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

malaysia.ahk.de November/December 2015

Vol 21, No.6 KDN PP 8818/3/2013

Prospering the Rakyat – Malaysia’s Budget 2016

TPPA in a Nutshell: Malaysia’s Perspective

TTIP - What’s in it for the EU?

ASEAN & EU: Focus on TTPA and TTIP

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ECONOMICS

FOCUS

6FEATURE12

EDUCATION AND TRAINING

EVENTS

GERMAN INSTITUTIONS

MEMBERS

TRADE FAIRS

18222433364246

MGCC PERSPECTIVESis published six times p. a. by theMalaysian-German Chamberof Commerce and Industry.

PUBLISHERDatuk Muhammad Feisol bin Haji Hassan.

It is distributed free of charge tomembers and qualified non-membersin Malaysia and abroad.

MALAYSIAN-GERMAN CHAMBEROF COMMERCE AND INDUSTRY (171131-U)Supported by the Federal Ministry of Economic Affairs and Energy based on a resolution of the German Bundestag.

Suite 47.1, Level 47, Menara AmbankNo. 8, Jalan Yap Kwan Seng50450 Kuala Lumpur, MalaysiaTel: 603-9235 1800Fax: 603-2072 1198homepage: malaysia.ahk.deemail: info@malaysia.ahk.de

*All opinions expressed in articles do notnecessarily reflect the views of MGCC.

EDITORIAL TEAMSabine FranzeCheryl Sim

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CONTENTS

The Corporate Leviathan by Jayanthi Desan

HOW DO THEY BENEFIT THE REGIONS?

PROSPERING THE RAKYAT – MALAYSIA’S BUDGET 2016

TPPA IN A NUTSHELL: MALAYSIA’S PERSPECTIVETTIP – WHAT’S IN IT FOR THE EU?

CSR COLUMN14

16

CARRYING THE SUSTAINABILITY TORCH

TPPA AND TTIP

LEGAL & INVESTMENTFINAL CALL FOR THE REGISTRATION OF MEDICAL DEVICES

EDITORIAL

BOARD OF DIRECTORS

THOMAS ZIMMERLEPresident

P. KANDIAHTreasurer

DATO’ ROBERT TEO KENG TUANVice President

DANIEL BERNBECKExecutive Director

DATUK MUHAMMAD FEISOL HJ. HASSAN

FRANCIS LEE

IR. LEE SWEE ENG

LIM KHIANG HUA

MARTIN METZGER

PETER LENHARDT

PHILIPP KERSTING

WENDY LAU

WOLFGANG LAABS

4

Dear Members and Readers,

As 2015 is reaching its end, we are looking back at the past 12 months and are trying to

formulate an outlook on what lies ahead. The ongoing violence and terrorism in Paris, the

Sinai, Beirut, Syria, Iraq and elsewhere as well as the continuing wave of people seeking

refuge in Europe are dominating the public interest and meetings of politicians.

Geographically, Southeast Asia is quite far away from the center of these developments.

As business people, we are all more or less affected by these incidents, and also as

citizens, we are all interested in peaceful living conditions – safety and security are

important for ourselves and our families. The globalized world with its ever-growing

speed of information transfer is getting smaller every year – and so what matters to one

member of the global village is of growing importance to all other members. Therefore,

good and trustful international relationships, prosperity of the societies involved,

education and employment for the young and close political exchanges are important

elements to secure peace worldwide. The basis for many of these developments is an

unhindered exchange of goods, services, know-how and technology – all in a nutshell:

good international business relationships.

In this sense there are positive developments to be seen in the field of international trade

agreements. ASEAN, headed by Malaysia in 2015, has been a basis for stronger regional

integration. The Asian Economic Community (AEC) is still rather a project in the making

than a result. The Asian Pacific Economic Cooperation (APEC) has recently been

supplemented by the Trans-Pacific Partnership (TPP), signed by 12 countries including

Malaysia. China, South Korea and Japan also seem to be interested in joining the group.

The Transatlantic Trade and Investment Partnership (TTIP) between the United States of

America and the European Union is still under negotiation and is facing public

challenges, especially in Germany. This growing integration of the markets provides a

chance of improved interaction, thorough reforms of economic rules and regulations,

easier exchange of goods, harmonization of standards both in the technical aspects and

in the rule of law – and, last but not least, provides a good basis for even closer and

peaceful relationships between the nations involved.

In 2016 we look forward to the start of new measures under the 11th Malaysia Plan that,

especially for Germany’s export of the Dual Vocational Training (DVT), shall bring new

opportunities. The Malaysia Meister Program is prominently mentioned in the plan and

the Technical Vocational Education and Training (TVET) programme will benefit from

additional funds for the coming years. MGCC is already strongly engaged in providing

support and facilitation for DVT activities both in KL, at the German-Malaysian Institute

as well as up north in Penang together with a number of training providers in Germany

and in close cooperation with our partners in Malaysia. And we are ready and willing

to expand this network even further to the benefit of a skilled workforce and future

successes in the Malaysian industry.

Please accept our warmest wishes to all of you and your loved ones for the Christmas

season and first of all a peaceful, happy and prosperous new year.

YBHG TAN SRI DATO’ G.S. GILL

Daniel BernbeckExecutive Director,

Malaysian-German Chamber of Commerce and Industry

TPPA in a Nutshell: Malaysia’s Perspective

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The Trans-Pacific Partnership Agreement (TPPA) started as the Trans-Pacific Strategic Economic Partnership agreement between Brunei, Chile, Singapore and New Zealand that came into force on May 1, 2006. In 2008, the United States expressed interest in entering into talks with the four countries to liberalise trade in financial services and soon, Australia, Vietnam and Peru followed suit. Malaysia joined in 2010, while Canada and Mexico joined in 2012. Japan was the last to join the talks in 2013, making it the 12th country to enter into the TPPA discussions. Notably, four (4) of the twelve (12) TPPA countries are ASEAN members.

Malaysia has signed free trade agreements (FTAs) with many countries and trade blocks, including TPPA members e.g. Japan, New Zealand and Australia. However, these FTAs are usually limited to agreements between countries to lower their tariffs for certain goods and services. The TPP has 29 chapters

third of world trade. With the TPPA, Malaysia will theoretically gain access to a market of 800 million people with a combined GDP of US$27.5 trillion. The Peterson Institute of Economics says Malaysia stands to gain over US$41.7 billion (RM133.9 billion) increase in exports and US$26.3 billion in income gains by 2025 if it stays on the TPPA track.

As Malaysia is an open economy that is heavily reliant on international trade, the Malaysian Government believes that the TPPA will open doors to many markets including the US – after the Malaysia-US FTA talks fell through. By reducing trade barriers, the TPPA will provide Malaysian-owned businesses wider access to international markets and it will strengthen the country’s economic growth. The TPPA will provide local businesses with the first ever FTAs between Malaysia and the US, Canada, Mexico and Peru, in addition to enhancing access to eight other markets.

and covers issues that are beyond most FTAs. The new rules that are negotiated will determine how the TPPA member countries approach competition, labour, environment, Government procurement and intellectual property rights. Many of these rules have been discussed in the World Trade Organisation (WTO) but consensus among its 159 members has been elusive.

According to a Credit Suisse report, Malaysia’s economy could be further expanded up to 5.5% by 2025 as the manufacturing sector sets to gain as a result of a shift in foreign direct investment. Currently, Malaysia is the third largest recipient of foreign direct investment (FDI) in ASEAN, and the TPPA provides Malaysia a competitive edge among ASEAN countries to spur further investment.

Together, the 12 TPPA members make up 40% of global GDP and approximately a

The Trans-Pacific Partnership Agreement (TPPA) started the Trans-Pacific Strategic Economic Partnership agreement between Brunei, Chile, Singapore and New Zealand that came into force on May 1, 2006. In 2008, the United States expressed interest in entering into talks with the four countries to liberalise trade in financial services and soon, Australia, Vietnam and Peru followed suit. Malaysia joined in 2010, while Canada and Mexico joined in 2012. Japan was the last to join the talks in 2013, making it the 12th country to enter into the TPPA discussions. Notably, four (4) of the twelve (12) TPPA countries are ASEAN members.

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Implicit in the TPPA is the need to maintain exchange rate stability among members so that it does not allow any of its members to intentionally devalue its currency to gain an unfair trading advantage. In this respect, the TPPA acts as an in-built stabiliser for the ringgit.

Some of the sectors that will benefit quickly in Malaysia are the textiles, apparel, commodities and electronics industries. Enhanced protection for patents will strengthen Malaysia’s appeal as a destination for high-tech manufacturing, drive foreign investments and create jobs. The intellectual property rights (IPR) chapter calls for a level of protection on designs, trademarks and patents across geographical boundaries, which in turn encourages Malaysian companies to embark on further research and development. This promotes an environment that recognises the societal benefit of innovation.

Pharmaceutical research and development leads to the discovery of future life-changing and life-saving medicines. After patents expire, generic versions of innovative drugs continue to be widely used for decades, generating enormous health benefits for consumers. Malaysia stands to benefit through increased investment from multinational companies in the areas of research and development and clinical trials, potentially helping to build a local industrial base, and encourage the entry of more innovative products to the domestic market.

According to the HSBC Small Business Confidence Monitor Survey, 42% of Malaysian small and medium-sized enterprises (SMEs) are involved in cross-border and international trade. Most SMEs establish themselves within the domestic market and then seek opportunities to expand their footprint across the region. With the TPPA, growth opportunities for Malaysian SMEs will further accelerate as the multilateral trade agreement will enable improved uniformity for selected regulations and harmonised standards in several areas.

Malaysia’s Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed said that Malaysia will miss out on the opportunity to write the rules for future trade in the TPPA if it backs out, particularly at this stage of the negotiations. For example, Malaysia may face significantly higher tariffs for some of its products that are exported to Canada as it graduated from the Canadian Generalised System of Preferences (GSP) programme in January 2015. Under the GSP, developed countries grant preferential treatment to eligible products imported from developing countries so that the products would be competitive in the developed markets.

The TPPA may open up new market opportunities and horizons for Malaysians. With the increasingly fierce competition in the world now, it is timely for Malaysia to go on the offensive and take advantage of the international marketplace. The TPPA will provide an attractive opportunity to a seamless market with preferential access, far beyond our population.

While acknowledging these benefits, the Government will ensure that the cost to the Government will not outweigh the benefits. The Government will continue to strongly protect Malaysia’s interest in this important negotiation. The rights of the Government to continue to chart our own course in pursuit of economic growth, socio-economic restructuring and developed nation status will not be sacrificed.

Malaysian-owned businesses will also have opportunities to participate in Government procurement in TPPA member countries. This promotes competitive neutrality and a level playing field among TPPA members.

Malaysia has established strong foundations in technology, e-commerce and financial services. With the removal of digital customs duties, localisation barriers and forced technology transfers, these benefits of TPPA will boost Malaysia’s vision of becoming an e-commerce and high-tech hub within the region. These steps will catalyse the efforts

of Malaysian SMEs to better participate in the global marketplace. Likewise, the easing of limitations on foreign firms’ participation in the financial sector empowers Malaysian banks in TPPA markets as they expand and seek opportunities in the region and beyond.

Source: Malaysian Investment Development Authority (MIDA), October 2015 Newsletter.

TTIP – What’s in it for the EU?8 FOCUS

some €123 billion in the US. In the same year, the US stock of investments in the EU reached over €1.3 trillion and the total of EU stock of investments in US over €1.4 trillion.

In the most recent Foreign Affairs Council in the Trade formation, EU ministers stressed the “importance of TTIP as strategic cornerstone” of transatlantic relations which will make a valuable contribution to shaping globalisation and the international trading system and to supporting sustainable development.

Brussels and Washington have set an ambitious goal of completing negotiations by the end of 2015. However, the path to reach an acceptable deal is not without hurdles. Citizens all over Europe are petitioning against TTIP and CETA, the newly agreed Comprehensive Economic and Trade Agreement with Canada.

Campaigners oppose the deal because of several critical issues, but first and foremost for the Investor-State Dispute Settlement (ISDS) and rules on regulatory cooperation that pose a threat to democracy and the rule of law.

In the wake of the global economic crisis and the deadlocked Doha round of international trade talks, the EU and the United States started negotiating a Transatlantic Trade and Investment Partnership, which seeks to go beyond traditional trade deals and create a genuine transatlantic single market. Negotiations between the United States and the European Union to forge an ambitious Transatlantic Trade and Investment Partnership (TTIP) started in July 2013. But the road ahead is paved with hurdles.

An EU-commissioned assessment of the potential impact of the TTIP by the London-based Centre for Economic Policy Research suggested the EU economy could benefit to the tune of €199bn a year – or €545 extra in the pockets of every family of four in the EU. Similarly, a US family would do even better from the deal, raking in an extra €655 a year.

The US was the EU’s top partner for trade in commercial services, with its imports reaching €138.4 billion (around 29% of total EU imports) and its exports €143.9 billion (around 24% of total EU exports). In total, the commercial exchanges of goods and services across the Atlantic average almost €2 billion per day. Top sectors for trade in goods for the EU were machinery and transport equipment (some €71 billion of imports and €104 billion of exports), followed by chemicals (roughly €41 billion of imports and €62 billion of exports).

In 2008, before the crisis, around 5 million jobs across the EU were supported by exports of goods and services to the US market. And in 2011, US companies invested around €150 billion in the EU and EU firms

If the TTIP comes to fruition, it will be the biggest bilateral trade deal ever negotiated.The deal would cover more than 40% of global GDP and account for large shares of world trade and foreign direct investment, resulting in millions of euros of savings for companies and creating hundreds of thousands of jobs. The EU-US trade relationship is already the biggest in the world. Traded goods and services between the two partners are worth €2 billion daily.

9FOCUSFOCUS

“We want to prevent employment, social, environmental, privacy and consumer standards from being lowered and public services (such as water) and cultural assets from being deregulated in non-transparent negotiations. The ECI supports an alternative trade and investment policy in the EU,” campaigners say.

Because of rising criticism, Europe and the United States have reached a standoff in the TTIP negotiations, over ISDS and the Commission won’t decide whether to include it until the “final phase of the negotiations” with the US.

The legal provision, often included within investment treaties between two states, offers public and private sectors recourse to arbitration with the states which have signed the treaty if they allegedly breach it. Supporters believe such clauses guarantee the terms of treaties, since they offer an independent resolution mechanism for parties who did not sign the treaty. The European Commission even said that the ISDS would help to standardise the level of protection for businesses across the EU’s member states. But critics say there is no need for arbitration between Europe and the United States, as the two partners have well-developed and equally mature judicial systems. Arbitration is needed instead with countries where the local courts are not reliable.

“ISDS is like a supreme court of the world, but it doesn’t have judges, and you don’t know who they are and you never heard of it. It’s only there to protect foreign investors,” said Gus Van Harten, associate professor of law at the Osgoode Hall Law School in Toronto, who has studied the Investor-State Dispute Scheme for 15 years.

Opponents of the ISDS clause have emphasised that they believe arbitrators have a vested interest in pleasing investors, and that investor-state arbitration has a built-in pro-investor bias. Since arbitrators are effectively “judges for hire” and depend on their appointments for their feesin a system where only the investors can

From a bigger scale, opposites claim that the economics of numbers are not all. Some take as an example the North American Free Trade Agreement (NAFTA) signed by Canada, the US, and Mexico in 1994, which they say failed to produce the sort of rewards that had been promised. Where the US citizens promised huge boosts in jobs and what they saw was exactly the opposite. Even that some sources highlight the positives. The United States has added 25 million net new jobs since 1994. The government’s Index of Real Manufacturing Output increased from 84.3 in the first quarter of 1994 to 119.5 in the first quarter of 2014. Manufacturing workers also earn much more now than they did when NAFTA was passed. Real wages in Mexico have also risen 30% and poverty and CO2 emissions have declined. Documents released, in May 2015, displayed that the US negotiators put pressure on the EU over proposed pesticide criteria. A number of pesticides containing endocrine disrupting chemicals were in draft EU criteria to be banned.

However, Karel De Gucht responded to criticism in a Guardian article in December 2013. He stated:

“The commission has regularly consulted a broad range of civil society organisations in writing and in person, and our most recent meeting had 350 participants from trade unions, NGOs and business” and that “no agreement will become law before it is thoroughly examined and signed off by the European parliament and 29 democratically elected national governments – the US government and 28 in the EU’s council”.

The Corporate Europe Observatory had pointed out that “more than 93% of the Commission’s meetings with stakeholders during the preparations of the negotiations were with big business”. They characterised the industry meetings as “about the EU’s preparations of the trade talks”, and the civil society consultation as “an information session after the talks were launched”.

bring claims, this creates a strong incentive to side with them – as investor-friendly rulings pave the way for more claims, appointments and income in the future, according to Corporate Europe Observatory (CEO), a campaign group.

Yet, a way out of this deadlocked debate could be setting up an international court.

“In international law, it is fairly rare to allow a private actor to sue a country. But it does happen sometimes, and in Europe that happens with the European Court of Human Rights, the European Court of Justice,” argued professor Van Harten.

Another option, suggested by UNCTAD, is tailoring the existing system through individual international investment agreements to promote consistency.

The European Consumers’ Organisation stressed that the level of attention attracted by the TTIP’s inclusion of a special arbitration system for foreign investors is fully justified. In November 2014, France and Germany opposed the inclusion of the ISDS in the agreement. Whatever the alternatives, maintaining the ISDS in the TTIP might turn into a mind-boggling exercise, with some countries blocking the deal.

However, another concern is that the protection of regional products could slacken under the TTIP. The same concern is echoed across the continent. Under EU law, protected regional specialities can only be sold under their traditional names if they were actually made in the region. For example, around 296 Italian products are on the EU’s protected status list of 1,100 foods, alongside delicacies including Parmesan, Gorgonzola, Prosciutto and Pecorino and Cantuccini Toscani. France has 250 products on the list, Germany 98, and Britain 60.

Legal protections are enforced in Europe but not in America, where immigrants have taken European food traditions like the Mozzarella cheese, Cornish pasty or Black Forest Ham and made them their own. Source: EurActiv.com

TPPA and TTIP – How Do They Benefit the Regions?

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you respond to the critics who claim the agreement would be anti-democratic and threatening food safety, labour and environmental standards?The overall process of negotiating and

adopting the TTIP is much more democratic

than some reports might have us believe.

The European Union and the United States

launched the TTIP negotiations in 2013 on

the basis of a mandate given by EU Member

State governments to the European

Commission. We continue to involve EU

governments and the European Parliament,

as well as our stakeholders, which include

the public as well as public interest groups,

during the ongoing negotiating process.

And ultimately, it will be EU governments

and the European Parliament who decide

on the final outcome.

We remain convinced that the TTIP

represents a net benefit for Europe, that it

will boost trade and contribute to economic

growth at a time when we really need such

growth, both in Europe and elsewhere. It

would help European firms sell more goods

and services in the US. European firms

would also be able participate on an equal

footing in US government tenders. This

would be good for the economy and good

for jobs. Of course, it is a two way street, and

US firms will also be able to sell more to

Europe, which would drive competition,

thereby helping to bring prices down and

offer greater choice for EU consumers.

But, as you rightly point out, the TTIP goes

beyond market access and will also address

behind the border barriers to trade and

investment. The EU has existing legislation

that sets some of the highest standards in

the world, regulating food safety, labour and

the environment. And anyone – including

US producers – needs to meet those

standards in order to be able to sell their

goods or provide their services on our

market. This will not change as a result of the

TTIP. That does not mean that we should

not work together to cut costs and facilitate

Q: Would the TPPA benefit foreign businesses in Malaysia? In other words, does it encourage more foreign companies and investment to flow into Malaysia or the other way round?Let me first underline that the EU welcomes

the announcement of the conclusion of

negotiations for the TPPA. In general, such

a large multi-party trade agreement,

including partners with widely differing

levels of development, spells good news for

world trade as a whole. As Commissioner

Malmström said in her reaction to the

announcement of the agreement – “success

breeds success”. It should spur further

progress in global trade liberalisation and

rule setting – in the WTO as well as bilateral,

regional and plurilateral trade agreements.

The TPPA has only recently been published

and we are now assessing its potential

economic impact. Nonetheless, as a trading

bloc committed to liberalisation and

transparency, the EU always welcomes

better transparency and clear and consistent

standards, as well as the opening up of

markets, and is convinced that this will lead

to significant benefits and new opportunities

for Malaysia in terms of trade and investment.

Nonetheless, we also need to look beyond

the purely economic consequences of FTAs,

as measured in terms of trade in goods and

services or flows of foreign direct investment,

and we hope that the TPPA will also act as a

catalyst to improve social equity and human

rights, contributing to the environment and

combatting climate change. TPPA countries

can and should join the EU in championing

these 21st century rules of trade.

Q: While Malaysia debates on the TPPA, the TTIP too attracts heated discussions in Europe. With protests in many European countries, Germany recently saw a massive rally with more than 100,000 people marching in Berlin in protest against the TTIP, according to news reports. What is the position of the European Union towards the Free Trade Agreement and how do

H.E. Luc Vandebon, the Ambassador and Head of European Union Delegation to Malaysia.

On October 4 2015, the negotiations for the Trans-Pacific Partnership Agreement (TPPA) were concluded following five years of intense negotiations between 12 Pacific Rim countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. The TTPA trade area is bigger than the North American Free Trade Agreement (NAFTA), and is currently the world’s largest free trade agreement. On the other hand, a proposed free trade agreement between the US and the European Union (EU) – the Transatlantic Trade and Investment Partnership (TTIP) is in an on-going discussion. If the TTIP is successfully negotiated, it will be a larger free trade agreement than the TPPA. An interview was conducted with H.E. Luc Vandebon, the Ambassador and Head of European Union Delegation to Malaysia, to share his opinion on the free trade agreements and its effect on the economy.

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access to markets for our operators when

we have equivalent standards but different

rules. We remain committed to protecting

our high standards and safeguarding the

independence of regulators.

Q: The EU often has been claimed to be able to serve as an example for regional integration and connectivity of the ASEAN countries, especially in the light of the establishment of the ASEAN Economic Community (AEC) end of this year. From the perspective of the EU, what is the vision to fortify its cooperation with ASEAN and how do you see the chances of resuming negotiation on a free trade agreement between the EU and ASEAN?The EU and the Association of South

East Asian Nations (ASEAN) share a

commitment to regional integration as

a means of fostering regional stability,

building prosperity, and addressing global

challenges. The EU fully supports ASEAN’s

between ASEAN Economic Ministers and

the EU Trade Commissioner on 26 April

2015, in which the parties agreed to work

together at Senior Official level in order

to take stock of the current situation on

both sides with a view to identifying

an appropriate way forward for the

economic relations between the two

regional powerhouses.

This would look at the progress of

negotiations on a bilateral basis between

the EU and individual ASEAN countries and

identify how a region-to-region FTA could

add value. Senior officials will report to

Ministers next year. In the meantime, the EU

will continue to develop the bilateral track

of ambitious and comprehensive FTAs with

ASEAN countries such as the FTA concluded

with Singapore and the recently concluded

agreement with Vietnam as stepping stones

to the ultimate goal of a region-to-region

agreement.

renewed efforts to build a closer relationship

amongst its member states. The EU wants a

strong, united and self-confident ASEAN,

proceeding with its own integration.

On 19 May 2015, the High Representative

of the European Union for Foreign

Affairs and Security Policy and the

European Commission adopted the Joint

Communication: “The EU and ASEAN: a

partnership with a strategic purpose”.

The Joint Communication puts forward

concrete ideas for taking EU-ASEAN

relations to the next level by providing

a more coherent framework for sectoral

cooperation and by ensuring a sharper

political focus.

Finally, in relation to a possible resumption

of the negotiation of a Free Trade Agreement

between the EU and ASEAN, I would draw

your attention to the joint statement issued

on the occasion of the 13th meeting

Prospering the Rakyat –Malaysia’s Budget 2016by Frances Po and Jonas Bley, PricewaterhouseCoopers Malaysia

Several of the tax proposals have an impact on foreign enterprises operating in Malaysia. The following paragraphs aim to provide an overview of the key proposed changes that international companies should be aware of:

Corporate Tax Amendments arising from Goods and Services Tax (GST) implementationFollowing the implementation of the GST earlier this year, several proposed insertions into the Income Tax Act 1967 (ITA) and several other acts are required – in particular with regard to input tax. For example, GST input tax incurred is now disallowed as a deduction and does not meet the requirements of qualifying expenditure where the taxpayer is entitled to credit that amount as input tax or has failed to fulfill a duty to register for GST.

Further, for RPGT purposes, any GST that is an output tax borne by a registered person will not qualify for a deduction and is excluded from the computation of the acquisition price or disposal price of the chargeable asset. Likewise, any GST cost incurred by the disposer on the acquisition or disposal of

such chargeable assets will be treated as incidental cost of the acquisition or disposal of that asset, provided the disposer is a non-GST registrant or is not entitled to claim the GST as input tax. However, where the disposer is entitled to the GST as input (or is liable to be registered but failed to do so), GST paid or due by the disposer will be excluded from the acquisition price or disposal price of that chargeable asset for RPGT purposes.

In addition, it is clarified that where there is any adjustment made under the GST Act to which the input tax relates to a qualifying expenditure of an asset, a corresponding adjustment will need to be made to the residual expenditure of the asset for Income Tax purposes. The timing of adjustment will be in the year of assessment (YA) in which the period of adjustment as provided under the GST Act ends. However, this does not apply to disposals. In such cases, an adjustment is to be made in the YA of the disposal.1

Industrial Building Allowance (IBA) With regard to IBA, it is proposed that the following buildings would not qualify if the building or part of the building is used for letting purposes: licensed private hospitals, maternity homes, nursing homes, buildings used for research, warehouses, buildings used for approved service projects, hotels, airports, motor racing circuits, buildings used as living accommodation of employees of persons carrying on manufacturing, hotel, tourism, business or approved service projects, and approved schools or educational institutions.

Replacement of part of an assetIt is proposed that where any part of an asset is replaced with a new part (which is depreciated separately in accordance with generally accepted accounting principles), such part is deemed to have been disposed of in that basis period for that YA.2

Timing of taxability of business income in respect of servicesIt is proposed that business income in respect of services shall be taxable in the

basis period (BP) for a YA when the debt owing in respect of the service arises – irrespective of whether the service has already been rendered or is only to be rendered in the future. In other cases (notwithstanding that no debt is owing in respect of such service), any sum received in a BP for a YA is taxable in that YA. However, if that sum is refunded in a subsequent YA, it is deductible in that respective YA.2

Submission of written notice for interest deduction claimsWith effect from YA 2014, interest expense payable for a particular YA is not deductible in arriving at the adjusted income of that YA if it is not due to be paid in the BP for that YA. Moreover, the deduction is to be given for that YA only when the interest is due to be paid. In addition to the above, taxpayers are now required to notify the Director General in writing no later than 12 months after the interest expense is due to be paid to qualify for the deduction.2

Tax IncentivesReinvestment Allowance (RA)To promote reinvestment among existing companies in the manufacturing and agriculture sectors upon expiry of the RA incentive period, the companies will be entitled to claim a special RA on qualifying capital expenditure incurred for reinvestment.

The respective Schedule 7A of the ITA has been expanded to also include the following definitions:2

The Malaysian Prime Minister Datuk Seri Najib Tun Razak has tabled Malaysia’s 2016 Budget on 23 October 2015. This budget is the first under the 11th Malaysia Plan and marks the beginning of the final lap of the nation’s transformation into a high-income advanced economy. Amidst the challenging economic environment due to the reduction in oil prices and Ringgit depreciation, this budget focuses on striking a balance between the Capital Economy and People Economy with the theme “Prospering the Rakyat”. It proposes a number of measures to deal with some of the short term issues faced by the nation including the rising cost of living and unaffordable housing.

12 FEATURE

QualifyingProject

Definition

Automating

Diversifying

Expanding

Modernizing

Process whereby manual operations are substituted by mechanical operations with minimal or reduced human intervention

Enlarge or vary the range of product of a company related to the same industry

Increase of product capacity or expansion of factory area

Upgrading of manufacturing equipment and process

13FEATURE 13

Independent Conformity Assessment Bodies (ICAB)ICAB is a company which offers independent conformity assessment services in testing products, materials, systems or services for conformance to international specifications, safety or other standards. To encourage the development of such services in Malaysia, the following incentives are proposed:

The incentives are to be given to ICABs servicing certain sectors and when rendering selected activities. In addition, in order to qualify for the incentives, the ICAB must obtain accreditation by the respective bodies.6

Exports incentive for Small and Medium Enterprises (SMEs)Manufacturing companies with paid-up capital not exceeding RM2.5 million will be given revised value added criteria in order to qualify for exports incentive:

The above tax exemption is restricted to 70% of the statutory income.3

Automatic double deduction for R&D projectsPresently, double deduction claims for research and development (R&D) projects are subject to approval by the Inland Revenue Board (IRB). It is proposed that companies with paid-up capital not exceeding RM2.5 million be allowed to claim the double deduction automatically after submission of the application to the IRB.3

Administrative MattersEnhancement of penaltiesA person who is convicted for non-submission of income tax return for 2 YAs and above without reasonable excuse would, upon conviction, be subject to a fine of RM1,000 to RM20,000 or imprisonment of

not more than 6 months (or both); and a special penalty equalling up to three times of the income tax payable based on the Director General’s best judgement.

Failure to furnish the correct particulars as requested in the income tax return form would on conviction, be subject to a fine of not less than RM200 and not more than RM20,000 or imprisonment for a term not exceeding six months or both.7

Electronic submission of tax estimatesIt is proposed that the estimate of tax payable and revised estimate of tax payable for a YA be furnished to the IRB on an electronic medium or by way of electronic transmission only.2

Adjustment on input tax under the GST ActWhere adjustment is made to the input tax paid or to be paid under the GST Act, the Director General may issue an assessment or reduced assessment under ITA as appropriate. The assessment or reduced assessment will be issued for the YA to which the adjustment relates, or if such year cannot be ascertained, for the YA in which the Director General discovers the adjustment.1

Goods and Services TaxIncrease in scope of supplies not subject to GST / Relief The lists of goods and services which are to be treated as zero rated supplies have been expanded in the 2016 Budget speech. This list now also includes further selected controlled drugs and over-the-counter medicine registered by the Drug Control Authority, and three additional brands of drugs, classified as medical devices under the National Essential Medicines List, as well as selected products such as Soybean-based or organic-based milk for infants and children, or mustard seeds.

In addition, relief from the payment of GST will be granted on teaching materials and equipment procured by skills and vocational training providers, provided such is conducted through approved programmes under the National Skills Development Act 2006.8

Relief from the payment of GST will also be provided for re-importation of goods which have been exported temporarily for promotion, research or exhibition purposes or for equipment which is being used for rental and leasing purposes outside the country. Such eligible equipment, for which the requirement to maintain records will

also be simplified, includes equipment used in the upstream oil and gas industry.

Approved Traders Scheme for MRO playersCompanies undertaking Maintenance, Repair and Overhaul (MRO) activities in the aerospace industry will now be allowed to apply for the Approved Trader Scheme.8

ConclusionAs it can be seen above, unlike in the previous years, Budget 2016 does not feature any major game changers, but several smaller yet interesting tax changes. Other proposed amendments which have not been covered in this article affect, inter alia, incentives for food production or tour operating companies, personal income tax reliefs or real estate transactions.

As expected, the outcome from GST looks positive in terms of contribution to national revenue. Widening of the zero rating scope on several basic necessities such as controlled medicines, infant milk, etc. and relief on re-importation of goods are some of the tweaks that were expected to deal with issues raised by the industry.

The special reinvestment allowance to encourage reinvestments in the short term will help boost the sluggish sentiments among manufacturing companies in terms of expanding or diversifying their operations. However, given the fierce competition for investments, a more holistic review remains on the wish list.

Overall, the Budget 2016 deals with the various short term issues faced by the nation. For the middle income group, increase in the various personal tax reliefs is expected to help reduce their tax bill gradually while at the same time, the high income group will have to fork out a greater proportion of their income as taxes.

Value added of goods exported attain at least

Tax exemption on statutory income equivalent to

20%

40%

10% of the value of the increased exports

15% of the value of the increased exports

New ICAB Existing ICAB

Investment tax allowance

Income tax exemption

Allowance of 60% on qualifying capital expenditure for 5 years to be offset against 100% of Statutory Income

Exemption of 100% of Statutory Income from qualifying activities for 5 years

Allowance of 60% on qualifying capital expenditure for 5 years to be offset against 100% of Statutory Income

Frances Po is a Senior Executive Director and heads the international tax and M&A practice at PwC Malaysia. Jonas Bley is a Senior Consultant in PwC’s Southeast Asian/ German Business Group. They are based in Kuala Lumpur.

1Effective from YA 2015. 2Effective from YA 2016. 3Effective from YA 2016 to YA 2018. 4Machinery and equipment; Electrical and electronics; Chemicals; Aerospace; Medical devices; and Fresh and processed food. 5Testing laboratories; Calibration laboratories; Certifications; Inspections; or Good laboratory practice. 6Department of Standards Malaysia; Accrediting bodies recognised by the International Laboratory Cooperation (ILAC) under Mutual Recognition Arrangement; International Accreditation Forum (IAF) under Multi-Lateral Agreement; or OECD Good Laboratory Practice Mutual Acceptance Data. This incentive is effective for applications to be received by MIDA from 1 January 2016 until 31 December 2018. 7Effective upon coming into operation of the Finance Act. 8Effective from 1 January 2016.

14 CSR COLUMN

The Corporate Leviathan by Jayanthi Desan

Carrying the Sustainability Torch

It is the time of the year. Yes, Diwali is over and Christmas decorations are up. We are already thinking of presents, good food and holidays. For companies, it is the season of awards. Time to scrub up, dress your best and be ready for accolades for the year’s hard work.

Earlier this month, I was at the Asian Corporate Excellence and Sustainability (ACES) Awards in Singapore where leading sustainability practices were selected after a series of highly competitive nominations. The pool of participants was incredibly impressive, and their associated sustainability endeavours inspiring. It was a great honour to be associated with the progress of the works being done in promoting sustainable business practices.

Of course, award nights must stand for more than a mere opportunity for

corporations to receive recognition and take a few photos. It must be an opportunity to collaborate, share best practices, and come together collectively as sustainability leaders, resolute in changing the future business landscape in Asia.

What is cause for optimism is the increased regulatory muscle that is being flexed throughout much of Asia in promoting sustainability best practices. Bursa Malaysia has truly been a leader in this aspect. In late October, Bursa launched the Bursa Sustainability Reporting Guide. The Guide is issued pursuant to the amendments to the Main Listing Requirements to require disclosure of material economic, environmental and social risks and opportunities in the Annual Report. Bursa has reinforced the importance of sustainability by shifting the focus from CSR or social obligations to material

‘EES risks and opportunities’ or material sustainability matters.

The obligations are aimed at improving the quality of sustainability practices and reporting, meet sustainability expectations of stakeholders, attract funds with a sustainability focus into the Malaysian capital market and also to facilitate more listed issuers to qualify for the FTSE4Good Bursa Malaysia Index as well as other international sustainability indices.

Sustainability reporting essentially opens up Malaysian companies to the global responsible investment market which is worth more than $21 trillion. The numbers are staggering but they simply show that financial capital providers are increasingly drawing the link between strategy and sustainability.

15CSR COLUMN 15

Bursa’s efforts have essentially placed sustainability reporting today as a strategic response that not only supports disclosure but also as a key process that reviews non-financial risks and opportunities. For some perspective on sustainability reporting, as little as ten years ago, corporations rarely made direct statements about human rights and health and safety. Early iterations were sometimes mere glossy communications tools.

According to the Global Reporting Initiative (GRI), there are close to 8,500 reporters of sustainability performance today, from around 25 a decade ago. The rate of uptake is indicative of the changing landscape of business and the necessary stakeholder engagement that ensues.

When done right, sustainability reporting helps align EES risks and stakeholders’

interests which then complements non-financial performance with the financial. When there are clear targets and year-on-year tracking with analysis of failures and success, a culture of transparency is fostered. The increased transparency in turn builds long term trust and credibility.

Ultimately, regulatory push is needed to build a new ecosystem and equip companies with the necessary tools to face the changing context of business. Information and disclosure alone however does not lead to change. Scandal-ridden Volkswagen was a star on the Dow Jones Sustainability Index and some years ago, Enron was the beacon of corporate disclosure. The decision-making process must be accompanied by vision and the necessary goals for a desired future. The change toward a sustainable economy, one that involves transformational

linkages between financial and non-financial matrices must involve focus and leadership alignment. In short, the real change and innovation can only occur if companies step forward and carry the sustainability torch lit by the regulators.

Jayanthi is the Founder and Managing

Director of Synergio, one of Malaysia’s

leading sustainability strategy consultancies.

16 LEGAL & INVESTMENT

Final Call for the Registration of Medical Devices

The Malaysian medical devices framework is based on the global harmonization trend and supported by the World Health Organization (WHO). In accordance with international standards, the definition of medical devices cover all products used in healthcare for the diagnosis, prevention, monitoring or treatment of illnesses and disabilities. Pharmaceutical products have been explicitly excluded from the scope of application of the Medical Device Act 2012.

Prior to placing a medical device on the market, a conformity assessment must be conducted in order to provide evidence of safety, performance, benefits and risks. During the evaluation all phases of a product lifecycle are examined to determine whether a medical device is safe and performs as intended by the manufacturer. As such the conformity assessment covers all phases of a medical product from its production, to its use and finally to its disposal.

ESTABLISHMENT LICENSEApplications for the registration of medical devices must be submitted through the online platform MeDC@St. In order to do so, it is necessary to obtain an establishment license. Without this license companies dealing with medical products are neither allowed to place medical products in the Malaysian market, nor to export them to other countries.

An establishment within the meaning of the Medical Device Act 2012 is either a manufacturer, an importer, a distributor – retailers are explicitly excluded – or a so called local authorized person (LAR). The latter is appointed by a manufacturer having his principal place of business outside of Malaysia for the registration of its products and holds the licenses in trust.

In all cases, the respective person must be domiciled in Malaysia or a company incorporated under the laws of Malaysia. Furthermore an establishment license will only be granted if the establishment implements and maintains a quality management system in accordance with recognized standards, which has been audited by a conformity assessment body (CAB). While the requirements with regard to quality management systems of manufacturers are quite clear – a manufacturer of medical devices needs to implement a comprehensive management system according to ISO 13485 – there are huge differences in quality for LARs in particular. This is due to the fact that the guidelines on good distribution practice of medical devices (GDPMD) are in large parts neither directly nor by way of analogy applicable to LARs. In addition, details of the implementation of the quality management systems are left to companies themselves, which results in further discrepancies in quality.

Pursuant to the Medical Device Act 2012 the establishment license is a named user license and cannot be assigned, sub-licensed or transferred to any other person without the prior written approval of the Medical Device Authority.

REGISTRATION OF MEDICAL DEVICESThe regulatory requirements for the registration of medical devices depend on the risk category the respective product belongs to. Depending on the associated risk of a product, medical devices are classified into categories between class A (minor risk) to class D (high risk). As can be seen from the following chart, the regulatory requirements increase with increasing risk class.

In general invasive products or devices involving a high-energy source fall under higher risk classes. The same applies to products used to sustain life.

When the cabinet approved the proposal for the development and implementation of a medical device regulatory programme in 2005, it was the declared intention to implement international standards and to establish an internationally recognized medical device authority by 2022. After several delays in the legislative procedure it seems questionable whether these targets can still be met. What is certain is, however, that all medical devices must be registered by 30 June 2016. As such, it is advisable to submit the application for the registration by the end of this year. After the expiration of the deadline it will not be possible anymore to import or place medical products in the market without the required registration.

by Dr. Claus Trenner, Philipp Kersting and Jörg Schmidt, Luther

17LEGAL & INVESTMENT 17

The regulatory requirements in regard to the amount of documentation and safety standards are thereby inversely proportional to the benefits offered by the use of the device for health – the higher the benefits, the lower the regulatory requirements. This applies irrespective of the risk class of the respective product.

Besides, it must be shown during the registration procedure that the safety and promised performance of the medical device is granted even after its placement on the market and that systems are in place to monitor this in the future. Amongst other things, the establishment must prove that it has the capacity to react fast in case of potential recalls.

For products belonging to class B or higher the conformity assessment process is as follows:

(1) Compilation of technical documentation by the manufacturer and scrutiny of the same by a CAB or the Medical Device Bureau (MDB). The extent of evidence to be included in the submission and the level of scrutiny increase with the risk class of the medical device, its complexity and the extent to which it incorporates new technologies.

(2) Declaration of Conformity (DoC) by the manufacturer in which he attests that the medical device complies fully with all regulatory requirements.

(3) Registration of the medical device for a period of five years, if the CAB and/or MDB is convinced of the safety of the product.

Products belonging to risk class A do not have to pass such a strict conformity assessment process. In particular, it is not necessary to submit technical documentation to a CAB prior to the registration with the Medical Device Authority. Only upon request, this documentation has to be provided.

Since a medical device can only be registered once, greatest caution is advised for foreign manufacturers without seat in Malaysia when choosing the applicant for the registration. Even though the registration can also be submitted by a distributor, foreign manufacturers are advised to revert to LARs if possible. This is due to the fact that other than distributors, LARs simply hold licenses in trust and do not have any further interests, such as the distribution of the respective products.

Even though the transfer of registrations is not explicitly regulated by the medical device regulatory system, it can be assumed that the transfer of registrations must be consensual. Therefore, such duties should already be implemented by the time the contract with the establishment is concluded.

CONCLUSIONIrrespective of how the registration of medical devices is executed, it should be initiated soon due to the short time available. In particular in view of the fact that Malaysia wants to be on par with the industrial nations in the next few years, one cannot count on another extension of the registration period this time.

Risk Class

A B C D

Regu

lato

ry R

equi

rem

ent

Dr. Claus Trenner is a Partner of Luther LLP and a member of the Board

of several European companies in Singapore, Malaysia and Indonesia.

He covers the whole range of corporate and commercial legal activities

in Asia and focuses on M&A, the setting-up of regional joint ventures

and structuring cross-border transactions including financing and

security documentation advising lenders as well as borrowers.

Philipp Kersting is the Director of Luther in Malaysia. Before joining

Luther in 2014, he was partner of a specialized law firm consulting

clients in the music and entertainment industries across Europe. He

advises European SMEs and MNCs in Indonesia, Malaysia and South-

East Asia regarding corporate, tax, investment and JV strategies.

Further areas of expertise include IP, copyright, media and technology.

Jörg Schmidt joined Luther in Malaysia after being admitted to the bar

in 2015. During his studies he specialized in international commercial

law. He worked for law firms in Tokyo and Singapore and the German

Chamber of Commerce in Guangzhou. He advises European and

American SMEs and MNCs in Malaysia with regard to corporate

matters and transactions.

18 ECONOMICS

Malaysias Flugzeugindustriewill hoch hinaus

www.gtai.com

Staatlicher Strategieplan soll Branche beflugeln / Investitionen und Produktion spuren Aufwind / Von Rainer Jaensch

Kuala Lumpur (gtai) – Malaysias Flugtechnikbranche – von Wartung bis zur

Komponentenherstellung – soll in den kommenden Jahren zu einem regelrechten

Höhenflug ansetzen. So plant es zumindest die Regierung in ihrem Industry Blueprint

2030. Bislang steckt der Industriezweig noch in den Kinderschuhen, nimmt aber durch

steigende Investitionen Fahrt auf. Wachstumspotenzial ist vorhanden. Geschäftschancen

fur deutsche Unternehmen sehen lokale Branchenkenner besonders in der Teilefertigung.

(Internetadressen)

Nachdem Rolls-Royce seit Anfang 2012 in seinem größten asiatischen Montage- und

Servicezentrum in Singapur Trent-Motoren montiert und Turbinenschaufeln produziert,

zieht Malaysia beim Wettlauf um ausländische Investoren nach. Beim Besuch des

britischen Premierministers Cameron im August 2015 unterzeichnete die malaysische

Unternehmensgruppe UMW einen 25-Jahresvertrag mit Rolls-Royce zur Herstellung und

Montage von Luftergehäusen fur die Trent 1000 Motoren.

Der mit einem geschätzten Finanzvolumen von 830 Mio. malaysischen Ringgit (RM; rund

170 Mio. Euro; 1 RM = 0,205 Euro) bezifferte Vertrag unterstutzt die Ambitionen der

Regierung. Diese will bis 2030 Malaysia zum fuhrenden Flugtechnikhub in Sudostasien

machen. Auch wenn dieses Ziel nach Einschätzung von Industrievertretern zu hoch

gegriffen erscheint, durfte die Branche trotzdem an Fahrtwind gewinnen. Insbesondere

in der Komponentenfertigung sehen Experten Potenzial.

Die Flugtechnikindustrie im Land – von Wartung und Pflege uber Komponenten-

und Materialherstellung bis zur Elektronik – durfte in den nächsten Jahren um

real 6 bis 8% wachsen, schätzen Branchenvertreter. Die Basis ist noch klein.

So zählte die Investitionsförderbehörde MIDA 2014 acht Montageunternehmen,

20 Komponentenhersteller und 34 Wartungsfirmen. Die 2014 genehmigten sieben

Investitionen im Wert von 682 Mio. RM haben das Investitionsvolumen gegenuber dem

Vorjahr fast verdoppelt. 27% kamen aus dem Ausland.

Wartung, Reparatur und Überholung lebt von NischenmärktenDieser Wachstumstrend soll sich fortsetzen, so zumindest sieht es der im März 2015

veröffentlichte Flugplan der Regierung, der Malaysian Aerospace Industry Blueprint 2030,

vor. Demnach werde Malaysia in den kommenden 15 Jahren zum fuhrenden

Lufttechnikzentrum in Sudostasien aufsteigen. Das Land werde aber nicht in allen

Teilbereichen die Nummer Eins werden, gestand Kamarulzaman Zainal gegenuber

Germany Trade & Invest ein. Als Vize- Präsident der Malaysian Industry-Government

Group for High Technology (MIGHT), der staatlichen Agentur zur Förderung der

Transporttechnikindustrie, hat er maßgeblich an dem Blueprint mitgearbeitet.

Malaysia’s aviation industry aims highKuala Lumpur (gtai) - Malaysia’s aerospace industry - from maintenance to component manufacturing - should start in the coming years to a real flight. So it is planned at least by the government in the Industry Blueprint 2030. To date, the industry is still in its infancy, but receives increasing investments ride. There is growth potential. Local industry experts see business opportunities for German companies particularly in parts manufacturing.

von Rainer Jaensch

So werde Malaysia im Bereich Wartung, Reparatur und Überholung seinen globalen Marktanteil lediglich von 3 auf 5% erhöhen. Bei Produktion und Ausbildung soll der Standort hingegen zur Nummer Eins aufsteigen und damit Singapur uberholen.

Der größte Teilsektor innerhalb des gesamten Industriezweiges, der 2014 Einnahmen von 11,8 Mrd. RM generierte, ist Wartung, Reparatur und Überholung mit Einkunften von 5,3 Mrd. RM. Diese sind aber seit 2009 lediglich um 1,0 Mrd. RM gestiegen. Der Markt wächst jährlich real um 5 bis 6%, konstatierte Derrick Siebert, Geschäftsfuhrer der Lufthansa-Tochter Airfoil Services Sdn Bhd. Sein Unternehmen uberholt und repariert Kompressor- und Turbinenschaufeln fur Flugzeugtriebwerke in Kota Damansara bei Kuala Lumpur.

Es ist vor allem die Maschinenwartung, die diese Sparte weiterhin antreibt. Aber das Wartungswachstum bleibt in Malaysia moderat und die Spitzenposition behält weiterhin Singapur. Das Wachstumspotenzial in Malaysia liegt weniger bei dengroßen Fluggesellschaften als vielmehr in Nischenmärkten wie Flugdienste fur den Öl- und Gassektor.

Teilefertigung hat Luft nach obenEinen regelrechten Höhenflug hat hingegen laut der staatlichen Exportförderagentur MATRADE der Umsatz der Komponentenfertigung von 2009 bis 2014 genommen: Von 0,6 Mrd. auf 4,0 Mrd. RM. Der Export von Flugzeugen und Teilen belief sich im letzten Jahr auf 2,9 Mrd. RM; das Gros davon Teile aus Verbundwerkstoffen. Dem Industriezweig bescheinigen Branchenvertreter weiterhin gute Perspektiven. Während Singapur die Fuhrungsrolle bei der Wartung in Sudostasien behalten durfte, könnte der Stadtstaat zukunftig seine Spitzenposition bei der Fertigung an Malaysia abgeben, das bislang neben Thailand auf Platz zwei liegt.

Fur arbeits- und flächenintensive Industrieproduktionen ist der Stadtstaat zu teuer geworden, so dass diese Fertigungen teilweise ins Nachbarland Malaysia abwandern. So produziert die Singapore Aerospace Manufacturing Pte Ltd (SAM) im malaysischen Penang komplexe Flugzeugmaschinenteile fur Boeing und Airbus. Weitere Investitionen von 128 Mio. RM sind dort angekundigt. Bei der Herstellung von Metallblechen und Präzisionsteilen wie auch Teilen aus Verbundwerkstoffen hat Malaysia gute Chancen weitere

Entwicklung der Schlusselsektoren 2015 bis 2030

Investoren ins Land zu holen. Die Investitionen sind nicht zu kapitalintensiv und gleichzeitig arbeitsintensiv genug, erläuterte David Anthony Jones, Geschäftsfuhrer der RUAG Aviation Malaysia Sdn Bhd.

Der manuelle Anteil bei der Produktion von Luftfahrttechnik ist vergleichsweise hoch, was Malaysia als Produktionsstandort mit geringen Lohnkosten interessant macht, erläuterte Siebert von Airfoil. Einschränkend wirken jedoch Fachkräftemangel, Fluktuation ausgebildeter Arbeitskräfte und steigende Löhne als Hauptherausforderung der Branche. Andererseits ist Malaysia noch kein Standort fur den umfangreichen Einsatz hochkomplexer HightechProduktionsanlagen fur Flugzeugtechnik. Teilweise mangele es hierzu noch an Know-how, Wartung und Pflege sowie der Nähe zu Lieferanten und Ersatzteilen.

Ein Zwischenbereich bietet jedoch erhebliches Expansionspotenzial, schätzen Branchenvertreter. Die Produktionsstätte der SME Aerospace Sdh Bhd (SMEA) in Sungai Buloh außerhalb von Kuala Lumpur ist ein Beispiel hierfur. Mit modernen europäischen und US-amerikanischen Maschinen werden dort Metallteile unter anderem fur Boeing und Airbus produziert. Als Tier-2/3-Hersteller liefert SMEA vor allem an das auch in Malaysia vertretene US-Unternehmen Spirit. In dem auf hohe Sicherheit bedachten Produktionsbereich spielt neben den Maschinen die fachlich qualifizierte Handarbeit eine wichtige Rolle, erläuterte der SMEA-Geschäftsfuhrer David Davies gegenuber Germany Trade & Invest.

Investitionschancen fur deutsche HerstellerDie Lufttechnikfertigung in Malaysia sieht Davies mit oberen einstelligen Zuwächsen wachsen. Weiteres Potenzial fur einen Einstieg europäischer Hersteller erkennt er in einem breiten Produktbereich; von Sitzen uber Metallteile bis zu Gummiprodukten im Kautschukland Malaysia. An Hersteller von Flugwerken und anderen Metallteilen wie auch Flugelektronik denkt der MIGHTVizepräsident Kamarulzaman, wenn er deutsche Investoren ins Visier nimmt. Potenzial fur eine Produktion in Malaysia sieht der Airfoil-Geschäftsfuhrer Siebert bei der Herstellung und Reparaturvon den meisten Teilen fur Flugzeuge wie auch Elektro- und Elektronikkomponenten. Der letztgenannte Bereich kann von der etablierten Elektrotechnik- und Elektronikindustrie im Land profitieren. Dies zeigt sich auch im Fachkräfteaustausch zwischen den beiden Industriezweigen.

19ECONOMICS 19

Sektoren 2020 20302015 2025

5,04,03,53,0

3,53,02,00,03

Nr.1Nr.1Nr.1–

70503010

Nr.1Nr.1Nr.2Nr.2

Wartung, Reparatur und Instandsetzung (Weltmarktanteil in %)

Ingenieur- und Planungsleistungen (Weltmarktanteil in %)

Ausbildung Luft- und Raumfahrttechnik (Position in Sudostasien)

Systemintegration (lokaler Fertigungsanteil in %)

Luft- und Raumfahrttechnikproduktion (Position in Sudostasien)

Quelle: Malaysian Aerospace Industry Blueprint 2030, MIGHT.

This contrasts with the decline in confidence in the construction industry, where the deterioration in mood is mainly weather-related and of the usual seasonal level.

In the fall of 2015 the economy is being given a steady boost by domestic demand. The last time that construction companies and service providers gave their current situation a better rating was more than 20 years ago. These branches of the economy are benefiting above all from special factors – the low interest rates and the fall in the price of oil, which is improving the purchasing power, together with the positive development in incomes. In the transport industry the relief provided by the low fuel prices is currently generating a good mood. On the other hand the situation assessments in manufacturing industry are gradually becoming less positive in the fall of 2015 – especially among the manufacturers of intermediate goods and in the motor vehicle industry.

The balance of situation assessments is improving in all business sectors. The improvements in expectations of the previous survey have therefore been translated into reality. In the fall of 2015 the share of companies who see themselves in a difficult business situation is strikingly low at nine percent. The share of “good” situation assessments has even risen from 41 to 44 percent (remaining 47 percent: “satisfactory“). The resulting balance of 35 points is only just below the record value of 37 points, which was last reached more than three years ago.

The export expectation of companies are losing momentum. Businesses are no longer as optimistic as in the early summer. Several emerging markets, e.g. in South America, are becoming weaker. The heavyweight China is changing over to a noticeably flatter growth path. The robust developments in the US and Europe are supporting the German export business, but are only able to partially compensate for these negative developments. The risk of setbacks in foreign demand is currently reaching an exceptionally high level from the perspective of companies. Moreover, the Euro has stabilised in the last few months and is therefore losing its role as a special factor in the export business.

The investment intentions have declined slightly in view of the less optimistic outlook. The plan of many companies, which have recently tended to be cautious anyway, are obviating the need for any greater adaptation. The manufacturing industry is more restrained across the board. In the automotive industry the urge to expand has even diminished noticeably. The service providers‘ investment plans are also more cautious. The slowdown in construction is only following the usual seasonal pattern. In the commercial sector even more purchases are planned – driven above all by the strong investment plans of the retail sector. The financing conditions remain exceptionally favourable.

In the economy as a whole the level of confidence for the coming months is declining. The manufacturing industry is particularly cautious – concerns of businesses are growing significantly, above all with respect to their foreign demand. Another factor which remains remarkably high is the share of the business risk of “economic policy framework conditions“. In contrast, even fewer companies than in the previous survey consider the development of energy and raw material costs to be a risk. Traders and service providers are also becoming gradually more skeptical.

20 ECONOMICS

Economic Trends in Germany: DIHK Economic Survey Fall 2015

A survey regarding the economic trends in Germany was conducted by DIHK with 80 Chambers of Industry and Commerce in Fall 2015. Approximately 27,000 enterprises responded and the results were compiled and released recently.

Fall

2013

48 45 44 48 48 44 44

40 35 36 47 45 38 48

14 14 13 12 12 11 11

36 37 38 38 38 39 42

37 41 41 38 42 42 40

11 12 14 11 18 26 21

49 47 44 38 27 30 26

41 41 41 43 45 43 42

Fall

2015

Fall

2014

February

2014

February

2015

EarlySummer

2014

EarlySummer

2015

domestic demand

foreign demand*

financing conditions

labour costs

lack of skilled workers

exchange rates*

economic policy conditions

prices of energyand raw materials

What are the biggest risks for the economic development of your company in the next twelve months?(in percent; multiple answers possible; *export industry)

21ECONOMICS 21

The Malaysian economy expanded by 4.7% in the third quarter of 2015 The Malaysian economy recorded a growth of 4.7% in the third quarter of 2015 (2Q 2015: 4.9%), supported mainly by private sector demand. On the supply side, all economic sectors continued to expand during the quarter. On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 0.7% (2Q 2015: 1.1%).

The private sector continued to be the key driver of growth during the quarter. Private investment grew by 5.5% (2Q 2015: 3.9%), driven by capital spending in the manufacturing and services sectors. Private consumption expanded at a more moderate rate of 4.1% (2Q 2015: 6.4%) as households continued to adjust to the implementation of the Goods and Services Tax (GST). Public investment turned around to record a positive growth due to the improvement in spending on fixed assets by both the Federal Government and public enterprises. Meanwhile, public consumption growth moderated to 3.5% (2Q 2015: 6.8%)

following the slower growth in both emoluments and supplies and services expenditure.

On the supply side, all economic sectors continued to expand during the quarter. Growth was led by the construction and manufacturing sectors. Construction sector growth improved due mainly to a faster expansion in the civil engineering and specialised construction activities sub-sectors. Similarly, the manufacturing sector registered higher growth, supported in particular by an improvement in the export-oriented industries. The services sector registered lower growth due to a moderation in household spending and slower capital market activity. The mining and agriculture sectors expanded at a slower pace due to a moderation in crude oil and palm oil production, respectively.

Inflation, as measured by the annual change in the Consumer Price Index (CPI), increased to 3.0% in the third quarter of 2015 (2Q 2015: 2.2%) largely reflecting the increase in prices in the food and non-alcoholic beverages category amid shortages in supplies arising from adverse weather conditions. The transport category also contributed to the increase in inflation following the higher domestic fuel prices during the quarter.

The global economy continued to expand at a moderate pace in the third quarter of 2015, with diverging growth momentum across economies. While the US and the UK economies registered moderate growth, economic activity in the euro area and Japan improved at a more gradual pace. In Asia, growth was supported by the continued expansion of domestic demand amid weak export performance. Against a backdrop of moderate growth and low inflation, several major and regional central banks lowered policy rates. In addition, a number of economies in the region have also announced fiscal measures to support domestic demand activity.

The trade surplus amounted to RM22.2 billion in the third quarter of 2015 (2Q 2015: RM20.4 billion). Gross exports turned around to register an expansion of 5.5% (2Q 2015: -3.7%), supported mainly by the broad-based expansion in manufactured exports. Meanwhile, gross imports grew by 2.9% (2Q 2015: -5.2%), reflecting an improvement in most major import categories.

The international reserves of BNM amounted to RM415.1 billion (equivalent to USD93.3 billion) as at 30 September 2015. This reserves level has taken into account the quarterly adjustment for foreign exchange revaluation changes.

As at 30 October 2015, the reserves position amounted to RM417.9 billion (equivalent to USD94.0 billion). The international reserves remain ample to facilitate international transactions without disruptions. It is sufficient to finance 8.7 months of retained imports, significantly higher than the 3-month international threshold. It is also adequate to meet external obligations with the reserves to short-term external debt coverage of 1.1 times. It is important to note that not all short-term external debt pose an immediate claim on reserves given the external assets and export earnings of borrowers.

Economic and Financial Developments in Malaysia in the Third Quarter of 2015

The Malaysian economy expanded in the third quarter(at constant 2010 prices)

1Q 2Q 3Q 4Q2012

1Q 2Q 3Q 4Q2013

1Q 2Q 3Q 1Q 2Q 3Q4Q2014 2015

5.6

Annual change (%)

0

1

2

3

4

5

6

7RM billion

0

50

100

150

200

250

300

4.9 4.7

Source: Bank Negara Malaysia (accessed via www.bnm.gov.my).

EDUCATION & TRAINING22

The German Ambassador hosted the third

roundtable on vocational education and

training on 6 October 2015 in Putrajaya.

Ms Brigitte Zypries and her German

business delegation, German companies

(B. Braun, Infineon, Schenker Logistics and

Schutz), MGCC and representatives of the

Ministry of Human Resources, PEMANDU,

The German-Malaysian Institute and others

discussed the further bilateral cooperation

in the field of DVT especially the future

funding of the school which is part of

the programme.

Parliamentary State Secretary Brigitte Zypries visits Malaysia and supports DVT

Working Lunch Roundtable with stakeholders in the field of Dual Vocational Training.

Brigitte Zypries visits the GMI accompanies by H.E. Holger Michael, the German Ambassador to Malaysia (on her right hand side) and Ngan Cheng Hwa, Deputy Managing Director of GMI (on her left hand side).

24 EVENTS

Malaysia Day in Bielefeld

German Ambassador to Malaysia H.E. Holger Michael signing the Golden Book, witnessed by the Head of the internal Business Unit, Dr. Harald Grefe (R1), CEO of the Chamber Ostwestfalen, Thomas Niehoff (R2), and MGCC General Manager, Thomas Brandt (L1).

Since 2014, IHK Ostwestfalen, located in Bielefeld started to focus on Malaysian businesses. About 1000 companies of the region North Rhine-Westphalia are actively in business with Malaysia. The event started with an exclusive dinner in a castle-like building at the Sparrenburg on 8 September followed by a half day event on 9 September in the IHK Ostwestfalen. Both events were initiated by the President of the IHK Ostwesffalen zu Bielefeld, Wolf. D. Meier-Scheuven and with the presence and support of the Chairman of the Foreign Trade Committee of the Chamber, Oliver Hoener and its members.

German Ambassador to Malaysia H.E. Holger Michael was also present as one of the reputable speakers and drew good participation to the event. Representatives from MIDA, MATRADE, AHK Malaysia, Selangor Invest and other speakers delivered their presentation during the event too. The forum, “Entrepreneurs in Talk”, with the sharing of practical success stories in Malaysia, was another major contribution of the crowd. Please refer to http://www.ostwestfalen.ihk.de/international/laenderschwerpunkte/malaysia for more information about IHK Ostwestfalen that places special focus on Malaysian businesses.

Interchamber Cyberjaya Cocktail ReceptionCyberview Sdn Bhd together with the Malaysian-German Chamber of Commerce and Industry (MGCC), the Malaysian French Chamber of Commerce and Industry (MFCCI), the Malaysian Dutch Business Council (MDBC) and the American Malaysian Chamber of Commerce (AMCHAM) organized an interchamber networking cocktail reception on 15 September 2015 at Cyberview Resort and Spa. Besides serving as a business networking event between the members of each business chambers and Cyberjaya stakeholders, it was also an outreach programme on Cyberjaya as a preferred investment hub and other business opportunities that the location might offer.

The event attracted 110 attendees and the VIP of the evening was William Pecriaux, the Deputy Trade Commissioner of the French embassy. The highlight of the event was the informative tour around Cyberjaya pre-networking reception where members were able to view the latest developments in Cyberjaya. With the revamped strategic blueprint since its establishment in 1996, Cyberview Sdn Bhd seeks to elevate Cyberjaya into a Global Tech Hub and to strengthen its position to become a leader in the development of Global Technology Hub.

A chilly evening at Cyberview Resort and Spa.

MGCC 6th Oktoberfest MGCC is proud to have organized for the sixth time the most popular social event among Malaysian-German businesses, the MGCC German Oktoberfest. The 2-day event started with the traditional beer tapping ceremony by the patron of the event, H.E. Holger Michael, German Ambassador to Malaysia. Traditional southern German cuisine and specially brewed Oktoberfest beer were served during the event which attracted more than 500 guests. Guests were entertained by music and games from Die Dorf Fest Kapelle throughout both evenings. We would like to specially thank Erdinger Weißbier, myPretzel and GrabCar for their support of this event.

Die Dorf Fest Kapelle delivering some traditional German songs.

The winner is…

Ladies won prizes after the drinking game.

H.E Holger Michael, together with Dato’ Robert Teo, MGCC Board Member and Thomas Brandt, MGCC General Manager during the beer tapping ceremony.

The leader of Die Dorf Fest Kapelle choosing candidates for game.

Let’s twist again, like we did last summer…

29 & 30 September 2015, Ciao Ristorante

EVENTS 25

26 EVENTS

Malaysia Trade and Investment Mission to Stuttgart

Mr Thomas Brandt (General Manager, MGCC).

Speakers during the seminar on Trade and Investment Opportunities in Malaysia.

The seminar at the Mövenpick Hotel Stuttgart Airport & Messe attracted a large group of approximately 120 participants.

The seminar on Trade and Investment Opportunities in Malaysia, organized by the Malaysian Embassy, MITI, MIDA and MATRADE,took place on 2 October 2015 at the Mövenpick Hotel Stuttgart Airport & Messe. Senator e.h. Datuk Dr. Helmut Baur, Honorary Consul of Malaysia initiated the seminar. MGCC was invited to be a speaker

next to Dato’ Azman Mahmud, Chief Executive Officer of MIDA, the Malaysian Ambassador to Germany S.E. Dato’ Zulkifli Bin Adnan and others to inform and update the German business community on the present economic developments in Malaysia as well as the opportunities that Malaysia offers for investments and trade.

EVENTS 27

German Asia-Pacific Business Association Delegation to Malaysia and Philippines

From l. to r. Ambassador Holger Michael (German Embassy), Daniel Marek (Regional Manager ASEAN, German Asia-Pacific Business Association), Datuk Edgar. E. Nordmann (CEO, Nordmann, Rassmann GmbH), Nadine Fund (International Markets DIHK), Frank Nagel (Director of Business Development Asia-Pacific, IVU Traffic Technologies AG), Stanimira Koleva (COO Asia-Pacific Japan, Software AG), Daniel Bernbeck (Executive Director, MGCC), Dr. Wolfram Spelten (Economic Counsellor, German Embassy), Hans-Gerhard Reh (Deputy Director, iMOVE), Andreas Fiedler (Director Global Partnership, Würth Elektronik eiSos GmbH & Co. KG).

The German Ambassador H.E. Holger Michael is briefing the delegates about the political development in Malaysia. From l. to r. Timothy Evison (Senior Vice President Group Business Development, MESSER GROUP GmbH), Ambassador Holger Michael (German Embassy).

October New Member BreakfastWith Dunia Deli as the event partner, the October New Member Breakfast that took place on 7 October 2015

was attended by 10 representatives from our new member companies. The session began with a brief introduction of the chamber by Daniel Bernbeck, the Executive Director of MGCC, followed by short presentations by the new members to introduce their respective companies. MGCC staff from communications, corporate services and marketing departments were also present to introduce

themselves to the new members. The event ended with a networking session.

Daniel Bernbeck is giving an overview of the chamber to our new members. Group photo of MGCC staffs and representatives from Alpha Winac Engineering & Services Sdn Bhd, Cyberview Sdn Bhd, Happy Water Sdn Bhd, K-Pintar Sdn Bhd, Multico Enviro (M) Sdn Bhd, Testo Holding GmbH and TMF Administrative Services Malaysia Sdn Bhd.

From 5 to 6 October, MGCC was honoured to host a delegation from the German Asia-Pacific Business Association (OAV) with a total of 10 delegates and Datuk Edgar E. Nordmann, CEO of Nordmann, Rassmann GmbH, as the leader of the delegation. The visit commenced with a morning briefing at MGCC on the political and economic development of Malaysia by H.E. Holger

Michael, German Ambassador, Dr. Wolfram Spelten, Economic Counsellor and Daniel Bernbeck, MGCC Executive Director. On the same day, MGCC also welcomed the Parliamentary State Secretary of the Federal Ministry for Economic Affairs and Energy Ms Brigitte Zypries to Malaysia.

EVENTS28

Working luncheon and roundtable discussion on sustainable palm oil production, organized by MGCC on the occasion of the visit of the Agriculture & Food Committee of the German Bundestag.

The representatives from major companies that are active in the production of sustainable palm oil and the staffs of MGCC.

Working Luncheon and Roundtable Discussion on Sustainable Palm Oil Production

On the occasion of the visit of the German parliamentarian committee on Agriculture and Food to Malaysia, MGCC organized a Working Luncheon and Business Roundtable on Sustainable Palm Oil Production, which was also in line with the aim of the delegation on 15 October 2015 in the MGCC office.

Representatives from major companies that are active in the production of sustainable palm oil such as Sime Darby was present

during the event, next to the President and Board members of the Malaysian Biomass association (MBMA) and the Roundtable of Sustainable Palm Oil (RSPO). The EU is one of largest consumers of palm oil in the world, importing about 9 million tons annually. Malaysia, along with Indonesia, are the major players in the palm oil industry, producing more than 80% of the worldwide supply of palm oil and 85% of global exports.

Welcome remarks by Prof. Dr. Michael Pfeffer (Academic Coordinator of MHP II) introducing the interesting programme.

Supported by the German Ministry of Science, Research and the Arts Baden-Wuerttemberg and in cooperation with GIZ and INTEC, the Malaysia Programme at Universities of Applied Sciences in Baden-Wuerttemberg II (MHP II) is a new HR Development tool to boost the HR qualification in Malaysia. It is applicable for German and for Malaysian companies as well as government institutions alike in Malaysia. In order to introduce this programme to the companies, Prof. Dr. Michael Pfeffer, academic coordinator of MHP II, and GIZ, represented by Ms Gabriela Pico, visited Malaysia from 26 to 30 October 2015. An information event was held at MGCC with about 15 participants.

Malaysia Programme at Universities of Applied Sciencesin Baden-Wuerttemberg II

EVENTS 30EVENTS30

Sundowner29 October 2015, Signature Dining @The Roof

From l. to r. Dr. Marco Tieman (Chief Executive Officer, LBB International), K. H. Lim (Managing Director, SGL Carbon Sdn Bhd, MGCC Board Member), Martin Metzger (Managing Director, YTL Power Services Sdn Bhd, MGCC Board Member), Datuk Muhammad Feisol Hassan (Chairman, LCTH Corporation Berhad, MGCC Board Member).

From l. to r. Cheaw Wen Cheng (Key Account Manager, Multico Enviro (M) Sdn Bhd), SC Teng (Managing Director, Testo SMI Sdn Bhd).

From l. to r. Fadzil Abd Latif (Assistant General Manager Government Relations, PR & Communications, Malindo Airways Sdn Bhd), Arthur Hon (Managing Director, Hayat Insurance Brokers Sdn Bhd), Puvendran Kathereson (Corporate Sales Executive, Malindo Airways Sdn Bhd).

From l. to r. Denise Ch’ng (Sales Division Manager, Crown Line (M) Sdn Bhd), Thean Yee Naa (Sales Manager, Corporate Information Travel Sdn Bhd), Lalita Sivarajah (Office Administrator, Agensi Pekerjaan Transearch Wendy Lau Sdn Bhd), Leong Tuck Yee (Director, Finance and Administration, SGL Carbon Sdn Bhd), Geetha Kandiah (Director of Trademarks & Industrial Designs Divisions, KASS International Sdn Bhd).

From l. to r. KL Lau (Country Manager, RITTAL Systems Sdn Bhd), Desmond Wong (Account Servicing Manager, Percetakan Zanders Sdn Bhd), Wan Li Ching (Marketing Manager, Percetakan Zanders Sdn Bhd), Calvin Chan Guan Li (Manager, Global Business Development, TMF Group).

From l. to r. Mohd Tarmizi Yahya (Manager, Happy Water Sdn Bhd), Gabriel Gan (Corporate Manager, Allied Pickfords).

From l. to r. Fiona Tan (Field Sales Manager, Schenker Logistics (M) Sdn Bhd), Derek Ong (Senior Sales Executive, Schekner Logistics (M) Sdn Bhd).

From l. to r. Danny Wang (Business Development Executive, ISI Control Sdn Bhd), Dirk Reuter (Area Sales Manager, EFCO Maschinenbau GmbH).

EVENTS32

Mr Siva is providing information on the process of issuing the employment pass.

MGCC organized a business dialogue with Talent Corporation Malaysia Berhad (TalentCorp) about MYXpats Centre on 5 November 2015 at the MGCC Office. The Malaysia Expatriate Talent Service Centre (MYXpats Centre) is a service centre that provides employers and expatriates with Employment Pass and related pass services. It processes and issues the Employment Pass and related passes for eligible expatriates wanting to work in Malaysia.

The invited speaker was Mr Siva Kumeren A Narayananan, the Head of Foreign Talent Facilitation and Shared Services Office, TalentCorp. Several subtopics were discussed during his presentation, including the services offered at the MYXpats Centre, ways to apply for an employment pass, the time frame of approval and other related information.

25 participants attended the dialogue and participated actively during the event by sharing their difficulties while applying for the employment pass. Following the dialogue, a networking session was conducted among the participants and the speakers.

MGCC Business Dialogue on MYXpats Centre

Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz started her keynote speech by commenting on the weakening of Ringgit.The dialogue session. From l. to r. Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz, the Governor of Bank Negara Malaysia and Pierre Cheyron, the President of the Malaysian-French Chamber of Commerce and Industry.

4-Chamber VIP Luncheon with Tan Sri Dato’ Dr. Zeti Akhtar Aziz

The Malaysian-German Chamber of Commerce and Industry (MGCC), together with the CI France Malaysia (CCIFM), the British-Malaysian Chamber of Commerce (BMCC), and the Malaysian Dutch Business Council (MDBC) initiated a series of VIP Luncheons linking the European and Malaysian community 3 with the aim to build and enhance bilateral economic relations and to create a stronger impact based on related concepts and standards.

On 18 November 2015, the 2nd edition of the VIP Luncheon was held at Le Méridien Kuala Lumpur. In this edition of the VIP Luncheon, the chambers invited the Governor of Bank Negara Malaysia, Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz to deliver the keynote

address, and a dialogue session was also conducted. The VIP Luncheon is an opportunity for senior management of member companies within the Malaysian-European business community to discuss common challenges, goals and developments concerning the European business network by discussing financial initiatives and measures to foster sustainable economic growth.

Topics such as weakening Ringgit, exchange rates and its impact on trade and investments among others were delivered in Tan Sri Zeti’s keynote address. This interesting and informative event attracted 187 participants.

Germany – Land of IdeasThe German Academic Exchange Service (DAAD) celebrates nine decades of successful Change by Exchange. DAAD is 90!https://www.daad.de/der-daad/jubilaeum/en/

Studying in GermanyIf you are interested in the vibrant academic scene in Germany, then DAAD is the right place to look for. Come visit us and 9 other German universities during the FACON Education Fair this December.

Venue: Hall 4, Kuala Lumpur Convention Centre (KLCC)Date: Saturday and Sunday, 19 – 20 December 2015Time: 12pm – 6pm

Research in GermanyDAAD and Graduate Centre of Universiti Kebangsaan Malaysia will hold an information seminar – “Research and Postgraduate Study Opportunities in Germany” on Friday, 18 December 2015 at the Graduate Center, UKM Bangi. The seminar will start at 9.30am and end at 4.30pm. The purposes of this seminar are to provide information on research opportunities in Germany, to give advice on research cooperation with German research institutions and to inform about DAAD funding programmes for individuals and projects.

For more information and to register please visit http://www.research-in-germany.org/malaysia2015

Students looking at the map of Germany during German language course.

GERMAN INSTITUTIONS 33

From 5 to 6 October, Parliamentary State Secretary Brigitte Zypries from the German Federal Ministry of Economics and Energy visited Kuala Lumpur. Accompanied by a German business delegation, she met representatives from the Malaysian government as well as stakeholders from the business community and from the area of technical education and training.

At the core of her visit were the needs and requests of German businesses, which expressed a great interest in the Malaysian market and often have a long-term engagement here. Key elements included discussions on further intensifying the bilateral cooperation in the field of dual vocational training, and on future-oriented energy policies which include energy efficiency solutions as well as renewable energies.

Together with Ambassador Holger Michael, State Secretary Zypries also hosted the reception to mark 25 years of German Unity.

Parliamentary State Secretary Brigitte Zypries Visits

Visit of the German-Malaysian Institute.

Meeting with Deputy Secretary General, Dato’ Dr. Nadzri Yahaya, Ministry of Energy, Green Technology and Water.

Day of German Unity Celebration.

34 GERMAN INSTITUTIONS

The Scholarship Granted by the DSKL has Opened Up a Fabulous OpportunityThe German School Kuala Lumpur (DSKL) has yet again been awarded the quality label ”Excellent German School Abroad” offering secondary school students for the 4th consecutive year a successful guest students programme. 11 students from Germany have since passed the German International Abitur Examination (DIAP) at the DSKL. Numerous applications received by the DSKL are the proof of popularity of the scholarship granted for students to come to Malaysia.

One of the reasons to introduce this programme was the small number of upper secondary high school students. In 2010 only five students attended grade 11. Some students after having successfully passed grade 10 changed to other schools, because to work in such a small group did not appear very attractive to them. The relevant promoting institutions and agencies then had indicated that schools with less than 10 high school graduates might lose their financial support for the qualification phase.

Introducing chemistry as an alternative option to French made the DSKL more attractive not only for the students of the DSKL but also for secondary students from Germany and that paved the way for recruiting students from Germany, thus letting them experience globalization. That was how the guest students programme started.

Since 2011, every August, which is also the beginning of the school year, DSKL grants a full scholarship for two years and up to four partial scholarships as provisions made in the guest students programme. Students with good academic performances and special musical, social or sportive achievements and talents have a good chance to be granted a scholarship.

The project is merely financed by donations from German or international companies who have agreed to a long-term sponsorship. The programme not only is an enrichment in the field of linguistics and academics, it also broadens the students’ minds on the social and cultural level.

EducationThe DSKL, having an enrolment of about 200 students, is one of the smaller German schools abroad in South East Asia, resulting in small classes and excellent learning conditions, particularly for the upper secondary students. Subjects are taught in the English and German languages. Many students of the DSKL have English as their mother tongue. So both the DSKL students and the guest students benefit from each other.

The scholarship holders complete the last two years of their school career atthe DSKL by passing the German International Abitur Examination. This school-leaving qualification enables the students to study at any German as well as English universities and facilitates the access to English speaking field of studies.

“The scholarship granted by the DSKL has opened up a fabulous opportunity for me. I got to know a new country and a new culture and have personally developed further. The atmosphere in the school is very multi-cultural and the relation between students and teachers is quite close, partly a result of

the small classes. The DSKL is an important part of my school career and I am glad to be able to do the DIAP at this school.”

Outside schoolThe guest students can choose whether they want to stay with a family or live in a supervised flat-sharing community. Thus they get to know not only the daily life in school but also the daily life of a family in Malaysia.

Moreover all the students want to discover Malaysia and enhance their English language skills and have the chance to learn about other cultures, habits and customs. Many students take the opportunity to spend their holidays in Malaysia together with their new friends and get to know more about the country and the people. They learn to live with people of different religions and cultures, precious experiences for their future.

“I like staying in Malaysia. People are very friendly and I like to make contact with them. Furthermore, I like some of the Malaysian dishes that are new to me. My host family is very nice, too. The teachers of the school are friendly and support the students. In my opinion it was a good decision to leave Germany for a while and make a completely new experience.”

More information about the guest students program you’ll find here:www.dskl.edu.my

Yannick Gräf, guest student at the DSKL, 12.

Jule Kemmerer, guest student at the DSKL, 11.

36 MEMBERS

Allianz Malaysia officially opened doors to their new head office at Menara Allianz Sentral in Kuala Lumpur on 29 September 2015.

It was a much celebrated milestone for the company that has called Malaysia home for the last 13 years, and fittingly occurs this year, when Allianz SE celebrates its 125 years of existence.

Guests were treated to a surprise flashmob performance by some 100 Allianz Malaysia employees who performed a six-minute mash-up of popular songs from the 80’s, 90’s and current hits including Micheal Jackson’s Thriller, Super Junior’s Sorry Sorry, the soundtrack of Kuch Kuch Hota Hai, and Mark Ronson’s Uptown Funk featuring Bruno Mars in celebrating the diverse working environment adopted in Allianz.

This was followed by the ribbon cutting ceremony officiated by Chairman and Non-Executive Director of Allianz Malaysia Berhad, Tan Sri Razali Bin Ismail and German Ambassador, His Excellency Holger Michael.

In cooperation with Hermos AG based in Germany, Beckhoff successfully passed the tests on conformity with the Fraport-specific BACnet requirements. Hermos and Beckhoff are now qualified for bids to tenders for BACnet projects at the Frankfurt airport.

The tests were conducted in the Fraport testing laboratory for building automation by means of a small qualified sample application. The qualification of the system integrators to realise the sample application was verified too. The prerequisite for the introduction of BACnet components to the laboratory is the successful BTL (BACnet Testing Laboratories) certification.

“The Beckhoff BACnet product lines which were certified according to BACnet revision 12 range from the CX8091 Embedded PC, followed by the CX9020 as well as the CX5010 and CX5020 series. We are happy about passing the tests and are looking forward to the future cooperation with Fraport at Frankfurt airport,” summarises Georg Schemmann, Business Manager Building Automation at Beckhoff.

Allianz Malaysia Officially Unveils New Head Office

Beckhoff Receives Fraport Approval for BACnet Installations at Frankfurt Airport

From left: Rangam Bir (CEO, Allianz Life Insurance Malaysia), Tan Sri Razali Bin Ismail (Chairman and Non-Executive Director of Allianz Malaysia Berhad), German Ambassador His Excellency Holger Michael and Zakri Khir (Chief Executive Officer of Allianz Malaysia Berhad and Allianz General Insurance Company (Malaysia) Berhad).

Beckhoff receives Fraport approval for BACnet installations at Frankfurt Airport.

Crown Penang newly constructed office and warehouse facility.

New Home for Crown Penang, MalaysiaCrown Penang has moved to a newly constructed office and warehouse facility located in Bukit Tengah Science Park just 20 minutes away from Bayan Lepas Airport and the Central Business District of Penang Island. The office and warehouse is the company’s third owned facility in Malaysia.

The brand new four-acre facility accommodates Crown Penang’s Records Management and Relocations brands. It has the capacity to store 750,000 SCEs (Standard Cartons Equivalents) of records. It also has secure file management and media storage areas and a segregated area of household goods storage vaults.

With ambition of becoming the leading storage facility for relocating families and the records management industry in Penang, the new facility offers the best possible storage solutions. It includes a five-tier mezzanine racking system, climate-controlled vaults and audit rooms, high-security loading bays, on-site information destruction area, advanced security protocols and ultra-modern fire suppression systems.

MEMBERS 37

Acting as an interactive platform for the food industry with a focus on Asia, TheRiceBowl.Asia has been launched for industry professionals, food scientists, food regulatory experts and product developers to engage with each other and exchange information related to food science, food product development and food regulatory affairs.

Spearheaded by a team of qualified food scientists, TheRiceBowl.Asia focuses specifically on challenges in the Asian food market.

Industry experts from external institutions are also joining TheRiceBowl.Asia to interact with their peers, assist in answering food science queries, as well as to promote their publications and research. Users may post any question on food science, regulatory guidelines or food applications and their question will be posted publicly for anyone to answer.

TheRiceBowl.Asia is made by food industry experts for the food industry and is supported by DPO International, a leading food distribution organization.

TheRiceBowl.Asia – An Interactive Community for the Food Industry

The 36,000 sq. ft EcoWorld Gallery @ Eco Business Park I is a showcase of EcoWorld’s three green, gated and guarded business parks in Iskandar Malaysia. It gives customers the opportunity to see how innovative concepts like Eco Business Park III’s 4-in-1 concept, which synthesises the retail, office, showroom and factory concept into a highly synergised building, can benefit their business and bottom line.

This gallery also serves as a one-stop centre where customers can avail themselves of the EBP One-stop Business Solution, a proprietary suite of professional services is designed assist them in setting up their operations. Business incubator facilities are also available to help customers launch their businesses while waiting for their premises to be completed.

The services and facilities at EcoWorld Gallery @ Eco Business Park I are open to all MGCC members. For more information, please contact +607 288 2525 or ecobusinesspark@ecoworld.my.

A Showcase for EcoWorld’s Business Parks in Iskandar Malaysia

Following the 2016 Budget announcement, Cyberview Sdn Bhd, the Technology Hub Enabler spearheading Cyberjaya into a Global Tech Hub, signed an agreement with MRCB Land on 28 October 2015 to jointly develop 53.37 acres of land in Cyberjaya, as the first phase of the Cyberjaya City Centre (CCC) development.

Faris Yahaya Managing Director of Cyberview said the CCC will be the pioneering development that nurtures, encourages, harnesses, and showcases creative and innovative ideas to life.

CCC will contain commercial blocks, an integrated lifestyle and retail arena, service residential complexes and a convention center.

The CCC Phase 1, expected to kick startin the first half of 2016, has an approximate GDV of RM5.35 billion for a period of seven years. It is also meant to integrate with the MRT Line 2 between Sungai Buloh and Putrajaya, as well as providing seamless pedestrian connectivity with a walkway from Putrajaya Sentral.

Cyberview and MRCB Land Sign Joint Agreement

(Left to right) Faris Yahaya, Managing Director of Cyberview Sdn Bhd and YBhg. Tan Sri Mohamad Salim Fateh Din, Group Managing Director of MRCB exchanging the signed contract as (back row, left to right) En. Ahmad Faizul Ramli, Head of Business Development & Planning, Cyberview Sdn Bhd, YBhg. Tan Sri Dr. Mohd Irwan Serigar Abdullah (Chairman, Cyberview Sdn Bhd and Secretary General of Treasury, Ministry of Finance Malaysia) and En. Imran Tan Sri Mohamad Salim (Executive Director, MRCB) look on.

38 MEMBERS

K-Pintar Sdn Bhd, with its partner, the Australian Human Resources Institute (AHRI), celebrated 76 Malaysian HR Practitioners who have completed the highly sought-after AHRI Professional Certification in Human Resources (PCHR) programme with a graduation ceremony on 9 October 2015, held at the Auditorium Wawasan in the Human Resources Development Fund (HRDF) Building in Kuala Lumpur. The event was a success with the support of HRDF and TalentCorp Malaysia. K-Pintar has become a leading human capital solutions provider in Malaysia with its repertoire of internationally-recognised certification programmes that straddles across multiple disciplines, relevant to all business sectors for all levels of the Malaysian workforce. K-Pintar and AHRI also announced the launch of the AHRI Malaysia Alumni Network at the event; which will be managed by the programme graduates themselves, comprising a series of networking opportunities, sharing of best practices, and to also discuss contemporary human resource issues impacting the Malaysian workplace.

K-Pintar Sdn Bhd Hosts Biggest Ever AHRI Graduation Ceremony to Date

On 19 October 2015, the German Education Consultant Sdn Bhd (GEC) launched the German Skill Industrial Training Centre (GSTC) which is located at No. 1443, 1st & 2nd Floor, Bukit Rasah Business Centre, Jalan Rasah, 70300 Seremban, Negeri Sembilan Darul Khusus.

The launch started at 10:00am and lasted until 1:00pm. We invited VIPs such as Head of the Private Education Sector and Special Education Jabatan Pendidikan Negeri Sembilan. First, the director of GEC Mr Kanagesan Kalayan delivered a speech about the company and report about past activities. Then, Mr Maurice Schmidt, coordinator of GEC gave a speech about German Industry Courses. After that, the invited VIPs and guest launched the GSTC founded by Mr Kanagesan Kalayan officially.

Malaysia’s attractiveness as an investment destination on many levels remains undiminished. Nevertheless, both foreign and domestic businesses face political, regulatory and operational challenges that in some areas could intensify over the next 12 – 24 months. How interlinked are these factors? And is Malaysia losing its shine as an investment hub or will it regain its momentum over the short-to-medium term? Resilient corporations will be better placed to seize opportunities and manage the challenges that lie ahead.

On 29 October 2015, International SOS and Control Risks organized an exclusive joint event at Aloft KL Sentral to provide insights into current analysis and strategic preparedness options that organizations in Malaysia should consider. Topics covered included:

• Strategic analysis and scenario forecasting • Continuity and resilience planning options • Duty of care obligations and responses

German Skill Industrial Training Centre Launch

Resilience in Time of Cyclical Change - Malaysia’s Transformation, its Risks and Opportunities

Proud and happy moment for all: The AHRI PCHR graduates with programme collaborators, K-Pintar Sdn Bhd CEO RA Thiagaraja (standing at the back in blue tie with a thumbs up), and Dr Kim Schofield of AHRI (to Thiagaraja’s right); with HRDF Chief Executive and Director CM Vignaesvaran (next to Dr Schofield) and TalentCorp Malaysia CEO Johan Merican (to Vignaesvaran’s right).

Speakers sharing views with audience.

From r.to l.: Mr Kanagesan Kalayan (Director and Founder of GEC), Mr Maurice Schmidt (Coordinator from Germany), Professor Emeritus Ralph J Thomas (United Kingdom) and Ms Santhi Muniandy (Director). The Launching of GSTC and MOU signing with UK-Commission for Consistent Learning (UK-CCL).

MEMBERS 39

KASS Director Appointed as INTA Committee Member

Geetha Kandiah, Director of Trademarks & Designs Division at KASS, with members of INTA at its Annual Meeting.

Geetha Kandiah, Director of Trademarks and Designs Division at KASS International, was recently appointed as a member of the International Trademark Association (INTA)’s inaugural Brands and Innovation Committee for the 2016 – 2017 term.

With members from 190 countries, INTA is the world’s largest network of trademark owners and professionals, committed to advocating trademarks and related intellectual property rights to safeguard consumers and stimulate fair and effective commerce globally.

Having served as a member of the INTA Asia Roundtables Project Team since 2012, Geetha is thrilled to now also be a part of the Brands and Innovation Committee and looks forward to witnessing firsthand and contributing to its eventual impact on defining and developing the relationship between brands and innovation from a local, regional and global standpoint.

Visit www.kass.com.my for more information!

6th – 8th Octorber 2015, KSB at Hall 4, Booth 127 & 138.

The MPOB International Palm Oil Congress and Exhibition (PIPOC 2015) carrying the theme, Oil Palm: Powering the World, Sustaining the Future, was an opportune event where current and potential issues were deliberated, views expressed and forecast shared. This year, KSB continued to participate, presenting itself in an 18m2 exhibition space targeted to meet more than 400 visitors during the exhibition. We displayed both pumps and valves related to the oils and fats industry and also took this opportunity to introduced new products Comeo. We successfully drew attention to our key customers and new customers in the Palm Oil Mill industry, and also took the opportunity to interact with each other.

KSB in PIPOC 2015

According guests with spectacular views of the Twin Towers through ceiling-high glass windows, Dynasty Restaurant fêted 31 guests to a hearty 5-course Chinese meal in its intimate private dining area in conjunction with the Malaysia International Gourmet Festival 2015 (MIGF). On hand to welcome the guests were hotel General Manager Robert Frager and Director of Sales & Marketing Ivy Ng. Guests gathered at the R-Stage for pre-dinner drinks and later walked through Dynasty to a private dining area at the rear of the restaurant.

Dynasty Restaurant has taken part in MIGF every year since the festival started. Headed by Executive Sous Chef Kok Chee Kin, the restaurant serves exquisite Chinese food and award-winning dim sum. On behalf of the guests, H.E. Luc Vandebon ended the evening saying they were delighted by the exquisite fare, enjoyed in great company. Guests went home with a beautifully packaged tea and macarons from the hotel.

An Exclusive Dinner Reception at Dynasty Restaurant, RenaissanceKuala Lumpur Hotel

The select group of diners are all smiles at the Grand Staircase.

40 MEMBERS

TRUMPF Invests in Global Customer Service

Volkswagen Malaysia Salutes the Force

TRUMPF modern storage and order-picking technology.

L-R (front row) : YBhg. Dato’ Sri Adenan bin Ab. Rahim, Timbalan Ketua Setiausaha (Dasar Keselamatan), YBhg. Datuk Nur Jazlan bin Mohamed, Timbalan Menteri Dalam Negeri and Mr Armin Keller, Managing Director of Volkswagen Group Malaysia.

Over the next two years, TRUMPF will be investing 35 million Euros in a new logistics center at its headquarters in Ditzingen to continue to offer customers around the world fast availability of spare parts. The existing central warehouse is reaching its capacity limits due to the strong growth of the TRUMPF Group.

With more than 30,000 materials in stock and over 1,000 consignments daily, the central warehouse in Ditzingen is the linchpin of the TRUMPF global logistics network. The majority of shipments reach customers the following morning. Over 100 employees ensure the availability of materials, collate the different items, and organize safe transportation. The number of jobs in the new logistics center will remain roughly constant. After the move, the premises occupied until now by the central warehouse will be used by the TRUMPF Training Center.

Volkswagen Malaysia announced its participation as the official car sponsor this year at the General Police and Special Equipment Exhibition & Conference (GPEC) Asia 2015.

Volkswagen Malaysia sponsored and registered a total of 100 units ranging from the Volkswagen CC, Sharan and Tiguan which was used for and by delegates at the conference.

Mr Armin Keller, Managing Director of Volkswagen Malaysia said that “Volkswagen Malaysia is pleased to support this year’s GPEC Asia by providing these members of the force with our Volkswagen cars that come equipped with world class safety features, the very best of German engineering so that they have one less thing to worry about.”

GPEC Asia is the region’s largest dedicated police and homeland security equipment show, is in its fourth edition this year which anchors growth of the police equipment industry and strategic dialogues.

For more information, please visit www.volkswagen.com.my

42 MEMBERS

MGCC Welcomes New Members

Alpha Winac Engineering & Services Sdn Bhd

Cyberview Sdn Bhd

Contact person:

Mr Phun Lee MingDirector

No. 37, Jalan Serendah 26/40Taman Perindustrian Hicom, Section 2640400 Shah AlamSelangor

Tel : +60 3 5614 0338Fax : +60 3 5614 0128Email : lmphun@alphawinac.com.myWeb : www.alphawinac.com.my

Contact persons:

Mr Mohamed Shukri DramanManager – Investment Promotion

Ms Azrita Abdul KadirManager – Investment Promotion

SME Technopreneur Centre, 2270 Jalan Usahawan 2, Cyber 663000 CyberjayaSelangor

Tel : +60 3 8315 6111Fax : +60 3 8315 6110Email : ccm@cyberview.com.myWeb : www.cyberview.com.my

Alpha Winac Engineering & Services Sdn Bhd was formed by a group of leading experts in the Compressed Air System Industry. We are a one stop engineering solution center, with the core strength in:

• Design, supply, rental, installation, testing and commissioning of the entire compressed air system. • Implement energy saving solution in optimizing compressed air system• Overhaul and renew both oil injected and oil free screw compressors

Alpha Winac offers total compressed air solution to help our users reduce operation cost and improve productivity by analyzing, managing and optimizing compressed air systems. Our core strength in offering energy saving solution in compressed air system is well proven and has won us with recognition from many MNCs and local manufacturing companies.

Cyberview Sdn Bhd is a Tech Hub Enabler that empowers tech community through the delivery of industry development initiatives, investor relations services, tech hub development and management services. Cyberview spearheads the development of Cyberjaya into a Global Technology Hub to support and drive economic prosperity through nurturing of local entrepreneurs, developing innovative talents and policies and attracting Foreign Direct Investments.

Cyberview’s evolving role see it taking the lead in promoting development, business and community activities by creating a supportive eco-system for businesses and investments in the areas of smart grid, green technology, wearables, biotechnology, creative content, big data analytics, cloud computing, mobile internet, information security to grow in Cyberjaya. The city today hosts more than 800 companies, with more than 40,000 knowledge workers presenting collaborative opportunities as well as services and solutions-sourcing for telecommunications, automotive, manufacturing, pharmaceutical, logistics, financial services, banking and shared services & outsourcing.

Cyberview takes pride of its ability to consult, establish, and advance an open and conducive technology hub ecosystem by fostering unique business growth models for all stakeholders. Cyberview believes that through collaborative efforts from both public and private sector, we can unlock the potential of technology together to propel economic growth and wealth creation.

MEMBERS 43

Contact persons:

Mr RA. ThiagarajaCEO

Mr Rafeal Rizal RusdiHead – Centre for Executive Development

Contact person:

Y.Bhg. Dato’ Hans Brenner Chief Executive Officer

K-Pintar Sdn Bhd

Founded in 2002, K-Pintar is fast becoming the country’s leading human capital solutions provider, with emphasis on globally-recognised certification courses. Its contribution in upskilling, reskilling and multiskilling the workforce covers four main areas: Executive Development; Professional Certification; SME Capacity Development and Graduate Capability Development.

K-Pintar offers a comprehensive range of programmes including Soft Skills, targeting specific needs in the workforce, and have produced admirable results in creating dynamic, flexible and knowledge-rich personnel.

Our affiliations with globally-recognised market leaders in learning and development include Cranfield University (UK), European School of Management & Technology (Germany), Australian Human Resource Institute, The CEO Institute (Australia), SAP (Germany), Prosci (USA), IIBA (Canada), the Foundation for Critical Thinking (USA) among others. K-Pintar has serviced over 2,000 clients from numerous sectors, locally and internationally.

The organisation prides itself as a contributor to the country’s growth through the vision of its CEO, RA Thiagaraja: “We should all seek new opportunities for growth with a shared sense of purpose - to be a globally enterprising workforce.”

Contact K-Pintar: Marcom Department (603 2284 4148 ext. 129).

KLS Martin Malaysia Sdn Bhd

KLS Martin, a group of medium-sized companies that offer a unique combination of innovativeness and practical adequacy products highly appreciated by surgeon and medical staff.

With its comprehensive, user-focused product portfolio, KLS Martin sees itself as your partner in the OR and the Central Sterile Supply Department. Our product range comprises more than 16,000 instruments and devices, plus surgical and comprehensive services. The name of KLS Martin stands for high-quality, innovative medical technology. Our special strengths are in cranio-maxillofacial surgery, hand surgery, HF surgery and operating lights. Many of our products are market leaders. The drivers of this success are no secret: innovative research & development, highly advanced manufacturing facilities and an internationally operating sales organization.

Suite C-13-6, 13th Floor, Wisma GoshenBangsar Trade Centre59200 Kuala Lumpur

Tel : +60 3 2284 4148Fax : +60 3 2284 4175Emai : enquiry@kpintar.comWeb : www.kpintaracademy.com

No. 129, Lorong IKS Juru 5 Taman Industri Ringan Juru14100 Simpang AmpatPenang

Tel : +60 4 505 7838Fax : +60 4 504 0654Email : malaysia@klsmartin.comWeb : www.klsmartin.com

44 MEMBERS

Multico Enviro (M) Sdn Bhd Testo Holding GmbH

Contact persons:

Mr Andre BerlinerManaging Director

Ms Alicia LaiAssistant General Manager

Unit 203 & 205, 2nd Floor, Block EPusat Perdagangan Phileo Damansara 1Jalan Damansara46350 Petaling JayaSelangor

Tel : +60 3 7960 4898Fax : +60 3 7960 5898Email : info@multicoglobalenviro.comWeb : www.multicoglobalenviro.com

Contact persons:

Ms SC TengManaging Director

Mr Werner GängDirector Emerging Markets & Partners

Testo – Straße 179853 LenzkirchGermany

Te : +49 7653 681 0Fax : +49 7653 681 1559Email : info@testo.deWeb : www.testo.de

Multico Global Enviro (S) Pte. Ltd. (MGE) is the subsidiary of Multi-Corporation (S) Pte. Ltd. (MCS), an equipment and parts distributor that caters to various industrial segments in the Asia-Pacific region. MGE is the leader in South East Asia in energy, heat and steam production by using mainly renewable resources at the client location.

MGE has ventured into oil & gas since early 2006 when we began supplying and installing natural gas gensets. We expanded into renewable energy in 2008 and since then, we have been distributing gas gensets and providing customized energy solutions to end users in Malaysia, Singapore and Indonesia.

At MGE we offer consultancy and services of the highest standard from pre-engineering, design, electrical and mechanical works to project management. Today, we are affiliated with a number of industrial experts and technology partners, which provide a wide range of energy solutions to meet customers’ demands.

Our focus lies in the sustainable use of resources and environment conservation. We provide the best products and solutions for their energy needs at the most competitive rates in the market, ensuring an increase in profitability by reducing the demand fossil fuel and simultaneously helps to lower operation costs.

Testo AG, with its headquarters in Lenzkirch in the Black Forest, is a world market leader in the field of portable and stationary measurement solutions. In 30 subsidiary companies around the world, 2,500 employees research, develop, produce and market for the high-tech company. The measurement technology expert convinces over 650,000 worldwide customers with highly precise measuring instruments and innovative solutions for the measurement data management of tomorrow. Products from Testo AG help to save time and resources, to protect the environment and the health of humans, and to increase the value of goods and services.

An average annual growth of over 10 % since founding in 1957, and a current turnover of just short of a quarter of a billion Euros impressively demonstrate that the Upper Black Forest and high-tech systems go perfectly together. The above-average investments in the future of the company are a part of Testo’s recipe for success. Testo invests about a tenth of the annual turnover in Research & Development.

MEMBERS 45

Contact persons:

Ms Celine ChanManaging Director

Mr Calvin ChanManager, Business Development

TMF Administrative Services Malaysia Sdn Bhd

TMF Group is a leading global provider of high-value business services to clients operating and investing globally. We focus on providing specialised and business-critical financial and administrative services that enable our clients to operate their corporate structures, finance vehicles and investment funds in different geographical locations.

Our core services can help companies of all sizes with HR and payroll, accounting and tax, corporate secretarial, international corporate structuring, fund administration and structured finance – whether a company wants to globalise, or whether they need support to streamline existing operations.

TMF Group was founded in the Netherlands in 1988. Over the past 20 years it expanded rapidly across the world culminating in 2011 in its merger with Equity Trust, an established global leader in trust and fiduciary services. Today we operate in more than 120 offices and have over 6,000 qualified accountants, lawyers, corporate secretaries, HR and other professionals in 80+ countries that understand local needs. Our teams with local knowledge have the backing of a group with global reach, helping you to do business seamlessly across borders.

10th Floor, Menara Hap SengNo. 1 & 3, Jalan P. Ramlee50250 Kuala Lumpur

Tel : +60 3 2382 4288Fax : +60 3 2382 4170Email : celine.chan@tmf-group.comWeb : www.tmf-group.com

“Good luck” is the message from 12 to 14 January 2016 at EUROGUSS in Nuremberg. Once again, the international die-casting trade fair has a great deal to offer: the latest technology, processes and products on the exhibition stands presented by total of around 550 exhibitors, the “Forschung, die Wissen schaf(f )t” special show, (“Research for Knowledge”) the new “Oberflächentechnik” Pavilion (“Surface Technology”), specialist presentations and current trends and developments in the Congress along with the award presentation ceremonies for the two aluminium and zinc die-casting competitions. The total of around 11,000 expected trade visitors at EUROGUSS are decision-makers from the automotive industry, machinery and equipment construction, the electronics industry, energy and medical technology sectors along with die-casting foundries.

“EUROGUSS is continuing on its course of growth,” says a delighted Heike Slotta, Director Exhibitions, from NurnbergMesse. “Already in 2014, with 470 exhibitors, we registered a substantial increase of over 20%. At EUROGUSS 2016 we are expecting around 550 exhibitors. This proves: the exhibition concept of EUROGUSS is absolutely spot on, the demand for die-casting products is continuing unbroken.”

Around half the EUROGUSS exhibitors are international. After Germany with a big gap, the list of the most important exhibiting countries from Europe is headed by Italy followed by Turkey, Austria, Switzerland, Spain, France and Slovenia. The exhibitors are die-cast foundries along with their suppliers, equipment suppliers

and service-providers. At the fair they will be showing die-cast products, technology along with machinery, peripheral appliances, furnaces, moulds, prototyping, metals, alloys as well as release agents and operating materials. Apart from this there is also a range of products covering the post-treatment of die-cast parts, quality assurance, control and drive technology along with software.

The Research for Knowledge special show has now already been held for the third time at EUROGUSS. Around 10 research institutes, universities and technical colleges will be providing an insight into their latest projects, presenting their services and research focal points, main research areas and also showing their range of training and further training options and opportunities.

The post-treatment and coating of functional and highly durable die-cast parts is a key theme for die-cast foundries. Corresponding machinery and process technology ensure a high-quality finish for die-cast product surfaces. Deburring, grinding, polishing, coating or finishing are the corresponding processing cycles. For the first time, a separate exhibition area and pavilion at EUROGUSS will be dedicated to this special topic.

For more information, please contact:Ms Michelle LimMGCC Senior Marketing OfficerTel: +603-9235 1800 Fax: +603-2072 1198Email: michelle.lim@malaysia.ahk.de

12 – 14 JANUARY 2016: NUREMBERG, GERMANYInternational Trade Fair for Die Casting

EUROGUSS 2016

46 TRADE FAIRS

24 – 27 JANUARY 2016: MUNICH, GERMANYInternational Sporting Goods Trade Show

ISPO MUNICH 2016

Every year, more than 2,560 international exhibitors present their latest products from the segments of Outdoor, Ski, Action, Performance Sports, Textrends, Health & Fitness and Sourcing at ISPO MUNICH to over 81,000 visitors from more than 109 countries.For over 40 years the global leader has provided a comprehensive overview of the entire range of sporting goods, athletic footwear and fashions, as well as the latest trends from these segments. Year for year the custom-tailored trade show concept with special communities and authentic side events guarantees a very unique, personalized and communication-rich atmosphere. As the only multi-segment trade show the event also offers its participants an opportunity to discover discipline-overlapping synergy and cross-selling potential, as well as recognize new segments and trends in advance. Thanks to close cooperation with the industry ISPO can identify market requirements and offers international sports business professionals the best possible presentation and networking platform at ISPO MUNICH.

ISPO MUNICH 2016 will be held from January 24 to 27 and will feature a new distribution of the various exhibit halls. In 2016 you can look forward to nine new exhibit areas in 16 halls. Find out

which segments are best for your business. Multi-faceted side event programmes offer opportunities to gain beneficial advance information. Attractive special exhibits complement your visit with exciting live events. A variety of bars, lounges and art areas invite you to network and relax.

The new exhibit hall will provide trade show visitors with an even more efficient and improved overview of important trends and developments. The modification takes current and future market changes into account and strengthens growth topics like Health & Fitness in context with established sports and outdoor segments. Moreover, new neighbouring space allocations create additional potential for further growth and room for new, segment-overlapping synergies.

For more information, please contact:Ms Sherena WongMGCC Trade Fair OfficerTel: +603-9235 1800 Fax: +603-2072 1198Email: sherena.wong@malaysia.ahk.de

TRADE FAIRS 47

48 TRADE FAIRS

fairs&moreGo Global with US

November – December 2015

For further information on Trade Fairs, please contact MGCCTel: (+60)3 9235 1800 Fax: (+60)3 2072 1198

E-mail: info@malaysia.ahk.de

International Exhibition for the Food, Agricultural and Horticultural Industries

15 – 24 January 2016 (Berlin, Germany)

International Trade Fair for Electronic Components, Systems and Applications

15 – 17 March 2016(Shanghai, China)

International Trade Fair forElectronics Development and Production

15 – 17 March 2016(Shanghai, China)

World’s Leading Trade Fairfor Construction

11 – 17 April 2016 (Munich, Germany)

World’s Leading Trade Fairfor Construction

11 – 17 April 2016 (Munich, Germany)

The World’s Leading Travel Trade Show9 – 13 March 2016

(Berlin, Germany)

SpielwarenmesseInternational Toy fair

27 Jan – 1 Feb 2016(Nurnberg, Germany)

International Trade Fair forPerimeter Protection, Fencing and

Building Security12 – 14 January 2016 (Nurnberg, Germany)

10 – 12 February 2016 (Tokyo, Japan)

World’s Leading Trade Fairfor Organic Food

10 – 13 February 2016 (Nurnberg, Germany)

Exhibition & Conference23 – 25 February 2016

(Nurnberg, Germany)

International Exhibition onAir Conditioning, Refrigeration &

Building Services25 – 27 February 2016

(Mumbai, India)

India’s proud global event forthe paints, coatings, inks, construction

chemicals and adhesives-sealants industries

21 – 23 January 2016 (Mumbai, India)

International Trade Fair for Natural Personal Care10 – 13 February 2016

(Nurnberg, Germany)

Trade Fair with Congressfor Preventive Fire Protection

17 – 18 February 2016 (Nurnberg, Germany)

International Trade Show. Window.Door. Facade. Technologies. Components.

Prefabricated Units25 – 27 February 2016

(Mumbai, India)