be known, there is no room for fear of
nothing�ess.
“Be extremely subtle, even to the point of formlessness. Be
extremely mysterious, even to the point of soundlessness. Thereby you can be the director of the
opponent’s fate.”
Sometimes it’s best to do nothing than to reg�et doing something. But if
you’re going to do something, don’t do it while g�abbing unnecessar� att ention.
“He who knows when he can fight and when he cannot, will be
victorious.”
The bigger man will always admit to himself when he can and cannot win
a fi ght. Swallow your pride and live to fi ght another day.
“Victorious warriors win first and then go to war, while defeated warriors go to war first and then
seek to win.”
If you are not ready, don’t r�sh it. Time is your fr iend and time will prepare
you for any�hing in life.
“The opportunity to secure ourselves against defeat lies
in our own hands, but the opportunity of defeating
the enemy is provided by the enemy himself.”
Be patient and wait for the oppor��nit� to st�ike when the
enemy shows a glimpse of weakness, for that is when the tide will t�r� and
victor� may be seized.
“You have to believe in yourself.”
A leader is able to believe in his people because he lear�ed how to believe in
himself fi rst.
“Invincibility lies in the defence; the possibility of victory in the
attack.”
Lear� to be fl exible and lear� what to do when. There is a time and place
for ever��hing.
QUOTES
Quotes by Sun Tzu 600 B.C
38
| JULY 2014
“Regard your soldiers as your children, and they will follow you into the deepest valleys; look on them as your own beloved sons, and they will stand by you even
unto death.”
One word, kar�a. They may be your soldiers but they are still men.
Empower them with your love, and in ret�r� they will t�eat you with an even
g�eater love.
“Confront them with annihilation, and they will then survive; plunge them into a deadly situation, and they will then live. When people
fall into danger, they are then able to strive for victory.”
If you are in an environment where safet� and comfor� sur�ounds you, that
may just be the thing holding you back fr om achieving your successes in life.
“The general who wins the battle makes many calculations in his
temple before the battle is fought. The general who loses makes but
few calculations beforehand.”
St�dy, st�dy, and st�dy some more! Always do your research and know thy
enemy as much as you know yourself.
“The good fighters of old first put themselves beyond the possibility
of defeat, and then waited for an opportunity of defeating the
enemy.”
Break their spirits of ever hoping to achieve victor� then st�ike back when
they are vulnerable.
“It is essential to seek out enemy agents who have come to conduct espionage against you and to bribe them to serve you. Give them instructions and
care for them. Thus doubled agents are recruited and used.”
Rather than eliminating your enemy, you can benefi t even g�eater by
befr iending them and using them against your t��e enemies.
“Hence that general is skilful in attack whose opponent does not know what to defend; and he is
skilful in defense whose opponent does not know what to attack.”
Conf�se your opponent and you will have won over his mind. A war is just
as physical as it is mental.
“If fighting is sure to result in victory, than you must fight, even
though the ruler forbid it; if fighting will not result in victory, then you must not fight even at the ruler’s
bidding.”
Sometimes you have to do what must be done, whether that means disobeying
or not.
“If we know that our own men are in a condition to attack, but are unaware that the enemy is not open to attack, we have gone only halfway towards victory.”
Know thy enemy because knowledge is power.
QUOTES 39
| JULY 2014
Boutique Private Banking
& Finance Advisory
Specialist: R V Ganesh Prakash
Mortgage Guru Sdn Bhd
The Number 1 problem faced by any entrepreneur is access to fi nancing. Let it be
Indian, Chinese or Malay, every entrepreneur or SME businesses face this problem at some point during their entrepreneurial career. There should be NO doubt in anyone’s mind that Malaysian Indians are very hardworking, smart and have lots of passion to succeed in business. They even stay positive during times of adversity. The main problem faced by most Malaysian Indian SME businesses is their proper Banking & Finance knowledge and know how to obtain that fi nancing from the banks,“ says the Executive Director and Head of Retail & SME Banking Advisory Division of Mortgage Guru Sdn Bhd R.V.Ganesh Prakash.
Mortgage Guru is a Boutique Private Banking and Finance Advisory fi rm providing solution and guidance on matters related to Mortgage & SME Loans for businesses in Malaysia as well as Banking & Finance advice relating to fi nancial aspect of your businesses. Mortgage Guru services are very much personalized and chooses clients based on their seriousness either turning around their business fortunes, preparing themselves to obtain fi nancing or even to prepare them for a rainy day,” explained the former mortgage banker of an International bank in Malaysia.
He went on to add “that we source the best available package in the market based on that particular client’s needs and wants. Sometimes a client wants package A but their actual need is package B, so we assist them to make that crucial decision based on their current needs and not what they wanted yesterday.”
Mortgage Guru current client list comprises of 3 types of clients. First the Income Earners, being an income earner is all the more reason why your need to source or seek the best fi nancing options available for your loan needs. Any costly mistake could lead to what is called as “A Leaking Bucket” phenomena where small amounts of money going out and you will not realize it until a later time.
The second type of clients seeking their assistance is the Small and Medium Entrepreneurs that forms almost 60% of company's business. “These groups of clients are the future nation builders of the Malaysian economy. However, sadly in my view our Indian business people fi nd it hard to progress further due to inadequate resources. We don’t have many Malaysian Indians holding positions in banks today and as such lacking people to advice the society on banking related matters. We are not talk only about getting a loan but rather how businesses operated as a whole and the business marketability to
Michael Yong Asst. Vice President Retail & SME Business Specializes on Asset Lending
Alex Tamilvanan Asst. Vice President Retail & SME Financing Specializes on SME Business Financing/ Consultation IF you have any banking
related issues / problems or if you would like
to raise finance for your business /other matters,
please feel free to contact us to have a PRIVATE & CONFIDENTIAL
session with our Senior Private Bankers.
COVER STORY 41
| JULY 2014
bankers in raising capital. Every businessperson has an accountant or auditor to look at their books but do they have a Banking & Finance person looking at their business from a banker’s point of view?” Ganesh asked.
The third type of clients are the High Net worth Individuals (30% of business), these clients are those who need a bigger fi nancing or a proper system to further grow their investments. Recently in June 2014, Mortgage Guru Sdn Bhd successfully got approval for RM 34,000,000 facility in Malaysia for a project fi nancing. The company also assist those clients with International markets seeking fi nancing jointly with their partners in Singapore and Hong Kong.
WHAT IS PRIVATE BANKING?
According to Ganesh a Private Banking service is like having your own Personal Relationship Assistant to assist and advice on all Banking & Financial needs. In Malaysia Private Banking services available for depositors of RM300, 000 minimum in fi xed deposits and they only sell you products like Unit Trust, Forex and Insurance. They usually don’t advise clients on current or future banking needs thus making their services usually irrelevant to most SME clients.
Serving Malaysians regardless of race, Mortgage Guru’s Specialized Relationship Managers having minimum of 7 years banking
experience in areas of Retail Banking, Commercial Banking and Corporate Banking will be able to provide the appropriate advice to their clients. “We have a strong team, which makes us very specialized in our services. We also have our own in house credit team that able to assess your credit worthiness before you even step into a bank. This is interesting as clients able to rectify their weakness and prepare themselves before going in for a loan. We also work in partnership with banks both locally and overseas. We currently do some corporate banking work with banks in Australia and Hong Kong. Our corporate banking division is under the care of fi rm’s other partners who only specialize on corporate work.” Ganesh added.
COVER STORY
Ganesh with his colleagues at the launching of a Bank Branch
42
| JULY 2014
When asked how SME customer classified, he responded by saying “for us any business with annual turnover less than RM50, 000,000 is categorized as SME, beyond that will be Corporate Banking clients. Most of our SME clients who approach us are classified based on their business age and annual turnover. If they are less than 3 years in business, their financing eligibility will be much lower compared to someone who has been in business for more than 5 years."
When we cross examined and asked him “as Indian businessmen mostly concentrate their efforts on generating cash flow and day to day operations do they really focus in keeping the documents properly?” He replied “A business person has many roles to play; some really good at marketing, some at operations and some at both. It is indeed impossible
for one person to do everything, so the easiest thing is to hire someone to assist your business according to your budgets. It helps to keep your documentation in order because at the end of the day, banks requires only paper work and how detailed you have been in order to grant a loan. Proper record keeping also guides business owners on where their money had been spend and how much the business actually making.”
Malaysian Indian Business inquired his opinion on why Indian professionals are much more successful compared to self made entrepreneurs. He responded “the major difference between self made entrepreneurs and corporate professionals venturing into business is that they have the information on how a corporation works and will usually emulate
the corporate strategy into their businesses. Tan Sri T. Ananda Krishnan , Tan Sri Tony Fernandez and Tan Sri AK Nathan all used to work for big corporations before venturing into businesses. Big corporations provide you with a wealth of knowledge and the network of contacts established during your years there certainly makes the difference. Mortgage Guru Partners held various positions including as Retail branch banking, Commercial banking heads and Corporate banking heads prior venturing into this business. However, that doesn’t necessarily mean all professionals do well in business. Business is a process, when done properly, it works without you.”
COVER STORY 43
| JULY 2014
PERSONAL MINDSET AND RELATIONSHIP BUILDING RECIPE OF SUCCESS
Born into a working class family, his father a strict disciplinarian who was in the insurance industry for over two decades before venturing into own business and his mother is a housewife. “My father wanted me to be a doctor but as I was growing up I felt I would make a better lawyer as my subjects related to science was not so good. After completed my primary and secondary education in Singapore I went to work hard at a law school in London. But, as I as just about to graduate my father’s business was hit badly during the 1997/1998 Asian financial crisis and I could not pursue my Bar Examinations or CLP in Malaysia since my three other siblings waiting in queue to further their studies. I could not even attend my graduation in London as the pound sterling was nearly six times higher the ringgit. I was never heartbroken but wondered what to do next. This is probably an attitude I picked up during my early education in Singapore as it was very fierce
competition there even in school.” Ganesh described his educational background to Malaysian Indian Business.
Ganesh went to venture into various types of businesses with a group of investors before realizing that being 21 years old and in business is not easy as he still lack the experience and not all partners are honest people. Therefore, when a job interview for an Executive in Mortgage Business with a big Citibank logo appeared in the Star newspaper, he decided to capture the opportunity and went for the interview.
“I got through the first round but when came to the final interviewer I knew I did well but he did not hire me? Three months later, I saw the similar advertisement and attended the interview. Again first round passed but to my dismay I had to face the same person who had rejected me earlier. After an hour of “verbal interview abuse” I got the job but he personally told me that he would kick me out of the 13th Floor if did not perform within 6 months. I work hard and proved to the interviewer through my elevation
as Assistant Manager within 23 months. Since then the interviewer became one of my mentor as I understand his motive then. Despite many opportunities to move to other banks, I remain loyal to Citibank as opportunities always there to climb the corporate ladder. Having served in Sales Management, Operations, Customer Management, Risk and Credit and when Citibank was allowed to open more branches, I was asked to Head the Cheras Mortgage Business at Bandar Tun Hussein Onn.” Ganesh explained how banking career comes to him accidentally.
Setting up a Banking & Financial Advisory firm has always been in Ganesh mind from the start. He met Alex Lim, Deputy Managing Director of the Great Vision Group of Companies one of the 16 registered financial advisory firms in Malaysia. They have total investment portfolio of RM600 million. After a few rounds of casual meet up, he was offered to take over their Asset Lending Division which was already making RM100 Million a year in booked loans. It took them 8 Months to convince him to join them. That was a greatest challenge to take up. With a total force of 500 over financial planners/advisors, Ganesh went on to open new branches for Great Vision group in Penang, Kota Kinabalu and Johor Bahru bring the asset lending unit to RM200 Million in booked loans within a year.
Subsequently, the 37 years old want to do something different as he wasn’t keen on the mass market. He wants to offer private banking services to clients which former did not cater any, so with the blessings from Board of
COVER STORY44
| JULY 2014
Directors, Mortgage Guru Sdn Bhd was set up with a group of colleagues form various foreign banks whom he had known for almost a decade.
We started small because we wanted to be very Boutique. Today we can boast of having a total of 26 staffs that able to handle on various banking and fi nancial advisory matters. When Malaysian Indian Business interrogated the still single former banker on how did he fi nd clients? He reveals that 90% of our business is mostly referrals from existing clients whom they had known for many years. We also have strong referrals from property agents and developers. We do not advertise or do cold calling as our service is not suitable for everyone.
: Most of Indian Entrepreneurs’ are afraid to Mortgage their personal property for business purpose, how do we tackle this?
: Business has its responsibility. When someone goes into business it is all about risk. That’s why you got to prepare yourself mentally before going into business. So instead of going around and asking for funds or government loans it is easier to secure funding using your asset. I once had a referral from a Minister’s offi ce; this client went to him to ask for loan for his event management company. Now, let’s be fair to our Ministers, where are they going to get money from? Money problem is a personal problem. He called me and as I was probing, I asked him if he had a property, to my surprise, his
property was worth RM800K and his outstanding was RM200K and here he was asking someone for RM100K.
: By any chance does race infl uence bank’s rating when applying a loan?
: Today in 2014, all loans are approved via a scoring system or via a Risk Scoring Method. It is based on something similar to a point system which takes into account many pointers. In my experience a loan is never denied to anyone qualifi ed due to race. Everything is totally based on your paperwork and also your company performance.
: Can you assist someone who has a property but his CCRIS record or CTOS is not good?
: Yes we can. We will conduct an interview with the person and if we are satisfi ed that this person is genuine, we will assist. We have many loans approved this way. We had an Individual who was working at a MNC earning RM25, 000 a month. She had guaranteed for her husband and now she had a CTOS and credit card issue. We applied to the banks with the condition that the equity in her loan is only to pay off all her loans. The margins are usually lower and you may need to bring in a guarantor if your income is not strong.
: Do you assist for companies which are newly set up to secure fi nancing?
: We personally believe that you should not start your business on borrowed money. It is not fi nancially stable. As a Boutique Banking and Finance Advisory Firm, we focus on clients who are at least more than 18 months in business to offer any of our services.
: Do you assist clients in obtaining any Government loan, like Tekun or SEED Funds?
: Every year as part of our Corporate Social Responsibility to the Indian community, we assist 10 people with their Tekun applications. We share with them how to rightfully ask for money with the costing and we ensure that they know what they are asking for. The application is done by them directly to Tekun.
: Do you assist clients with the SEED Funds?
COVER STORY 45
| JULY 2014
: I had once followed a client to SEED Offi ce at KL Sentral to fi nd out what is actually not right there. Many had applied and the rejection rate is high. Firstly, I found out that the SEED funding is actually a guarantee only. The Government guarantees 50% of the money you want to borrow. So the other 50% the bank to take the risk. Which bank wants to take risk of 50%? So if you ask for 200K, 100K is guaranteed by the government and 100K is clean money by the bank to the client. Do you think they do not check other things before granting you the facility? Secondly, I did not see any experienced Indian bankers or Accountants there in the team. It is actually sad that about 8 months ago I met another client who showed a letter of approval for RM2Million dated sometime back, still awaiting his money. We actually stay away from Government related funds.
: What type of business loans can you assist with?
: We actually work with the client on what their needs and wants are and then we advise them on how much they qualify for. We can do a FULL credit report for businesses who want to know where their fi nancial standing regardless of whether they want a loan or not.
: Is there a general rule how much a company can borrow? Why?
: A simple calculation would be 10% of your annual turnover. However it also depends on other factors like your payment conduct and nature
and duration in business. 10% is derived based on certain National Independent Surveys on Profi tability of Businesses as per tax declared by businesses in that particular Industry.
: What is your opinion on GST?
: GST is a another revenue stream for the government, Some businesses will benefi t while some industries may be hit. However as long as the funds are channeled correctly to the people it would help ease the lower income people’s burden.
: If someone is blacklisted in CTOS or a Bankrupt, what can you advice them?
: I was once referred to a Client who has a business turnover of RM7million per annum.He was planning to secure funding for an expansion. As I was probing I learnt that the company is under his wife and son who are 25 years old. He explained that he was blacklisted because he had guaranteed for a friend’s car loan many years back. This is also the reason why he did not purchase any property besides the house he stays in. Surprisingly the debt was only RM20, 000. My question is why could this person not settle this RM20, 000 and had he invested in small properties in the last 10 years, he does not need to borrow money today. If you made a mistake by helping someone, do your best to settle it off so that you could leave a better life.
: Some businesses do not last long or a small event can destroy everything they built. Is there anything they can do to prevent this?
: I learnt this when I was with Great Vision Group. They call it a FIREWALL. Every Business Owner needs a Firewall. This is to keep your business as only a tool to make you money. Then you need to reinvest this money for a rainy day. Property is one of the best Investments. Every millionaire or billionaire invest in properties because it is an appreciating asset. I am not asking you to invest in million dollar properties but at least in a small apartment or fl at will do. Keep it as your investment in case if you need money sell that property to sustain for a few years.
: What is your next plan for Mortgage Guru?
: We are in putting up a working paper with our corporate banking team to set up a Mortgage Bank in Malaysia. A Mortgage Bank is a common thing in overseas where they are giving fi nancing to clients based on your property or asset you own. Just imagine how many Indian we can rescue. How big this can become? But it is still in its infancy stage because we need heavy capital investment. We have set a target date of 2016 to launch this. Malaysian Indian Business will be given exclusive rights to cover this.
COVER STORY46
| JULY 2014
US$160BILLIONM A L A Y S I A C H I N A TRADE VOLUME in 2017
China and Malaysia signed an agreement to achieve a targeted trade volume of US$160 billion in 2017. Malaysia has a total trade value of more than US$100 billion in the past fi ve consecutive years with China. The signing ceremony took place in the West Lobby of the Great Hall of the People in Beijing, the same place where the then Prime Minister Abdul Razak led anice-breaking trip to Beijing to establish diplomatic relations in 1974.
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1000MW POWER PLANT TO B E B U I L D B Y A CONSORTIUM
Energy Commission awarded to a consortium to build 1000MW combined cycle power plant in Pasir Gudang, Johor. Energy Commission said, the award to SIPP Energy Sdn Bhd was based on their ability to offer "competitive rates" in the recently concluded tender exercises.
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11 AGREEMENTSSIGNED AT THE CHINA-MALAYSIA BUSINESS SUMMIT
Prime Minister Datuk Seri Najib Tun Razak and Vice Premier of China Wang Yang witnessed the signing of agreements between Khazanah Nasional Bhd and Beijing Enterprises Group Co Ltd . Meanwhile the other agreement signed during the submit includes 1Malaysia Development Corporation Bhd and Export-Import Bank of China for the establishment of a joint venture partnership for the proposed development of projects in Malaysia. Pemaju Jaya Capital Sdn Bhd and Handan City Government signed framework agreement to open a charter airline business in Malaysia.
RM4.5BILLIONI N V E S T M E N T OVER 15 YEARS TO IMPLEMENT DIGITAL TERRESTRIAL
TELEVISION
Malaysian Billionaire’s Al-Bukhary group is investing RM 2.0Billion to build up Malaysia’s digital terrestrial TV (DTT) infrastructure and network facilities and another RM2.5 Billion for it’s operation cost. The investment through it’s member company Puncak Semangat Sdn Bhd that was recently awarded by Malaysian Communications and Multimedia Commission (MCMC) a 15-year concession to build and lease the DTT infrastructure.
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RM30MILLIONBiZMula-I FINANCING SCHEME FOR START-UPS
A good news for Start-ups that usually viewed as high risk. Credit Guarantee Corporation Malaysia Bhd launched BizMula-i scheme with initial funding size of RM30million that potentially benefi t some 600 start-ups. The syariah compliant fi nancing between RM50,000.00-RM300,000.00 with repayment period of 7 years is unique as businesses will be directly fi nanced by the company. CGC President and Chief Executive Offi cer Datuk Wan Azhar Wan Ahmad said The BizMula-i direct fi nancing scheme from CGC is applicable to those aged 21 to 58, with a business licence registered in Malaysia under a local authority, and an enterprise that comes under the defi nition of an SME as stipulated by the National SME Development Council (NCSC).The companies must also be Malaysian-controlled or Malaysian-owned with at least 51% shareholding, and licenced or have been in operation for less than 3 years.
48
| JULY 2014
FACTS & FIGURES
Finance Minister Datuk Ahmad Maslan said ,”the colateral free loans between RM5,000 to RM50,000 valued at RM800million in total were part of efforts by the federal government to fi nance micro enterprises such as grocery shops, motorcycle and car workshops, tailor shops, food stalls and ‘kerepek’ (cracker) and handicrafts production”.
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RM24.6 BILLIONC O N T R I B U T E D B Y F R A N C H I S E INDUSTRY TO GDP
A total of 726 franchise companies from various sectors registered in the country contributed at total of RM24.6 billion or 2.5%, to the country’s gross domestic product (GDP) last year. Minister of Domestic Trade, Cooperatives and Consumerism Datuk Seri Hasan Malek said the amount was increase by RM1.0billion from 2012 and government expecting the industry to contribute RM25.6 billion to GDP next year . He added that 58 local franchise brands had spread their business to 53 countries with 1,992 outlets globally.
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RM2.1BILLIONFOR AIR ASIA-X TO ACQUIRE SEVEN NEW AIRBUS Long-haul budget airline Air Asia-X
Bhd Chief Executive Offi cer Azran Osman Rani said, “the company will allocated RM2.1Billion in 2014 as capex to acquire seven new Airbus A330-300 aircraft”. The airline had received three aircraft as of early June 2014, while the rest would be delivered gradually by year end. Each of the aircraft will cost more than RM300 million and fi nancing would be through debt fi nancing and operating leases, to maintain AirAsia X's cashfl ow Azran said. At present AirAsia X is operating 16 A330-300 aircraft.
3.5 %CONSUMER PRICE INDEX (CPI) FOR THE PERIOD JANUARY TO APRIL 2014
CPI increased by 3.5% compare to same period last year as made available by Department of Statistics Malaysia. The notable rise in CPI was caused by increases in Transport (+5.3%); Food & Non-Alcoholic Beverages (+3.9%) and Housing, Water, Electricity, Gas & Other Fuels (+3.6%). Other increases were Alcoholic Beverages & Tobacco (+14.1%); Restaurants & Hotels (+4.4%); Education (+2.4%); Health (+2.3%); Recreation Services & Culture (+1.6%) and Furnishings, Household Equipment & Routine Household Maintenance (+1.3%).
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US$48 TRILLIONI N V E S T M E N T NEEDED BY 2035 T O M E E T W O R L DENERGY NEEDS
A special report by Paris based International Energy Agency (IEA) says more that US$48 Trillion (RM155Trillion) need to be invested to meet world energy needs. The report as part of the World Energy Outlook series also highlighted that some $53 trillion in cumulative investment in energy supply and in energy effi ciency is required by 2035 to get the world onto a 2 °C emissions path.
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RM800 MILLIOND I S B U R S E D B Y BANK SIMPANAN NASIONAL AS MICRO LOANS
Bank Simpanan Nasional a statutory body under the Finance Ministry had fi nanced a total of 36,000 micro entrepreneurs as of 30th April 2014. Deputy
49
| JULY 2014
FACTS & FIGURES
MANY BUSINESSES UNAWAREOF ASEAN ECONOMIC COMMUNITY
ASEAN is one year away from its target of achieving a single market but recent surveys suggest that many businesses are unaware of that plan. About half of respondents polled in two separate surveys said they had not even heard of the ASEAN Economic
Community (AEC). Business groups in Singapore are doing their bid to change that. The AEC, the regional bloc's pet project, promises freer movement of goods, services, investment, skilled labour and capital flow. But ASEAN's efforts at economic integration may have gone under the radar. A survey by the Institute of Southeast Asian Studies found that 55% of some 380 firms polled across the region were not aware of the AEC. And Singapore companies had the highest level of ignorance - at 86%. The numbers in a separate survey by the Singapore Business Federation were less staggering. About 38% out of some 1,000 of its members polled were ignorant - with a higher percentage for small- and medium-sized enterprises than bigger firms. Singapore Business Federation Chief Executive Ho Meng Kit said: "When you ask the small companies what it (AEC) is, even asking them to identify the 10 ASEAN countries, they may have difficulty (doing it). "So you need to educate (them). You need to put it in layman terms (such as) 'what does it mean for you if you are a manufacturer of goods?' 'What does it mean for you in terms of your market access in specific country?'" The federation is doing its bid by holding AEC seminars for businesses. And the Association of Small and Medium Enterprises is exploring the creation of ASEAN networks of Singaporean businesses to provide local firms with know-how and help to tap on the AEC. However, sticking points, like non-tariff barriers and obstacles in liberalising services trade, are hampering the AEC's progress. UOB senior economist Suan Teck Kin said: "ASEAN members, they are quite wary of opening up their sectors, services - we are talking about, for instance, banking services, insurance, telecommunications...All those are sectors which are still facing a bit of a resistance or a lot more work (needs) to be done." Many observers do not expect full integration of ASEAN economies by 2015. But even if that is the case, partial integration is expected to yield considerable benefits for businesses. Experts say the manufacturing and food and beverage sectors are just a few which can benefit from freer trade in goods as a result of partial integration.
TAKEOVERS AND BUYOUTSSWEEPING THROUGH SINGAPORE MARKET
From mall operator CapitaMalls Asia to bulk container firm Goodpack - a flurry of takeovers and buyouts is sweeping through the Singapore market. Market watchers said the trend started in 2013 but has since picked up
pace. Chang Tou Chen, managing director and head of banking for Southeast Asia at HSBC, said: "Some of that is driven by the appetite for consolidation, some of that is driven by opportunity - the opportunity to acquire when someone is selling, and a lot of it is driven by the availability of funding. "The markets are very liquid - both in the capital markets as well as in the banking market." According to Thomson Reuters data, Singapore merger and acquisitions (M&A) announced in the first quarter of this year hit US$12.4 billion, a four-fold increase from the same period a year ago. Amid slowing earnings growth, larger companies with excess cash are looking at mergers and acquisitions as one way to boost earnings. However, they are facing increasing competition from other investors like private equity funds. Last week, private equity firm KKR launched a takeover bid for Singapore-listed Goodpack, and earlier this year, investment firm Temasek raised its stake in agri-commodities trader Olam. Experts said companies in certain industries are more likely to be M&A targets.
Khoo Boo Han, a partner at Harry Elias Partnership, said: "Businesses in food - be it restaurants, or (agri-business) companies like Olam. Perhaps going forward, with the change in the transport sector in Singapore - perhaps the transport sector could see some M&A activity as well." But it is not just about chasing growth - there is another perhaps more pressing reason for the increased M&A activity. More developers are opting to take their companies private as the real estate sector reels from property cooling. Robson Lee, a partner at ShookLin & Bok, said: "These property developers, they are suffering from poor earnings, poor market sentiment, buyers are adopting a wait-and-see attitude. It affects consecutive quarters of profit and loss so it makes sense for them to consider de-listing. "Otherwise, if you have unsold units within two years of completion, you got to start paying the government taxes, and that's something which will affect their (earnings)." Recent privatisation targets include Singapore Land and Hotel Properties Limited. Observers said property firms like Wheelock Properties, Ho Bee, and Tuan Sing could be next.
SINGAPORE BUSINESS NEWS50
| JULY 2014
RISE OF ECOMMERCE BENEFIT’S SINGPOST
E-commerce is SingPost’s unlikely ally. The Internet may have killed the written letter, but the postman is now raking in cash by delivering virtual parcels. Singpost’s vPOST is the logistics
provider that most Singaporeans use for their online purchases, with 31% choosing its services over other logistic providers. A report by CIMB attributed this to SingPost’s affordability and its bilateral agreements with other countries. According to the report, “We find the trends to be favourable for SingPost, given the increasing amount of discretionary spending being channelled into ecommerce. vPOST, an international shipping service provided by SingPost, also appears to have captured the largest market share in Singapore, based on our survey results.” The report further noted that SingPost will stand to benefit more from the rise in e-commerce activities compared to more expensive express couriers.
SINGAPORE SEES BRIGHTPROSPECTS IN ISLAMIC FINANCE:MAS
Singapore's prospects in Islamic finance look bright, with more funds establishing themselves here to tap the Islamic debt market, the Monetary Authority of Singapore's (MAS) top executive said. "Singapore is the only
non-Muslim majority country among the top 15 countries for Islamic finance," MAS Managing Director Ravi Menon said at the opening of the 5th World Islamic Banking Conference Asia Summit that is being held in the city-state. "More funds continue to be established here, to meet demand from clients in Asia as well as from the Middle East, while several corporations have established sukuk programmes in Singapore to tap the market over the next few years," he added. Sukuks are bond-like structures that comply with Islamic investment principles, which prohibit the charging or paying of interest. Mr Toby O'Connor, the CEO of Islamic Bank of Asia said: "There is a lot of liquidity in the conventional space that the new Islamic products are competing with, but it's a huge opportunity. When you look at the wealth management space, there's a lot of liquidity coming into Singapore, a portion of that will go to Islamic finance, (and) when you look at sukuk, we've seen a number of issuances, programmes being set up". Syed Abdull Aziz Syed Kechik,
Director and CEO of OCBC Al-Amin Bank Berhad added, "Sukuk has arisen to become a key instrument for cross-border capital flows, driven by the ever-growing demand for Shariah-compliant investments that transcend borders. The sobering reality, however, remains that the current demand for sukuk outweighs supply about twice over". Islamic finance has been growing by double-digits in recent years, making it one of the star performers in international finance. The industry has also become more international, as seen from recent sovereign Islamic bond issues by newcomers Britain and Hong Kong.According to Mr Menon, global Islamic financial assets are estimated to have reached US$1.8 trillion by the end of 2013, up from US$1.5 trillion in 2012. This is a sector that saw double digit growth last year, with more players jumping in to tap growing demand. "As more countries cater for Islamic finance, the scope for cross-border Islamic finance increases. We are beginning to see more cross-border sukuk issuance within Asia as well as between the Middle East and Asia," he said. In Singapore, Mr Menon said Islamic assets under management have surged nearly fourfold over the last five years. There are now 15 banks in Singapore involved in Islamic banking, double the number five years ago. The city-state also had nearly 30 sukuk issuances to date, with seven in 2013 alone, he added. However, Kuala Lumpur is currently the world leader in Islamic sukuk market, accounting for 60 percent of the global total. To tap growing demand, Hong Kong and the UK have recently taken steps to facilitate sukuk issuance. "These are very important initiatives from an Islamic finance perspective. When you have a sovereign taking the lead, you then have private sector also following suit. It would lead to other UK corporates looking to raise sukuks, (and then) lead to other corporates from other parts of the world looking to issue sukuks in London and similarly out of Hong Kong," said Mr Wasim Saifi, the Global Head of Islamic Banking in Consumer Banking and CEO of Standard Chartered Saadiq in Malaysia.Industry players say the increase in trade flows between Asia and the Middle East as well as growing support for Islamic finance will provide significant opportunities. A key to tapping these opportunities lies in driving greater connectivity between the different markets. According to the latest EY report, global Islamic banking assets are expected to grow to 3.4 trillion US dollars by 2018. In particular, EY identified six rapid growth markets - Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey (QISMUT). The consultancy expects Islamic banking assets with commercial banks to grow at a compound annual growth rate of 19.7% over 2013-2018 across the QISMUT countries, to reach US$1.6 trillion by 2018. Islamic banking assets in these six countries are set to cross US$662 billion in 2013.
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INTERNATIONAL EVENTINTERNATIONAL MODERN HOSPITAL SHOWTokyo International Exhibition Center, Tokyo, Japan16 - 18 Jul 2014
CEBU INTERNATIONAL TRAVEL EXPO WATERFRONT, Cebu City Hotel, Cebu, Philippines24 - 26 Jul 2014
MEDIA TODAYChennai Trade Centre, Chennai, India25 - 27 Jul 2014
INDIA INTERNATIONAL TRAVEL MART CHENNAI Chennai Trade & Convention Centre, Chennai, India 25 - 27 Jul 2014
INTERNATIONAL AGRICULTURE & HORTI EXPO Pragati Maidan, New Delhi, India25 - 27 Jul 2014
MEDIA EXPO-DELHIPragati Maidan, New Delhi, India01 - 03 Aug 2014
DIGITAL SIGNAGE EXPO NEW DELHIPragati Maidan, New Delhi, India01 - 03 Aug 2014
MYANMAR INTERNFIME INTERNATIONAL MEDICAL EXPO,Miami Beach Convention Center Miami, USA06 - 08 Aug 2014
INDONESIA INTERNATIONAL GLASS PRODUCTS & TECHNOLOGY EXPOJakarta International Expo (JIExpo), Jakarta, Indonesia14 - 16 Aug 2014
OIL & GAS FIESTA 2014 VIETNAM Ho Chi Minh City 22 Aug 2014
INDIA INTERNATIONAL PRINTING & PACKAGING FAIR Pragati Maidan, New Delhi, India23 - 26 Aug 2014
WORLD AYURVEDIC EXPOHyderabad International Trade Exposition.. Hyderabad, India26 Aug 2014
PLASTICS & RUBBER MYANMARMyanmar Convention Center, Yangon, Myanmar04 - 06 Sep 2014
INTERNATIONAL WOOD PROCESSING EXHIBITION Myanmar Convention Center, Yangon, Myanmar04 - 07 Dec 2014
PENANG INTERNATIONALINDIAN SHOPPING FESTIVAL 2014Subterranean Penang InternationalConvention & Exhibition Centre25 - 29 Jul 2014
INTERNATIONAL CONFERENCE ON ADVANCES IN COMPUTING, ELECTRONICS AND ELECTRICAL TECHNOLOGY - CEETKuala Lumpur, Malaysia 2 - 3 Aug 2014
INTERNATIONAL CONFERENCE ON ADVANCES IN MECHANICAL, AERONAUTICAL AND PRODUCTION TECHNIQUES - MAPT CONFERENCE Kuala Lumpur, Malaysia2 - 3 Aug 2014
SARAWAK OIL & GAS EXPOMiri Indoor Stadium, Miri, Malaysia20 - 22 Aug 2014
FOOD & BEVERAGE EXPOMid Valley Exhibition Centre, Kuala Lumpur, Malaysia22 - 24 Aug 2014
MALAYSIA INTERNATIONAL PROPERTY& INVESTMENT SHOWCASEMid Valley Exhibition Centre, Kuala Lumpur, Malaysia23 - 24 Aug 2014
INTERNATIONAL SEMINAR ON TECHNICAL AND VOCATIONAL EDUCATION 2014Universiti Teknologi Malaysia, Johor Bahru,Johor, Malaysia25 - 26 Aug 2014
AUSTRALIAN ACADEMY OF BUSINESS AND SOCIAL SCIENCES CONFERENCE 2014 Hotel Grand Seasons, Kuala Lumpur, Malaysia25 - 26 Aug 2014
THE METALWORKING TECHNOLOGY& TOOLS EXHIBITION 2014 (MTT KL 2014)Tun Razak Hall 1 & 227 - 30 Aug 2014
MTT EXPO INDONESIA KUALA LUMPURPutra World Trade Centre (PWTC), Kuala Lumpur, Malaysia27 - 30 Aug 2014
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MALAYSIA EVENT
CALENDAR OF EVENTS54
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Today I Learned
LORD RAMA KING RAVANA• Built good relationship with everyone • Failed to maintain good relations
• Listen attentively to his subordinates • Infl exibility. Will not listen to others. Is completely self-centered
• Clarity in team goals • Selfi sh and no Clarify on Goals
• Treat Everyone Equally • Has a quick temper, easily upset, temperamental, or overly sensitive to criticism
• Kept his disciples together • Failed to listen and kept key allies together
GOOD MANAGER BAD MANAGER
1. INDIAN MYTHOLOGY: DIFFERENCES BETWEEN GOOD AND BAD MANAGER
2. HUNDIS HUNDIS – the oldest surviving form of credit instrument that was most widespread in the twelfth century, and has continued till today. Hundis were used
• as remittance instruments (to transfer funds from one place to another)
• as credit instruments (to borrow money [IOUs])• for trade transactions (as bills of exchange)
There are few types of Hundis categories into two distinctive type namely:
a) Darshani Hundi: This was a demand bill of exchange, payable on presentation according to the usage and custom of the place.
b) Muddati Hundi:This is a usance bill and is payable after stipulated time or on a given date or on a determinable future date or on the happening of a certain stipulated event. However, the most important type of muddati hundi was the jokhami hundi, which was a documentary bill of exchange corresponding to the present day bill of lading. This had been in use for centuries and payment was conditional on the safe arrival of goods.
- Credit : Reserve Bank of India
QUOTE :
"In my opinion, that personal touch and attention to detail is one of the biggest reasons that our customers keep returning to us" - Dr John William Xavier (Hons), MIB Entrepreneur June 2013
"My policy is that even if our price is a little bit higher, the product should be beautiful, of better fi nish and of high quality"- Arumugan Perumal, MIB Entrepreneur April 2014
"When the customer is satisfi ed, I get tremendous satisfaction as well. As a result the customer became like a family member and also recommended a lot of customers to us. This made us extremely happy"
- Sanjana, MIB Personality January 2014
INTERESTING FACTS 55
| JULY 2014
Nanoscience and Nanotechnology is the study and application of extremely small things which used across other areas of science like Chemistry, Physics, Biology, etc. Nanotechnology primarily involve in the ability to see and control atoms and molecules.
Nanotechnologyi n R e a l - L i f e
an Introduction
The word “Nano” inherits from the Greek language meaning “dwarf”. A nanometer in
science terms is one billionth of a meter. For a comparison point of view, it is 40,000 small than the thickness of a human hair. Amazing! Isn’t it.
As Nanotechnology is very vast and this article doesn’t attempt to cover all the areas, but I would like
to narrow down our scope to the wonderful research and fi nding on Nanomedicine and other real-time application of Nanotechnology. In medical science Nanotechnology promises to revolutionize drug delivery, gene therapy, diagnostics, and other clinical application.
NANOMEDICINE AND NANOROBOTS
Some research says that Nanorobots have some spectacular future in medical treatments once they were start using it fully and introduced into human body to repair damaged cells, to deliver the medicine directly into the cell nuclei of the damaged cancer cells.
Overall, Nanomedicine has the potential to enable early detection and prevention and to drastically
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improve diagnosis, treatment and follow-up of many diseases including cancer. Here the picture below shows an illustration, that a Nanorobot repairing a damaged cell.
Nanomedicine can also offer cancer cells detection on a much improved level. Now-days, detection of cancer requires 1 million cancel cells to be present to be discovered. Nanodevices are able to reduce that number to 1,000. For example imagine that a strand of DNA is stretched out like a strand of spaghetti, and the Nanorobots that can “move” on that strand and carry on repairs inside the components of the cells. Wow! Nanomedicine is bringing this dream much closer to reality in medical fi elds to treat chronic disease.
AWESOME REAL-TIME APPLICATIONS OF NANOTECHNOLOGY
Nanotechnology has a great potential to remake the world we live in, from our morning shave to the future battle fi elds. A team at Scotland’s University of Glasgow is creating molecular switches so small that a 1×1 inch storage drive made
with them could have a capacity of 500,000 gigabytes! Compare that with even the latest HDD today, and you can appreciate the magnitude of the advancement.
Since the size of today’s silicon chip memory cards and mechanical hard drives have limited just how small our personal electronic devices can be, the use of nanotechnology should remove these limits and thus shrink the devices down to the size of a grain of sand. Not only that, but the performance of such tiny devices could surpass the latest and greatest of today, thanks to carbon nanotubes. The quantum properties of the tiny nanotubes make them incredibly effi cient superconductors and allow electronic devices, even radios, to shrink without any regard to heat dissipation.
Ask any cancer patient how to make chemotherapy more endurable, and the number one answer would likely be “relieve the side effects”. New chemotherapy techniques involving the use of drug-coated nanoparticles promise to do just that. Medical researchers at the Washington University School of Medicine in St. Louis have coated nanometer-
sized oil droplets and coated them with powerful, proven effective anti-cancer drugs. Once injected, the nanoparticles conglomerate at locations in cancerous tumors where blood vessel growth occurs. Deprived of nutrition, the tumors shrink and die – and the results were achieved with drug concentrations 1,000 times lower than normally used, thus mitigating toxic and otherwise unpleasant side effects.
If research being carried out on mice at Northwestern University is successful, tens of thousands of patients may regain the ability to feel, move, and walk with formerly paralyzed limbs. The key lies in tiny nano structures that much larger than the aforementioned nanoparticles, are still much too small to see with the unaided eye. What the nano structures do is guide stem cells in nerve tissue to become active axons instead of glial cells, which block axon formation. The recovering mice at Northwesterns labs may not be their old agile selves, but they get around quite nicely thanks to nanotechnology.
DNA is the very stuff of life itself, so when reports surfaced that Japanese scientists had created artifi cial DNA, a few people pushed the panic button. Not to worry, the purpose of the project was not to play God (though wouldn’t that be fun?), but to play with data – store data, actually. Biological DNA stores the entire genome of any particular plant, animal or person
A Nanorobot is repairing a damaged Red Blood Cell
by injecting drug directly to the cell itself
TECHNOLOGY 57
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Ref: technano-blog.com
very efficiently in a surprisingly small space. Artificial DNA, on the other hand, could not only be used to store non-biological data but would be immune to the degrading effects of the naturally occurring DNase enzyme. The impact on any device that stores data will be tremendous.Could your morning shave get any smoother? You bet – and no, this isn’t about some new 16-bladed razor. Adding more blades seems to have reached the limits of practicality, and has forced razor researchers to take a closer look at the blades themselves. In the Schick FX Diamond, nanotechnology is being used to coat each blade, greatly extending their durability. Electric razors are also trumpeting nanotechnology these days, one example being the Panasonic Arc electronic razor. The Arc features whirling blades impregnated with nanoparticles that make them sharper.
A $15 million contract awarded to the University of Dayton Research Institute by the U.S. Army’s Research Laboratory’s Survivability Branch is funding the development of nanoparticle armor to protect not only soldiers, but the vehicles they ride in. By infusing nanoparticles into ceramic materials used in military armor, both porosity and structural strength are increased. It is hoped that the improved armor is perfected and introduced as soon as possible.
Sticking with military matters, the Israeli Defense Forces are drawing on the latest breakthroughs in nanotechnology to update their weapons. One notable application is known colloquially as the Bionic Hornet. No bigger than an average wasp, the flying device is designed to seek out, follow, photograph and even kill selected opponents. According to then Israel’s Deputy Prime Minister Shimon Peres, “It’s illogical to send a plane worth $100 million against a suicidal terrorist. So we are building futuristic weapons.” Are they ever!
Textile coatings containing nanoparticles of titanium oxide or zinc oxide have, thanks to their huge total surface area, an enormous ability to absorb ultraviolet radiation. At the North West German Textile Research Centre (Deutsches Textilforschungszentrum Nord-West) sol-gel coatings, based on nano-sized zinc oxide particles, have been developed and can be
applied using conventional methods such as dipping and spraying.
When catalyzed by sunlight, the 5nm wide particles decompose and, in the process, break down stains and even scents! Messy kids rejoice, the era of self-cleaning clothing has arrived!
Meet you all with another interesting article on Nanobots soon....Cheers :)
Complied by Ganesh Murugan, MBA,IIT (PMP), PhD (Perusing) Business Analyst, Solution Architect and CEO of eSolutions Webbers Sdn Bhd
Skype : esolutions_ganesh
: ganesh murugan
TECHNOLOGY58
| JULY 2014
INDIA IS NEW WORLD’S NO 2 EXPORTER OF TEXTILES
India has emerged as the world's second largest textile exporter lagging behind China, whose
exports are nearly seven times higher. India’s textile exports were estimated at $40 billion, compared with China's $274 billion in 2013. Around 40% or $16 billion of countries textiles exports were related to readymade garments. Over the past few months the Indian garment industry has staged a recovery of sorts which can be seen in the 23% rise in exports of shirts,
trousers, skirts and other readymades during 2013. Exporters said a change in focus to markets beyond the US and the EU has helped. The government policy of diversification of market and product base has helped us and we ventured into the newer markets, which paid huge dividends. We also leveraged our raw material strengths and followed sustained better compliance practices which attracted the buyers and international brands across globe to source from India," said Apparel Export Promotion Council chairman Virender Uppal.
INDIA POLL RESULTS PERKED UP CAR SALES
The news of central stable government has perked up volumes of India’s troubled car industry. Maruti, the country's biggest carmaker, saw wholesale volumes goes up 16% in May at
90,560 units against the same month last year. Rival Hyundai also had a positive month showing a growth of 13% as the company sold 36,205 units in May compared to same month last year. Rakesh Srivastava, Senior VP (Sales and Marketing) at Hyundai India say the "direction now appears positive" if the new government ushers in economic reforms and GDP picks up. "A stable government has certainly brought in a feel-good factor. However, its positives will flow in only when growth-oriented economic policies are announced". "Post the electoral mandate, we expect to see improved sentiments resulting in a better economic situation which we hope will lead to a gradual increase in demand," said Pravin Shah, Chief Executive (Automotive) at Mahindra & Mahindra.
BY 2022 ONLY 1 PERCENT OF INDIA’S POPULATION WILL BE BELOW THE POVERTY LINE
A leading Indian corporate leader pointed out how Indian owners are turning around foreign companies into profitable ventures, and that Indian management is becoming the
subject of case studies in leading business schools abroad. G. Madhava Rao, GMR chairman said "India is the future not only for Indians but for the entire world and there is no second thought about it." He further added that India would achieve an average GDP growth rate of around 8 percent by 2022 which will help leave only 1 percent of the population below the poverty line by that time. His remark was based on a recent McKinsey report. GMR chairman said: "No multinational company can afford to be absent from India because of its enormous intellectual manpower." India is a perfect place for be it your professional or entrepreneurial journey, and what could be a better time than this. I think this is a perfect time for you all, he told the graduating students at the 12th convocation of the University of Petroleum and Energy Studies, Dehradun. Praising the newly-installed Bharatiya Janata Party-led government at the Centre with Narendra Modi as Prime Minister, Rao said: "Today, India is all set to become a global superpower triggered by the advent of this new strong and progressive government with a very decisive leader with the only mandate of "development" thus kick-starting growth, creating millions of jobs and spreading prosperity."
EVERY REGISTERED BUSINESS IN INDIA HAS 127 ‘SHADOWS’A UK study puts India’s shadow economy at No.2, behind Indonesia’s. India has emerged as a country with some of the
highest number of unregistered businesses in the world, according to a latest UK study that found Indonesia with the maximum number of shadow businesses. Researchers at Imperial College Business School in London found that a large number of shadow entrepreneurs are operating in India without registering their businesses with official authorities and eventually hampering economic growth. The team created a league table based on a study of 68 countries and found Indonesia with the highest ratio of 130 shadow economy businesses
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to every registered business, followed closely by India at 127. Shadow entrepreneurs are defined as individuals who manage a business that sells legitimate goods and services but do not register their businesses. This means that they do not pay tax and operate in a shadow economy where business activities are performed outside the reach of government authorities. “Understanding shadow economy entrepreneurship is incredibly important for developing countries because it is a key factor affecting economic development,” explains Prof Erkko Autio, co-author of the report, which attempts to analyse the number of entrepreneurs operating in the shadow economy for the first time. “We found that government policies could play a big role in helping shadow economy entrepreneurs transition to the formal economy. This is important because shadow economy entrepreneurs are less likely to innovate, accumulate capital and invest in the economy, which hampers economic growth,” he added. In the study, Autio and Dr Kun Fu estimate that business activities conducted by informal entrepreneurs can make up more than 80% of the total economic activity in developing countries and the types of businesses include unlicensed taxicab services, roadside food stalls and small landscaping operations.
INDIA SLIPS TO SEVENTH SPOT ON FDI CONFIDENCE INDEX
The survey of 300 global executives by global consulting firm A T Kearney
found India has slipped to its lowest position in over a decade in the foreign direct investment confidence index, which has been topped by the United States for the second year in a row. India was ranked second for three years in 2005, 2007 and 2012 and was placed on the third spot in 2010.
India attracted USD 25.5 billion in FDI inflows in 2012, down from USD 31.6 billion in 2011, according to 2014 A T Kearney Foreign Direct Investment Confidence Index. This is the lowest ranking for India since 2001. The US moved to the top position last year displacing China as Washington made progress towards sustainable and steady economic growth. "The cooling-off in investor sentiment we foresaw last year appears to have taken shape, with a two-place drop from 5th to 7th its lowest rank since 2001," the report said. In 2013, the then ruling UPA government raised limits on FDI in telecommunications, asset reconstruction, credit information, aviation, and defence production, the report said adding that foreign investment in oil refining and single-brand retail, currently capped at 49%, will now be granted automatic approval. AirAsia India, a joint venture between Malaysian budget airline AirAsia and Indian conglomerate Tata Sons, has been given the nod by Foreign Investment Promotion Board. The initial investment of USD 50 million makes AirAsia the first foreign airline to set up a subsidiary in India. German luxury tableware brand Villeroy & Boch has established a joint venture with marketer Genesis Luxury, opening its first store in Mumbai and planning to grow to 16 stores in the next five years. This partnership comes after two years of struggling to clear administrative hurdles and acquire real estate without a local partner, the report said. "In a long-awaited decision reached in late 2012, the Indian government permitted partial foreign ownership of supermarkets and department stores, a major step for the country's highly underdeveloped retail market," it said. "Until late 2013, however, no foreign companies moved to enter, daunted by complex requirements, including one for 30 percent content from small and medium-sized Indian enterprises," the report added. In December 2013, though, Tesco, Britain's biggest retailer announced that it was seeking permission to take a 50% stake worth
USD 110 million in Trent Hypermarket, an arm of Tata. This move came soon after Walmart ended its wholesale joint venture with the country's conglomerate Bharti to operate 20 stores in India, citing the local product requirement as the critical stumbling block," the report said. A T Kearney said the US tops the index for the second year in a row, demonstrating sustained investor confidence in the strength of its ongoing economic recovery. In addition to being the most likely destination for FDI, no other country has experienced as profound a change in the expectations of the business leaders we surveyed. A full 49% of respondents compared to 39% in 2013 and 23 percent in 2007 indicated that their outlook for the United States is significantly more positive now than it was two years ago," it said. White House Press Secretary Jay Carney said : "Not only did the US extend its lead, but the improvements over the past two years have been profound. And the US continues to show greater positive momentum than any other country." "And today's survey shows, once again, that the rest of the world overwhelmingly wants to make it in America," Carney said.
GOVERNMENT TO EXPAND IRRIGATION, INSURE FARMER INCOME
India’s new agriculture minister Radha Mohan Singh, highlighted 6 focus areas in his maiden media interaction.
They were:
1. Expand irrigation coverage: The government will launch a Prime Minister's Gramin Sinchayi Yojana to expand irrigation coverage and reduce the dependence on monsoons. A similar pilot scheme was launched in 2003 by former NDA government but was discontinued by UPA.
2. Insure farmers' income: The government will launch an Agriculture Income Insurance Scheme to provide compensation to farmers in case of crop damage arising out of factors like drought. The government will take the average of the last seven years of a farmer's income and offer insurance for that amount. The premium will be paid by the government.
3. Revamp support price mechanism: The government will declare minimum support prices of various crops in a way that farmer gets 50% return on investment made in raising the crop.
4. Expand agriculture education: The country only has one Central Agriculture University and a second one was only recently approved. Steps will be taken to expand them to advance research in agriculture.
5. Monitor and address challenges of a below normal monsoon: The government is in touch with states and is preparing to brace the any problem arising of inadequate rains.
6. On GM Crops: The government will allow GM crops only if it is highly necessary and critical for the country.
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LEARNING TO READ MORE EFFICIENTLY
Think about how much reading you do every day.
Perhaps you read the newspaper to catch up with what's going on in the world. You browse countless emails from colleagues. And you then read the books, reports, proposals, periodicals, and letters that make
up an average day. When you look at it, reading could be the work-related skill that you use most often!
It's also a skill that most of us take for granted by the time we reach the age of 12. After all, it seems that if we can read and comprehend textbooks, then, surely, we must be good readers?
Maybe not. And, given the time that reading consumes in our daily lives, it may be a skill that we can, and should, improve.
But what does becoming a better reader involve? It means getting faster and more effi cient at reading, while still understanding what you're reading. In this article, we'll look at how you
Speed Readingfor Business SuccessBusiness Success
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can do this, and how you can unlearn poor reading habits.
HOW WE READ?
Although you spend a good part of your day reading, have you ever thought about how you read?
How do your eyes make sense of the shapes of the letters, and then put those letters together to
form a sentence that you can understand?
When you actually think about it, reading is quite
a complex skill. Previously, scientists believed that when you
read, both of your eyes focused on a particular letter in a word. Recent research shows this isn't the case.
Scientists now believe that each of your eyes lock onto a different letter at the same time, usually two characters apart. Your brain then fuses these images together to form a word. This happens almost instantaneously, as we zip through pages and pages of text!
ADVANTAGES OF SPEED READING
Many people read at an average rate of 250 words per minute. This means that an average page in a book or document would take you 1-2 minutes to read.
However, imagine if you could double your rate to 500 words per minute. You could zip through all of this content in half the time. You could then spend the time saved on other tasks, or take a few extra minutes to relax and de-stress.
Another important advantage of speed reading is that you can better comprehend the overall structure of an argument. This leads to a "bigger picture" understanding, which can greatly benefi t your work and career.
Note: Speed reading is a useful and
valuable skill. However, there might
be times when using this technique
isn't appropriate. For instance, it's
often best to read important or
challenging documents slowly, so
that you can fully understand each
detail.
BREAKING POOR READING HABITS
If you're like most people, then you probably have one or more reading habits that slow you down. Becoming a better reader means overcoming these bad habits, so that you can clear the way for new, effective ways of reading.
Below, we cover some of the most common bad reading habits, and discuss what you can do to overcome them.
#1 Subvocalization
Subvocalization is the habit of pronouncing each word in your head as you read it. Most people do this to some extent or another.When you sub-vocalize, you "hear" the word being spoken in your mind. This takes much more time than is necessary, because you can understand a word more quickly than you can say it.
To turn off the voice in your head, you have to fi rst acknowledge that it's there (how did you read the fi rst part of this article?), and then you have to practice "not speaking." When you sit down to read, tell yourself that you will not subvocalize. You need to practice this until this bad habit is erased. Reading blocks of words also helps, as it's harder to vocalize a block of words. (See below for more on this.)
Eliminating subvocalization alone can increase your reading speed by an astounding amount. Otherwise, you're limited to reading at the same pace as talking, which is about 250-350 words per minute. The only way to break through this barrier is to stop saying the words in your head as you read.
#2 Reading Word-By-Word
Not only is it slow to read word-by-word, but when you concentrate on separate words, you often miss the overall concept of what's being said. People who read each word
LEARNING
can do this, and how
HOW WE READ?
Although you spend a good part of your day reading, have you ever thought about how you read?
How do your eyes make sense of the shapes of the letters, and then put those letters together to
form a sentence that you can understand?
When you actually think about it, reading is quite
a complex skill. Previously, scientists believed that when you
read, both of your eyes focused on a particular letter in a word. Recent research shows this isn't the case.
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as a distinct unit can understand less than those who read faster by "chunking" words together in blocks. (Think about how your eyes are moving as you read this article. Are you actually reading each word, or are you reading blocks of two, or three, or five words?)
Practice expanding the number of words that you read at a time. You may also find that you can increase the number of words you read in a single fixation by holding the text a little further from your eyes. The more words you can read in each block, the faster you'll read! #3 Inefficient Eye Motion
Slow readers tend to focus on each word, and work their way across each line. The eye can actually span about 1.5 inches at a time, which, for an average page, encompasses four or five words. Related to this is the fact that most readers don't use their peripheral vision to see words at the ends of each line.
To overcome this, "soften" your gaze when you read – by relaxing your face and expanding your gaze,
you'll begin to see blocks of words instead of seeing each word as distinct unit. As you get good at this, your eyes will skip faster and faster across the page.
When you get close to the end of the line, let your peripheral vision take over to see the last set of words. This way you can quickly scan across and down to the next line.
#4 Regression
Regression is the unnecessary re-reading of material. Sometimes people get into the habit of skipping back to words they have just read, while, other times, they may jump back a few sentences, just to make sure that they read something right. When you regress like this, you lose the flow and structure of the text, and your overall understanding of the subject can decrease. Be very conscious of regression, and don't allow yourself to re-read material unless you absolutely have to.
To reduce the number of times your eyes skip back, run a pointer along the line as you read. This could be a finger, or a pen or pencil. Your eyes will follow the tip of your pointer, helping you avoid skipping back. The speed at which you read using this method will largely depend on the speed at which you move the pointer.
#5 Poor Concentration
If you've tried to read while the TV is on, you'll know how hard it is to concentrate on one word, let alone on many sentences strung together. Reading has to be done in an environment where external distractions are kept to a minimum.To improve your concentration as you read, stop multitasking while reading, and remove any distractions. This is particularly important, because when you use the techniques of chunking blocks of words together and ceasing to sub-vocalize, you may find that you read several pages before you realize you haven't understood something properly.
Pay at tent ion to " internal distractions" as well. If you're rehashing a heated discussion, or if you're wondering what to make for dinner, this will also limit your ability to process information.
Subvocalization actually forces your brain to attend to what you're reading, and that's why people often say that they can read and watch TV at the same time. To become an efficient reader, you need to avoid this.
Jeyaraman teach Speed Reading for both students and adults alike and can be reached at:
: 019-6693497
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| JULY 2014
