business “angels” – risks and rewards · 2015-01-20 · 2nd quarter 2003 survey. vistage-mier...
TRANSCRIPT
MAL AYSIA NE WS
IMPACT OF CHINA’S REFORMSAlthough China recently embarked on some market-friendly reforms (more transparency, less red tape), majority (61%) of the respondents did not think it has any impact on their businesses, while 36% replied favourably and only 3% negatively.
TO REMAIN COMPETITIVE Amidst the external developments in major economies such as the US which recently reduced its purchase of financial assets, Japan’s economy given a boost by policies of Prime Minister Shinzo Abe, and China’s economic slowdown, Malaysian businesses can expect a weakening of the Ringgit and rising costs. Going forward, 69% of the respondents plan on cutting down costs to remain competitive, while 48% will be exploring alternate sourcing and 21% will likely undertake forward forex contracts through banks.
STATE OF PREPAREDNESS FOR GST IMPLEMENTATIONGiven that the Goods and Services Tax (GST) will be effective 1 April 2015, 51% of the CEOs stated that they are in the process of getting ready for its implementation, while 36% have not even started getting prepared yet. Only 8% are ready and 4% said that the GST is not applicable to their companies.
IMPACT OF MEASURES ON LOCAL PROPERTY MARKETRecently the government implemented several cooling-off measures to curb speculative activities in the local real property market. While the real property gains tax (RPGT) was increased, a ban was imposed on the developers’ interest bearing scheme (DIBS) and all mortgage financing are now based on the net selling price instead of gross. These measures, however, have no impact on 49% of the CEOs surveyed as they are not applicable to them. 27% considered the impact of these measures on them as “moderate”, while 18% and 7% rated it as “low” and “high”, respectively.
THE HIES SURVEYThe Household Income, Expenditure and Basic Amenities (HIES) Survey will be carried out in 2014. 91% of the respondents revealed that they have never participated in the survey before. To increase the survey participation rate so that the results would be more representative of the country’s population, 46% opined that the current practice of face-to-face survey should be maintained, while 66% are in favour of a face-to-face interview, including allowing voluntary online surveys.
FURTHER DENT IN CONFIDENCECEOs are increasingly becoming more wary of the Malaysian economy and prospects of their firms as 2014 unfolds. After plummeting to a two-year low in 4Q2013, the Vistage-MIER CEO Confidence Index dipped even further three months on. At 85.6 points, the Index lost 1.7 points quarter-on-quarter and 14.1 points year-on-year.
53% of the 384 respondents were of the view that economic conditions have worsened in recent times, the highest proportion tabulated since 2Q2009. 9%, however, thought otherwise, up from 7% in 4Q2013. Economic anticipations are equally cool. While 11% are forward looking in their outlook, a majority (52%) of the respondents are bracing for an economic downtrend in the coming months, the largest polled since 1Q2009. The latest expected profitability component index (124 points) also scored lower than 4Q2013, with 45% of the CEOs hoping to see an improvement in their firms’ profitability soon, although 61% are expecting their sales revenue to beef up in the near term.
Other component indexes comprising this Index that performed better this time are planned fixed investment and the employment outlook with scores of 127 and 130 points, up from 121 and 127 a quarter ago, respectively. 43% of the CEOs are contemplating injecting additional capital investment, while 42% are planning to expand their employee headcount within a year.
IMPORT AND EXPORT TO MAJOR ECONOMIES Given the current development in the major economies of Japan, China, the EU and the US, a total of 23, 35, 42 and 29 of the respondents indicated that their imports from Japan, China, the EU and the US, respectively, constitute less than 10% of their total revenue. Not only are 34 of the respondents importing more than 50% of their total revenue from China, most of those whose imports are 20-30%, 30-40% and 40-50% of their total revenue have such imports also sourced from China.
Respondents whose exports to Japan, China, the EU and the US that are less than 10% of their total revenue numbered 24, 23, 23 and 21, respectively. Those who engage in exports comprising 10-20% of their total revenue are mainly to the EU (11), followed by China (8), Japan (6) and the US (6). Firms with exports more than 50% of their total revenue are primarily to the US, with 8 of the respondents affirming this.
IMPACT OF RISING COSTS Given the current rising cost trend, 95% of the CEOs surveyed foresee a parallel increase in their costs, while 71% expect their sales to pick up in the first half of 2014. Against this backdrop, respondents were asked of their plans to mitigate the adverse effects, if any.
The most prominent of the many plans put forth are the following: increase sales to raise revenue and trim operating costs, raise consumer prices and increase productivity and efficiency of existing manpower. Other plans such as automation, increasing expenditure on promotional activities and advertising, expanding markets and products range, sizing down inventory, venturing in high-margin niche market and high-technological products, expanding/relocating overseas, outsourcing and sourcing for alternative and additional suppliers were the more popular plans listed.
The World’s Leading Chief Executive Organization
1Q2014 VISTAGE-MIER CEO CONFIDENCE INDEX
Note: All component questions are scored as the percent giving favorable replies minus the percent for unfavorable plus 100. The VISTAGE-MIER CEO Confidence Index is the sum of the components calculated as a percentage of the level recorded in 2nd quarter 2003 survey.
VISTAGE-MIER CEO CONFIDENCE INDEX
COMPONENTS
Current Economic Conditions
Expected Economic Conditions
Expected Change in Employment
Planned Fixed Investment
Expected Revenue Growth
Expected Profit Growth
Q32013
100.9
90
101
144
134
153
141
Q42013
87.3
63
79
127
121
144
126
Q42012
91.7
71
83
134
126
149
130
Q22013
104.4
94
119
143
138
158
137
Q12013
99.7
91
102
136
133
155
137
Q12014
85.6
56
59
130
127
151
124
UPDATES• WelcomeNew
VISTAGEMembers• LongTenureMembers• NewVistageGroups
BUSINESS “ANGELS” –
RISKS AND REWARDS
VISTAGE-MIER CEO
CONFIDENCE INDEX
NEWSROOM• BacktoNatureFor
Vce-1• VEE-15RetreatsDown
Under
ANNOUNCEMENTS• VistageUk25thYear
Conference&AwardsCelebration
• NewVistageLogo
AndDescriptor• VistageChairColin
WhiteheadBidsFarewell
• RichardWongleadsAngelInvesting
• VistageAwarenessEvents
• NewAccreditedChairs
EVENTS• SettingYourGroups
on‘Fire’• FirstAwarenessEvent
inMandarin
CEO ACHIEVEMENTS• DaretoChange
AWARDS• 2014MVCompanyof
theYear
Vistage Malaysia Sdn Bhd (296405-U)
Suite B-19-2, Wisma Pantai, No 5, Jalan 4/83A, Off Jalan Pantai Baru, 59200 Kuala Lumpur
Phone : (603) 2284 2126 / 2127 Fax : (603) 2284 2100 / 2139 E-mail : [email protected] Website : www.vistage.com.my/
Published by
JANUARY - APRIL 2014
Private advisory boards for CEOs,executives and business owners.
BUSINESS “ANGELS” – RISKS AND REWARDS
2VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
LEADER
OnApril18,adozenVistageChairs,membersandIattendedaone-day
forumentitled“MBANAngels:LearningtoFly”atRoyaleChulanHotel.
MBANrefers to thenewly formedMalaysianBusinessAngelNetwork.
Thisforum(partlyfundedbyEU-MalaysianChamberofCommerceandIndustry
and British High Commission) brought in “super angels” (experienced angel
investors) from Europe Business Angel Network (EBAN),Mumbai, Hong Kong
andSingaporetosharetheirangelinvestmentexperienceswith60-70attendees.
Ithelpedtoopentheeyesof thosewhowereconsideringangel investing. It
alsoincludedeightpitchesbyselectedearlystart-upstoshowcasethequality
oftheirventures.
Anangelinvestororangelisahighincomeoranaffluentnetworthindividual
who invests in the growth of a small business, generally in start-up or early
stagebusiness.Anangelcanmakeinvestmentonhisownoraspartofagroup
(syndicate).
“Angel investment is still in its infancy and involves extremely high risk but can be very rewarding.”
BUSINESS “ANGELS” – RISKS AND REWARDS
3VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
Angelinvestmentisstillinitsinfancyandinvolvesextremelyhighriskbutcan
beveryrewarding(e.g.Carlist,SoftSpace,Microkiosk).Malaysiahasnoshortage
of promising start-ups but is often constrained by financial limitations.
Recognising this and to encourage angel investment, the Government
announcedin2013ataxincentivewhichwillaccordapersonaltaxdeductionof
uptoRM500,000perannumaftertwoyearsofshareholding.Interestedinvestors
needtogetaccreditationfromMBAN,nowdrivenbytheprivatesector.
StudiesdoneintheUSin2007bytheAngelCapitalAssociation(ACA)has
shown that overall returns to angel investment were 2.6 times in 3.5 years.
StudiesintheUKshowedsimilarreturnsinfouryears.About9%ofsuchangel
investmentgeneratedareturnofover10times!
Angelinvestingisalearnedprofession.Ittakesabout18-24monthsforan
investortoexperiencethefullcycleofangelinvesting.
MBAN in collaboration with EBAN and Business Angel Network of South
East Asia (BANSEA) will be rolling out programmes to help itsmembers, the
accredited angel investors to avoid early stage setbacks, develop an
understanding of the angel investmentmindset, apply best practices in deal
screening, due diligence, best in class term sheets, and valuation; and act on
improvingthesuccessrateofstart-ups.
MBAN, incollaborationwithBANSEA,willalsoprovideadvisoryservices in
dealstructuringandnegotiationforbothinvesteesandangelinvestorstoensure
awin-winforboth,ifrequested.
Whoaretheseinvesteecompanieswhichangelscanconsiderinvesting?They
mustbeaSdnBhdcompany,atleastaminimumof51%Malaysianownedand
thecorebusinessmustbeinthequalifyingactivitiesapprovedbytheMinistry
ofFinance(highgrowthorhightechnologyrelatedindustries)andinoperation
ofnotmorethanthreeyearswithacumulativerevenueoflessthanRM5million.
Ifyouhavemotivationofbecominganangelinvestororaninvesteeunder
theAngelTax Incentive Scheme, please contactMBAN Secretariat – harlida@
cradle.com.my.- Richard CM Wong
Chairman & Chief Listener
LEADER
4VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
VCE VISTAGE CHIEF EXECUTIVE MEMBERS
●● Andrew Tan,ManagingDirector,
PusacoIndSuppliesSdnBhd●● Andy Cham,ManagingDirector,
SaiKimEnterpriseSdnBhd●● Goh Kar Chun,GroupExecutiveDirector,
MultiCodeElectronicsIndustries(M)Bhd●● James Cheong,ManagingDirector,
MacCitySdnBhd●● Kweh Soo Teong,ManagingDirector,
TreleafMartSdnBhd●● Lau Boon Liang,ManagingDirector,
MaxiStonesSdnBhd●● Lee Siew Mui,Manager,EkspresT.H.SdnBhd●● Ong Fok Tick,ManagingDirector,
OngKimTakHoldingsSdnBhd●● Raymond Gan,ManagingDirector,
KedaiKasutYouSdnBhd●● Sam Chua,GroupManagingDirector,
MostwellHoldingSdnBhd●● Soh Yok Kim,ManagingDirector,
NESHMarketingSdnBhd●● Tan Sok Gim,ExecutiveDirector,MESBBhd●● Yap Heng Or,ManagingDirector,
TimuranSetiaIndustriSdnBhd●● Jeffrey Khor,Director,
Khind-Mistral(M)SdnBhd●● Magnus Johan Alvarsson,HeadofCountry,
AtosServices(M)SdnBhd
UPDATES
Welcome New VISTAGE MembersVistage extends a warm welcome to CEOs,
entrepreneurs and key staff who joined us to
improvetheirleadershipandmanagementskills.
VEE VISTAGE EMERGING ENTREPRENEURS MEMBERS
●● Annie Pang,GeneralManager,
ZealSystem(M)SdnBhd●● Bryant Kooh,ManagingDirector,
TSecuritySdnBhd●● Calvin Ong,ChiefExecutiveOfficer,
TerraInteriorSdnBhd●● Capt Hillary Lee,ManagingDirector,
DynamicPositioningTechSdnBhd●● Caroline Oi,Manager,
DynacosmosCareProductsSdnBhd●● Cheah See Chew,Director,
AgihanMurni(M)SdnBhd●● Ernest Liao,BizDevDirector,JazzCapital●● Florence Lambert Lee,Founder/Director,
GadisManis(M)SdnBhd●● Frederick Siew,ManagingDirector,
TheWallGallerySdnBhd●● Fully Chye,ManagingDirector,
MostwellSdnBhd●● Henry Yee,ManagingDirector,
EntexCarpetIndustriesSdnBhd●● Imran Clyde,ExecutiveDirector,
NextdorPropertyCommunicationSdnBhd●● Jason Low,ChiefExecutiveOfficer,
CurtainsPlaceSdnBhd●● John Lim,ChiefExecutiveOfficer,
AcePremier.ComSdnBhd●● Johnny Lim,Director,
ZunUtaraIndustrySdnBhd●● Jon Chow,Director,GenesisOnlineSdnBhd●● Justin Cheong,ExecutiveDirector,
WaltexCorporationSdnBhd●● Kamal Hadany,ManagingDirector,
IntegratedProcessSolutionsSdnBhd●● Kelvin Tan,Director,
ExclusiveMagnitude(M)SdnBhd●● Kenny Chin,ManagingDirector,
FamilyConfectionarySdnBhd
5VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
UPDATES
●● Ko Teik Wai,AssistantGeneralManager,
M&DPrecisionSdnBhd●● Koay Kah Yeow,Director,WeligentSdnBhd●● Lee Kong Lian,OperationManager,
OptosemTechnologiesSdnBhd●● Lim See Tat,ManagingDirector,
KakiMotorSdnBhd●● Low Kai Meng,GeneralManager,
PanMajesticHoldingsSdnBhd●● Ng Chuan Hoo,ManagingDirector,
Vern’sHoldingSdnBhd●● Ng Kean Thong,Director,
JidokiHighTechSdnBhd●● Nyim Sui Choeng,ManagingDirector,
LightboxMediaSdnBhd●● Percy Lee,ChiefExecutiveOfficer,
EasternFoodsIndustrialSdnBhd●● Peter Cheong,MarketingDirector,
PaneltekSdnBhd●● Rafel Affendy,HeadofBusinessTechnology
Services,RentwiseSdnBhd●● Roger Ang,ManagingDirector,
ABSEngineering&TradingSdnBhd●● Sam Lee,Director,
Saintinkincorporation(M)SdnBhd●● Tan Meng Teik,ChiefExecutiveOfficer,
IdeahouseCorporationSdnBhd●● Teoh Yeoh Soon,GeneralManager,
InterlinxAutomation(PG)SdnBhd●● Tung Xin Ning,Director,
ClazroomAcademyofMediaArt●● William Du,CEO,IngeniousHausLtd●● Yong Shao Hen,ManagingDirector,
SurespeedTechnologySdnBhd
KEY VISTAGE KEY MEMBERS
●● Ang Kim Hiong,DirectorofMarketing&
ProductDevelopment,NplaySdnBhd●● Au Men Thian,AccountsManager,
EasternFoodsIndustrialSdnBhd●● Chan Fong Wai,OperationManager,
LinkkBuswaySystems(M)SdnBhd●● Chee Suan See,ProcessTechnologist,
MolnlyckeHealthCareSdnBhd●● Chew Boon Khoon,DepartmentManager,
GamaSupermarket&DepartmentStore
SdnBhd●● Desmond Chin,AssistantSeniorManager,
MegaliftSdnBhd●● Gan Bee Yow,GroupSeniorManager,
KhindHoldingsBhd●● Khoo Nee Xon,Director,
HPMTIndustriesSdnBhd●● Khor Phey Shien,ActingGroupFinance
Manager,MegaliftSdnBhd●● Koh Lay Hong,PurchasingManager,
LinkkBuswaySystems(M)SdnBhd●● Leanne Tee,GroupHRManager,
KhindHoldingsBhd●● Mark Lee Eng Cua,ChiefExecutiveOfficer,
TatekSdnBhd●● Ng Hui Nooi,FinanceOfficer,
RedtoneTelecommunicationsSdnBhd●● Rave Yap,ProjectManager,
LinkkBuswaySystems(M)SdnBhd●● Wong Chew Kong,Director,
HPMTIndustriesSdnBhd●● Wong Lai Peng,GroupFinanceManager,
KhindHoldingsBhd●● Woon Yen Nie,FinanceManager,
LinkkBuswaySystems(M)SdnBhd
6VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
UPDATES
15 YEARS ●● Len Meng Fui (VCE-1),Director,
BridgeICDSdnBhd●● Rodney Yee (VEE-2), ManagingDirector,
PanweldSdnBhd
10 YEARS ●● Dennis Tan (VCE-1),ManagingDirector,
OcnedWaterTechnologySdnBhd●● Jason Tan (VCE-9),Director,
FellaHoldingsBhd●● Dato’ Jimmy Lim (VCE-16),ManagingDirector,
TokaiEngineering(M)SdnBhd●● Liew Yu-Gene (VCE-27),AssistanttoChairman,
PagodaFoods(Malaysia)SdnBhd●● Loh Liew Mao (VCE-610),ManagingDirector,
MaoCheangHangSdnBhd●● Shaifulizam Bin Mohd Saleh (VCE-9),
ManagingDirector,
TriSystemsEngineeringSdnBhd●● Tang Khay Khiang (VEE-37),GeneralManager,
FastenersMarketingSdnBhd
5 YEARS ●● Abdul Razak Abdul Aziz (VEE-13),
ManagingDirector,E-Magineers(M)SdnBhd●● Alastair Fraser Bishop (VEE-18),
ProductCareManager,
MolnlyckeHealthCareSdnBhd●● Brendan Pang (VEE-9),
Marketing&SalesManager,ParvusSdnBhd
Long Tenure MembersCongratulationstoourloyalVISTAGEmembers!!
●● Bruce Tan (VCE-16),ManagingDirector,
LimaBintangLogisticsSdnBhd●● Cheah Yong Hock (VCE-16),CEO,
AsiaBrandsBhd●● Chiew Cheik Yee (VEE-2),ManagingDirector,
VectorInternational(M)SdnBhd●● Colin Yong,Owner-Manager,
JadiBatekGallerySdnBhd●● Keith Colins (VCE-19),CEO,
VestigoPetroleumBerhad●● Kit Lim (VEE-13),CEO,
WorldHubCommunications(M)SdnBhd●● Dato’ Lim Soo Kok (VCE-18),President,
CMEGroupBhd●● Tan Ah Seng (VTA),ManagingDirector,
Multi-TransSdnBhd●● William Ng (VEE-12),Director,
PerfectCombustionSdnBhd●● Wong Wing Kin (VEE-9),ManagingDirector,
NSSteel&MetalSdnBhd
7VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
UPDATES
VEE-18
Anew groupVEE-18galloped into theequineyearon
9January2014steeredbyWooKhyeThyeandsupported
bySeniorVistageChairChoongWengKong.
FormoreinformationabouttheVEE-18Chair,please
goto:●● www.vistage.com.my/experience/advantage/
vistage-chairs/woo-khye-thye/
NEW VISTAGE GROUPS
Standing from left to right: Vistage Chair Woo Khye Thye, K Y Koay, Caroline Oi, Sam Lee, Johnny Lim, Alastair Bishop, Kelvin Tan, Vistage Senior Chair Choong Weng Kong.
Feeling great to be in the group.
VEE-21
Congratulations to Robbin Khoo, Vistage Chair who
kickedoffVEE-21on18February2014.Clicklinkbelow
toreadmoreonRobbinKhoo.●● www.vistage.com.my/experience/advantage/
vistage-chairs/robbin-khoo/
VEE-22 ThesecondVistageinMandarin(VIM)groupunderVEE-
22madeitsdebuton19March2014withatotalofnine
members,chairedbyLokEngHock.
ClicklinkbelowtoreadLok’sprofile.●● www.vistage.com.my/experience/advantage/
vistage-chairs/lok-eng-hock/
Birthday celebration of Ng Chuan Ho, MD of Vern’s Holding (Standing 4th from left - with the group members and Chairs)
8VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
takingrisksandleapsininnovationarenotcommon
traitsamongMalaysianCEOs.ButCCNgei,isafine
exampleofonewhodaredtochangeandisnow
enjoying the fruits of his labour. Avant-garde designs,
branding and customer service have transformed his
companyFeruniCeramicheintoamarketleaderinthe
premiumceramictileindustry.
Goingagainstthegrainisnevereasy.Fouryearsago,
CC Ngei, Managing Director of Feruni Ceramiche Sdn
Bhd, ignoredmany objections, andwent ahead to sell
onlyonebrandoftiles.Healsointroducedavant-garde
tiledesigns,built theFerunibrandandstreamlinedthe
buyingexperienceforcustomers.Whiletheinitialgoing
was tough, his critics have been proven wrong. Sales
are six to seven times higher than before and Feruni
Ceramiche is now the market leader in the premium
ceramictilemarket.
CCNgei, aVistageChief Executive (VCE-22)member, is drivenby themantra of
“ThinkDifferent”afterbeinginthetileindustryfor20years.Hestartedasakidhelping
hisfather,atiler,andcontinuedtoworkinhisfather’sbusiness,pickingupallthetools
ofthetrade.After11years,heventuredintohisowntiletradingbusinesswithpartners.
Nineyearson,herealisedthattherewashardlyanyinnovationintheindustryinterms
ofproductsandservicetocustomers.“Iwantedtochangetheindustry”,heproclaimed
andsetupFeruniCeramiche,withnewpartnersin2010.
ToCCNgei,changemeantmakingitsimple,convenientandpleasantforcustomers
topurchasetiles,plusendearingthemtooneandonlyFerunitiles.“Iwantedtosimplify
theprocessforcustomersandmakethebuyingprocessahappyone,”hepointsout.
HisvisionbecamerealitywiththedebutofthethoroughlymodernFerunishowroom
inPetalingJaya in2010. The trendy, two-storeyshowroomhasa lifestyle feel,where
only Feruni tiles are installed in various settings like bathrooms, kitchens and living
rooms.Informationandspecificationsoftiles–shapes,texture,sizesandcolouroptions
-areneatlydisplayed.Morethanafancyshowpiece,customersgettoseeandfeelthe
innovativechangesthatFerunihasintroduced.
Walkingthetalkoninnovation,CCNgeidisplaysthecompany’sSignatureproducts,
E-shapetilesinsevenshapesandsizesthatbreakthetraditionalsquareshapeoftiles.
CEO ACHIEVEMENTS
DARE TO CHANGE
CC Ngei - Think Different
9VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
Thesecomeinshapeslikejig-sawpuzzle,cross,hexagonandcircle.Theseuniqueshapes
openupmanyideastodecoratewallsandfloors.Itcanbeseenintheshowroomthat
thejoiningoftheseirregular-shapedtilescanbesowelldone.
AlsoinnovativeisFeruni’smarketingof“mixandmatch”tileswheredifferentcolours,
patternsandsizesoftilescanbecombinedinanendlessarrayofdesigns.Howdoyou
knowwhether it looksgoodorghastly inyourbrandnewhouse? A special interior
designsoftwareandin-houseconsultantsenablethecustomertoseein3-Ddrawings
howthemixedandmatchedtilesfitandlooktogether.Selectionsandre-arrangements
canbemadewithjustaclickofthemouse,atanyofitssevenretailoutletsinMalaysia.
AnotherfirstinMalaysiaisthesaleoftilesinapre-packedboxcalledModular.The
modularbox contains a combinationof a few sizesof tiles that formanexceptional
patternwheninstalled.Thereisnoneedforcomplexcalculationsandpre-orderasthe
boxesarereadyandthepackedtilesaremadetofitinto1.44sqmofspace.
Thrivingonideasandstyle,CCNgeichose“designedfor luxury”asFeruni’sbrand
identity.Heexplainsthatluxurydoesnotalwaysimplyhighprices.Theonusisadding
“oomph”toplainwallsandfloorswithgooddesignsanddecoratingideasforresidential,
retailandcommercialcustomers. Ferunihasateamofdesignerswhocomeupwith
severalproductrangeseveryyear.Thecompanyalsocollaborateswithfamousforeign
designers to capture theworld’s latest tile trends. All Feruni tiles aremadebyOEM
factoriesinMalaysia,ChinaaswellasItalyandSpain.
Besidesdaring tobedifferent inbusiness,CCNgei, 42, is alsovery seriousabout
changinghimself.Acknowledginghislackofformaleducation,hehassethimselfgoals
tobetterhiscommandofEnglishandhonehismanagementskills.“Ihavetobethree
timesmoreefficienttocatchup,”heasserts.Onhisto-dolistarereading20booksayear,
CEO ACHIEVEMENTS
“I wanted to simplify the process for customers and make the buying process a happy one”
Wide variety of tiles in the Mix and Match counter at Feruni's showroom
10VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
allocating30daysinayearforprofessionalcoursesandexercisingthreetimesaweek.
AlsoincludedisqualitytimewithhisfamilyandBiblestudy.
JoiningVistage has enabled him to have 12 days of intensive learning in a year
(whenhehasone-to-onesessionswithhisChairLaiKeong).“Igetinspirationfromthe
memberstoo,“headdsasheenjoystheinteractionwithotherCEOsinhisVistagegroup
andlearningfromtheirexperience.“Whenyouarealone,youhaveoneproblemand
onesolution.ButinaVistagegroup,youcanhaveoneproblemand13solutions”,he
illustrates.
CCNgeifindsthatVistagehas“openedhismind”tomanysituations,likethewayof
doingthings,facingchallengesandacceptingcriticism.Hesayshegetspositiveenergy
toperformandgrowbecauseotherCEOsareconstantlysharingandshowcasingtheir
achievements.
Whatliesahead?CCNgeinotesthattheearlierchallengewasbuildingthehardware
(products, system,warehouse,showroom). Nowthechallengeissoftwarewherethe
focusisonpeople.Heemphasizesthatpeopleandpassionareveryimportant,besides
profits.“Withpassion,youcandoanything,”hereiterates.Hehasplannedmanytypes
oftrainingprogrammesforhis180stafftobetterthemselvesinproductknowledgeand
leadership,usinginternalandexternaltrainers.
Forhimself,he is keen to learnhow tobuildagoodcorporate cultureaswell as
howtocontinuetoinnovatesothathiscompanykeepsgrowing.Hehasalreadysethis
sightsonthecompanygoingglobal,inthenextfiveyears.
CEO ACHIEVEMENTS
“When you are alone, you have one problem and one solution. But in a Vistage group, you can have one problem and 13 solutions”
Feruni's headquarters in Petaling Jaya
11VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
Umesh Bharadwaj receiving the ‘MV Company of the Year’ Award from Todd Ashton, President – Ericsson Malaysia & Sri Lanka.
Tamco Switchgear (Malaysia), medium voltage (MV)
switchgear brand of L&T Electrical & Automation, was
conferredthe‘2014MVCompanyoftheYear’Awardbythe
leadingconsultancyfirm,Frost&Sullivan.
ThecitationlaudsTamcoasanoutstandingcompany
thathasexcelledinitsbusinesssegment,andisnotedfor
itseffortstoimprovetheindustryasawhole.
UmeshBharadwaj,CEOofTamcoSwitchgear(Malaysia),
VCE-18 member, received the award at the Malaysia
ExcellenceAwardsNighton15April2014.
AWARDS
2014 MV Company of the Year
12VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
ANNOUNCEMENTS
VISTAGE UK 25TH YEAR CONFERENCE & AWARDS CELEBRATIONRichardWongattendedVistageUK’s25thYearConference
&AwardsCelebrationon7February2014inLondon.The
occasion saw the gathering of worldwide Vistage/TEC
partnersinLondonstrengtheningtheirrelationshipsand
sharingtheirupdatesontheworldwidebusinessmission.
Richard Wong together with other Vistage/TEC parners in London
NEW VISTAGE LOGO AND DESCRIPTORWith the new ownership and new leadership changes
atVistageHQ in 2013, there’s an updated branding to
Vistage.
Vistage International advised that the rebranding
toVISTAGE,minus the stepping stones and tagline, is
that theywanted a bolder identity and amore clearly
expressedvalueproposition.
The new descriptor - Private advisory boards for CEOs, executives and business owners.
Vistage Malaysia will follow Vistage HQ in the
rebrandingprogressively.
Private advisory boards for CEOs,executives and business owners.
VISTAGE CHAIR COLIN WHITEHEAD BIDS FAREWELLVistageChairColinWhiteheadbidsfarewelltotheChair
community to focus his attention on personal family
matters. WethankColin forhiscontributionsandwish
himallthebestinhisnextsteps.
Following this, VCE-9 has been transitioned from
ColinWhitehead to Simon Soh, Master Chair effective
April 2014. Simonwill continue to chairVEE-2,VEE-15,
KEY-10&KEY-12andwilltransitionoutoneVEEgroup.
13VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
RICHARD WONG LEADS ANGEL INVESTINGRichard Wong, Chairman and Chief Listener of Vistage
Malaysia was elected as the President of Malaysian
Business Angel Network (MBAN) 2014/2015 in February
2014. The new grouping aims to build up a network of
high net worth individuals who are keen to invest in
start-ups, particularly in technology-related or high-tech
businesses.
MBAN will set out to create greater public awareness
on angel investing and the angel tax incentive, educating
angels and guiding them to set up their own angel clubs
or networks, or to join existing ones.
ANNOUNCEMENTS
NEW ACCREDITED CHAIRSBernard Chong and Michael Tan have joined Vistage
as new Chairs. They earned their accreditation after
undergoing a two-day intensive training course on 25-26
April 2014 at Pullman Kuala Lumpur Bangsar Hotel.
VISTAGE AWARENESS EVENTSShare the Vistage experience with someone you care
about or do business with. Invite your friends or Business
Associates to Vistage upcoming CEO events.
Contact Bee Lay, Kareena or Anne @ 03-22842176/
Hoon @ 04-6426799 to reserve seats for the events.
To register online, please send this link http://www.
vistage.com.my/vistage-awareness-event-2-0/ to your
contacts.
14VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
EVENTS
SETTING YOUR GROUPS ON ‘FIRE’
Group photo of Vistage Chairs and staff at the Chair Development Workshop
Dwight Frindt in action
Vistage Chairs attended the Chair Development
Workshopon 21-22March 2014 conductedbyDwight
Frindt, Co-Founder and Principal, 2130 Partners, Best
Practice and Group Chair, Vistage International. The
workshopcarriedthetheme“SettingYourGroupsonFire”.
Based on the book authored by Suzanne and
DwightFrindt, theworkshop touchedon the insightful
approach toconsistentlyproduceextraordinary results.
The emphasis was on the Yonder Star - moving from
complaintstopossibilitiesandcreatingthethoughtsof
“HowdoI…?”.
RichardWongsharedhis‘PurposeinLife’lessonsand
DwightFrindtremindedalltheChairstouse“I”statement
always.ThemeetingendedonahighnoteandallChairs
were presented with a Certificate of Participation –
“AccelerateHighLeverageChairing”.
15VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
FIRST AWARENESS EVENT IN MANDARIN ThefirstVistageAwarenessEventinPenangconducted
inMandarinbyChairsChengPingKeat, LokEngHock
andDr Khor ChaiTianwas held in EastinHotel on 7-8
March2014. Itattractedmorethan40CEOs,Managing
Directors,entrepreneursandbusinessowners.
Lok shared his success story and experiences on
his journey asManagingDirector of EuYan Sang, how
hehadtransformedEuYanSangtillheretiredfromthe
companyin2013.
Cheng Ping Keat and Dr Khor Chai Tian took the
participants through the Vistage process and how
Vistage helps CEOs to become better leaders, make
betterdecisionsandachievebetterresults.
EVENTS
Lok sharing his success story
Guests at the first Vistage Awareness Event in Mandarin in Penang
PK Cheng talking about the VISTAGE process
VISTAGE GOLF TOURNAMENT• 6November2014• GlenmarieGolf&CountryClub.• Doblockthedatetojoininthefun!• Formoreinformation,contactLiLeng
C E O S U M M I TDate: 7November2014Venue: SunwayResortHotel&Spa
●● KeynoteAddressbyYBDatukPaulLow,Ministerinthe
PM’sDept,“Governance&Integrity”●● CEOPanelSessionon“RetainingTalenttoStayAheadof
theCompetition”●● VistageAwardsPresentation●● forSponsorshipopportunities,pleasecontact:
-TewBeeLay([email protected])
-FooLiLeng([email protected])
“TRANSFORMING”
EVENTS
Private advisory boards for CEOs,executives and business owners.
THEME:
18VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
NEWSROOM
BACK TO NATURE FOR VCE-1 On 24 February 2014, the VCE-1 Group meeting
moved from the usual office environment to natural
surroundings. Host LenMeng Fui, chose the venue at
Bukit Tinggi, in an airy bungalow tucked away in the
jungle at Bukit Tinggi, at the foothills of Genting
Highlands.
The events at themeeting included a ‘FishMarket
Exercise’ thatsimulatesmanaginganenterpriseandan
arrow/throat piercing demonstration (with Peter Wee
andKCLimaswillingvolunteers)thatdefiesself-limiting
beliefs.Lunchandsnacksservedthereweremadefrom
organicvegetables.
VCE-1 Group members enjoying the fresh mountain air
Arrow/Throat piercing demo on two volunteer members
Healthy organic food for lunch
19VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
VEE-15 RETREATS DOWN UNDERTheVEE-15Retreat inAdelaide,Australia from3-5April
was hosted bymember Penny Pang. It startedwith a
welcomedinnerformembersandtheirfamilies,together
withamemberfromTECAustralia.
Thenextday,membersvisitedPennyPang’sofficeand
thenproceededtoherfriend'svineyardinClare,136km
northofAdelaide.KoonowlaWinery,sittingon250acres,
isoneof theClareValley's largestandhistoricvineyard
properties. Estate owner, Andrew Michael treated the
members to Clare Valley’s best Cabernet, Shiraz and
Rieslingwines. On 5 April, they had a GroupMeeting
at the Koonowla Winery, while the wives and family
members went touring and shopping. All members
enjoyed seeing the beautiful country side, vineyards,
cattleandkangaroos.
VEE-15 members and families at the welcome dinner
Enjoying the great Adelaide countryside
NEWSROOM
20VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
SPOTLIGHT
Nazrin Bin Hassan, CEO, Cradle Fund Sdn Bhd(VCE-23 Member since 2012)
21VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
SPOTLIGHT
Bradley Mulroney, CEO, Lafarge Malayan Cement Bhd (VCE-19 Member since 2013)
22VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
SPOTLIGHT
Lau Bik Soon, CEO, Redtone Telecommunications Sdn Bhd(VCE-16 Member since 2008)
23VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
Pn Sri Datin Seri Susan Cheah, Executive Director, Sunway Management Sdn Bhd (VTA-1 Member since 1995)
SPOTLIGHT
24VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
SPOTLIGHT
VISTAGE CHAIR LIM ENG WENG BECOMES HON FELLOW OF MAPSAThe Malaysian Association of Professional
Secretaries & Administrators (MAPSA) inducted
Vistage Chair Lim Eng Weng as an Honorary
Fellowmemberata luncheonevent. Thiswas in
recognitionofhislongservicetotheassociation.
25VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
VISTAGE-MIER CEO CONFIDENCE INDEX
DIP IN CONFIDENCE CONTINUES
cEOswere increasinglymorewaryof theMalaysianeconomyandprospectsof
their firms in the firstquarterof2014. Afterplummeting toa two-year low in
fourth quarter of 2013, the Vistage-MIER CEO Confidence Index dipped even
further threemonthson. At85.6points, the Index lost1.7pointsquarter-on-quarter
and14.1pointsyear-on-year.
Morethanhalfofthe384respondentswereoftheviewthateconomicconditions
have worsened in recent times, the highest proportion tabulated since the second
quarter of 2009. Amajority (52%) of the respondents are bracing for an economic
downtrendinthecomingmonths,thelargestpolledsincefirstquarter2009.Thelatest
expectedprofitabilitycomponentindex(124points)alsoscoredlowerthantheprevious
quarter,with45%oftheCEOshopingtoseeanimprovementintheirfirms’profitability
soon.
RISING COSTGiventhecurrentrisingcosttrend,95%oftheCEOssurveyedforeseeaparallelincrease
intheircosts,while71%expecttheirsalestopickupinthefirsthalfof2014.Against
thisbackdrop, respondentswereaskedof theirplans tomitigate theadverseeffects,
IMPACT OF CHINA’S REFORMSAlthough China recently embarked on some market-friendly reforms (more transparency, less red tape), majority (61%) of the respondents did not think it has any impact on their businesses, while 36% replied favourably and only 3% negatively.
TO REMAIN COMPETITIVE Amidst the external developments in major economies such as the US which recently reduced its purchase of financial assets, Japan’s economy given a boost by policies of Prime Minister Shinzo Abe, and China’s economic slowdown, Malaysian businesses can expect a weakening of the Ringgit and rising costs. Going forward, 69% of the respondents plan on cutting down costs to remain competitive, while 48% will be exploring alternate sourcing and 21% will likely undertake forward forex contracts through banks.
STATE OF PREPAREDNESS FOR GST IMPLEMENTATIONGiven that the Goods and Services Tax (GST) will be effective 1 April 2015, 51% of the CEOs stated that they are in the process of getting ready for its implementation, while 36% have not even started getting prepared yet. Only 8% are ready and 4% said that the GST is not applicable to their companies.
IMPACT OF MEASURES ON LOCAL PROPERTY MARKETRecently the government implemented several cooling-off measures to curb speculative activities in the local real property market. While the real property gains tax (RPGT) was increased, a ban was imposed on the developers’ interest bearing scheme (DIBS) and all mortgage financing are now based on the net selling price instead of gross. These measures, however, have no impact on 49% of the CEOs surveyed as they are not applicable to them. 27% considered the impact of these measures on them as “moderate”, while 18% and 7% rated it as “low” and “high”, respectively.
THE HIES SURVEYThe Household Income, Expenditure and Basic Amenities (HIES) Survey will be carried out in 2014. 91% of the respondents revealed that they have never participated in the survey before. To increase the survey participation rate so that the results would be more representative of the country’s population, 46% opined that the current practice of face-to-face survey should be maintained, while 66% are in favour of a face-to-face interview, including allowing voluntary online surveys.
FURTHER DENT IN CONFIDENCECEOs are increasingly becoming more wary of the Malaysian economy and prospects of their firms as 2014 unfolds. After plummeting to a two-year low in 4Q2013, the Vistage-MIER CEO Confidence Index dipped even further three months on. At 85.6 points, the Index lost 1.7 points quarter-on-quarter and 14.1 points year-on-year.
53% of the 384 respondents were of the view that economic conditions have worsened in recent times, the highest proportion tabulated since 2Q2009. 9%, however, thought otherwise, up from 7% in 4Q2013. Economic anticipations are equally cool. While 11% are forward looking in their outlook, a majority (52%) of the respondents are bracing for an economic downtrend in the coming months, the largest polled since 1Q2009. The latest expected profitability component index (124 points) also scored lower than 4Q2013, with 45% of the CEOs hoping to see an improvement in their firms’ profitability soon, although 61% are expecting their sales revenue to beef up in the near term.
Other component indexes comprising this Index that performed better this time are planned fixed investment and the employment outlook with scores of 127 and 130 points, up from 121 and 127 a quarter ago, respectively. 43% of the CEOs are contemplating injecting additional capital investment, while 42% are planning to expand their employee headcount within a year.
IMPORT AND EXPORT TO MAJOR ECONOMIES Given the current development in the major economies of Japan, China, the EU and the US, a total of 23, 35, 42 and 29 of the respondents indicated that their imports from Japan, China, the EU and the US, respectively, constitute less than 10% of their total revenue. Not only are 34 of the respondents importing more than 50% of their total revenue from China, most of those whose imports are 20-30%, 30-40% and 40-50% of their total revenue have such imports also sourced from China.
Respondents whose exports to Japan, China, the EU and the US that are less than 10% of their total revenue numbered 24, 23, 23 and 21, respectively. Those who engage in exports comprising 10-20% of their total revenue are mainly to the EU (11), followed by China (8), Japan (6) and the US (6). Firms with exports more than 50% of their total revenue are primarily to the US, with 8 of the respondents affirming this.
IMPACT OF RISING COSTS Given the current rising cost trend, 95% of the CEOs surveyed foresee a parallel increase in their costs, while 71% expect their sales to pick up in the first half of 2014. Against this backdrop, respondents were asked of their plans to mitigate the adverse effects, if any.
The most prominent of the many plans put forth are the following: increase sales to raise revenue and trim operating costs, raise consumer prices and increase productivity and efficiency of existing manpower. Other plans such as automation, increasing expenditure on promotional activities and advertising, expanding markets and products range, sizing down inventory, venturing in high-margin niche market and high-technological products, expanding/relocating overseas, outsourcing and sourcing for alternative and additional suppliers were the more popular plans listed.
The World’s Leading Chief Executive Organization
1Q2014 VISTAGE-MIER CEO CONFIDENCE INDEX
Note: All component questions are scored as the percent giving favorable replies minus the percent for unfavorable plus 100. The VISTAGE-MIER CEO Confidence Index is the sum of the components calculated as a percentage of the level recorded in 2nd quarter 2003 survey.
VISTAGE-MIER CEO CONFIDENCE INDEX
COMPONENTS
Current Economic Conditions
Expected Economic Conditions
Expected Change in Employment
Planned Fixed Investment
Expected Revenue Growth
Expected Profit Growth
Q32013
100.9
90
101
144
134
153
141
Q42013
87.3
63
79
127
121
144
126
Q42012
91.7
71
83
134
126
149
130
Q22013
104.4
94
119
143
138
158
137
Q12013
99.7
91
102
136
133
155
137
Q12014
85.6
56
59
130
127
151
124
26VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014
ifany. Themostprominentplansput forthwere: increasesales to raise revenueand
trimoperatingcosts,raiseconsumerpricesandincreaseproductivityandefficiencyof
existingmanpower.
WEAKENING RINGGITAmidsttheexternaldevelopmentsinmajoreconomiessuchastheUSwhichrecently
reduceditspurchaseoffinancialassets,Japan’seconomygivenaboostbypoliciesof
PrimeMinister
Shinzo Abe, and China’s economic slowdown, Malaysian businesses expect a
weakeningoftheRinggitandrisingcosts.Goingforward,69%oftherespondentsplan
on cuttingdown costs to remain competitive,while 48%will be exploring alternate
sourcingand21%willlikelyundertakeforwardforexcontractsthroughbanks.
RATHER HAPPY TheIPSOSHappiness Index-APAC2013polledHongKong,Singapore,China,Malaysia
andSouthKoreaontheirpersonalhappiness.Theresultsshowedpersonalhappiness
ofMalaysiaat90%,Chinaat87%,Singaporeat81%andbothHongKongandSouth
Koreaat79%.Whenaskedthesameofrespondentsinthissurvey,only24%claimedto
be“veryhappy”,while68%saidtheyare“ratherhappy”and8%are“notveryhappy”.No
oneis“nothappyatall”.
VISTAGE-MIER CEO CONFIDENCE INDEX
VISTAGE-MIER CEO CONFIDENCE INDEX