leadership lesson from the bhagavad gita

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04 LEADERSHIP

Leadership Lessons from the Bhagavad-Gita Part-1

07 MANAGEMENT SOFWARE

Utilizing Microsoft Excel for Loan Calculations

10 ENTERPRENEUR

TC Electrical Entreprise

14 BUSINESS STRATEGY

Hyundai's Success Strategy

17 CSR

In case of emergency

18 FINANCE

Game Plans To Maintain Positive Business Cash Flow

22 ENTREPRENEURSHIP

Entrepreneur Framework Part II

24 India Business News

26 Did You Know?

28 Facts And Figure

30 Calendar of Events

31 MIB Forum

32 ENTERPRENEUR

NAVNA Music Studio

36 BRAND MANAGEMENT

The Importance of Brand Consistency

38 Singapore Business News

40 Malaysia Business News

46 QUOTES

10 Inspiring Quotes

48 FINANCIAL PLANNING

8 Core Principles Moving From Debt To Rices

50 ENTERPRENEUR

SC Southern Tours & Travel

54 TECHNOLOGY

Nanobot : The Future Cure For Deadly Diseases

58 LIFESTYLE

Stop & Think! Create Your Future

62 LIFESTYLE

The Key to Beating Your Competition

CONTENT

04 10 32 50

54

The Bhagavad-Gita is a renowned spiritual text of Hinduism that has given spiritual comfort to many of its readers although not everyone is

aware of the wealth of secular knowledge it contains. In fact, the Gita is a kingmaker par excellence. In business parlance, its lay teachings are concerned with the art of inspiring leaders.

The Gita is set against impending fi lial war. Facing the grim prospect of killing his kinsmen, Arjuna – an otherwise brave and astute fi ghter – is struck by fear and apathy. Meaning to lead his army, he falters in his mission. Krishna, realizing that Arjuna’s indecision if left to worsen will result in devastation, undertakes to give Arjuna a pep talk.

This is a classical setting for a training session; a diffi cult project looms and indecision abounds.

But knowledge must work for us in the present, or else it is useless. It does not grow by mere accumulation. It must be cultivated, changed, updated and renewed. And so I intend to re-introduce the Gita to a new readership

and an amplifi ed use in the hope that a copy of this magnifi cent text will grace both your place of prayer and meditation as well as your boardroom.

Anchoring • Cultivation • Majesty

The arrangement of moral knowledge in the Gita follows an ancient training rule involving 3 distinct phases. I refer to these (in ascending order) as anchoring, cultivation and majesty. Each of these phases corresponds also to the concept of past, present and future in terms of the growth of the individual. Anchoring involves the promotion of instinct, tradition, loyalisation; the ‘nature’ aspect of personal growth. Cultivation (as the word suggests) involves learning, growth, application; the ‘nurture’ aspect. Finally, majesty involves the rounding off of the individual; the end game, the completion.

All set? And so let’s enter the mind of teacher and student.

Vedantic Management:Leadership Lessons from the Bhagavad-Gita

Part 1 - The Art of Anchoring‘Theory can never displace fact’ - Book II, Aph. 25 of Kapila

| AUGUST 2014 | AUGUST 2014

Anchoring: The fi rst ‘phase’ in training a leader

The fi rst phase concerns exposing the student to fundamental sentiments; making the student identify with certain experiences. This will result in what is called ‘anchoring’, a process by which a student is subtly (or not so subtly if you prefer) introduced to the core tenets (or in management terms, the ‘business model’). This way the student is weighed down or anchored by meaningful concepts that arguably should stay with the person forever. And yes, if you can knock the sense into a person while they are much younger (and consequently more pliable), you’ll do awfully well though age and pliability are not necessarily co-related.Anchoring works well when your subject is ‘partnered’ to the cause (e.g. generating a profi t). Think about it, as a child you subconsciously decided to work as something or another with a particular fi rm. Why? Most probably because it gave you a warm fuzzy feeling at a very early age.

This is all very well you might say but how do I ‘anchor’ grown men and women to my business model? The most effective way to impart leadership skills to your team members is to treat them as your customers. Sell them your propaganda. They’ll fl y the fl ag the rest of the way. Krishna anchors Arjuna by referring to tradition, appealing to his sense of self-worth and motivating his self-image. He does not refer to what riches Arjuna will plunder if he wins the war, but to what he will become. This is a central management concept of Vedantic teaching; material possessions are inferior to realization and accomplishment.

When Arjuna fi rst expresses his doubts, he does not suffer from fear of doing the work. He fails to understand the true nature of his duty:

‘How can we be content, having murdered our own people?’

BG 1:37

Arjuna, like many people, doubts the value of his work. This is akin to a loss of incentive. The entire fi rst chapter of the Gita involves Arjuna’s doubt and his excellent reasons for not carrying out his tasks. He expresses a range of emotions; self-doubt, a lack of motivation and a shift in principles. He cleverly (and passionately) advocates his position by endorsing it with good reasons.

Krishna, seeing this loss of drive begins the process of anchoring Arjuna, starting with the following proclamation:

‘You worry for things that you ought not worry for.’ BG 2:11

Psychologically, this is a magnifi cent opening gambit. Note Krishna does not say ‘Don’t worry’. He does not attempt to pacify Arjuna, preferring instead to defl ect his concerns by not giving it credence. Krishna understood that, in the art of kingmaking, it is imperative not to reinforce Arjuna’s doubt. You never tell a child not to worry about the monster under their bed; you demonstrate (with certainty) that there is no such monster (or provide them with an alternative cure). This is the oldest confi dence trick in the world, achieved by substituting the apprentice’s knowledge with your own. Of course Krishna has noble intentions; the methodology is irrelevant. Arjuna is despondent, weak and therefore open to suggestion. Krishna (like a capable modern day manager) has presence, and he makes it work for the business model (being war).

AUGUST 2014 |

05LEADERSHIP

Then Krishna delivers another volley:

‘At no time did I not exist, nor you or any of these kings assembled here today, nor

shall we ever cease to be.’ BG 2:12

Now Krishna develops the reason for his initial contention. In effect, Krishna is saying ‘What the hell do you think you’re doing? You don’t know what you’re talking about. Listen to me, the show’s got to go on’.Kingmaking, remember? The entire second chapter of the Gita is occupied with anchoring Arjuna to proper knowledge. The issue for Arjuna was death; death of his friends and family. So Krishna displaces this knowledge with a new concept: that death does not exist. In other words, Arjuna’s fear is misguided.

When training leaders it is necessary to confront their doubts (the issues). This is achieved by introducing the apprentice to a creative concept. Imagine you are Arjuna and you have just heard that you are in fact immortal, unborn; everlasting! There is nothing that strokes the self-image of a leader more than immortality. Of course you’re not telling your staff that they’re going to live forever. But the quality of their efforts will! People will go their whole lives to see their name on a little commemorative plaque at the end. Material possessions, by comparison, are uninspired incentives.

Having ‘sold’ Arjuna the impression of immortality. Krishna ‘anchors’ the experience even further. He says:

‘Those who see this (the eternal self), hear of it and speak of it all call it a wonder and

yet none understand it.’ BG 2:29

Hare Krishna cleverly contends that while this knowledge is wonderful, even amazing, it is in fact no great thing. As a result, no one truly understands it. Truly, in lay terms, no one understands the law of gravity, though it is in fact a wonderful manifestation of the physical world. A clever manager thus conveys an idea and then affects that it is in fact a commonly known concept. This is the old - ‘It’s a well known fact around here that…’ - line.

So, in the space of a very short conversation Krishna in fact does the following:

1. Displaces Arjuna’s perceived knowledge;

2. Embeds a new idea in Arjuna’s mind; and

3. Makes Arjuna believe that the new idea is, in fact, an old one, and does not merit any intense scrutiny.

4. Krishna is by no means fi nished ‘training’ Arjuna although I will end this part here to be continued in a following issue. In contemporary terms what Krishna has so far set out approximately equates to this motivational principle:

‘YOU’RE GOOD. NO, ACTUALLY YOU’RE GREAT! GET USED TO IT.

IT’S NO BIG DEAL.’

FAST FACTSMaharishi Kapila is credited with the founding and development of Samkhya (or Sankya) Yoga. The word ‘Samkhya’ more or less translates to ‘enumeration’ or ‘discrimination’. It implies that true knowledge is built up in detailed consideration. Samkhya Yoga is a system of logic based on observation and inference. It can be theistic or atheistic.

While it is now considered one of the principal schools of Hindu thinking, it did not have religious origins and is in fact pre-Vedic in origin. It is less concerned with the concept of God and more concerned with sentience and reason. While the Buddha, Shankara and Madhva are renowned classical Hindu philosophers, their teachings are underwritten by Samkhya thought. The second chapter of the Bhagavad-Gita deals exclusively with this idea. With the exception of Patanjali, Kapila is the most illustrious sage of the Hindu faith. Even Krishna endorses this fact in the Gita when he declares:‘…of the perfected people I am Kapila himself.’ BG 10:26

Andy Naidu is a Malaysian-born barrister and law lecturer based in Melbourne. He is also the Deputy President of LawHelp Australia, a not-for-profi t legal advice bureau based in Melbourne. Andy has had a long association with the teachings of Hinduism and is currently preparing a series of seminars based

on drawing leadership and management principles from Hindu teachings. Andy frequently lectures on motivation and ‘the art of the sell’. He can be reached at

[email protected] +61 425 627 116

| AUGUST 2014

06 LEADERSHIP

THE HOUSING LOAN (LONG TERM LOAN)

As we move up the corporate ladder, many are tempted to upgrade their current

possession such as house and car. Studies have shown that bulk of a person’s salary goes towards the payment and maintenance of a house and car. When one takes a housing loan, this is considered as a long term loan. Generally, a long term loan is considered as a loan that takes 10 or more years to settle. The monthly repayment calculation is based on a technique called “reducing balance”. How does this work? Performing this calculation is not as straight forward. Let us look at the data given below.

Assume one has taken a loan of $450,000 after paying a 10% deposit for a house valued at $500,000. Total repayment period is 30 years with a fi xed interest of 6% per annum. How would one calculate the monthly repayment?

In cell B7 above, we had used the Excel built-in fi nance function called PMT (an abbreviation for “payment”) where it is used to calculate long term loan calculations. Applying the PMT function gives us a result of $2,700 after rounding the value to the nearest 10 (actual calculated value to the nearest dollar is $2,698). This is the amount the borrower will be paying for the next 30 years (with assumption payment

is made on time). How does the reducing balance technique work? Now, if the borrower has just settled the fi rst month repayment

of $2,700 the amount owing to the bank is not $450,000 less $2,700 Rather, the bank will deduct a high interest of $2,250 from the fi rst month’s repayment and the balance of $450 is offset from the principal amount borrowed of $450,000. In other words, the amount owing after making the fi rst month’s repayment is now $449,550. This is refl ected in the illustration below.

In the above illustration, the current outstanding amount to the bank now is $449,550. Interest is now charged on this outstanding fi gure, not the principal amount borrowed of $450,000.

Utilizing Microsoft ExcelUtilizing Microsoft Excelfor Loan CalculationTips To Settle Loan Faster Using Excel

AUGUST 2014 |

07MANAGEMENT SOFTWARE• by Palani Murugappan

As the borrower keeps repaying the monthly repayments, interest is first deducted from the repayment and the balance is offset against the previous month’s principal amount outstanding. This technique is known as the reducing balance.

Let us analyze the amounts in further detail. How did we arrive at a figure of $2,250 as the interest charged and $450 as the amount deducted from the principal amount outstanding?

This is where Excel can be used to work out how much goes towards the interest and principal portion of a loan amount. The function used to calculate the interest part for a specific month from the monthly repayment is IPMT (interest part of a payment). To calculate the principal part that is deducted for a specific month from the monthly repayment, the function PPMT (principal part of a payment) is used. Let us analyze how both these functions work.

The IPMT function evaluates and gives you a value of $2,250 in cell B9, while the PPMT function evaluates and gives you a value of $450 (both have been rounded to the nearest 10). In other words, for the first month’s repayment, 83% of what the borrower pays goes towards interest alone! Only 17% gets offset from the principal amount. That is why we hear many

complaining that they have been paying for many years and the principal amount does not seem to be decreasing as quick as they expect it to!

The whole scenario can be represented as below in what is known as a loan amortization table. The illustration below shows how much the borrower owes the bank as he/she keeps up with the monthly repayments (observe that the figures below are NOT rounded to the nearest 10 as in the previous examples).

After a year of paying the monthly repayments of $2,698 (total of $32,376), the amount that gets offset for the first year from the outstanding principal amount is only $5,526 (i.e. $450,000 minus $444,474).

As can be seen, the interest charged by the bank keeps reducing a little every month while the principal amount that gets deducted from the outstanding principal amount gets a little higher from month to month.

How do we know if the above calculations are correct? When you create a loan amortization table for the entire 360 months, the final outstanding principal amount due

should be 0 as in the illustration below for the 360th month (the final settlement payment). Observe that even in the final repayment month of 360, the borrower is still paying an interest of $13!

The above holds true assuming the borrower pays the monthly repayment on a timely basis i.e. in other words, repayment is paid before or on the due date. Otherwise, the banks will impose interest charges for late payment on top of the monthly interest due.

How can you settle the loan sooner than the 360 months? This is where one can utilize a built-in feature of Excel called Goal Seek, a classic what-if analysis feature. The Goal Seek feature only works on a cell that contains a formula or a function. If the user had keyed-in a value and selected that cell to perform Goal Seek, it will cease to work. Here it goes.

Select the cell that contains the formula of PMT that was used to work out the monthly repayment. In our case, it is cell B7. Invoke the Goal Seek feature (found within the Data tab and within the What-If Analysis command).

| AUGUST 2014

08 MANAGEMENT SOFTWARE

In the To value text box, type in the value $2,970 (assuming the borrower has the funds to pay an extra 10% on top of the monthly repayment i.e. $2,700 + $270).

Click to select the cell B4 in the By changing cell text box. Any borrower who decides to pay more will obviously be decreasing the total repayment period. This is why you click on cell B4, which is the total repayment period of the loan.

Upon clicking the OK button, Excel calculates and determines that the borrower is able to settle the loan in approximately 24 years (valued displayed in cell B4). Thus, a small increment of 10% in the monthly repayment can actually reduce the total repayment period in a signifi cant way.

Note that Goal Seek works best if the borrower commences the extra payment from the initial stage of the repayment, not towards the end of the repayment term. For example, if the borrower is able to pay an extra of 10% from the fi rst instalment, the above holds well. However, if the borrower decides to make an extra payment of 10% at the 20 year and above, the savings in terms of number of years will be small.

THE CAR LOAN(SHORT TERM LOAN)

The short term loan on the other hand works quite differently as compared to the long term loan. Generally, in the short term loan calculations, interest is calculated for the entire duration and added to the principal amount. This total amount is then divided by the number of years or months or repayments. Let us look as a typical car loan calculation as illustrated below.

The calculation of a car loan does not require the use of any built-in function of Excel. In the above scenario, the borrower has taken a loan of $72,000 based on a fi xed interest of 3% for a total period of 9 years. The borrower’s monthly repayment is $847 based on the formula displayed in the formula bar above.

As a comparison, should the bank calculate the repayment based on long term loan calculation, the amount due is $762 per month, as compared to $847 (a difference of $85 per month). The difference may not be signifi cant on a monthly basis. However, for a term of 9 years, this adds up to $9,180 (i.e. $85*12*9).

What does this tell the borrower? It is clear that more interest is paid for short term loan as the calculations are signifi cantly different. To recap, for long term loans, interest outstanding is calculated after the monthly payment is made. For short term loans, interest is calculated for the entire loan period and divided equally by the total number of repayments, thus working out to be higher.

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 certifi ed 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. He can be reached at:

[email protected]

www.avimursolutions.com

THE CAR LOAN(SHORT TERM LOAN)

The short term loan on the other hand works quite differently as compared to the long term loan. Generally, in the short term loan calculations, interest is calculated for the entire duration and added to the principal amount. This total amount is then divided by the number of years or months or repayments. Let us look as a typical car loan calculation as illustrated below.

What does this tell the borrower?

AUGUST 2014 |

09MANAGEMENT SOFTWARE

AUGUST 2014 |

9

More and more Malaysian Indians were venturing into entrepreneurial activities

as country began to transform into industrial nation. Meet one such person, Mr. Selvanathan Ponnambalam who born in a plantation and obtained early Tamil education at SJKT Ladang Rini, today a highly recognised Electrical Engineering contractor as far as Middle East. Malaysian Indian Business had an opportunity to casually chat with the hands on engineer to learn his entrepreneurial journey.

MIB : Can you share with us about your company?

Like many plantation youngsters, I started to work immediately after completing my secondary school. Because of my interest in electrical field, I went to work for 18 years with a Chinese firm specializing in that field. I decided to venture into this business in 1996 thus founded TC Electrical Enterprise as electrical contracting company servicing mainly oil & gas industry and power plant. As electrical contractor we also involved with consulting, designing, developing, maintaining and servicing electrical control systems, machineries and equipments.

MIB : What induce you into Electrical Works?

Since my young age, I am a very conscientious person and one who pays attention to detail given by someone. I'm flexible, quick to pick up new skills and eager to learn new things from others. I also have lots of ideas and enthusiasm to be successful as one of my father’s friend Mr. Sadhasivam. He is my role model in this industry whom worked hard and became successful in his life without any solid background support. Being financial independent my role model motivated me to follow the career path which he took.

The 3 SUCCESS MANTRA Of

SELVANATHAN POnNAmBALAM founder of

TC ELECTRICAL ENTERPRISE, Skudai, Johor


MIB : Who supports you to run the business?

After 8 years of gaining industrial experience, I told my father about my intention to be an independent entrepreneur. Unlike others, my father Mr. Ponnambalam respected the and inspired myself to be on my own feet. He rendered his fullest support and encouraged me by gifting a van to start my business. A van with basic necessary tools and my passion to succeed, were my basic investment.

As the business was growing steadily, my two brothers P. Selvendran and P.Selvaganesh came into the business to support the increasing workloads. Upon my marriage TC Electrical Enterprise made much more progress as my wife Mrs. Letchumy stood firmly behind myself. I started to attend professional courses including ways to conduct business and self motivation courses. She assisted myself to organise the business in an order and follows proper documentation procedures, which was a neglected function that caused us heavy financial losses during the early days of ours.

MIB : How do you overcome the challenges?

Just months after I started to venture into this electrical business and getting up slowly from scratch, the nation faced one of the worst 1997/1998 Asian financial crisis.

When some other companies struggled and downsized during the economic downturn, we remained strong. Since, we were still a growing company ; we managed to overcome and work on the development of TC Electrical Enterprise.

However, we faced lots of problem during early 2000 , the year I got married. We had to work longer hours and had to find solutions to all the problems that we encountered. Today, TC Electrical Enterprise has 18 staffs to continue its pursuit for excellence and strives for a bright future in the years which lays ahead.

In Malaysia, electrical engineering industry controlled by Chinese firms that have highly competent skilled and dedicated workers, necessary financing and most importantly the network of contacts. Most Industries here prefer to work with their own Chinese indoor contractor. Owing to such situation being just an “ABC” contractor will further worsen

our business. We employed the following strategies to win and retain our customers:

1. Be better than our competitors.

2. Provide innovative solutions to our customers.

3. A better quality output within a short time.

4. Provide competitive pricing which is reasonable.

5. We shouldn't be lack of work ethics.

6. Having TC's own Standard Operation Procedure (SOP) ,Commisioning Qualification Verification Check (CQV) and Work Instructor (WI).

MIB : Can You Tell Us Any Interesting Experience In The Industry?

During the year of 2012, we got a chance to in to show our talent in Sultanate Of Oman as electrical engineers. Our arrival was well

AUGUST 2014 |AUGUST 2014 |

11ENTREPRENEUR

greeted by the Managing Director of the project that surprises two of us from Malaysia. The group thought that we were a highly knowledgeable electrical consultants but for us it was a totally new equipment which gave us a challenging and interesting task. Furthermore, it’s not easy or simple to do work at overseas without even sighting anything prior to it and it was a very risky task as we involve in a power plant construction work. At the end of the day, we successfully completed all tasks assigned to us without any unforeseen difficulties. The Managing Director appreciated the impressive works delivered and encouraged us to take up more arduous assignments.

MIB : Tell Us About Lesson Learned From Your Past Mistakes?

We encounter quite lot during the early stage of establishment. At

that point of time, we conveniently sign contracts without any further evaluation but simply hoping to get the job. We proceed to carry out our works without collecting any upfront money or never requested any purchase order (P.O) . We started to face a lot of issues upon completion of task assigned and issued invoice for payment. Customers came out with lots of complaints and negotiate with us to reduce the price ; that was a very distressing experience for us.Eventually we find that lessons learned from past to be our guiding policy in current days. We only commence a job upon receipt of P.O and our management will decide on need for deposit upon studying the company background and project thoroughly.

MIB : How Do Your Company Generate Business?

We serve all level of customer regardless of race. We have some

5 panel companies that regularly require our services, 3 of them are Chinese, one Indian and Malay respectively. We also have other small regular clients whom provide opportunities for our team members operate in full swing. Recently, we team up with a company in India that does all huge projects out of Malaysia. Our association with this company keep us busy with servicing their needs and referral from them.

MIB : Finally, What Is Your Advice To Indian Community?

Giving advice is easy as those whom success willing to share their experiences so that it’s benefit others. I would like to share my guiding principal of success or my mantra that I always tell my children. In order to be successful take out these three words i.e. No, Don’t and Cannot from your life dictionary.

Based on my lesson from another mentor of mine, Mr Jeyabaskar ; an Indian nationality who successfully registered his company as vendor with Tenaga Nasional Berhad. He generously offers lot of electrical works to our company. Being a foreigner, he never said cannot but rather progress well upon understanding the needs and requirements of his customers. Let's emulate his success path. And, we hope that TC Electrical will transform into a much more effecient company in future. That's all, thank you.


12 ENTREPRENEUR

"We are taking a fast lane to success and we are not going to stop." - Chung Mong-koo, Hyundai Chairman

Hyundai Motor Company [HMC], South Korea's number one carmaker as

well as minivans, trucks, buses, and other commercial vehicles. In the extremely capital intensively car makers such as Toyota, Nissan, Honda, Hyundai, General Motors, Ford, DaimlerChrysler, Renault, and Volkswagen operate on relatively thin margins with competitors battling for their market shares.

The South Korean automotive industry with demand for only two million cars per annum, total productive capacity had reached five million forcing HMC using less than 40 percent of its total production capacity, with a debt of around $30 billion. In 1998, HMC took control of Kia, becoming the South Korea’s biggest car maker

HYUNDAI’S SUCCESS STRATEGY:QUALITY, DESIGN & RAPID GROWTH

The Strategies That Made Hyundai Among The Highest Profit Margin Car Maker In The World

BUSINESS STRATEGY14

and holding three-quarters of its domestic car market as well as passing Japan’s Mitsubishi and Suzuki in world ranking.

HMC’s founder workaholic Chung Ju Yung, 85 whom always found a way to achieve it whenever he set his mind on something passed on his ‘never-give-up’ values to his son, Chung Mong Koo, as Chairman in 1998. The younger Mr. Chung was very detail oriented, and attached great importance to producing quality products. He is often quoted as saying: “Quality is crucial to our survival. We have to get it right, no matter the cost.”

Despite disastrous outcome from its Canadian operation, HMC management learned a great deal from the experience. Instead of ceasing operations, HMC began exporting to the U.S. market with an economical value that soon became big success with exports rising to 250,000 units per year. Unfortunately consumer perceived the car as a low-quality. Hyundai were losing faith and the firm’s brand equity began to deteriorate.

SUCCESSFUL STRATEGIES

In order to erase the negative perception HMC introduced a “10 year warranty” program. The strategy was a major turning point for Hyundai, and the firm builds cars based on much higher quality standards. While still maintaining low prices, HMC was able, over time, to provide substantially extra value to consumers.

Putting lessons from the failed Canadian investment into practice, HMC built inexpensive plants in Turkey, India and China capitalizing high quality labor available at these locations. The Turkish plant gave HMC a foothold in the Middle East while its proximity to Western Europe is also a major advantage. In 2006, HMC had more than ten production plants in locations such as Taiwan, Vietnam, Iran, Sudan, and Venezuela. HMC’s first U.S. plant opened in Alabama in May 2005, with an investment of $1.1 billion and annual production of 300,000 cars.

In order to gain competitive edge, HMC seek out cheap labor since automotive industry's labor costs make up only 10 percent of total operational costs. HMC cooperated with DaimlerChrysler to develop new technologies and improved supply chain management and gained access to the Kia’s competitive advantages in R&D and production. HMC also invested in R&D centers in North America, Japan, and Europe.

HYUNDAI MOTOR TODAY

Hyundai today is one of the world’s fastest growing major automaker since 1999 with firm’s profit margins among the highest in the industry, worldwide. Hyundai Motor company record indicates it sold 4,732,366 vehicles globally in 2013. In 2012 Hyundai-Kia was named as maker of one of the 10 best engines in USA. Chairman Chung was named one of most successful businessmen in the world by Business Week magazine.


CLARITY

• Blend your personal passion with your professional aspirations

• Identify the core elements of your business

• Make a list of commitments that hold you accountable to your business

• Establish a personality and style for your business

• Identify the success principles you will use to guide your decisions

• Be authentic, honest and transparent at all times

• Have Integrity. Do what it right, without compromise. Always.

• Stand for something meaningful to you.

• Create a Vision with signifi cant purpose

FOCUS

• Defi ne long-term strategies that align with your vision.

• Know your value and target the markets that value it.

• Create a simple Business Plan that is clear, focused and action-orientated.

• Stay ahead by leading the pack. Don’t compare yourself to your competition.

• ‘Good Enough’ isn’t good enough. Deliver ‘Excellent’.

• Don’t confuse ‘Excellent’ with perfection. ‘Excellent’ can be improved later.

• Be Catalyst. Solve you market’s problems quickly and simply

• Create innovative solutions

• Become a unique authority and leader in your marketplace.

• Attract and serve a loyal following of fans.

ACTION

• Be in Action , not inaction

• Work Smart. Never confuse busy with productive

• Stretch outside your comfort zone. Step into your fear.

• Only hire employee who are passionate about what you do.

• Hire brains and personality. Skills can be taught.

• Treat every complaint as an opportunity to be remarkable.

BUSINESS SUCCESS STRATEGY FOR PHENOMENAL RESULTS

BUSINESS SUCCESS STRATEGY FOR PHENOMENAL RESULTS


16 BUSINESS STRATEGY

Well, we Malaysian Indian Business cares about you and your family. As busy business person with schedules to travel overseas, outstation or need to work in hazardous environment often arise need of leaving behind loved ones. In Case of Emergency, someone out there needs to contact your family members and more importantly if doctors know your history they could treat accordingly.

As human begin we can only plan for the best as what might happen to us next are not on our hands. Think about your family and people dependent on you. Just do yourself a BIG favour:

1. Cut out the Emergency Contact Card and enter your information.

2. Enter your next of Kin contact information

3. Enter your medical information and your allergic details

4. Get it laminated

5. Keep it safely in your wallet or purse that easily visible.

Next, get one for all your family member and staffs.

• Cut out the card and Fold as indicated

• Fill in your emergency contact information and

laminate it

• Carry this card with you as reference in the event of

a disaster or other emergency

• Better Get One Original for every members of your household and working colleagues

IN CASE OF EMERGENCY CONTACT CARD [I.C.E]


17CSR

Fold

Her

e

EMERGENCY CONTACT CARD

Name: H/P:

Name: H/P:

Allergies:

I am being treated for:

Diabetic Heart Disease High Blood Pressure

and/or

MALAYSIA

My Name :

My Address:

My H/P No: My Blood Group:

People To Call In Case Of Emergency:ICE SEE RESERVE SIDE


18

Business experts acknowledge that healthy cash fl ow is the life-blood of your business. Some of them even argued that the movement of money

in and out of your business more important than ability to deliver its goods and services. A business is said having positive cash fl ow when its infl ow money or cash collected primarily come from the sale of goods or services exceed their outfl ow.

Malaysian Indian Business [MIB] research team found that most of Malaysian Indian businesses often face cash shortages that prevent them from meeting fi nancial obligations that resulted diffi culty in planning for the future and expansion. MIB share some game plans business can try in improving their cash fl ow:

SET YOUR PRICES COMPETITIVE

Setting price competitively with desire profi t margin is very crucial for business to sustain continuously in the marketplace. The game plan for competitive pricing needs better pricing strategy and effective cost of goods sold purchasing mechanism.

In setting competitive price business owners may consider the following factors:

• Their product position in the market and customer segment

• The relationship between the price and quantity sold

• Your distribution and promotion of your products• The costs associated with your products including

the fi xed and variable costs• Your competitors pricing• The method of calculating price and what you want

to achieve?• Try to negotiate for a better price with suppliers,

possibly buy in bulk if stock turnaround is faster • Get discount by paying earlier • Get best pricing for your supplies by shopping

around for other competitive suppliers• Implement new effi cient processes in producing

your goods

GAME PLANS TO MAINTAIN POSITIVEBUSINESS CA$H FLOW?

Examples of Infl ow and Outfl ow

Infl ow Outfl owCash sales Payment for purchasesReceivables from sales of goods or services Business operating expensesBorrowings Purchase of assetsCash from business sales assets Payment of Loans /InterestInvestment Incomes Taxes

FINANCE • by Arikrishnan Subramanian


19

DON’T PAY TOO EARLY BUT MANAGE YOUR DEBTORS

Hold on! Don’t get confused. Read further following three steps game plan.

First: Manage you debtors as until money not in your bank a sale isn’t a sale.

Following step by step actions might assist to reduce accounts receivables:

• Receiving deposits on signing of sales confi rmation• Offer discount for early payment• Issue invoices immediately• Review receivable reports regularly and follow up

with overdue• Should customer face problem be fl exible by

offering easy payment plan• Where possible accept payment via credit card

Second: Manage you stocks

You’re out of business if no stock while too much stock can impact cash fl ow heavily. The right stock level needs very sharp business acumen with good accounting knowledge. Some examples of how to improve stock control:

Set minimum and maximum levels of stock and stay within these levels

• Clear old and outdated stock by offering discounts

• Use ratios such as inventory turnover and days inventory to compare to p rev ious p e r i o d s and industry standards

• For fast moving stock, buy in bulk to receive a discount

• Focus on a ‘just in time’ ordering system

Third: Don’t pay too early

Proper procedures and monitoring may reduce overpayments or payment for non-delivered goods. An example of overpayments, is when for payments made based on a statement and yet not have an invoice to verify the purchase. To avoid such situation include:

• Two signatures for accountability on purchase orders

• Request new quotes on half yearly basis for products previously purchased

• A proper procedure for receiving goods• A procedure for payment of goods that requires

purchase order, delivery docket, invoice and statement. The level of paperwork required may vary depending on the size of your business

FINANCE

Example of 3 months cash fl ow statement

Cash Flow Sept 14 Oct 14 Nov 14 Dec 14Opening Balance (55,500.00) (37,100.00) (18,500.00) 900.00

Receipt from Customers 72,000.00 75,000.00 73,000.00 73,500.00

Total Cash inwards 72,000.00 75,000.00 73,000.00 73,500.00

Less Cash Outflows

Cost of Sales 36,000.00 36,000.00 36,000.00 36,000.00

Wages 10,000.00 10,000.00 10,000.00 10,000.00

Total Overheads 7,600.00 7,600.00 7,600.00 7,600.00

Taxation 2,800.00 2,800.00

Total Cash Outfl ows 53,600.00 56,400.00 53,600.00 56,400.00

Closing Balance (37,100.00) (18,500.00) 900.00 18,000.00


20 FINANCE

• Pay your creditors on the day the invoice is due. Do not pay early or late

• Negotiate longer payment terms or a payment plan if the business is struggling

• Negotiate discount for early or up-front payment

OWNER’S REDUCE YOUR DRAWINGS

WHAT, I’m bringing in business and you say don’t take the money out for my use? That’s the usually crumble by most of the entrepreneurs. Well, we understand your pressing need but the survival of business is more crucial them your current needs. One of the most common problem among Malaysian Indian businesses are owners withdrawing more cash than the business able generate, followed by poor fi nancial reporting.

Drawing out wages in excess of profi t generated by business for personal expenses without considering future cash outfl ows need can destroy a business very quickly. Business owners may need fi nd the balance

between reinvesting the profi ts to grow your business and enjoying the rewards of your hard work now or postpone it to a much later stage. We suggest a regular wage withdrawal much lower than monthly net profi t of your business to enable the doubling effect took place.

MIB MEET UP

MAINTAIN 3 MONTHS CASH FLOW STATEMENTSA profi table business can still have cash fl ow problems. For example, QWE bought stock for RM8, 000 in July. They paid for the stock at the end of August. The stock was sold to XYZ for RM12, 000 in September and they received the money for the sale in November. In September QWE has recorded a profi t of RM4, 000. However, the profi t doesn’t hit the bank till two months later.

By maintaining a three month cash fl ow budget any excess cash should be transferred to a high interest bank account that can be easily accessed when it is needed or prepare action plan to reduce impact of negative cash fl ow.

1. Details as our Facebook Page: www.facebook.com/MalaysianIndianBusinessMagazine

2. Bring along this original voucher to AUGUST 2014

MIB MEET UP Session along with one business guest.

3. It’s FREE for you and your Guest gets 50% off.

AGENCIES FUNCTIONSGovernment of Malaysia anticipate cooperatives will become the third crucial engine after the public and privates sector in driving the nation’s economic growth. The government has high confi dence and commitment for cooperative movement and these were portrayed through the fi nancial and non-fi nancial aids included in many development plans . In 2002, the National Co-operative Policy (NCP) was launched with the aim of orderly re-developing cooperatives. Malaysia Co-operative Societies Commission was established so as to monitor and regulate cooperative movements. With the setting up of the MCC, the latest Cooperative Act 2007 was brought forth with the objective of promoting cooperative values of trustworthiness, transparency and honesty within the cooperative society development.

The Companies Commission of Malaysia (SSM) is a statutory body responsible for the regulation of companies and businesses in Malaysia. SSM was established on 16 April 2002 under the Companies Commission Act 2001 [Act 614] as a result of a merger between the offi ces of the Registrar of Companies (ROC) and the Registrar of Businesses (ROB). SSM’s main function is to regulate all companies and businesses in Malaysia through the administering of several legislations such as the Companies Act 1965 [Act 125] and the Registration of Businesses Act 1956 [Act 197]. SSM is the custodian of corporate and business information and in addition, supplies corporate and business information to the public. SSM supervises the compliance of the corporate laws through continuous enforcement and surveillance activities. SSM in its role as a corporate regulator also promotes Good Corporate Governance practices as well as drives Corporate Responsibility initiatives amongst corporate community, specifi cally the SMEs by creating awareness and in encouraging good and sustainable business practices.

Intellectual Property Corporation of Malaysia the registrar of patents, trademarks, industrial designs, copyrights and geographical indications formed to fulfi ll following objectives :• Establishing a strong and effective administration;• Strengthening intellectual property laws;• Providing comprehensive and user-friendly information on intellectual property;• Promoting public awareness programmes on the importance of intellectual property; and• Providing advisory services on intellectual property

Bank Rakyat was established on 28 September 1954 under the Cooperative Ordinance 1948 (known as the Cooperative Societies Act 1993). As of December 2013 Bank Rakyat is the biggest Islamic cooperative bank in Malaysia with assets totaling RM82.88 billion operating 145 branches with more than 600 automated teller machines (ATMs) and cash deposit machines (CDM), and 78 Ar-Rahnu X'Change nationwide. The bank plays vital role to consolidate the cooperative sector as the mainstay of economic growth of the nation.

Malaysia Competition Commission (MyCC) is an independent body to protect the competitive process for the benefi t of businesses, consumers and the economy. The Competition Commission Act 2010 empowers the Malaysia Competition Commission (MyCC) to carry out functions such as implement and enforce the provisions of the Competition Act 2010, issue guidelines in relation to the implementation and enforcement of the competition laws, act as advocate for competition matters; carry out general studies in relation to issues connected with competition in the Malaysian economy or particular sectors of the Malaysian economy; inform and educate the public regarding the ways in which competition may benefi t consumers in, and the economy of, Malaysia.

MyFEX (www.myfex.gov.my) is online system established by the ministry to register and apply franchise business in Malaysia.

Malaysia’s Vision 2020 established entrepreneurship as fundamental of economic policy to achieve economic growth in order to realize 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. In this edition, we complied prime role of agencies under another two more ministries committed towards the vision.

A Joint Entrepreneurship Education by :

ENTREPRENEURSHIP FRAMEWORK (Part 2)

MINISTRY OF DOMESTIC TRADE,CO-OPERATIVES AND CONSUMERISM


22 ENTREPRENEURSHIP

AGENCIES FUNCTIONSAgriculture and Food Business Development Center (Agri-BDC) is a local and local information center. This center is created for public and private sector to access information related to the services provided and to assist public and private sector in understanding the Ministry of Agriculture and Agro-Based Industries including Departments and Agencies under the Ministry. Among the information provided includes:• Consultancy service• Expertise• Grant provided by the Government• Loan• Training• Rules and Legal to be complied• Accreditation and standard• Business match making• Consultant Service

TEKUN Nasional is to provide simple and quick fi nancing facilities to bumiputeras in order to kick-start and further expand their businesses. Since 2008 ,TEKUN Nasional provides business opportunities as well as income generation opportunities, business capital fi nancing and guidance and support services as well as providing a networking platform for entrepreneurs. TEKUN Nasional also provides fi nancing to Indian ENTREPRENEUR under SPUMI programme.

Agrobank formerly known as Bank Pertanian Malaysia which has 40 years of experience in agricultural banking and an excellent track record in shaping and developing successful entrepreneurs is a Government-linked-Company (GLC) under the Minister of Finance Incorporated (MFI). The bank’s fi nancing of the agricultural sector is driven by a policy set forth by the Ministry of Agriculture and Agro-based Industries. The bank provide full range of fi nancial services to specifi c target groups; agropreneurs, micro, small and medium entrepreneurs and private individuals.

Federal Agricultural Marketing Board or known as FAMA was formed in 30 September 1965 to monitor, coordinate, control and develop product marketing of Malaysian agriculture, including import and export.FAMA main function is :• Coordinate agriculture marketing activity both in private sector or department / government agency• Improve marketing system and expand new market of Malaysian agriculture development• Collaborating with private sector and department / government agency to create effi cient and effective agriculture marketing system• Develop an effi cient management in agriculture industry, marketing activity or agricultural products processing• Involve directly in agriculture industry, especially in marketing activity and products processing

Farmers' Organisation Authority of Malaysia or Lembaga Pertubuhan Peladang (LPP) was formed on 14 February, 1973 with aim of improving economy and social well-being of the agro society under one body.

The Malaysian Pineapple Industry Board (MPIB) is a Statutory Body was established in 1957 with the following objectives :• To increase the agriculture sector’s contribution towards the country’s income, foreign currency exchange and employment opportunities• To encourage investment and to increase foreign investors involvement in the industry• To manage the pineapple plantation sector and maximise production in a continuous manner• To improve the Quality Control Programme thus ensuring continuous product quality• To maintain and strengthen the existing market and to explore new markets. • To increase the effi ciency of pineapple based processing factories and increase high value-added and upstream pineapple industry activities• To become the information centre and reference to the pineapple industry.• To maintain and encourage the involvement of locals in various pineapple industry projects via continuous consultation and supervision • To encourage development of an organised industry through research activities and expansion service• To secure a mutual international collaboration in various fi elds and also a smart partnership benefi cial through technology and exchange of scientifi c information

MINISTRY OF AGRICULTURE & AGRO-BASED INDUSTRY


23ENTREPRENEURSHIP

INDIA BUSINESS NEWS


24BAJAJ GAINS IN OVERSEAS MARKET

Even as it lost market share in domestic motorcycle market, Bajaj Auto is racing ahead in many overseas markets and has claimed to have captured top positions and significant

market share. Bajaj’s top motorcycle brands Discover, Pulsar and Boxer continue to see strong sales momentum and have emerged strong brands in several markets where Chinese and others brands are also marketed. While there were strong market share improvements across South Asia, the Middle East, Latin America and Africa, Boxer is reported to have become No.1 brand in Africa among all competitors. “Both, Discover and Pulsar continued to gain market share in key markets like Colombia, Central America, Egypt, Sri Lanka and Bangladesh. Boxer continued to hold market share in Africa and, in many cases, gained at the expense of Chinese brands to further strengthen its leadership position in markets such as East Africa and Nigeria,” revealed company’s latest annual document. Bajaj Auto is way ahead of its other Indian competitors in terms of exports. It shipped about 1.3 million two wheelers in FY14 which is significantly higher (accounted for 69 per cent India’s bike exports) than its peers. Presently, its major export destinations are Africa (46 per cent), South Asia and Middle East (28 per cent), Latin America (19 per cent) and Asean (7 per cent). Total two wheeler (up to 250 cc) export market size is estimated at $ 7 billion and is expected to rise further due to low penetration level in many emerging economies of Asia, Africa and Latin America.Indian companies have lot of ground to cover in terms of export. Myanmar, Nigeria, Argentina, Mexico and Venezuela are some of biggest importer of two wheelers in the world. Indian companies are virtually absent in Latin American market. If these markets are tapped effectively, it will provide further growth for Indian two wheeler maker.

AXIS BANK APPOINTED SANJEEV KUMAR GUPTA AS ED

The board of directors of Axis Bank has appointed Sanjeev

Kumar Gupta as Executive Director with effect from September 1. Gupta is the President and CFO of the third-largest private bank since 2009.Gupta has served

as a Director at Axis Securities & Sales Ltd and has worked with the State Bank of Bikaner and Jaipur. He will take over from Somnath Sengupta, Executive Director (Corporate Centre), who has opted for early retirement. Shikha Sharma, Managing Director and chief executive at Axis Bank, said, “Sanjeev’s elevation to the Board is in recognition of his contribution to the bank’s growth and all-round leadership provided by him. As Executive Director, he will be actively involved in the bank’s overall strategy and will have the specific responsibility for key corporate functions of the bank.”

INDIA'S YOUNG ENTREPRENEURS TURN ANGEL INVESTORS FOR NEW START-UPS

After creating billion-dollar startups, India's first generation e-commerce

& mobile entrepreneurs have donned a new hat - that of angel investors. Despite steering high-growth companies themselves, these 30-somethings are using their personal wealth and time to

push a whole new bunch of younger ventures. India saw the first wave of entrepreneur angels when the likes of Makemytrip's Deep Kalra and Naukri.com founder Sanjeev Bikhchandani took their companies public. However, this time around most of the angel investing is being done by existing entrepreneurs who are in the thick of running their own businesses. Whether it's Sachin and Binny Bansal of Flipkart, Snapdeal's founders Kunal Bahl and Rohit Bansal, Mu Sigma's Dhiraj Rajaram or InMobi's Naveen Tewari, they are all keenly investing in new ideas — a sign of the overall startup ecosystem maturing in the country along the lines of Silicon Valley. Angel investing is typically done at a very early stage of a company's life, and startups say they gain significantly from these entrepreneur angels. "Who better to know the high potential and market opportunities than existing entrepreneurs? This is great for the ecosystem. It also highlights the fact that this new breed of young entrepreneurs is truly putting its money where its mouth is. I find this very exciting for the future of value creation in the Indian market," says one-time entrepreneur Avnish Bajaj, MD at VC fund Matrix Partners India. Bajaj, along with his Harvard Business School classmate Suvir Sujan, founded India's largest online auction site Baazee, which was later acquired by eBay in 2004.

INDIA SEEKS JAPANESE INVESTMENT IN SMART CITIES, BULLET TRAINS

India sought Japanese investment to develop 100 smart cities and high-speed bullet trains to improve infrastructure and create jobs. "Japan is a natural partner of India. Japan is best in developing smart

cities, development of high-speed trains...In the next five years, we need 10,000 Japanese companies. We will hand-hold them," Amitabh Kant, Secretary in the Department of Industrial Policy and Promotion,

said at a Federation of Indian Chambers of Commerce and Industry [ FICCI] function. Kant said Japan has already formed a partnership with India for the Delhi-Mumbai Industrial Corridor (DMIC) project, a 1,483 kilometre dedicated freight corridor. He said about 1,000 Japanese companies currently have a presence in India. In its election manifesto, the ruling Bharatiya Janata Party said it would initiate the building of 100 new cities, enabled with the latest in technology and infrastructure. India has proposed to build smart cities under the DMIC project. They will have self-sustainable habitats with minimal pollution levels, maximum recycling, optimised energy supplies and efficient public transportation. "Rapid urbanisation is happening in India. About 750 million people would get into the urbanisation process in the next one decade and in all these things, Japan will be a natural partner," he added. He said Japan would become a key player in the development of the Indian economy. "Today, there is an opportunity to work with Japan. We look forward to work with Japan," he said. India received USD 16.26 billion worth of foreign direct investment from Japan between April 2000 and April 2014.

CELL PHONE RADIATIONS NOT CARCINOGENS: COAI

Cellular Operators Association of India (COAI), the umbrella body of the GSM operators, launched a nationwide public awareness campaign to dispel the myths that radiation from mobile tower

antennae and handsets cause cancer. As opposed to previous 'misleading' studies claiming that electromagnetic emissions produced by cell phones and telecom towers are carcinogenic, the campaign titled 'Mobile Network and Public Health' says no such correlation has been established yet. "We have been using X-ray radiations for over 115 years, and we still haven't established the relationship between cancer and radiation to any great extent. "We believe that mobile tower radiation does not produce any significant harm to humans," it says, quoting, Indian Radiology and Imaging Association president Bhavin Jankharia. According to the Delhi Medical Association, radiation emitted by the sun is 100 times stronger than that emitted by a telecom tower, making them too weak to be harmful for human health, cited the campaign. "Cell phones emit radio frequency waves, which occupy the lowest end of the electromagnetic spectrum, and thus cannot cause any sort of mutation in the DNA," said convener of the Neuro Oncology Group at the Tata Medical Centre Rakesh Jalali, in the video screened as a part of the campaign. It can be noted that following public oppositions to setting up of telecom masts in cities, the government has set strict radiation limits, capping the EMF emission to a 1/10th of the value recommended by the WHO (World Health Organisation), the campaign showed. The current radiation exposure limit in the country is 0.45 watts per square metre for mobile towers, which is much lower than the limits in the US, Canada and Japan, where this is at a higher 9 watts per square metre, the campaign says quoting the Delhi Medical Association. As opposed to popular belief that usage of handsets could contribute to brain-related diseases, the WHO Fact-Sheet 193, released in June 2011, says that there is no higher risk of brain tumours or acoustic neuroma with mobile phones

use of more than 10 years. "If there is a link between EMFs and cancer, it must be occurring through a mechanism that lies outside the standard mechanisms of carcinogenesis," the campaign quotes Siddhartha Mukherjee, the author of Pulitzer Prize-winning book 'The Emperor of All Maladies: A Biography of Cancer'. Cell phone users tend to be more cautious when companies advise them of alternative methods to use the handsets. In this regard, COAI director general Rajan S Mathews said, "Handset manufacturers only give alternate measures like using earphones to address users' concerns. If the handset complies with the specific absorption rate value, it is completely safe." The campaign, which will run across several cities, comprises reference books, videos and roadshows involving experts from oncology, radiology, molecular and physical science as well as the WHO.

INVESTOR WEALTH RISES BY RS 16 LAKH CR IN Q1, FY'15

Investor wealth soared by over Rs 16 lakh crore to more than Rs 90.19 lakh crore in the first quarter of 2014-15 because of rising stock prices amid robust foreign fund inflows and the

BJP government's storming to power at the Centre last month. The BSE's 30-scrip index, Sensex, has gained 3,027.51 points or 13.52 percent to 25,413.78 during the April-June quarter of the current fiscal. Investor wealth soared by Rs 16,04,394 crore on the back of stock market rally to reach Rs 90,19,394 crore today. It was Rs 74,15,000 crore as on March 31, 2014.Market experts said the BJP's landslide victory in the elections coupled with expectations of strong economic reforms have propelled the stock market ahead of the next week's Union Budget 2014-15.Strong inflows by foreign investors are mainly due to the expectation of several reform measures from the new government and hopes of a stable economic policy regime, they said. "Now, the countdown has begun for the Union Budget and market participants are eyeing pre-budget rally," said Jayant Manglik, President-retail distribution, Religare Securities Ltd.

News source : PTI


25INDIA BUSINESS NEWS

• DATUK RANJIT AJIT SINGH is the Executive Chairman of the Securities Commission Malaysia since 1 April 2012. He is also chairman of the International Organisation of Securities Commissions (IOSCO), an emerging market group on the

regulation of secondary markets and co-chair of the task force on bond markets. Ranjit completed Bachelor of Economics (Honours) degree and Master of Economics degree in Finance from Monash University, Melbourne and is a fellow of CPA Australia.

• The Ministry of Transport appointed DATO' CAPT. DAVID PADMAN as General Manager of Port Klang Authority the corporate body overseeing two of the port's terminals (Northport and Wesport). Both terminals that capable to handle some 10

million boxes comprising indigenous and transhipment cargo, as of 6 July 2011. He also serves as the Chairman of the International Association of Ports and Harbors Port [IAPH] Environment Committee since 2009 and the Chairman for Asia (Eastern Dredging Association) Oceania Region since 2010.

• DATUK M. NAGARAJAN was appointed as Deputy Secretary General (Plantations and Commodities)with prime responsibility of the overall development of the commodity sector covering palm oil, rubber, furniture industry, cocoa, pepper,

sago and tobacco and kenaf. Datuk M. Nagarajan started his career as administrative officer in the National Registration Department in 1981. He holds a Bachelor’s Degree in Social Science majoring in Economics from University of Science Malaysia (USM) in 1980. In 1996, he obtained his Masters in Economics from Vanderbilt University, United States of America.

• SHILA DORAI RAJ is currently the CEO of the Malaysia Compet i t ion Commission (MyCC). She was assigned with setting up the Competition Commission as well as laying the foundation for the implementation of the Competition Act 2010

which came into effect on 1 January 2012. She was the former Under Secretary of the policy and planning division of the Ministry Domestic Trade, Consumerism and Co-operative where she was a key team member who formulated the Competition Policy and then the drafting of the Competition Act 2010. She holds a Bachelor of Economics degree (UKM) and an LLB (Hons) (University of London) and a Certificate in Legal Practice (UM).

• PROF. DATO' DR. VEERA RAMANI is the Hospital Director of The Tun Hussein Onn National Eye Hospital and an Ophthalmologist since its inception. She is also the current Chairman of the Prevention of Blindness and Low Vision

Committee of Malaysian Association for the Blind. She is also an Independent Member of International Agency for the Prevention of Blindness and sits in the Council of Prevention of Blindness in the National level. She has presented over 47 papers locally and internationally.

• DATUK SERI DR K GOVINDAN is the Group Chief Executive Officer of RAM Holdings Bhd (formerly known as Rating Agency Malaysia Berhad), a leading provider of independent credit research and advisory services. Datuk Seri

Dr. K. Govindan was the Deputy Director of Economic Planning Unit (EPU). He has served the Economic Planning Unit (EPU) since 1975 and has retired in January 2011. He is also a Member, Board of Directors and Executive Committee Members of Malaysia Property Inc .

DID YOU KNOW?


26 DID YOU KNOW?

149%GAMUDA BHD’s NET PROFIT

In a statement to Bursa Malaysia said the group net profi t soar to RM177.9 million for third quarter ended April 30, 2014 from RM71.4million despite net revenue slipped 1.1% y-o-y from RM641.1million to RM633.8 million

£200 MILLION BRITIAN FIRST SOVEREIGN SUKUK

Britain became the fi rst country outside the Islamic world to issue sovereign Sukuk, the Islamic equivalent of a bond for £200 million, maturing on 22 July 2019 with profi t rate set at 2.036%. The Chancellor of the Exchequer George Osborne

said “We have seen very strong demand for the Sukuk, resulting in a price that delivers good value for money for the taxpayer. I hope that the success of this government issuance will encourage further private sector issuances of Sukuk in the UK.”

US$70,000PRICE OF TOYOTA’s FIRST FUEL CELL SEDAN

Toyota's fuel cell sedan can travel about 700 kilometers without refuelling, about three times further than an electric car, and it only takes three minutes refuel, similar to a petrol engine car, Toyota said. The green cars are powered by a chemical reaction of hydrogen and oxygen, which produces nothing more harmful than water.

US$42.8 BILLION INTERNET ADVERTISING REVENUES IN THE UNITED STATES

Interactive Advertising Bureau (IAB) reports revenues from Internet advertising in the United States up 17% from the $36.57 billion in 2012 to $ 42.78 in 2013. The report also discloses Mobile advertising in the

United States totaled $7.1 billion during FY 2013, a 110% increase from

t h e prior year total of $3.4 billion. Online advertising continues to remain concentrated with the 10 leading ad-selling companies, which accounted for 71% of total revenues in Q4 2013.

RM207.4 BILLION MALAYSIAN LOGISTICS INDUSTRY REVENUE PROJECTED

The Malaysian Logistics Industry projected to generate RM207.4billion revenue in 2017 Frost & Sullivan forecasted. As Malaysian economy up the value chain and attain fully developed economy status by 2020 through the creation of high income, the services sector is expected to play a more active role in generating economic growth. A target has been set for this sector to contribute 61% to the national GDP by 2015 or an average growth of 7.2% per annum during the 2012-2015 period of the 10th Malaysia Plan.

https://www.facebook.com/MalaysianIndianBusinessMagazine


28 FACTS & FIGURES

RM491.08 MILLIONBERJAYA CORP BHD'S [BCORP] PRE-TAX PROFIT

for the financial year ended April 30, 2014, declined to RM491.08 million, from RM575.26 million recorded in the same period last year. Revenue, however, rose to RM8.63 billion, from RM7.37 billion previously. In a filing to

Bursa Malaysia, BCorp said the lower pre-tax profit was mainly due to the incurrence of exceptional non-cash charges from impairment of certain goodwill and property, plant and equipment and lower profit contributions from associated companies. The company is proposing a dividend of one sen per share for the financial year.

120%DIVIDEND PER SHARE

IOI Corporation Bhd has declared its second interim dividend of 120% or 12 sen per share of 10 sen each. IOI Corp did not declare any dividend for the third quarter March 31, 2014. On Dec 9, 2013, the board declared a distribution-in-specie of 2.130 billion shares of RM1 each in IOI Properties Group Bhd (IOIPG) held by IOI Corp to all shareholders of IOI Corp on the basis of one IOIPG share for every three shares of 10 sen each in IOI Corp. The IOIPG Shares were distributed as distribution-in-specie on Jan 13, 2014. On Feb 25, 2014, the board declared an interim single tier dividend of 80% or 8.0 sen per share for FY ending June 30, 2014. The dividend was paid on March 21, 2014.

RM604.18 BILLIONTOTAL ASSETS MANAGED BY FUND MANAGEMENT INDUSTRY

Total assets managed include shariah compliance funds by Fund Management Industry in Malaysia stands at RM604.18billion as of 31st March 2014. Sources of assets under management include but are not

limited to, unit trust funds, corporate bodies, Employee Provident Fund (EPF), private pension funds and charitable bodies.

20% EU'S TRADE WITH THE REST OF THE WORLD

With just 7% of the world’s population, the EU's trade with the rest of the world accounts for around 20% of global exports and imports. Around two-thirds of EU countries’ total trade is done with other EU countries. Despite trade has

been hit by the global recession, but the EU remains the world’s largest player accounting for 16.4% of global imports in 2011. The EU is followed by the United States with 15.5% of all imports, and China with 11.9%. The EU was also the biggest exporter, accounting for 15.4% of all exports – compared with 13.4% for China and the 10.5% for the United States.

RM47.2 BILLIONVALUE OF MALAYSIA’S LIABILITIES

The value of Malaysia’s liabilities exceeded assets abroad by RM47.2 billion (4.8 per cent of GDP at current prices) as of December 2013 accordingly to Statistics Department of Malaysia Malaysia’s

financial assets position to the rest of the world continued to increase in 2013 by 10.5 per cent to stand at RM1,354.00 billion. However, total liabilities broadened by 12.7 per cent accumulated to RM1,401.2 billion as against RM1,243.4 billion a year ago, making Malaysia’s net international investment position remained as net debtor position.


29FACTS & FIGURES


30 MIB CALENDAR

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1Perfect Livin PenangSubterranean Penang International Conference & Exhibition Centre29 August - 1 September 2014

Water Loss AsiaThe Royale Chulan Hotel,Kuala Lumpur3 - 4 September 2014

Asia’s Premier Herbal Trade Show 2014Matrade Exhibition Convention Centre (MECC) Kuala Lumpur4 - 6 September 2014

Matta Fair-Kuala LumpurPutra World Trade Centre (PWTC) Kuala Lumpur5 - 7 September 2014

Rail Business AsiaKuala Lumpur Convention Centre 9 -11 September 2014

Palm Oil SarawakCivic Centre, Bintulu Sarawak 10 - 11 September 2014

Power - Gen AsiaKuala Lumpur Convention Centre 10 - 12 September 2014

Petroleum Asia ExpoBorneo Convention Centre Kuching 17 - 19 September 2014

Electropower Asia ExpoBorneo Convention Centre Kuching 17 - 19 September 2014

Warehousing Storage andMaterial HandlingMalaysia International Exhibition &Convention Centre25 - 27 September 2014

100 Percent Design SingaporeMarina Bay Sands Singapore 1 - 3 September 2014

World Sugar ExpoBangkok International Trade &Exhibition Centre, Bangkok Thailand 3 - 4 September 2014

India Bakery ExpoChennai Trade Centre 4 - 6 September 2014

International Machine Tools ExpoPragati Maidan, New Delhi India 4 - 6 September 2014

Power Industry IndiaPragati Maidan, New Delhi India4 - 7 September 2014

CWE - Cutting & Welding Equipment Expo Pragati Maidan, New Delhi India4 - 7 September 2014

Bangkok Furniture FairImpact Exhibition & Convention Center, Bangkok, Thailand 6 - 14 September 2014

ElectronexAustralian Technology Park,Sydney Australia10 - 11 September 2014

Landscape Australia Expo - SydneyRoyal Hall of Industries & Hordern Pavilion, Moore, Sydney Australia 10 - 11 September 2014

Pumps & Systems Asia-SingaporeMarina Bay Sands Singapore 10 - 12 September 2014

MIB : Quality of work delivered and on time work completion plays vital role in selecting a vendor or contractor. We hope feedbacks from public assist Indian business community to understand their needs and work towards improvement.

It has been my observation that the Chinese will be appointed as he has a proven track record of completion as agreed, Indian will give problems whereas the Indonesian will probably abandon the work. Indians need to build a reputation as being ethical and honest.

- Gursharan Singh, Self Employed Independent Consultant

I will give the Indian and the Indonesian a chance base on their previous record. I know an Indonesian for 10 years who is in this line and he collects my rental. I would go for the Chinese if i do not know the the Indian or the Indonesian personally.

- Al Rajan Kannappan, Executive

I might just go for the Indian. I gave my business premise renovation to a Sikh contractor.

- Vishnu Kumar, Lecturer

I prefer to give Chinese even though expensive but quality comes fi rst. Had experience with Indian contractors’ jobs not good but cheating.

- Kuna Rajah, Safety, Health & Environment Supervisor

I prefer Chinese. Work quickly is superb and worth paying for their job.

- Sivanandan, Senior Resident Executives

A lot of Chinese contractors are just middle man who take the contract and get some Indonesian to do it at a cheaper price. I have had bad experience with Chinese contractors too, where the work defect shows after a couple of months or a year. For any contract of a reasonable big sum I will look for established contractor who are willing to sign contract with me. For contract of small sum I will defi nitely give Indian a chance but monitor payment and work strictly with them. Its time these small Indian contractors tie up and set up an organization to run their business professionally with contract and guarantee of work to move up the value chain. This will defi nitely give consumer confi dence to use their service.

- Prasad Ramachandran, T-OD and Research Collaboration Manager

I will defi nitely give opportunities for Indian Contractors.

- P.Venudas Ponnusamy, Director

Race of the contractor doesn’t matter, quality or work and reliability is most important. I use my regular contractor for the last 10 years not because of his race but because he always delivers what he promises and workmanship is excellent.

- Arvind Nambiar, Associate Business Excellence Manager

If it’s a major work I will hire the Chinese but if involves minor works and not critical I will hire the Indian Contractor.

- S Saraswathy, Vice President

I will appoint whoever gives me a quality work and timely completion eventhough the price can be slightly above my budget.

- Sarguna Raj, Project/Program Manager

Chinese contractors will do a proper job, but they are too racist. They will give 2 different quotations for the same job. For Chinese will be cheaper and for Indians will be expensive. I had a very bad experience with them.

- Rao Chamasalam, Manager

FEEDBACKS

SCENARIO 2 SCENARIO 3SCENARIO 1 SCENARIO 2 SCENARIO 3SCENARIO 1

A well-established Chinese contractor in your area with proven track record. They promise work completion within 45 days. Price 30-50% above your budget.

An Indian Contractor with 20 years’ experience working for others. Just completed two jobs through own company. He is requesting work completion up to 60 days with price meeting your budget.

An Indonesian working elsewhere, he promises to complete work 30% below your budget with completion within 60 days and work fl exible hours.

Whom will you appoint ascontractor to renovate your house based on scenarios described below?


31MIB FORUM

Normally people organise party to celebrate success but this one person from

Sungai Petani, Kedah organize parties to success. Hosting a party or event can turn to be a stressful but not to NAVNA MUSIC STUDIO founder Mr. JeyaBalan Selvarajoo or fondly known as Deejay Bee whom enjoying entertaining his client’s guest while ensuring the event managed effectively and a memorable one. Recently MIB fortunate enough to interview the dynamic and creative man with a mission to be a one stop centre for your entire event needs without jeopardizing overall quality. We hope his journey of partying for success inspires the young generation particularly. Enjoy reading.

MIB : Tell us about your business and family background?

NaVna: NAVNA MUSIC STUDIO was formed on a very auspicious date 7th July 2007 [07-07-07] to provide sound and lightings services only. Prior to this we operate on part time basis under a different entity name taking up small projects whenever opportunities crossed. As demand surge, I decided to involve full time by offering complete event management services. We are now capable of providing full event needs such as decorations, photography, videography, food catering, sound & lighting system, bridal make up, canopy, table, chairs, stage, “koolam”, dance

PARTY FOR SUCCESS

with DEEJAY BEE Founder of

NAVNA MUSIC STUDIO

Deejay Bee with his motherAlagammah Thannirmalai


32 ENTREPRENEUR

group , entertainments, priest [Iyer], “nadhaswaram”, screen projector, pyro effects and few other services. Presently we have six full time staffs and another 24 part time crews attached with us. I am the youngest in my family of five children with two elder brothers and two elder sisters.

All my family members are from music industry, my father had his own music band with my sisters as singers and my brothers handles the musical instruments. Myself very passionate with piano or some refer as keyboard and enjoy playing it. That’s how I came into the industry followed by offering sound and lighting systems initially. Few years later I upgrade myself by attending few courses such as learning about decorations before offering any of the services mentioned earlier.

MIB : What are the challenges you faces?

NaVna: During our business at infancy stage we decided to concentrate only in supplying sound and lighting equipments , however when customers approach us for other related services such as photography we outsourced the business to others. Since, it wasn’t our pie and has less manpower we decided to cooperate with others specialising on particular business. However, such cooperation erode our relationship with customers and tarnished our reputations for the poor quality and bad workmanship delivered by our outsourcing partners. As we are putting our company name when recommending others, customers

stays away from us. In order to salvage further loss of business, we started to offer all related services by ourselves and recruit our own staffs. This enable us to move up value chain, control quality of work delivered and keep our promise with customers. It was very expensive

learning curve for us that brought to the implementation of “Be it Good or Bad let us do it by Ourselves.”

MIB : What Kind Of Marketing Activities Your Company Do?


33ENTREPRENEUR

NaVna: Considering our strength and foothold here at Johor Bahru our promotions during an event managed by us plays vital role in capturing new customers. We leave pamphlets, name cards and place banners at strategic locations during events to answer curiosity by guest attending functions. We work harder to create awareness about ourselves, so whenever time permit us or during off peak seasons, our vehicle move around most populated areas in Johor Bahru. Our mascots and clowns shall walk and entertain peoples while they are shopping. That attracts people and creates brand awareness.

We constantly give attention to details, provide creative suggestion and unique atmosphere at each of event managed. That attracts corporate marketing agencies whom in turn recommend us for corporate events; they become our linking bridge to serve Malay and Chinese clients. Rest we focus on family events mostly targeting Indians.

MIB : What Is Your Hobby And How Do You Serve Less Fortunate?

NaVna: As I told earlier, my hobby since small is playing piano but nowadays due to work commitments most of my time taken up. Our ways of serving less fortunate differ from others. We don’t simply give cash out, but rather enjoy serve them. Whenever, we have free weekends all of us shall drove to an orphanage, so course with prior appointment. There our artists, clowns will entertain the occupants while rest of us will distribute cakes and sweets to make them happy.

MIB : What Would be You Advice to Indian Youths?

NaVna: Once I read an article claiming event management Industry worth approximately US$500billion globally. This industry very huge and opportunities are abundant for Indian youths to get involved. Lot of them simply come and disappear as they not doing it properly. Even, I myself trying to do better and for that I need lot of people to work with me. For youths, please try

not to get yourself involve in any unwanted activities. Get yourself involved in event companies like us or get yourself trained in music and art. It will give hand when you need it.

MIB : Given Opportunities Where Would You Invest?

NaVna: MIB asked Deejay Bee why he named his business as NAVNA and should an opportunity arise where would he invest 1) Maybank Share 2) Buy New House 3) Gold?

The Director of NAVNA MUSIC STUDIO prefers to invest his money in purchasing new house rather than buying other equities. He picked his business name from the word “Navinam” which literally means newness.


34 ENTREPRENEUR

When a brand is architecturally right, is it important for us to look into the Brand’s performance. A brand’s performance is also

measured through its consistency.

Every business in the world, no matter its size, benefi ts from tactically developing a brand and maintaining it as a recognizable representation of the organization. A strong brand identity propels it to the forefront of those consumer attitudes, which facilitate their spending decisions.

Simply put, an effective brand illustrates to the public a company's product or niche, and highlights what sets it apart from its competitors. It combines a number of major factors, including marketing and public relation efforts, logo and promotional material, communication efforts, and core values.

WHY IS IT IMPORTANT?

Branding effort allow businesses to differentiate themselves through their competition and gives them a leg to stand on in the minds of consumers. It attaches a personality and attitude to the product and the company that produces it. This personality is what people relate to, establishing relationships with consumers. This, in turn, encourages brand loyalty, which cements the company's future in the market. Furthermore, the establishment of brand consistency creates a platform for the company to stand on in order to get messages out to its audience.

Realistically though, establishing and maintaining a recognizable and trusted brand is truly an art form, and not every company gets it right. Here are several companies that are absolutely nailing it.

The Importance of Brand Consistency


36 BRAND MANAGEMENT • by Prasath Kanagaras

There's a reason that Google, Inc. seems like it's taking over the world. Internet users everywhere know what Google is and what it does. The Internet powerhouse company uses the same recognizable typeface and design elements across every aspect of its marketing platforms. In today's social media dominated world, it's worth noting that Google has had a presence on every single social networking site from the beginning. Now that it has a social network of its very own, the Google logo is even more cemented in the depths of the Internet.

As we all know, Google has managed to keep its brand image consistent to still be one of the most favorite and useful brand in internet marketing. These paradigm shifts and ingenious acquisitions played key roles in morphing what started out as a simple search engine into the product and software-developing, answer-seeking, Internet-dominating titan that it is today. And a lot of that success is thanks to its signifi cant brand consistency.

The value of a brand comes from consumers who believe the value that brand makes to them. Brands that don’t keep their promises through every customer interaction are doomed to failure. The reason for this is a little something called trust.

Let’s look into Coco-Cola as an example. Is there a more recognizable brand on the planet, with its distinctive bottle shape, typeface and red-and-white image? Also consider Nike, whose swoosh image is so familiar that you don’t even need to see the company name to know what the product is.Of course, most businesses haven’t been around 1892, like Coco-Cola, which has had well over a century to get its brand right. And while Nike is a relative newcomer on the scene, having been launched in 1971, it too has lessons that can help us improve our own brand recognition and consistency.

So in basic, many new businesses out there seem to change their name and their brands like they change the sheets on their beds. This is what happens when you don’t have a clear purpose in mind. Create your brand and stick with it! And make sure all your messages – in your blog, on social media, in advertisements and on your website – have that same consistent brand message.

We got to be consistent. We got make the brands to be a leading brand.

Prasath KanagarasBrand StrategistPoint Blank Mediaworks

[email protected]


37BRAND MANAGEMENT

13 SINGAPORE FIRMS WIN BEST COMPANIES TO WORK IN ASIA AWARDS

Thirteen companies from Singapore were announced the winners of the Best Companies to Work for in Asia Awards 2014. The awards, organised by trade journal HR Asia, saw

113 companies competing to be known as the best workplaces in Singapore and Asia, and encompass employees' feedback and input, as well as management comments and presentation. In total, 3,000 Singaporean employees were surveyed to determine their intention and motivation, emotional engagement and advocacy of their respective employers."This is one of the most scientifi c and extensive surveys on employee engagement and workplace practices in this region. "Since embarking on the project last year, HR Asia has discovered that many of these companies -- both local and international -- have workplace practices that are on par with the best in the world," Tan Sai Hup, Chief Operating Offi cer of Business Media International, the publisher of HR Asia, said when announcing the results here. The Awards will cover 12 markets across Asia, with Malaysia, Singapore and Hong Kong being the fi rst three to announce the results. The award winners include AIA Singapore Pte Ltd, CEVA Logistics Singapore Pte Ltd, Coca-Cola Singapore Beverages Pte Ltd, Dairy Farm Singapore Group, Genesis Retail Pte Ltd, Jurong Health Services Pte Ltd, Kronos Incorporated,Mandarin Oriental, Singapore, Park Hotel Group, Pertamina Energy Services Pte Ltd, Singapore Exchange Ltd, Singapore Marriott Hotel and the Fullerton Heritage Singapore.

SINGAPORE UNVEILS SUPER WIFI REGULATIONS

The Infocomm Development Authority of Singapore (IDA) will be introducing a set of regulations for the use

of spectrum in the TV White Space (TVWS) in an effort towards becoming the world's fi rst smart nation. Singapore is one of the fi rst few countries in the world to implement such a framework for

TVWS. The regulations will make available for use approximately 180 MHz of spectrum when it takes effect from November 2014. The regulations come after the conclusion of a public consultation in 2013. In a statement, Leong Keng Thai, IDA's Deputy Chief Executive and Director General (Telecoms and Post), said: "The TVWS regulatory framework is a step towards Singapore's vision on being the world's fi rst Smart Nation. “Regulators all over the world are exploring different ways to effi ciently use spectrum, so that they can plan for their countries' future needs. "The additional spectrum to be made available through the TVWS regulatory framework will ensure that Singapore effi ciently allocates and uses this available bandwidth to support the growing demand for data communication." Taking into account input from the industry, these regulations will set out the TVWS equipment requirements, spectrum channels to be made available for TVWS use, and how TVWS equipment should communicate with geo-location databases to identify the available spectrum channel to use, among others. The regulations will also provide business certainty to companies who intend to offer services over TVWS. This signals Singapore's commitment to support TVWS technology as businesses roll out innovative applications and solutions over TVWS. Such applications may include Machine-to-Machine communications, smart metering, outdoor environment and security monitoring services. Consumers will stand to benefi t from this additional spectrum. As more Internet-capable devices are launched, it is necessary for more spectrum to be made available to cater for increased data consumption.

SALARIES IN SINGAPORE LIKELY TO GROW 4.3% THIS YEAR: SURVEY

SINGAPORE: Salaries in Singapore are set to rise 4.3 per cent this

year, down from a 4.5 per cent increase in 2013, according to a survey released on July 1 by professional services company Towers Watson. For the rest of Asia Pacifi c,

wages in Pakistan and Vietnam are expected to rise the most at 13 per cent and 11.5 per cent, respectively. For India, salaries are likely to rise 10 per cent; for Indonesia, 9.6 per cent; for China, 8 per cent; for Hong Kong, 4.5 per cent; and for Malaysia, 5.9 per cent. New Zealand and Japan are expected to see the lowest increases with 3 per cent and 2.3 per cent, respectively, according to the survey. According to the survey, senior personnel in Singapore’s fi nancial services sector are set to see the highest rate of increase in year-on-year salary growth across Asia Pacifi c and all other industry sectors. Executive directors, the most senior executive position in a fi nancial services organisation, are expected to see a salary increase of 4.3 per cent this year, compared with 2.5 per cent in 2013. Senior management, comprising executives who report directly to the general management, are expected to see a 4 per cent growth in 2014, compared with 3 per cent last year. “The growing number of fi nancial institutions based in Singapore has led to an intensifying competition for top executives thus resulting in the market adjustment of salaries,” said Sean Darilay, Leader of Towers Watson's Global Data Services practice in South-East Asia. “Beyond pay strategies, organisations are trying to fi nd innovative means of attracting and retaining key talent within the total rewards portfolio, such as new ways of designing and delivering their benefi ts.” The Towers Watson 2013-14 Asia-Pacifi c Salary Budget Planning Report surveyed about 400 different companies across 18 countries in the Asia-Pacifi c region.

SIA CARGO TO STOP CARRYING SHARK’S FINS FROM AUGUST

S ingapore Air l ines (SIA) Cargo will stop carrying shark’s fi ns

from August, following similar moves by other airlines in the past two years. “SIA Cargo carried out a thorough review which took into account increasing concerns around

the world related to shark-fi nning. Following this review, SIA Cargo will no longer accept the carriage of shark’s fi ns, with effect from Aug 1,” said a SIA spokesperson. A 2013 report by wildlife trade monitoring network, Traffi c, showed that Singapore was one of the world’s top four exporters and the third-largest importer of shark’s fi ns between 2000 to 2009. Hong Kong was the world’s largest importer, responsible for more than half of the imported shark’s fi ns in the same period, the report said. Cathay Pacifi c, a Hong-Kong based airline, was the fi rst airline to stop carrying shark’s fi ns in late 2012, in response to pressure from various environmental groups in Asia to ban such shipments. Several other airlines, such as Korean, Asiana, Qantas and Air New Zealand, later followed suit in enforcing restrictions or bans. Following SIA Cargo’s policy change, Mr Alex Hofford, director of WildLifeRisk, which is leading the Facebook campaign to get airlines to stop carrying shark’s fi ns. Mr Hofford, whose conservation group is based in Hong Kong, inform press that they are delighted to see SIA takes


38 SINGAPORE BUSINESS NEWS

its corporate social responsibility seriously. Ms Elaine Tan, CEO of the World Wide Fund for Nature (WWF) Singapore, added: “This is a responsible move that encourages all other airlines flying into Singapore to follow suit. When airlines stop shipping shark’s fins, it directly impacts overall availability and, in turn, lowers consumption, which is a good thing. “The WWF will keep working hard with industry to remove shark’s fin altogether,” she added.

HOTEL GRAND CHANCELLOR IN LITTLE INDIA SOLD FOR S$248M

The Hotel Grand Chancellor in Li t t le India,

Singapore has been sold to an unnamed party for S$248 million, owner Hotel Grand Central Ltd not i fy newsman. Hotel Grand Central said the buyer has paid a deposit of

S$18.6 million for the 328-room 3-star hotel at Belilios Road, and the transaction is expected to be completed in January next year. Hotel Grand Chancellor, which opened in 2010, was valued at S$201 million back in September 2012.

SINGAPORE BUSINESS CONFIDENCE DIPS IN Q3: REPORT

Bu s i n e s s c o n f i d e n c e in Singapore

dipped slightly in the third quarter of this year, sliding to +14.65 percentage points from +22.66 percentage points in the previous quarter. This is according to Singapore Commercial Credit B u r e a u ' s ( S C C B ) Business Optimism

Index (BOI) study , which showed that local businesses were more cautious amid a slight drop in regional demand and uncertainty in the global economy. The quarterly study by SCCB tracks business expectations in key areas such as net profit, volume of sales and employment. The services and construction industries ranked among the most optimistic sectors, according to the study. The services industry anticipated sales volume and net profits to remain at healthy levels, owing to higher retail sales volume and gains in the food and beverage and electronics, watches and jewellery sectors. Meanwhile, public sector construction activities were expected to drive the industry, despite a tightening foreign worker policy keeping a lid on growth. Audrey Chia, CEO of SCCB, said: "Recent reports of a contractionary shock in the US economy may have dampened business sentiments here slightly. However, the overall BOI (Business Optimism Index) reading remains healthy and reflects positively on the resilience of SMEs against external risks and uncertainties.


39

MANAGEMENT LESSONSFROM INDIAN MYTHOLOGY

MYTHOLOGY:In the Ramayana, as King Ravana seriously injured on the battlefield Lord Rama walks towards him and with extreme humility asks, “Lord of Lanka, you abducted my wife, a terrible crime for which I have been forced to punish you. Now, you are no more my enemy. I see you now as you are known across the world, as the wise son of Rishi Vishrava. I bow to you and request you to share your wisdom with me. Please do that for if you die without doing so, all your wisdom will be lost forever to the world.”

“If only I had more time as your teacher than as your enemy. Standing at my feet as a student should, unlike your rude younger brother, you are a worthy recipient of my knowledge. I have very little time so I cannot share much but let me tell you one important lesson I have learnt in my life. Things that are bad for you seduce you easily; you run towards them impatiently. But things are actually good for you fail to attract you; you shun them creatively, finding powerful excuses to justify your procrastination. That is why I was impatient to abduct Sita but avoided meeting you. This is the wisdom of my life,” Ravana tells Rama before his soul departed this world.

LESSONS:It is easy to claim the material possessions of the defeated, but not one’s knowledge. Over the past decades, business has been knowledge driven. People leaves out the organisation with vast amount of knowledge about their trade secrets, markets, clients including confidential information that gives them competitive edge.

Every CEO must respect that everyone in the organisation, even those who he does not particularly like, are repositories of great wisdom – not only knowledge of things that work but also knowledge of things that do not work. He must make conscious efforts to capture as much of it as possible.

TODAY I LEARNED

MATRADE GENERATES RM2.16 BLN SALES THROUGH MSE'S

The Malaysia External Trade Development Corporation (Matrade) has successfully

generated sales of RM2.16 billion from the various services clusters at the recent Malaysia Services Exhibitions (MSE) 2014. Matrade said recognising the importance of Malaysia’s services sector, it had organised a series of seven MSEs, with the aim of promoting the country's services in the international market. It

said in a statement, among the clusters highlighted at the MSEs. was construction and related professional services, building materials, electrical and electronics components, franchises, business services, logistics, food, lifestyle, education and healthcare. It added that the MSE in Ahmedabad, India, managed to generate sales of RM116.67 million, Jeddah (RM898.24 million), Doha (RM412.5 million), Beijing (RM161 million) Phnom Penh (RM407.16 million), Jakarta (RM127.10 million) and Kuala Lumpur RM36.6 million. Matrade plans two more MSEs in Yangon, in conjunction with the Showcase Malaysia Myanmar 2014 from Oct 1-4, and in Kenya together with the 18th Kenya International Trade Exhibition 2014 from Oct 3-5, while inviting more service providers to join. In addition to collaborating with the Construction Industry Development Board, Matrade will organise another incoming buying mission (IBS) by bringing in international buyers for the International Construction Week 2014, from Sept 17-19. Companies interested in business meetings for the IBS can register their interest now, it said.

FOUR NEW PROJECTS TO STRENGTHEN HEALTH CARE - SUBRAMANIAM

Four new projects will be implemented under the national key economic

area (NKEA) for health care to provide more comprehensive health services to the people as well as to generate the national economy.Health Minister Datuk Seri Dr S. Subramaniam said the new projects were entry

point projects (EPP) on medical devices and wellbeing of senior citizens. It encompasses manufacturing of burn care wound device by SteriPack Asia Sdn Bhd; Establishment of Toshiba Medical Systems Manufacturing Subsidiary in Malaysia by Toshiba Medical Systems Corporation, Japan, Econ Medicare Hub (Phase 1) by Econ Healthcare Group of Singapore and Eden on The Park :Integrated Senior Active Lifestyle & Care Residence Resort by Eden-on-The-Park Sdn Bhd. "The four projects will give a positive impact to the gross national product amounting to RM45.9 million by 2020," he said when speaking at the Healthcare NKEA Progress Update. Subramaniam said since the launch of the national economic transformation programme (ETP) in 2010 up to December 2013, 36 projects were announced under the health care NKEA. "The projects are expected to impact the gross national product by RM6.55 billion in 2020, and it could create 26,476 new job opportunities and open new investment opportunities amounting to RM4.76 billion by 2020," he said. From 36 projects, 12 projects have been completed with the remaining in various stages of development, he said. Subramaniam said the ministry was working toward attracting more private companies to invest, in line with the desire of the government to make the sector more dynamic, strong and competitive.

MALAYSIA WILL ACHIEVE 5.5 PER CENT GDP GROWTH TARGET IN 2014, SAYS UOB

Malaysia will achieve its target Gross Domestic Product

(GDP) growth of 5.5 per cent in 2014 with a similar growth likely to be registered in 2015, a regional economist said. Managing Director and Head of Research and Investment Relations of United Overseas Bank

(UOB) Ltd Jimmy Koh said the projection was based on positive external factors and private consumption. He told newsmen that most economies, at present, were performing moderately or even better than the previous year. Malaysia, with a lot of cooling measures put in place by Bank Negara to cushion the impact of rising houses prices, would further support the growth of economy, Koh added. The uncertainties, blown up by political issues, were slowly being digested in the second half and this would spur economic activities, he said. Koh also added that the backlog in foreign investments was beginning to flow in and would push growth up to 5.5 per cent this year due to stable external factors. Koh said the central bank already increase the OPR by 25 basis point after the monetary policy meeting in July and may increase by another 25 basis point before the year-end. However, he said there would be no significant rise in interest rates that would jeopardise growth as Bank Negara would closely watch the impact of these measures. "Look at the Malaysia's interest rates which is now at 3.0 per cent but inflation is at about 3.5 per cent. "What you need to do is to hike interest rates," he said. He also said the move was also aimed at normalising monetary conditions and preventing the risk of financial imbalances which could undermine the economic recovery process. He said the long-term OPR rate in Malaysia was about 3.0 per cent given the effect of inflation trajectory, and the implementation of the Goods and Services Tax in 2015 would actually warrant a higher interest rate. He added the OPR rate would hovering around 3.5 per cent to address the issue of consumer leverage and assets prices. For the long-term, he said, some of the measures which would be implemented, would use administrative control to cushion the impact of over-pricing.

MALAYSIA EQUITY MART STILL HAS UPSIDE POTENTIAL -- RHB RESEARCH

Malays ia ' s equ i t y market still has upside potential and will trend

higher in the second half of the year, said RHB Research House. In a statement, RHB Research said it would maintain its year-end FTSE Bursa Malaysia KLCI target at 1,940, which was about 16.3 times the 2015 earnings.

"Improving global growth prospects and accommodative policies in major world economies augur well for local equities," it said. The research house said Bursa Malaysia was now the most underweighted market in the region according to foreign investors. "Indeed, Malaysia stands up as the only country in the region that is on track to deliver a stronger economic growth this year and the only beneficiary of an oil price increase should tensions inIraq escalate," it said. RHB Research said as the local market lacked


40 MALAYSIA BUSINESS NEWS

strong investment themes, investors would have to rely on stock-specifi c ideas to generate alpha levels that were above and beyond market returns to outperform. "There is more value in growth sectors as economic growth was gaining momentum and would unlikely be derailed," it said. Sector-wise, the research fi rm said it preferred plantation, oil and gas, construction, property and niche players with operations based on the Sarawak Corridor of Renewable Energy.

WHOLESALE AND RETAIL SECTOR LIKELY CONTRIBUTE RM156 BLN TO GDP

The wholesale and retail sector is expected to contribute RM156

billion to the country's gross domestic product (GDP) and create half million jobs by 2020, says Tourism Malaysia.Tourism Malaysia's Penang director, Harun Pilus, said

the sector has contributed 13 per cent to the country's GDP and it was the second biggest contributor to gross national income among the 12 National Key Economic Areas. "Shopping is the second biggest share of tourist expenditure making it a lucrative sector of Malaysia's tourism industry."Last year, out of the total receipts of RM65.4 billion, tourist expenditure on shopping registered RM19.8 billion, an increase of 6.3 per cent against the previous year," he said at the launch of 1Malaysia Mega Sale Carnival 2014. Harun said the government's assistance and support, favourable exchange rate, excellent infrastructure as well as retail players' innovation and healthy competition had created a vibrant shopping tourism.Meanwhile, Hunza Properties Bhd's executive director, Khor Tze Ming, said the 1Malaysia Mega Sale would stimulate the local economy through high spending power of the domestic consumerism and foreign earnings. She said the retail shopping held the second largest share of the tourist expenditure after the accommodation sector, thus a mega sale especially around this time would boost tourist spending and benefi t the local retailers. The 1Malaysia Mega Sale Carnival starts from June 28 till Sept 1, 2014. It offers shoppers a two-month shopping period with discount and exclusive deals.

TEKUN EXPECTS TO HELP MORE PEOPLE BECOME ENTREPRENEURS

Tabung Ekonomi Kumpulan Usaha Niaga Nasional (TEKUN) expects to help more people

become entrepreneurs, said managing director, Datuk Abdul Rahim Hassan. He said RM500 million was allocated this year to help entrepreneurs start their businesses."Until now, we have distributed about half of the amount to

15,000 entrepreneurs," he said at a media briefi ng after signing the memorandum of understanding (MOU) with Technology Park Malaysia Sdn Bhd here today. So far, TEKUN has distributed loans to 293,000 entrepreneurs in various sectors. He said although there would be no special allocation for entrepreneurs involved in technology sector, they would be given priority. "About 80 percent of the entrepreneurs who received TEKUN loans are involved in services and retail sectors and 20 per cent in agriculture and technology," he said. Abdul Rahim said the loan repaymentsuccess rate was 80 per cent and for growing companies the rate was 20 per cent. TEKUN, which was set up in 1998, has received an allocation of RM1.9 billion from the government.

PEMANDU'S GLOBAL RECOGNITION PROVES M'SIA ON RIGHT PATH TO BECOME DEVELOPED NATION - PM

Prime Minister Datuk Seri Najib Razak expressed his confi dence that Malaysia is on the right track

to achieve developed-nation status by 2020. He said this was because of the country's development progress following the achievement of the Performance Management and Delivery Unit (Pemandu), which has been recognised as among the world's top 20 leading government innovation teams. "This ranking for Pemandu, a catalyst for performance, shows that Malaysia is on track in our aspiration to achieve developed-nation

status. "Malaysians, we have moved forward, from strength to strength," he said in his posting on his Facebook and Twitter accounts today. The United Kingdom's innovation foundation, Bloomberg Philanthropies and Nesta, in its publication, listed Pemandu as among the world's top innovation teams in government. Explaining his vision, Najib, who is also the Finance Minister, said he had established Pemandu in 2009 to support the implementation of the National Transformation Programe, which aimed to turn Malaysia into a high-income economy by 2020. He said the programme targeted transformation in both the government and private sector through the Government Transformation Programme and Economic Transformation Programme. "The GTP focuses on modernising how the Malaysian government operates while the ETP focuses on attracting private investment, both foreign and domestic, into Malaysia," he said. The report titled 'i-teams: The teams and funds making innovation happen in governments around the world', listed some of the most compelling models to serve as a recommendation for other governments looking to create their own 'i-teams'. It also highlighted innovation teams set up by city, regional and national governments to deliver new solutions to complex challenges. It said the 20 i-teams were bringing new tools, methods and practices into the heart of traditional bureaucracies, tackling a wide range of issues, from reducing murder rates and increasing educational attainment to promoting economic growth and engaging citizens in service redesign. The report stated that a number of i-teams in Asia were rising rapidly, while the greatest concentration remained in Europe and North America.

TUNE HOTELS TO INVEST US$25 MLN IN KENYA HOTEL

Tune Hotels Group plans to invest about US$25 million for its new hotel in Kenya, said Group Chief Executive Offi cer Mark Lankester. "This is a new market for us in Africa and the details

of this new venture will be announce in the next two weeks," he told the


41MALAYSIA BUSINESS NEWS

media after the launch of Tune Hotel by Deputy Minister of Energy, Green Technology and Water, Datuk Mahdzir Khalid at KLIA2 here today. He said for the local market, the budget hotels operator also planned to open a few more hotels in Melaka, Kedah, Cyberjaya and Langkawi by the end of this year. "The 400-room Tune Hotel KLIA2, which opened for business on May 9, has recorded about 90-95 per cent occupancy rate currently and this is very encouraging for us," he added. The newly-opened Tune Hotel KLIA2 has received double recognition for its green technology and energy-effi cient features. The hotel has been awarded a provisional Gold Rating by Green Building Index Accreditation Panel and subsequently submitted as the fi rst demonstration project under the Building Sector Energy Effi ciency Project (BSSEP). The BSSEP is a national project implemented by the Malaysian Public Works Department in collaboration with the United Nations Development Programme and co-funded by the Global Environment Facility. Its goal is to achieve a reduction in the annual growth rate of emissions from building in Malaysia by promoting energy conversing design of new buildings.

LOOK BEYOND MALAYSIA, LOCAL SMES URGED

Local entrepreneurs have been urged to expand their businesses beyond Malaysia

and not be too comfortable with their domestic operations. Making the call, property tycoon Tan Sri Liew Kee Sin, chairman judge of the SME Innovation Challenge 2014, said Malaysian small-and-medium enterprises (SMEs) tend to be too comfortable with their current business level given the various types of support by the government. "They are easily

satisfi ed with having a RM5 million market capital while the capital market of SMEs in Singapore and Hong Kong are in millions of Singapore dollars or US dollars. "When you want to buy a piece of land in London, it will cost you 500 million pounds and with the RM5 million market capital, you are unable to make that purchase," he told reporters at the launch of the challenge here today. Liew, who is also Eco World Development Group Bhd Director, urged entrepreneurs to scale up their businesses to drive the economy and help Malaysia achieve high-income nation status. The competition, organised by Alliance Bank Malaysia Bhd, kicked off today in conjunction with the Young Entrepreneurs' Conference 2014, where 20 fi nalists will receive mentorship from top business leaders and a chance to win cash prizes of up to RM600,000.Meanwhile, online shoe seller Christy Ng, who bagged the RM250,000 grand prize at last year's challenge, urged SMEs to use the competition as their stepping stone in the industry. "The SMEs will have nothing to lose if they join. Furthermore, it is a great platform to discover yourself and meet other great entrepreneurs," she said. Ng said her company's sales and orders have doubled, with the majority coming from overseas such as the United States, Canada and Australia. "We are confi dent that we will do better this year not only because of the fund, but also from all the mentorship, guidance and publicity. "Whether you win or not does not really matter because there is still a lot to gain just by joining," she added.


42 MALAYSIA BUSINESS NEWS

SUBSCRIBTION FORM

10 INSPIRING QUOTES


46 QUOTES

6 7

8 9

10

The wise respond. The foolish react.The wise think & then act. The foolish act and then regret.

Realize and understand the di� erence between reaction and response.

Reaction is impulsive, an immediate behavioral response that comes from emotions and not intellect. Response happens when we think, analyze a situation and then re� ect upon it. Therefore response comes from intellect.

The wise succeed because instead of reacting they respond. They don't regret because all their actions are well thought of. But the foolish ones react impulsively and regret it throughout their life.

Whenever a problem arrives, do three things: Face it, Fight it and Finish it.

Human react similarly to what an ostrich do when it senses danger?

It � ops � at on the ground and tries covering its eyes and head. Thinking that if danger not seen , the danger will also not be able to see it. Running away from them or escape them or avoid them completely thinking that the problems will go away on their own. But actually, the problems chase us all through our lives. That is the nature of problems, the more you get scared, the more they will chase you and me. So what should we do when a problem arrives? Confront your problems; before they attack you, attack your problems; face them, � ght them and � nish them.

You can be who you want to be, if you stop being what others want you to be. Live your Life Philosophy.

What do you REALLY want to be? Do you want to be what others want you to be?

Are you leading your life the way you want to or are you getting carried away by doing what others want you to do? Most of the people regret later in life the things that they didn't do. Traditions, customs and religion stop them from living their life and making their dreams come true. Today, take a pledge to have no regrets in life, to live your life exactly the way you want, to adopt a philosophy for your life and start living it from today.

First, know where you want to go. Then, go where you want to go. You are your own pilot and you can choose your Destination.

Imagine a pilot not knowing where he has to go. The aircraft will keep hovering aimlessly in the sky with nowhere to land. Have you realized that you are a pilot – a pilot of your own life? Your airplane will take you to the destination of your choice. But do you know where you want to go? Decide where you want your aircraft to land and � y it in that direction.

Never worry about the Past, it brings Tears. Don't think too much about the Future, it brings Fears. Live in the Present Moment with a Smile, it brings Cheers!!

What happens when you regret the past? You think about all the wrongs and you feel sad, right? What happens when you start thinking too much about the future?

You think about all the unforeseen dangers and fear comes along. You feel unhappy. Even though thinking about both brings only unhappiness, you keep shu� ing between the two. Regretting the past and fearing the future, you forget to live the present moment. Forget them both. Live in the present moment.

Wipe out the past and throw your worries about the future out of the door. Live in the 'NOW', in this moment, with joy and happiness.


47QUOTES

It’s ironic that as planetary wealth expands year by year, we still fi nd ourselves in the odd situation of having more people worldwide being mired in debt

than swimming in riches!

If you belong to that sad majority, don’t despair. Everyday all over the world, countless people dig themselves out of deep pits of debt and then comfortingly realise the same disciplines they harnessed to escape their personal debt traps are also able to make them rich.

Even if you aren’t in debt now, chances are good you aren’t happy with your present level of wealth, either. Am I right?

If so, I’d like you to read this article in Malaysian Indian Business with an open mind and a ready pen by your side. I promise you this article will be brief. That’s intentional!My aim is to help you learn 8 core principles you can start putting into practice... today.

I know what it is like to be so overwhelmed by your debts that more often than not you can’t sleep soundly. This state of mental disturbance can result in dramatically reduced daytime mental acuity, which yields even worse fi nancial decisions during your vertical hours. Right now, I’m going to cut through the mess and deal with the heart of this matter… Those in a state of excessive debt got there by traveling the exact same road that’s been traversed by Deep Debtors since time immemorial. That wide and smooth path is paved by daily decisions to spend more than is earned. I hope you will use these 8 principles to improve your fi nancial circumstances and, therefore, your personal and family life!

PRINCIPLE #1

You can't get in debt if you don’t spend more than you earn.

Also, those who grow richer over time choose to traverse a narrower, rougher street that’s tarred with daily, perhaps hourly, decisions to spend less than is earned.

PRINCIPLE #2

You can't help but grow rich if you always focus on earning more than you spend. Anyone who takes the time to fi gure out the average cost of his or her loans, in annual interest rate terms, and who then compares that to the average yield on his or her savings and investment vehicles will realise our debts usually cost us more than our savings and investments yield us. Yes, in that regard, the deck is stacked against us! Thankfully, WISDOM will fi nd a way to prevail...

PRINCIPLE #3

Start paying attention to interest rates charged and earned.

Those who decide enough is enough, who are fed up with incinerating hard-earned money at the altar of consumer debt, should begin thinking and researching repayment options and strategies that help them accelerate their repayments even as they

DEBT TO RICHE$M O V I N G F R O MCORE PRINCIPLES

It must be great to be rich and let the other fellow keep up appearances - Kin Hubbard

RICHE$M O V I N G F R O M

ES


48 FINANCE • by Rajen Devadason

simultaneously work hard to bring their expenses under control. It is vital to understand that everything linked to moving from a state of (seemingly) perpetual debt to one of eventual abiding riches boils down to exercising self-discipline in day-to-day spending decisions. It also doesn’t hurt to focus on increasing your mental store of knowledge and experience in your career speciality; doing so will permit you to earn more money in the years ahead. Money you may then use to improve matters further through judicious decisions focused on personal economic expansion, not contraction!

PRINCIPLE #4

Decide which is more important to you – having some shiny new toy today or growing super-rich tomorrow. As wise people make the decision to declare war on their debts, they always fi gure out ways to spend less. This aim is usually achieved by establishing a spending plan or budget.

PRINCIPLE #5

Pay attention to your cash flow statement – comprising cash inflows and cash outflows.

The month you are able to earn more than you spend is the month you end up cash fl ow positive! Once you get to that stage, it is a mathematical certainty you will start growing richer. This truth can and should be verifi ed by regularly updating your net worth statement – comprising assets and liabilities.

PRINCIPLE #6

Construct And Update Your Net Worth Statement.

As you get into the habit of monitoring your cash fl ow patterns and your net worth’s evolutionary changes, you will fi gure out how to squeeze ever more cash out of your budget to fashion into a killer ‘silver bullet’ aimed at the heart of your debts. Each month you are able to bring your total debt position down, the more funds you will have the following month to do the same thing again... only better!

PRINCIPLE #7

As the principal sum on debts is reduced, the interest charged on the loan drops. This frees up even more cash the following month to step up the battle against debt. Eventually, all your debts will be eradicated. This will free up a great deal of monthly cash fl ow to aggressively fl ow into savings and investments.

PRINCIPLE #8

Don't wait to get out of debt before saving and investing something each month; but note that you should become much more aggressive on this exciting riches accumulation front as your debts are beaten into a smaller and smaller pulp!

Don’t let the simple wording of these 8 principles fool you. Reread them, take careful notes, carry out appropriate research, decide u p o n c l e a r steps you will take and watch yourself begin your personal trek from debt to riches!

I wish you every success on this exciting journey you can begin… today!

Rajen Devadason, CFP, is a Securities Commission-licensed fi nancial planner, professional s p e a k e r a n d a u t h o r . H e i s CEO of corporate mentoring consultancy RD WealthCreation Sdn Bhd, which helps companies increase profi ts by teaching their best people how to enhance their personal effectiveness. Many of his articles may be read, and his electronic magazine GET BETTER can be subscribed to at no cost, at www.FreeCoolArticles.com Rajen welcomes genuine potential client queries at:

http://rajendevadason.com/contact/


49FINANCE

The wise advice of Booker T. Washington “If you want to lift yourself up, lift up

someone else,” was recalled by Mr Subramaniam Kandasamy the Founder and Director of SC Southern Tours & Travel Sdn. Bhd. while sharing his entrepreneurial journey with MIB recently. Read more on his rough success path, how he overcame challenges including obstacles and hurdles to get 100% Malaysian Indian owned inbound tour operators license.

HIS ENTREPRENEURIAL JOURNEY

Born in Bukit Badak Estate near Layang-Layang, Johor Mr Subramaniam started his working life as bus driver. He got married

with Mrs Chandra Kuppusamy whom stood strong behind her man at all time and was blessed with two beautiful girls. His entrepreneurial journey began in 1999 while still bachelor however it doesn't last longer mainly due to lack of industry knowledge. "We faced lots of problem during that time as we don’t have proper documentation related to the industry thus we abandoned all our effort, practically we left everything,” Mr. Subramaniam conquered the failure of fi rst entrepreneurial venture after 19 years of working experiences.

His burning desire to succeed and lesson learned from the inaugural defeat brought him as far as Canada to acquire more knowledge about Tour and Tourism Management. He worked there and when time permits

he attend classes to enrich himself with necessary knowledge about industry.

He continued his journey as bus driver upon his return to Malaysia where he gained additional knowledge of the tour business.Upon tying the knot with Mrs Chandra, he continued his entrepreneurial journey with formation of SC Southern Transport Agency in 2001 and operated until 2009 as big sum of investment required to start a good tour operation company. “We need to place RM 250,000 cash deposit with Government of Malaysia to get tour operator license, so I need to work harder, my wife took voluntary separation scheme (VSS) from her work place in Singapore and gave me around RM70, 000 as seed funding for the

THE NON QUITTERMR SUBRAMANIAMKANDASAMYSC SOUTHERN TOURS & TRAVEL SDN BHD


license. The rest I need to gather it little by little by operating business affi liating with others and in some instance without license too,” Mr Subramaniam daringly exposes his modus of operandi then.

HIS DREAM BUSINESS

We incorporated SC Southern Tours & Travel Sdn. Bhd on 13th February 2009 with only myself and my wife as Director and fi nally managed to get tour operator license from Tourism Malaysia. At present the company specialize in local sightseeing tours, adventurous tours, Eco and Agro-tourism catering mainly to inbound tourist. The company also organise specialized incentive trips to anywhere within Malaysia as well as our neighbouring country, Singapore. Although, we are capable to handle both inbound and outbound we focus more in mobilising foreign tourist into Malaysia and ground handling works due to limitation set by authorities. Almost 90% of our businesses are generated through inbound tourist from India, and then rest from Singapore and Indonesia. Our own staffs based in Chennai, India are doing great job in promoting Malaysia in general and our services there. These help us to provide more opportunities for particularly Tamil educated tour guides, drivers and ground handling staffs. “All our workers including drivers are Malaysian, mostly Indians as I feel they should be given more opportuni t ies" Subramaniam proudly says.

HIS HERO AND HEROINE

Do the heading fl ick you a moment either to bollywood or kollywood? MIB tries to identify the persons behind the success of Mr Subramaniam. “The person changed my life, and made me a better person and my only role model is my father Mr. Kandasamy. Raising seven children in an estate requires lots of effort monetarily. I know the diffi culty he went through, what kind of job he worked to see us moving away from the bottom of social status. He has taught me what life is really about and one of the key traits that I admire about my father is his untiring hardwork. I am really thankful for having such father as whenever I see him, it always fl ash on my mind that I must do something and show others our success. I tribute my current achievement 100% to my father” he heartily declared.

Not to forgot my wife’s contribution to the company and her sacrifi ces during our life turmoil. She helps me work out my problems. When I am feeling down she helps me and talk things through with me.

THE CHALLENGING BUSINESS ENVIRONMENT

The hard knock entrepreneur reveals that main challenges he faces is being an Indian in Malaysia. He explained “When I enter into this business limited Indian this travel agencies industry, we can easily count them. Maybe 3 to 4 of them whose shares probably are owned by bumiputras, when I opened this company we are 100% non bumiputra company. Due to the fact of being 100% Indian owned company I faced a lots of challenges in getting fi nancial assistance from banks and business from government sector. Banks never wanted to give us fi nancial assistance at time we desperately in need. During our start-up phase banks avoided us, again I need to work step by step and grow little by little to this stage. Now at this stage after going through all the growing pain and able to stand with our own, they are offering us. We humbly accept their offer and servicing our loans without fail. “I would like to suggest that bank consider lending their services at time of starting not after business grown up and walking stable,” says the Managing Director of SC Southern Tours & Travel Sdn. Bhd.


51ENTREPRENEUR

"Beside the policy challenges, we face stiff competitions from our Chinese and Malays friends too since they have strong fi nancial muscle and support. For example, a hotel will quote us $50 room rent while when another competitor of non Indian request they will offer $20 below market. "Apart from that, Indian consumers generally has perception that rates offered by other race travel agents are much better. Despite our best pricing and quality services Indians tend to do business with other , a rare phenomena for others in Malaysia. "Apart from that, Indian consumers generally has perception that rates offered by other race travel agents are much better. Despite our best pricing and quality services Indians tend to do business with other , a rare phenomena for others in Malaysia. So, we need come out of creative ways to remain relevant and competitive in the industry," Mr Subramanian postulated.

HIS BUSINESS DEVELOPMENT

SC Southern Tours & Travel Sdn. Bhd created its own website and active on internet marketing including in Social Medias. They had appointed dedicated staff to handle their online marketing and business development activities. The Malaysian Association of Tour and Travel Agents [MATTA]

member went a step ahead by identifying Southern India as their niche market. He opens his own offi ce and developed tour packages that most suit for tourist from the region. He also appointed marketing companies in India to promote his tour packages and pays them on yearly basis.

The company with 5 buses, 5 vans and 2 mini buses also cater for local tourist by promoting Malaysian tour packages via Tamil newspapers and other local dailies despite only operating from Johor Bahru. Last year SC Southern Tours & Travel Sdn. Bhd was nominated for Johor Tourism Award in Tourism Services: Best Travel Agent category, the fi rst for Indian company in Johor.

COMMUNITY AT HEART

The Tamil education enthusiast had a policy of contributing 10% from his business profi t for the development of younger generation education even after his Chairmanship as Parent and Teacher Association of SJKT Pasir Gudang. His social efforts mostly concentrate in providing educational books and materials to economically displaced pupils. The Malaysian Indian Congress [MIC] Kota Masai branch Chairman actively meet people every week to fulfi l public requirements too.

“Our Indians looking travel industry in a wrong angle, they think there isn’t any big benefi t . In this Industry there isn’t any retirement even the driver and tour guide can serve as long as they can. We must understand a tour guide with minimum qualifi cations of SPM [Sijil Pelajaran Malaysia] is being paid RM250/day but we can count the number of Indians involved. Even our practical trainees are mostly Malays as there aren’t any Indians taking up this subject as their career path. Every month we have 2-3 trainees, I don’t mind offering the opportunity for interested Indian students even on part-time basis.” Mr Subramaniam tells MIB on his feeling about our community attitude towards the industry.

HIS NEXT PLAN

Currently my company was licensed to bring in only inbound tourist from overseas while our clientele base looking for more from us as we only promise whatever we can provide, thus I’m seriously considering expanding vertically by venturing into providing outbound tour services. Myself also looking for a workaholic with desire to success Indians in guiding and mentoring them into this business sector as opportunities are immense.

ENTREPRENEUR52

This research began during early 80’s itself, because researchers want to control

and manipulate molecules and atoms individually and perform specifi c actions on them. In 1981, Professor Norio Taniguchi of Tokyo University of Science coined the term “Nanotechnology” once he could able to see individual atoms and molecules with the help of

Scanning Tunneling Microscope.

Then researching companies and doctors joined hands to effectively use Nanotechnology in the fi eld of medicine where they could cure chronic diseases using this technology, so they could control the activity of atoms and molecules in living beings.

BUT WHO WILL GO UP TO THE LEVEL OF INDIVIDUAL CELLS AND REPAIR THEM...?

Here is the entry of our super-hero Nanobot, whose size according to scientist is 5 to 6 atoms across. Could you able to imagine that? Lets swoop a little deeper and see the shape, size and attribute of these Nanobots.

It is really quite interesting to know, How Nanobots are being created by researchers and scientists? Before we go to that topic of how, let’s have an eagle’s view on when the concept of Nanoscience started.

NanobotsThe Future Cure For

Deadly Diseasesan Introduction


54 TECHNOLOGY • by Ganesh Murugan

NANOBOTS: HOW THEY ARE CREATED IN REAL-TIME?

Nanotechnology has opened the door of new possibilities by introducing Nanobots to us. The creation process of Nanobots are very complex which requires well equipped labs and people who are competent, expert and have research experience in that area.

Complexities to face while creating this “tiny” hero,

• Real nanobots can’t depend on electronics, as the size of creation is based on Nanometers

• Nanobots should rely upon natural Chemical bonds between atoms

• Its locomotion is based on Nanoscale with limited energy

• Store information in a Nanobot to finish the assigned task

MOLECULAR ROBOT: AN AWESOME CREATION PROCESS

Researchers and Nanotechnology scientist suggest the best possible way to create Nanobot is using other nanobot in a self-assembling way. We cann’t view these nanobots with a normal microscope at schools, it requires an atomic force microscopy and single-molecule fluorescence microscopy to view the locomotion of the robot in its assigned path.

These molecular robots are being created to do a specific kind of repeated task, for example to detect cancerous cells in human body and to deliver drugs or destroy the cells. Theoretically speaking, these nanobots can be created to sense their environment i.e to detect a specific kind of chemical emitting cells and it can also be programmed to destroy or deliver drugs to diseased cells.

“In normal robotics, the robot itself contains the knowledge about the commands, but with individual molecules, you can’t store that amount of information, so the idea instead is to store information on the commands on the outside, by imbuing the molecule’s environment with informational cues.”says Nils G. Walter, professor of chemistry and director of the Single Molecule Analysis in Real-Time (SMART) Center at the University of Michigan in Ann Arbor.

Researchers explained the procedure of building a 4nm diameter molecular robot, they initiated with a common protein called Streptavidin, which has

Do you know that1 Nanometer is a Billionth of a Meter.For an example a sheet of paper is about 100,000 nanometers thick.


55TECHNOLOGY

four symmetrically placed binding pockets for a chemical moiety called Biotin. As this goes more technical, let me draft an example scenario, if they want to create a 4nm sized molecular robot similar to a “Spider”, and if they want to move that nanobot in a path which was laid by them to keep track its locomotion, so they need the following things to be done to make the nanobot move and to complete the assigned task:

• For this scenario the body is made up of a common protein called Streptavidin, which has four binding pockets to join 4 legs

• Each leg can made up of an enzymatic DNA, and one of the four legs has to tether the process

• The spider has to move on the path laid and to complete the assigned task

• The spider has to stop when it reach a DNA which it could not cut, but can bind

There are other ways as well to create Nanobots in real-time, but that is beyond the scope of this article.

THE FUTURE OF NANOBOTS

As we already seen that nanobots are very small, so that it can interact with any materials on their molecular and atomic level. Researchers say,

because of this special capability, the nanobots can build or destroy particle by particle.

As a whole, the world’s most expected area of Nanotechnology implementation is in the field of medicine compared to other areas because, it could save human lives from highly chronic diseases like AIDS, cancer etc. But we are still many years away from seeing real medical nanobots at work, what we have now is stunning prototypes of nanobots created by scientists.

Let’s have a glimpse how it could impact the medical field in the future,

• Imagine thousands of Nanobots go in our blood stream and fix Cancer cells.

• Using Nanocage inside human body to deliver drugs based on reaction and temperature.

• DNA Nanocage self-assembled from molecules of human body.

• Indigestible pills which can stay in our body and perform actions for our illness.

With Nanotechnology in medical field it seems to be everything is possible! Let’s keep our fingers crossed.

Complied by Ganesh Murugan, MBA,IIT (PMP), PhD (Perusing) Business Analyst, Solution Architect and CEO of eSolutions Webbers Sdn Bhd

: [email protected]

Skype : esolutions_ganesh

: ganesh murugan


56 TECHNOLOGY

“Malaysian government is very much business friendly that’s why many foreigners investing in this country. By comparison we

have done extremely well developing the country from agriculture base to Industrial trading nation. It means there are opportunities to do business in Malaysia; maybe you don’t have enough capital. The easiest way to go business in Malaysia is by franchising a business. I don’t see many Indians in this area of business” says former Prime Minister Tun Dr. Mahathir. He was addressing Indian businessmen gathering organised by Malaysian Indian Network of Entrepreneurs Association at Royal Lake Club Kuala Lumpur recently.

The share of retail business conducted through franchise industry in Malaysia hovering around 10% as opposed to 40% at the developed economies. Meanwhile, the National Franchise Development Blueprint [NFDB] 2012-2016 is expected to drive the industry for a 9.4 per cent Gross Domestic Product [GDP] contribution by 2020. The Ministry of Domestic Trade, Consumerism and Co-operative are expecting the industry to contribute some RM25.4 Billion to the GDP this year. To spur the ambitious government target of RM100 billion by 2020 Perbadanan Nasional Berhad [PNS] an agency owned by the Ministry of Finance Incorporated (MOF Inc.) was setup.

PNS plays vital roles in;

• Secure master franchise rights of foreign brands to be developed domestically,

• Conduct promotional activities at overseas trade fairs for Malaysian franchise brands,

• Offers various fi nancing schemes to franchisor and franchisees,

• Provides consultation services and trainings, identify and develop suitable local businesses into franchise model

• Promote cooperation between key industry players.

Despite the enormous potential offered by franchise Industry and as one of industry recommended by the former Prime Minister, chances for Malaysian Indian venturing into the industry remain gloomy despite Dr Mahathir’s claim that “this is multi racial country we all accept this, that it is a country cann’t be ruled by any one single community or race it must be ruled by all three races but then off course all three races must prepare themselves to play a role.” A check by Malaysian Indian Business at PNS website found that most of the fi nancing scheme conditions are not based on the population segment making this Malaysian Indian community disqualifi ed at the fi rst entry point.

The leaders are claiming the country offers immense opportunities with the delivery system putting barricades to certain segment of the population. Any idea on how do we overcome the obstacles? At time of writing this article MIB still awaiting offi cial confi rmation to meet the Managing Director of PNS.

VENTURE INTOFRANCHISE BUSINESSINDIAN BUSINESSMEN TOLD, BUT ?

ENTRY WITH CONDITIONS

I think there is no excuse for being poor in this country, even for the handicap there are opportunities of doing business – YA Bhg. Tun Dr. Mahathir Mohamad


57EDITORIAL

Your thoughts, your actions, feelings, beliefs, goals and dreams create your future. NLP in its core is modeling of human excellence. There are some people in the world who we call geniuses. There’s something that they do, that clearly sets them apart from an average performer. Enjoy reading some of these success stories.

To start with I love using Walt Disney as one part of the experience. Walt Disney is my inspiration. There is so much we can learn from how his company operates and the words of wisdom he left behind.“Think Believe Dream and Dare.” – Walt Disney

A Walt Disney Story An eight-year-old boy approached an old man in front of a wishing well, looked up into his eyes, and asked:“I understand you’re a very wise man. I’d like to know the secret of life.” The old man looked down at the youngster and replied: “I’ve thought a lot in my lifetime, and the secret can be summed up in four words

The first is think: Think about the values you wish to live your life by.

The second is believe: Believe in yourself based on the thinking you’ve done about the values you’re going to live your life by.

The third is dream: Dream about the things that can be, based on your belief in yourself and the values you’re going to live by.

The last is dare: Dare to make your dreams become a reality, based on your belief in yourself and your values. ”

And with that, Walter E. Disney said to the little boy,Think, Believe, Dream, and Dare.

Walt Disney was an American motion-picture and television producer and showman, famous as a pioneer of cartoon films and as the creator of Disneyland. Walt Disney grew up from humble beginnings He was not a born success instead he made his own success. Walt Disney is the perfect example of a man of dreams. He dreamed big dreams. And he made his dreams come true.

Disney's interest in art started when he was just a little boy. As a teenager, he wanted to take his drawings and his artistic abilities to new heights and that is exactly what he did. It was his dream, and he never gave up hope. And he did all he could in order to make that dream a reality. Disney's quest to fame and fortune was not an easy one, but he never let anything bring him down. After a small company that he started called Laugh-O-Grams fell bankrupt, Disney headed to Hollywood in hopes of starting a fresh, new career. He was not even twenty-two. Combined with a lot of vision, planning, and hard work, Disney made dream after dream come true. Disney introduced the world to Mickey Mouse, a simple talking Mouse which eventually became Disney's trademark. He introduced Walt Disney amusement parks all over the world. Disney combined his talent and his sense of what the public would want with lots of hard work. Today we might call him a “workaholic.” His work was driven, not by guilt or insecurity, but by a dream.

“Of all the things I’ve done, the most vital is coordinating those who work with me and aiming their efforts at a certain goal.”- WALT DISNEY

STOP & Think: CREATe YOUR FUTURE


58 LIFESTYLE • by Thevi Sinnadurai

Here are 5 things to learn from one of the most successful entrepreneur in history.

Vision: Walt Disney had amazing vision. Even today the planners, artists and engineers at Disney are known as Imagineers! And despite the fact that he died in 1966, five years before opening day at Walt Disney World in Florida, his vision has continued to become reality.

And what is even more amazing is the fact that in 2013, forty-seven years after his death, the people at Disney still believe in his vision, “a place where children and parents could have fun together”. How many organizations or companies can say they have retained the original vision of its founder to the extent Disney Incorporated has? Sadly, most visions die when their founders die or retire. Have faith in what you want seriously. You have to believe before anyone else can.:

“The way to get started is to quit talking and begin doing.” – Walt Disney

“When you believe in a thing, believe in it all the way, implicitly

and unquestionably.” – Walt Disney

World-Class Customer Service: At most theme parks you wait in a hot, boring line with lots of fences and railings, but not at Disney! Special effort has been made to entertain even the smallest of children while you’re waiting in line.

Consider this: If you stay at one of the 33 Disney hotels you will notice that the cleaning staff doesn’t just clean your room, they add fun to an otherwise boring room! For instance, they pride themselves in fashioning wash cloths into animals and creatures and using them to help decorate your freshly-made bed! Who else in the world does this?

Attention to Detail: Every ride and attraction has been thoroughly researched to maintain the utmost attention to authenticity. For instance, when planning the Expedition Everest (Yedi) roller coaster in Animal Kingdom, their “Imagineers” traveled to Tibet and Nepal in order to best capture the flavor of the Himalayan culture.

A Safe And Fun Work Environment: The entire staff and their families can take shelter underground at the worksite in the event of a hurricane. Specifically, Disney

has made provision for 100,000 people to take refuge underground during a catastrophic event.Also, Disney employees get benefits if they work only 30 hours and virtually all of them are happy about their jobs.

Recognition That One Person Cannot Do It All: Walt Disney wisely understood that he was an artist and a visionary, not a businessman. That’s why he had his brother Roy handle the business-side of the operation. Granted, there are some people who are multi-talented, but even these folks can take a lesson from Disney and find people who are better than them in the areas which can be given away.

Walt Disney’s life doesn’t just provide an insight as to how one should plan one’s life but also how one should not plan his life and always do what one is good at and intends to do. Taking risks, not settling down thinking one knows enough, to keep dreaming till it comes true and beyond are just some of the traits of the great man that have inspired generations.

“It’s kind of fun to do the impossible.” –Walt Disney

“Get a good idea, and stay with it and work at it until it’s done,

and done right.” – Walt Disney

Another favorite example is Tiger Woods.


59LIFESTYLE


60When Tiger Woods, the great American golfer, was a little boy he wrote down all of his golfing goals on a piece of paper. Every night before he went to bed, he looked at his goals and thought about what it would be like to be the greatest golfer in the world. He then unconsciously stepped into his future by imagining what it would be like to break all the greatest golfing records in history.

Tiger firmly set his intent to make this goal happen, while pretending that it had already happened in his unconscious mind’s eye. He then put all of his conscious attention on achieving the goals that he wrote down as a boy. As a result of doing this, Tiger developed a deep unconscious belief that it was entirely possible to achieve his great dream. By the time Tiger was 25 years old, he was well on his way to becoming one of the greatest golfers in the history of the game.

All of your future goals and dreams are not only a reflection of your unconscious thinking, they are mediated by your Reticular Activating System (RAS). The RAS is the part of your brain that serves as a filter between your conscious mind and your unconscious mind. The RAS, which is located in the core of your brain stem, takes instructions from your conscious mind, and passes them on to your unconscious mind. From a very young age, Tiger Woods had begun the process of programming his mind to achieve his goals. There were several things that Tiger did to unconsciously create the future that he wanted...

1. He set a goal, and wrote it down. 2. He maintained a positive state of mind and attitude

whenever he thought about his golfing dream. 3. He focused all of his attention on achieving that

goal. 4. He set his intention to make it happen, and he

believed that it was possible. 5. He also mentally rehearsed his goal over and over

in his mind, as if it were a movie that had already happened.

Eventually, Tiger brought forth the very future that he had dreamt about for so long.

1. Describe your goal in positive terms. Be certain to indicate what you do want, as opposed to what you don’t want. You may want to ask, “Is my goal something that I want, or is something that I don't want?”

2. Rather than setting a goal to not be nervous during a job interview, you can set a goal for being calm and

confident. Keeping the goal positive will help your RAS sort for feelings of calmness and confidence throughout your unconscious mind. If you set a goal to not be nervous, then the RAS will have to process being nervous first.

3. Ask yourself, “Is achieving the goal under my control, and can it be initiated by me?”

4. Setting a goal for you’re your boss to quit being a jerk is not a well-formed goal because you can’t control what your boss does. The only thing you can control is your own behavior and attitude towards your boss. So instead, you could set a goal to be more assertive around your boss, or to ignore his behavior.

5. Define the sensory based evidence for achieving your goal. To do this, ask the following three questions:• “How do you know when you have achieved

your goal?” • “What images, feelings and sounds will you

experience when you achieve your goal?”• “If you were to run a movie of you achieving

your goal, what would it look like?” • Keep in mind that the more specific you can

be, the better it is for your unconscious mind to help you achieve your goal.

6. Be ecological. Think about your goal, and define any possible downsides.

For example, a client named Jay set a goal to become a successful motivational speaker who traveled the country. Jay knew his goal was possible because he was already a talented speaker, however, his goal ended up not being so ecological. After setting his goal, Jay thought about its ecology and quickly realized that achieving his goal would have a negative impact on his three small children because of all the travel involved. He immediately decided not to do it because his children were more important to him than traveling around the country.

We keep moving forward, opening new doors, and doing new things, because we're curious and curiosity keeps leading us down new paths.- Walt Disney

LIFESTYLE

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:

[email protected]

Most SMEs are started by persons who were once employees in an organisation where they had acquired the necessary technical

skills and knowledge to manufacture the product their employer was manufacturing. These same individuals had the entrepreneurial spirit burning deep inside them, and so, armed with the skill/knowledge and a little capital (usually from personal savings, a little help from family members or friends), they venture out on their own to start a business, usually in competition with their previous employer. Nothing wrong with that, unless they are in breach of their employment contract or misuse their employer’s trade secret or confi dential information. The entrepreneur is now on his/her own to conquer the business world.

Initially, the entrepreneur or company started by the employee-turned-entrepreneur will compete in the market on price and probably superior service to attract new clients. However one cannot use price advantage for long if one intends to remain in business or for the business to grow bigger. The entrepreneur of the new SME has to secure other competitive advantages

to remain in business and for the SME to grow and expand into new territories. This is where Government sanctioned “monopolies” come to assistance. Yes, I am referring to Trademarks (brands), Patents, Industrial Designs and Copyright (collectively referred to as Intellectual Property Rights (IPRs)). Anyone who obtains a registered Trademark or a grant of Patent or Certifi cate of Industrial Design has a virtual monopoly over the usage of the right for a limited period of time. The proprietor of these IPRs has the exclusive right to stop others from using an identical or substantially similar Trademark or from using their Patent-protected technology. With this exclusive right to the IPRs, the proprietor can charge a premium price to their product or service to recover their investment – R&D costs, branding costs, etc.

Many entrepreneurs and SMEs perceive the costs of obtaining IPRs as expensive and IPRs themselves as diffi cult to enforce. Plus there are other misconceptions about IPRs too, and it would probably take an entire article in itself to address these. The fact is, the cost of obtaining IPRs – at least in Malaysia – is not high


62 TRADEMARK • by P. Kandiah

and is affordable by most SMEs. It is more costly to the business if IPRs are not secured.

Imagine spending thousands of ringgit and years to build up a brand name and yet neglecting to spend a thousand or two more to protect the brand as a registered trademark, the registration of which enables the SME to sue any infringer. Let me cite an actual case that happened in Malaysia: A restaurant business was set up in a prominent part of Kuala Lumpur. Business boomed. The partners never bothered to register the name of the restaurant as a trademark. Unknown to them, some ex-employees registered the business name as a trademark, and it did not end there. After obtaining the registration, they sued the restaurant for infringement of “their trademark”.

The restaurant had to face a long trial in the High Court. Not only did the partners suffer loss of sleep, they (along with the restaurant) were also made to look bad in the media (thus affecting their reputation) and incur thousands of ringgit in legal costs. However, they did finally manage to “get back” their trademark. Their ignorance on not recognising the market power of their trademark nearly cost them the loss of their business. So SMEs, no matter what business they are involved in, should always seek their IP consultants’ advice on obtaining IP rights for the competitive advantages they enjoy.

In the current business world and rapid globalisation of trade, IPRs have come to play a crucial role in the very survival of SMEs. Unless entrepreneurs and SMEs fully appreciate the strategic role IPRs play in the existence or survival of their business, they may be wiped out from business by their competitors who have learnt to use IPRs as a business weapon to destroy or maim rival businesses.

P. Kandiah is the Founder and Director of KASS International, an established intellectual property firm with offices in Malaysia, Singapore and Indonesia. Mr. Kandiah has vast experience in obtaining patents, trademarks and industrial design rights on a global scale, and also specializes in identifying patentable inventions, designing around patented technology, and advising on the commercialization of IP Rights, franchising and licensing strategies. For more information,

visit www.kass.com.my or

drop an to [email protected]


63TRADEMARK

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