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Senator Datuk Paul Low, Minister in Prime Ministers Department

The results of our anti-corruption measures will be visible in a few years.

We have to change our societys perception of corruption.Dato Hisham Nordin, Director of NKRA for Corruption

EU-Malaysia Trade & Investment Forum 2014Launch of EUMCCI Trade Issues and Recommendations 2014

MAR MAY 2014

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Exciting things ahead

In our last issue we promised that we have more exciting things lined up this year. And we do. Top of the list is our very popular Tastes of Europe, which is now in its 13th year.

It has grown bigger and better with each passing year. Everyone so loved last years venue at Royale Chulan that we have decided to hold it there again this year. And dont miss the workshops as well. This year theres one on chocolate appreciation. So, mark the date 16th May on your calendar its the day of food and fun at the Taste of Europe. Our very popular VIP Luncheon series saw Honourable Senator Datuk Paul Low get close with members and asked them to support him in his battle against corruption. Read all about it on page 32. Datuk Paul Low is also the subject of our cover story (page 4). Datuk Paul Lows appointment as the Minister in the Prime Ministers Department for Integrity, Good Governance and Human Rights shows the seriousness of the Malaysian government to combat corruption. And they could not have found a better candidate for the post than Datuk Paul Low who was the President of Transparency International Malaysia for five years. Datuk Paul Low did not shy away from answering the tough questions that were thrown at him during the interview. Dato Hisham Noordins interview (starting page 10) is equally reverting. The Director of NKRA Against Corruption talks about the public misconception about the agency and the work that is being done on changing the cultural mindset of the people towards corruption. The various committees under EUMCCI have been very busy with their events. Chamber news (page 30) records some of the activities of the committees. One of the highlights of the year at EUMCCI is the EU-Malaysia Trade Investment Forum and the publication of the EUMCCI Trade Issues and Recommendations 2014. Trade between Malaysia and EU is strong and growing. As H.E. Luc Vandebon, Head of the Delegation of the European Union of Malaysia said in his speech, It is plain to see why the EU matters to Malaysia and why Malaysia matters to the EU. Read all about it starting on page 24. Visit our website www.eumcci.com to find out the latest happenings and announcements. In the meantime enjoy the magazine.

E D I T O R S N O T E

Minna SaneriEditor

CONTENTS3

4

10

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24

26

30

37

39

40

Editors Notes

Cover Story: Graft Buster

Measures to Prevent Corruption

Asia Green Conference 2013

EU-Malaysia Trade and Investment Forum 2014

EU Country in Focus: Germany

Chamber News

Corporate Partner News

New Corporate Partners

Calendar of Events

20

38

10

4

31

26

24

4 EUMCCI REVIEW

GRAFT BUSTER

Photography by V. Chanthiran

YB Senator Datuk Paul Low Seng Kuan, Minister in the Prime Ministers Department for Integrity, Good Governance and Human Rights is passionate about combating corruption. Before becoming a minister, he had made his name as the President of the anti-corruption watchdog Transparency International Malaysia (TI-M). He tells Sharmila Valli Narayanan how the proposed Corporate Liability Law (CLL) will bring a big change in fighting corruption in the private sector and reveals why he decided to tackle corruption by joining the Government.

One of the most surprising names in the Prime Ministers cabinet post the general elections of last year was that of Senator Datuk Paul Low Seng Kuan as the Minister in the Prime Ministers Department for Integrity, Good Governance and Human Rights. The creation of the Department for Integrity, Good Governance and Human Rights

COVER STORY

and the appointment of Datuk Paul, who was well-known as the President of TI-M, showed the Governments seriousness in tackling corruption in the country. In the five years that Datuk Paul served as the President of TI-M, he gained a reputation as a fervent opponent of corruption. One would think that his appointment would have

been welcomed. Instead, there was shock and outrage amongst some who felt that he had sold out to the Government. Datuk Paul received a lot of brickbats from netizens. At the same time, many people welcomed his appointment, among them Dato Hisham Nordin, the Director of NKRA Against Corruption. He knew Datuk Paul from his

5EUMCCI REVIEW

TI-M days. Datuk Paul has the guts to do this job. He tells people things as they are, says Dato Hisham. He took this post because of his convictions, not because he needs the money. Datul Paul is a successful businessman who made his money by the time he was in his forties. He is now 68; he could spend his time playing golf and not take up this offer which is a very stressful job. But he knows that this job is his national service his way of giving back to the country. What he does might not be appreciated now, but it will be valued by the future generations. Datuk Paul looks like a Chinese scholar. He is an astute businessman with over 35 years of experience in the corporate world. He has also served as the President of the

Federation of Malaysian Manufacturers (FMM) from 1997 to 1999. It was his years in the corporate world that opened his eyes to the evils of corruption. EUMCCI REVIEW (ER): How did you become interested in fighting corruption? Datuk Paul Low Seng Kuan (DP): I moved from the corporate world to become the President of Transparency International Malaysia (TI-M) for the sole purpose of combating corruption. Coming from the corporate sector, I realised that corruption was rampant in the business world and it seemed as though people became tolerant of it. They complained a lot about it, but not many people did anything about it. I knew that the consequences of corruption are severe: poor economic growth, high unemployment and a decrease in the standard of living are just some of the consequences. High unemployment and corruption can fire up peoples dissatisfaction and it would often end in political instability. Corruption is not just about the issue of paying and accepting bribes. It is also about the poor institutions, poor laws, processes that are not adequate, lack of accountability, lack of credibility and transparency and a lack of a culture that is intolerant of corruption. I wanted to do something to fight corruption. I wanted to work with a reputable NGO that had a good track record of confronting the problem of corruption and constructively deal with the Government. Thats why I gravitated towards TI-M. I became a strong anti-corruption activist who engaged constructively with the Government. I just didnt believe in criticizing the Government; I also gave solutions to the problems. ER: How serious is the practice of offering bribes from the private sector? DP: When you talk of the business community in the private sector, you have the MNCs, which are foreign and the local companies. The MNCs have a much better code of conduct which includes a no bribery policy which is strictly enforced. The MNCs are governed by the laws which come from their countries of origin, which are very strict, especially with regards to bribery and these laws have extraterritorial jurisdiction.

Many of these MNCs which come from developed nations are very careful to maintain the reputation of their companies especially with regard to the issue of not paying bribes because their societies expect these companies to conform to these laws. Some of these MNCs are over 100 years old and they have had a long time to develop the anti bribery culture within the company.

Malaysia is a developing nation. The awareness of not engaging in bribery as part of their CSR is not taken as seriously. You cant blame them because of the lack of enforcement of anti corruption laws and the culture of our society has not reached a level where people are intolerant of such practices. So local companies are more involved in corruption. ER: The Corporate Integrity Pledge (CIP) is an initiative designed to curb corruption in the private sector. How well is CIP being received? Why do you think there hasnt been a rush of companies willing to take it? DP: People think CIP is just about signing a piece of paper saying you will not engage in corrupt practices. So whats the big deal they ask? CIP is a public declaration made by a company that it is committed to upholding the Anti-Corruption Principles for corporations in Malaysia. In other words, the company makes a public pledge to fight against corruption and that it will report any cases of bribery. It is also sending out a message to other parties that anyone dealing with it must adhere to this policy. By signing the CIP the company has to also put into place an effective anti bribery management system or what we call the Corporate Integrity

I knew that the consequences of

corruption are severe: poor economic

growth, high unemployment and

a decrease in the standard of living

are just some of the consequences.

6 EUMCCI REVIEW

System (CIS) within the company. CIS will enhance good governance and integrity and it will help create an internal control system within the company to monitor corruption. To ensure that the company has proper processes, procedures, accountability, etc., it

has to have a Chief Integrity Officer to look into all these. Many MNCs already have this in the form of a Compliance Officer. At the moment we have about 300 companies, mainly GLCs, and MNCs that have taken the CIP. Many of the companies that have signed the CIP are large companies, especially foreign companies that have no problem with the CIP. Its the local companies that are hesitant, especially the smaller ones such as the SMEs because they are not used to this. We are making an effort to reach out to such companies to take on the CIP. When you talk of corruption, it is not just making the Government accountable; the private sector has also to play a part to be more accountable. This is where the Corporate Liability Law (CLL) will play a part in making the private sector more accountable. ER: How will CLL help fight corruption? How has the feedback been from the corporate sector on this? DP: Let me explain about CLL first. I am proposing CLL to ensure that corporations introduce corporate governance and integrity task forces. This law will make the board of directors and CEO liable if their employees

are caught committing graft. One way to prevent this from happening is to ensure that the company has preventive measures and a strong internal control system in place to prevent graft. ER: Isnt it unfair to target the board of directors and CEO for something that an employee does? DP: Why does an employee pay a bribe? To make sure the company gets the contract or whatever. But surely somebody must have instructed the employee to do it? No employee is going to fork out lots of dollars from his own pocket for the companys sake. Normally, it is the higher ups who would have instructed the employee to do it. CLL will ensure that the top management, if they are involved, will have to face up to the law instead of just the poor employee. Under our current law only the person giving the bribe is charged. CCL will make the company responsible for the action of the employee. If the company is really innocent and it is the employee who did it, the company can state its defence by showing it does not condone corruption. One way to prove this is to show that the company has acceptable standards to prevent corruption. You asked about the feedback. There are some concerns about CLL from some sectors of the private sector. What this tells me is that not everyone in the private sectors sees corruption as an economic crime. Corruption has become a necessary evil to secure a sale or contract and to stay competitive. I have talked to some of these businessmen and asked them why dont they stop paying bribes in the first place? They tell me if they dont their competitors will. They ask me whether I can assure them that their competitors will stop paying bribes?! But I am optimistic that CLL will bring about a change. Its like the QC (Quality Control) movement of the 1970s and 1980s, where companies began putting QC standards in place to ensure that there were no defects in the goods. I am hoping the same for CLL where it will create an integrity movement in the private sector where giving bribes is not condoned. I hope to introduce the law this year. We will of course incorporate a reasonable grace period to allow companies to equip themselves

with their own internal control systems and preventive measures for corruption. CLL is my personal KPI (Key Performance Indicator). Although not everyone in the private sector is enthusiastic about it, there are also many who are very happy with the proposed CLL. I am constantly engaging with the corporate sector and having dialogues with them. I am also aware the CLL has made me unpopular among certain quarters. I am not here to be popular, but to put into place measures that will curb corruption and make Malaysia a better place for everyone to do business. ER: Having been President of TI-M and now being part of the Government, how has your perception of fighting graft changed? What are the problems of fighting graft from the inside which you were not aware of when you were outside? DP: There are certain things about the Government that I did not realise and appreciate like the vastness of the Government. There are 1.4 million civil servants! There are 24 ministries, different layers right down to the district office, land office, town councils, subsidiaries, agencies etc. All these organisations cannot be changed overnight. One needs to understand how to go

about changing it. And change cannot come from the outside. Superficial change does not translate down to day-to-day operations and cannot be sustained. I am not just changing at a higher level, but also on the ground level. Change has to occur at ground zero which is what I have to do. And to do that is a challenge because of the vastness and the bigness of the

Its naive to think one can bring about change in 100 days. It has taken me 100

days just to learn my way around the Government and on

how to become a minister!

What I have put in place will take two to three years before one can see the results. I am hoping that TIs Global Corruption Barometer for 2014 and 2015 will be better.

COVER STORY

7EUMCCI REVIEW

8 EUMCCI REVIEW

Government. What we are doing I think has not been done before. Many countries tackle corruption on an ad hoc basis, but here we are doing it in an integrated and holistic way. My plan for change will roll out ministry by ministry, so the ministers themselves have to be involved. So far, all the ministries have been very cooperative. Before I came in, people said I was too optimistic to think that I could change a system that was entrenched with interests. I feel there is no harm in trying. If I can change about 30 per cent, that itself is an achievement when before there was nothing! I believe change can happen. Now more substantive change can happen because I see the willingness of the ministers themselves to support such a change. My hope is that by the time I leave I can make some changes and that the transformation continues to improve after I leave.

ER: Although the relevant agencies keep declaring that we are making progress in fighting corruption, figures reveal otherwise. The TIs 2013 Global Corruption Barometer survey revealed that 39 per cent of Malaysians were of the view that corruption had increased, a 2 per cent increase from the previous year. TIs latest Corruption Perception Index puts Malaysia at number 50, from 49 in 2012. Your comments on this? DP: What I have put in place will take two to three years before one can see the results. I am hoping that TIs Global Corruption Barometer for 2014 and 2015 will be better. I am optimistic it will be better. As for corruption within the Government, the discipline in the Government is not as adequate but it is something that the Government is looking into. I am positive that our ranking will improve in the coming years.

ER: Many people were surprised when you accepted a position in the cabinet. You defended yourself by saying that instead of just criticizing the Government, its better to do something to help fight corruption. That was the belief of another activist turned politician, P. Waythamoorthy until he lost faith with the Government and resigned. How has your journey and faith been so far? DP: I am not an activist turned politician. I am an activist turned professional minister. I do not have a political agenda or intend to stand for elections. I am not bothered about what people say about me. My years with TI-M has given me the experience and depth of knowledge in integrity and governance. I come on board the Government equipped with the right skills to combat corruption. When I was offered the position, I asked myself, can I make a difference more from

COVER STORY

Corruption if unchecked can ruin a nation

SAMPLE

9EUMCCI REVIEW

the outside or from the inside? I believe I can make a difference from the inside. If the Government wanted to shut me up, they could have made me a consultant or an adviser. Why appoint me a minister? The Government took a risk in appointing me because I am not affiliated with any political

party. The reason is when I am made a minister, I am given the stature, the protocol and the authority to speak to other ministers. I can communicate directly to the cabinet and express my views. I am able to reach the highest levels of Government. Thats the beauty of it and thats why I took the job. The BN (Barisan Nasional) is the elected Government for the next five years. What are you going to do for the next few years? You can either criticize or help the Government in charge to build itself up. If I have no faith in the Government that means I do not have faith in myself to do anything. I am full of faith that change is already happening. For many years there was no open tender contracts, but now there will be less directly negotiated government projects and more open tenders. Things are slowly but surely changing. Theres the CIP, we are proposing the CLL, we are strengthening the Malaysian Anti Corruption Commission (MACC) these are all not small changes. I cant speak for Mr Waythamoorthy. But people tend to judge and expect quick solutions. Its naive to think one can bring about change in 100 days. It has taken

Not everyone in the private sectors sees corruption as an economic crime. Corruption has become a necessary evil to secure a sale or contract and to stay competitive.

me 100 days just to learn my way around the Government and on how to become a minister! You cannot expect me to be as critical of the Government as when I was in TI-M. I am now a minister in the Government and I cannot act as a loose cannon. I have to learn to work as a team. I have been actively engaged with NGOs and activists since I came on board the Government. So far I have met about 30 of them. Rather than treating NGOs as enemies, I am bringing them in for consultation and partnership. The critics and bloggers who criticize me for accepting the Governments post should

by right be wishing me well and praying for my success. But the way they are going about it, especially the bloggers, it is as if they wish I will fail. If I fail, then feel sorry for your kids and their children because I am trying to build this country for your children and my grandkids. These people are unable to accept the fact that I decided to work for this elected Government (which they did not vote for) and therefore they are disappointed and vent their anger. At least by working with the Government I am trying to do something positive for the Government. By spewing so much anger against me on the Internet, I ask them what are you doing for the country? EU

10 EUMCCI REVIEW

Dato Hisham Nordin has been the Director of NKRA Against Corruption since 2009. NKRA Against Corruption is a division that is tasked with the effort to fight corruption. He tells Sharmila Valli Narayanan of the progress that has been made in the fight against corruption.

W hen YAB Dato Seri Najib Tun Razak became the Prime Minister in April 2009, he realised that if Malaysia were to achieve its ambition to become a developed nation by 2020, the country had to embark on a transformation programme that would bring positive changes to the country and its people. In the general elections of 2008, the ruling party Barisan Nasional won the election, but without the usual two thirds majority. The election results were a wake-up call to the Government that the people were unhappy with many things. In the post mortem after the elections, the Government through a series of public surveys, media analysis and opinion polls identified six crucial areas that people wanted to see improved most in the country. These six areas are reducing crime, fighting corruption, improving student outcomes, raising living standards of low-income households, improving rural basic infrastructure and improving urban public transport. Addressing the increasing cost of living was added to this list in July 2011. The fact that fighting corruption was second on the list indicated how serious Malaysians viewed the problem of corruption. The Government Transformation Programme (GTP) launched on 28 January 2010 by the Prime Minister was to address these key areas of concern -- known as National Key Results Area (NKRA) -- to the people. NKRA Against Corruption was established in 2009 with Dato Hisham Nordin as its director.

EUMCCI REVIEW (ER): Malaysians are familiar with Malaysian Anti Corruption Commission (MACC) and Transparency International Malaysia (TI-M) but not so familiar with NKRA Against Corruption. Could you explain what does NKRA Against Corruption do? DATO HISHAM NORDIN (HN): Let me start by telling you what NKRA Against Corruption does NOT do: we do not investigate people accused of corruption and bring them to court. In other words, we are not an enforcement agency. That is MACCs job. MACC is an independent body which

INTERVIEW

Photography by V. Chanthiran

TO PREVENT CORRUPTION

MEASURES

11EUMCCI REVIEW

does not report to the Government but reports to Parliament. NKRA Against Corruption reports to the PMs office. We are one of the Governments efforts to prevent corruption. We do this via a three prong method. Firstly, we study and research the roots and opportunities for corruption

within the Government. Secondly, we find solutions to curb the opportunities for corruption within the Government by coming up with various initiatives, by engaging and coordinating with the related parties on the implementation of the initiatives and finally we monitor the implementation by measuring Key Performance Indicators or KPIs. The fact that the Government has established the NKRA Against Corruption shows its willingness to recognise corruption as a problem and, consequently, that steps have to be taken to combat it. We even have a KPI to measure our fight against corruption. This is a very bold move by the Government. No other country in the world has something like this.

ER: Corruption has been around for a long time in Malaysia. Why do you think people have only started talking about it in the last couple of years? HN: For many years talking about corruption was taboo. People, especially those from the business community did not publicly discuss this because they did not want their businesses to be affected. About 30 or 40 years ago people were more concerned about the delivery system in other words, they wanted to see roads and schools built, have access to electricity and clean water in the countryside etc. As long as these needs were met, people did not complain about corruption. Malaysian society has changed. With better education and more affluence, people are

more concerned about other things such as good governance. They want a government with integrity and credibility that can be benchmarked with the rest of the developed world. Whats happening in Malaysia is also happening in a lot of the developing countries around the world. People are demanding transparency and a clean, efficient and trustworthy Government. I think it is a very good sign that Malaysians are talking about corruption and demanding action. This shows that Malaysians are very concerned about this problem. If Malaysians did not talk about corruption, then that would be very worrying because that would mean people have accepted

corruption as part of their culture. Thats bad! In some countries, people no longer talk about petty corruption because it has become so entrenched in their lives. The people are only concerned when corruption happens on a very large scale. In Malaysia corruption is often politicized and everyone keeps pointing fingers saying that the other side is corrupt. In some countries, corruption is used as a weapon to bring down the leaders. The leadership changes, but unfortunately the issue of corruption is never resolved and it continues. Corruption must be fought independently. In order to do this the institutions must be strong and credible. Corruption cuts across

NKRA Against Corruption reports to the PMs office. We are one of the Governments efforts to prevent corruption.

12 EUMCCI REVIEW

INTERVIEW

Our greatest challenge now is to change the publics perception of our fight against corruption.

political ideology, race and religion. Malaysia has taken the Transparency International (TI) Corruption Perception Index (CPI) and Global Corruption Barometer (GCB) as a KPI. This is a very bold move as it shows just how committed the Government is to fighting corruption.

ER: What are some of the initiatives that have been launched under NKRA Against Corruption? HN: From our studies, we found that there are three areas that are the most corruption prone which are the regulatory and enforcement agencies, Government procurement and grand corruption (politics). Our top priority, therefore is to regain public confidence in regulatory and enforcement agencies, to reduce leakages in Government procurement and to tackle grand corruption. We have put into place several initiatives that will be a big step towards eradicating corruption. These initiatives are Convicted Corruption Offender Database (previously known as Name and Shame Database), Special Corruption Session Courts, Whistle Blower Protection Act, Integrity Pact, MyProcurement portal, Parameter of Support Letter, Hot Job Rotation Policy, Compliance Units and Rewards and Recognition Policy.

As you can see these initiatives cut across other departments such as Immigration and Customs to name a few. I would like to touch briefly on some of these initiatives. With regards to the Special Corruption Session Courts, Malaysia is one of the few countries in the world that has these courts. There are 14 such

courts, which expedite corruption cases. As of 2012, more than 400 cases have been processed. The Whistle Blower Protection Act offers protection to people who come forward with information on corruption. The act has helped people to come out and talk about it and has led to some people being convicted. The MyProcurement portal was launched to boost transparency in government procurement. Members of the public are able to view all of the Governments direct negotiation contracts online. They will also be able to view the advertisement and tenders for Government contracts as well. The Hot Job Rotation Policy is to identify the post in a department where the job may lead the officer to an opportunity to accept bribes. Officers doing hot jobs will be rotated every three years. Other measures that have been put into place are the establishment of Integrity Units (IU) in all ministries, government department and agencies at the federal and state levels. These IUs will have their own Certified Chief Integrity Officers (CeIO) to manage

the integrity management aspect in their respective organisations. MACC offers the CeIO certification course. The presence of the CeIO is going to push the government sector to a different level. We hope to produce 180 CeIOs a year. I would like to add that MACCs CeIO programme has drawn the attention of various international anti-corruption agencies such as the International Association of Anti-Corruption Authority (IAACA), Interpol and other enforcement agencies around this region.

ER: What you have said so far sounds good and it looks as though concrete steps have been taken to fight corruption. Why then is the perception of the public so different? The TIs Global Corruption Barometer (GCB) for 2013 shows that more people believe that the level of corruption has increased compared to 2011! Obviously the public does not seem convinced that the Government is doing a good job at fighting graft. HN: I would like to point out that the very same survey also showed that globally 27 percent of people said they paid a bribe

13EUMCCI REVIEW

when accessing key public institutions and services while only three per cent did so in Malaysia. This is one of the lowest and is comparable to South Korea, Spain and Norway. Its not just all bad news on the corruption front for Malaysia. Having said that, yes, it is true that the peoples perception of the Governments effort to fight corruption is not good, although the Government has made many changes to combat graft. Our greatest challenge now is to change the publics perception of our fight against corruption. We have made progress in fighting graft. For example, the Corruption Perception Index (CPI) for 2013 ranks Malaysia 53rd out of 177 countries. This is

We have put into place several

initiatives that will be a big step

towards eradicating corruption.

one rank higher than 2012 where it ranked fifty four. The public can grumble that our efforts in fighting corruption do not commensurate with the results. But they forget that in 2011 Malaysia was ranked sixty! Since the launch of GTP in 2010, our ranking has moved up from 60 to 53 this is a considerable improvement. And this improvement is being reflected in other areas as well. For example, in the World Bank Ease of Doing Business Report 2014, Malaysias position surged to sixth among 189 economies compared to 12th the previous year.

According to this

report, Malaysia is ahead of economies such as South Korea, the United Kingdom and Finland. Our FDI has also gone up. All this indicates that our anti-corruption measures are beginning to take effect.

Of course a lot more work needs to be done. The Governments aim is for Malaysia

to occupy the top 30 percentile of the CPI index by 2020. The public

needs to understand that fighting corruption cannot be done

overnight. It is a long term process because it involves

changing peoples attitude towards bribery. Fighting corruption should not just be left to MACC and NKRA Against Corruption. The public must also be involved. They must realise its wrong to give bribes and they must come forward to report corruption.

Since 2010 we have already put into place,

building blocks that will help prevent corruption.

These will take some time before they start showing

results. Hong Kongs famous Independent Commission Against

Corruption (ICAC) took 17 years to be what it is today.

Give us some time and we will get there. EU

14 EUMCCI REVIEW

FACILITIES OFFERED BY EXIM BANKEXIM Bank is the only development financial institution (DFI) that is mandated to do cross border transactions. Here are the facilities offered by EXIM Bank.

Conventional banking facilities Buyer creditBuyer credit enables Malaysian exporters and contractors a chance to bid for overseas contracts and tenders. This credit will be given directly to the foreign buyers or finance institutions to make it more convenient for Malaysian goods and services importers. Loan disbursements will be made directly to the local exporter or contractor.

Project/contract/investmentThis facility is available to locally owned and controlled companies, as well as Malaysian joint venture companies abroad who bid and carry out projects/contracts or investments in another country. The facility provides financial support to Malaysian investors/contractors undertaking projects overseas such as infrastructure, manufacturing and other development projects.

Bank guaranteeIs made available to facilitate the issuance of bonds or surety for overseas contracts (i.e advance payment bonds and performance bonds) undertaken by Malaysian contractors. This allows the contractors to raise funds overseas.

Supplier creditMalaysian manufacturers, exporters and suppliers of locally manufactured goods, can take advantage of this facility to support their export trade financing requirements through EXIM Banks trade financing facility. The facility offers Pre-Shipment and Post-Shipment Financing. The former finances working capital for production of goods, while the latter finances the export bill after shipment has been made.

Export of servicesThe Export of Services facilities can be used by Malaysian owned and controlled companies engaged in the provision of services for the global market such as information technology services, construct ion, telecommunicat ion, management or other technical professional services.

Export credit refinancing (ECR)This scheme provides an alternative short term pre and post shipment financing to direct/indirect exporters to promote the export of manufactured products, agricultural products and primary commodities. It is available at a competitive interest rate to a manufacturer or trading company with ECR credit line duly established with any participating commercial bank.

Credit insurance facilities Exporter trade credit insurance (Export)It is an insurance policy that acts as an umbrella protection for exporters who make regular exports to overseas importers from losses incurred due to buyers failure to make payment.

Bank letter of credit policy (BLCP)BLCP will assist in securing payments of the Irrevocable Letter of Credit (ILC) to your bank. It covers participating banks that negotiate ILC issued by foreign banks against the foreign issuing banks failure to reimburse payment to the beneficiaries (i. e. Malaysian exporters) under the ILC.

Specific PolicyIt is a form of credit insurance that insures Malaysian exporters who undertake

contracts for exports of capital goods, turnkey project, construction works or rendering services abroad, against the risk of non-payment by the overseas buyer. Minimum credit is from one to 10 years.

Overseas investment insurance (political risk insurance)This is a policy to cover the risk of non-commercial losses or business established abroad by Malaysian companies. The risks include restrictions, transfer, war, civil disturbance and a breach of contract, as well as the right of ownership.

Islamic BankingEXIM Bank follows the Shariah concept in Islamic banking Overseas project/contract financing-i Buyer financing-i Malaysia Kitchen Financing-i Term financing-i Supplier financing-i Import financing-i Export credit refinancing-i (ECR-i) Bank guarantee-i Letter of credit-i Forward credit exchange-i Trust receipt-i Export services-i

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MARITIME INDUSTRIES IN SELANGOR A BLUE OCEAN STRATEGY?Strategically located at the Straits of Malacca, Selangors shores are frequented by 60,000 to 94,000 ships every year. This enormous figure translates into one third of global trade carried through the straits as well as half of global oil trade. Based at one of these rare chokepoints of global trade, the demand situation for maritime industries and services is increasing, but competing with large ship makers in China or Korea is clearly not a sustainable response. Malaysia and in particular Selangor are focusing on specific niche products, which are also driven by an already announced RM 300 billion capital expenditure of the national oil company Petronas as well as a new soft loan program of the Malaysian government.

Due to government policies, incentives and the demand environment, Selangors maritime industry has rather adopted a blue ocean strategy and concentrates on design, support, maintenance, repair and overhaul (MRO) services as well as equipment and components manufacturing. Furthermore, government policies and programs suggest a reorientation in shipyard activities on

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SelangorOthers, Malaysia

52% 48%

05

1015202530354045

Corporations per Sector

Port Klang Berth

Source: Adopted from Marine Department of Malaysia, Classification Bodies and MIGHT 2011/12

Source: MIGHT 2011

Marine Equipment Manufacturing Geography, Malaysia 2011

Maritime Industry in Selangor 2011/12Secondly, the global trend of larger container and bulk vessels making less calls in a region might change the stream of global trade. However, the Straits of Malacca will clearly continue to be a key route and thereby support the demand situation for maritime services, logistics and MRO among others. This is also reflected in the extensive expansion programs of Westports valued RM 3.18 billion and increasing container handling capabilities of up to 11 million TEUs. Similar programs are underway at Northport, which will invest another RM 1.5 billion in different expansions to increase capacities to 5.5 million TEUs per annum. In addition, the Selangor State government will also invest RM 1.5 billion in the road network, transportation and commercial facilities supporting the port. In this context, it is also worth mentioning the successful public listing of Westports Holding Bhd at the main market of the Kuala Lumpur Stock Exchange October 2013, which was raising RM 2.2 billion for the companys further expansions.

Finally, there should also be a word on risks and challenges, which include a rather restrictive cabotage policy meant to protect local shipping companies as well as the potential of a slowing global economy. Besides, declining calls at Port Klang could certainly affect the regional maritime industry. While the cabotage policy continues to be a small concern with several loopholes in the regulation, a dip in global trade could harm growth potentials of the maritime sector more substantially. Such concerns can also translate into the amount of calls received at Port Klang. In this context, the proposed operational alliance of the global top 3 shipping companies, CMA CGM, Maersk Line and Mediterranean Shipping Co, expressed in the P3 service routing, would clearly decrease the number of calls in Port Klang from 10 to 6 at the Asia-Europe/Mediterranean trade lanes. Nevertheless, due to ever-larger ships the volume could remain the same, since Port Klang positioned itself already to receive ships of up to 18,000 TEUs. In addition, Westports pointed at higher growth potentials within the ASEAN region and Asia-Africa trade. Out of this perspective, the maritime industry in Selangor should be able to flourish in a recovering global economic climate. EU

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Mr Lee Ki Yau, Secretary General Malaysian Green Business Association (MGBA)

Entrepreneurs visiting the EUMCCI booth

FEATURE

ASIA GREEN CONFERENCE 2013

G reen practices in business is still a new concept for many companies in Malaysia. The most common green practice adopted by businesses is paperless communication, by relying on email or other digital communication platforms. On a higher level, some businesses also refurbished used products and revise their production processes to reduce waste. The Asia Green Conference 2013 with its theme of Developing a Green Sustainable Future showcased sought-after

Asia Green Conference 2013 showcased ways for entrepreneurs to develop a green sustainable future.

Asia Green Conference 2013

Date: 3rd to 4th December 2013Venue: Sunway Pyramid Convention Centre, SelangorOrganised by: Tan Chong Technical Institute and Malaysia Automotive Institute (MAI); endorsed by Malaysia Productivity Corporation (MPC).

YB Datuk Seri Panglima Dr. Maximus Johnity Ongkili, Minister of Energy, Green Technology and Water (KeTTHA), Datuk Loo Took Gee, Secretary General of KeTTHA and Dato Rosie Tan, deputy managing director, Tan Chong Motor Holdings

opportunities, profound innovations and trends accelerating the new green economy. Event objectives were to:

Highlight government green initiatives, new trends and critical knowledge.

Bring forth potential winning partnerships to organisations for a world where profits, people and the environment are truly interconnected.

Ensure delegates have access to vital information on the availability of financial resources e.g. grants, subsidies, tax incentives and loans in implementing green initiatives and staff training.

Provide an opportunity for delegates to learn about key success factors and issues faced from existing Green business models and implementers.

The conference, which was officiated by the Minister of Energy, Green Technology and Water, YB Datuk Seri Panglima Dr Maximus Johnity Ongkili, attracted over 400 industry professionals, executive decision-makers, leading training experts, business consultants, NGOs, trade associations and government agencies from around the region. Via key note

sessions, dialogues, creative break-out panels and experiential workshops, delegates learned about the latest ideas and developments on sustainable business practices.

EUMCCI's own booth at the conference was frequented by a steady stream of visitors, consisting mostly of green entrepreneurs who wanted to enquire about assistance in setting-up business matchmaking meetings with financiers and angel investors. EUMCCIs participation at the conference was part of its public private initiative under the project Enhancing Cooperation in Facilitating SMEs Access to Finance for Sustainable Consumption and Production (SCP). This project is funded and awarded by the South-East Asia Prosperity Fund UK Foreign and Commonwealth Office with the British High Commission, Kuala Lumpur acting as supervising body. The project also sponsored 300 copies of the digital publication titled Raising Business Angel Investment: Insights for Entrepreneurs in 2013 which was distributed to all delegates. EU

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FEATURE

The Sompoton Spa started off as a day spa in a shopping mall nine years ago. Its owner and managing director Megan Tan was very ambitious for her spa. She envisioned the brand becoming a sought after luxury hotel spa that offered unique treatments designed to enhance ones well being. Today, The Sompoton Spa is acknowledged as one of the leading home grown luxury spas in the country. The evidence is in the

HOMEGROWN LUXURY SPAThe Sompoton Spa is less than a decade old, but it has created a name for itself as one of the luxurious hotel spa chains that is proudly 100 per cent Malaysian owned.

number of awards that have been showered on the spa. The awards that it has won include Best Customer Service Award in 2006, The Best Spa Ambience Award in 2011 by Malaysia Spa & Wellness, Top 100 Malaysia Enterprises by Golden Eagle Award 2013 and The Best City Award by Expatriate Lifestyle 2013. Malaysian Womens Weekly bestowed the spa with the Best Organic Body Facial. The Sompoton Spas signature treatment is its massage which uses traditional Malay techniques that have been combined with selected elements of Shiatsu, Swedish and Balinese massages. Its facials are also quite renown with its Organic Body Facial being voted the best by a leading womens magazine. The Sompoton Spa takes extra care to ensure that its therapists are well trained.

If youve never tried The Sompoton Spa, now is the best time to try it. Check out the Mothers Day and Fathers Day celebration promo. Enjoy the Pamper Retreat (2 Hours) for RM250 nett per person at The Sompoton Spa Hotel Istana (03-2148 8910), G Tower (03-2164 2188), Intercontinental Hotel (03-2161 0939), and Garden Shoppe @ One City (03-

5115 1178). The promotion is valid until 30th June 2014. Prior booking is required. Not redeemable with other promotion

and discount.

For more information, visit the website: www.sompotonspa.com

SPECIAL PROMOTION

In order to maintain this quality service from our team, weve conducted a full training on our SOP, says Tan. Relax and unwind at the nearest The Sompoton Spa today. The Sompoton Spa branches are available at Hotel Istana, Intercontinental KL, Doubletree Hilton KL, Prince Hotel and Residence KL, Premiere Hotel Klang, G-Tower KL and Garden Shop @ One City, Subang. EU

24 EUMCCI REVIEW

FEATURE

EU-MALAYSIA TRADE AND INVESTMENT FORUM 2014

One of the major events in EUMCCIs calendar is the EU-Malaysia Trade & Investment Forum. This year the focus was on SMEs

The focus for this years event was on SMEs and helping them access to finance for Sustainable Consumption Production (SCP). The event also saw the launch of the much anticipated EUMCCI Trade Issues and Recommendations 2014.

EU-Malaysia Trade & Investment Forum 2014

Date: 17th April 2014Venue: Royale Chulan Kuala LumpurOrganised by : EUMCCIFunded By: British High CommissionProject partners: EPU, SCP, Cradle Fund & MBANPlatinum partners : Qatar Airways, Siemens Malaysia & Talent Corp

and the problems they have when it comes to finance. This years theme of Enhancing Cooperation in Facilitating SMEs Access to Finance for Sustainable Consumption

and Production (SCP) Projects focused on ways SMEs can promote sustainable growth, contribute to economic prosperity, accelerate the development of a green economy and help mitigate climate change by reducing the environmental impact of their industries and increase Sustainable Consumption and Production (SCP) practices and technology for SMEs in Malaysia. It is hoped that these measures will develop the platform for local SMEs with SCP credentials so that they will be able to export their capabilities to other countries in ASEAN.

EU-Malaysia tradeDuring his keynote address, H.E. Luc Vandebon, Head of the Delegation of the European Union to Malaysia, covered an issue that was close to his heart: trade.

The launch of EUMCCI Trade Issues and Recommendations by H.E. Luc Vandebon and Mr Fermin Fautsch

25EUMCCI REVIEW

The recommendations made in this publication are made to support the continuing drive to make Malaysia more competitive within the region, says Mr Fermin Fautsch in the introduction to the latest edition of EUMCCI Trade Issues and Recommendations. The publication has come together as a collaboration between the Committees and Chamber staff and serves as both valuable insight and support for investors from both Europe and Malaysia, EUMCCI corporate partners and our stakeholders, he adds.

Several key issues are highlighted in the latest edition of the annual book, including Reducing The Income Gap. One way of addressing the widening income gap between the rich and the poor in Malaysia is via increasing productivity and teaching important skills such as English. One of the recommendations is to have formal education programmes that include apprenticeship schemes, industrial training and higher industry specific education. Another issue that is highlighted is the Intellectual Property Rights (IPR). The publication recommends having additional judges and public prosecutors specialising in IP matters to deal with IPR related cases.

EUMCCI Trade Issues and Recommendations 2014

Trade is vital for global growth, he said. Some of the highlights of his speech were:

Bilateral trade between EU and Malaysia reached RM135 billion, a six percent increase over 2012.

Malaysia is EUs third largest trading partner in Asia after China and Singapore.

In terms of FDI, EU is the third largest investor after the United States and South Korea. More than RM5 billion in investments from EU to Malaysia have been approved so far. With the economy in the EU picking up, Vandebon is confident that trade between the EU and Malaysia will further increase.

It is plain to see why the EU matters to Malaysia and why Malaysia matters to the EU, he said in his concluding remarks.

Angel investor network Instead of relying on traditional forms of financing like banks, SMEs were encouraged to approach angel investors. An angel investor is defined as someone who provides financial backing for small startups or entrepreneurs (Investopedia). A panel consisting of both local and international angel investors gave invaluable advice and answered questions from the audience.

Some of the interesting points that were raised during the session were:

Angels are not always looking to invest in new technologies. They are looking for entrepreneurs who can create a new product or service out of existing technology. Angels are looking for visionaries who can create something valuable even if it is not successful commercially at the outset.

Angels are interested in risk takers. So even if an entrepreneur has failed before, they do not mind investing in his or her company. The most important thing is for the entrepreneurs to learn from their mistakes.

Discuss with the angel investor as to when he is going to exit the company. There must be an exit strategy for the angel investor to which both parties can agree.

Listen to the advice of the angel. You might not have to follow it but listen and do not be arrogant.

Angels are people who look for people to support, to work with for monetary returns. They are there to support you but not to hold your hand. They like to work with entrepreneurs who are willing to solve their problems and do not expect the angel to solve it for them. EU

The panel discussion of the angel investors

H.E. Luc Vandebon giving his keynote address

26 EUMCCI REVIEW

EU COUNTRY FOCUS:GERMANY

H.E. Holger Michael, Germanys Ambassador to Malaysia

Germany has always been a strong trading partner of Malaysia, says H.E. Holger Michael, German ambassador to Malaysia. In fact, we are Malaysias largest trading partner in the EU. One third of all of Malaysias trade with the EU is with Germany. Trade between the two countries stands at 10 billion Euros with the trade surplus slightly in favour of Malaysia. In Southeast Asia, Malaysia is the second biggest trade partner of Germany after Singapore. Michael stresses that although the EU accounts for two thirds of German foreign trade, Germany has long recognised the importance of Asia. The trade within the EU is seen as domestic market while trade outside EU is seen as international market, he explains. Germany is a very export oriented economy. Our two biggest trading partners next to the EU are Asia and the United States. Germany realised the importance of Asia as a market over 20 years ago. Already in the nineties, the German Government had developed an Asian Strategy for business in order to assist German businesses to focus on the Asian markets. We see Asia as a market and as a partner in trade and investment, explains Michael. As Malaysia is increasingly concentrating on qualitative and sustainable growth in order to become a high income nation by 2020, Michael expects Malaysia to import even more machinery from Germany. As Malaysia moves from labour intensive manufacturing to highly automated manufacturing, it will require specialised machinery and tools. Germany has an excellent reputation as the producer of such tools that are of high quality and durable. Green technology is another area for trade and cooperation between the two countries. Malaysia has recognised the importance of green technology for growth. Though

the initial investment in green technology might be high, it is beneficial in the long run, especially in terms of savings, sustainability and reduction of external cost, says Michael. In the past 40 years, more than 400 German companies have seized the opportunities offered by Malaysia as a location for direct investment and are manufacturing a wide array of products which target both the Malaysian and export markets. I am impressed to see a number of recent German investments in high tech areas such as semiconductor R + D, high frequency radio equipment manufacturing and state-of-the-art chemical plant. This can be interpreted as a vote of confidence in Malaysias economic future states Michael. Investments, cooperation and trade are telltales of a healthy partnership in innovation he added.

Skilled workers and Germany

The German economic miracle post World War II is largely due to our skilled workers, explains Michael. As a country we do not have many natural resources except coal. Our engineers and workers are our best resources as they are highly skilled and take pride in their work.

TVET (technical, vocational education training) in Germany has been very successful in providing the skilled workers that have made Germany a highly developed country. Two thirds of German school leavers opt for TVET because it gives them on the job training and prepares them immediately for the workforce. Many choose TVET as a preparation or as an add-on to university studies, he adds. Malaysia has realised it needs to increase its skilled work force if it wants to become a highly industrialised nation. Under the Economic Transformation Programme (ETP), about 40 per cent of the 3.3 million jobs to be created, require highly skilled workers. Germany is one of the countries that Malaysia looks towards to learn from its experience. Germany has been helping Malaysia to train its skilled workers long before ETP came into the picture. Michael proudly points out that more than 20 years ago -- in 1991 to be exact -- the German-Malaysian Institute (GMI) was formed to train Malaysian technicians in the highly skilled areas such as productions technology and industrial electronics. GMI now trains 3,500 Malaysian men and women using state-of-the-art machinery from Germany. GMI is constantly growing with new fields and new training courses being added every year. Another initiative was launched this year between the Malaysian German Chamber of Commerce and Industry (MGCC) as the administrator, the Department of Skills Development, Ministry of Human Resources (MOHR), GMI and a number of German and Malaysian companies. Based on the successful German Dual Vocational Training System highly qualified training programmes in the areas of Industrial Management and Transport and Logistics Management are being set up in Malaysia, consisting of 25 per cent theoretical training held in GMI and the remaining 75 per cent conducted as practical training in selected companies. Dual vocational training or apprenticeship in the work place is one of the

27EUMCCI REVIEW

Germanys contribution to the world:Germanys contribution to the world of literature, arts, technology, medicine, philosophy and religion are tremendous.

Printing pressPerhaps Germanys greatest invention is the mechanical movable type of printing press. Invented by Johann Gutenberg in 1450 it is widely regarded as the most important event of the modern period. It played a key role in the development of the Renaissance, the Reformation, the Age of Enlightenment and the Scientific Revolution and laid the material basis for the modern knowledge-based economy and the spread of learning to the masses, says Wikipedia. The world owes a great debt to Gutenberg for giving us this priceless invention. No wonder Time magazine awarded the distinction of Man of the Millennium to Gutenberg.

ReligionThe Protestant reformation that forever changed the face of Christianity and of the Western civilization started in Germany thanks to Martin Luther.

LiteratureGerman writers such as Goethe, Schiller, Heine and Jacob and Wilhem Grimm have left their indelible mark on world literature.

Classical musicOur lives (and ears) are immeasurably enriched thanks to the works of great composers such as Bach, Beethoven, Brahms, Schumann, Wagner and Strauss.

Science and technologyWe live in a better world thanks to many German scientists and inventors. One of the greatest scientists and whose Theory of Relativity changed the world, Albert Einstein hailed from Germany. Time magazine called him the Person of the Century. Other German inventions that changed the world are the X-ray machine invented by Wilhelm Conrad Rntgen in 1895; the worlds first petrol engine, diesel engine, motorcycle and jet engine and the worlds first pocket watch, to name a few. German companies such as Siemens and Bosch continue to be major players in the world of electrical and electronic goods.

: Federal Republic of Germany (Bundesrepublik Deutschland): Berlin: 357, 168 km: 80, 219, 695: 81% Germans, 7% other Europeans, 4% Turks, 2% Asians, 6% others: German: Euro: Federal parliamentary constitutional republic

Germany at a glance: Official name Capital and largest cityTotal areaPopulation (2011 census)Ethnic groups

Official languageCurrencyGovernment

reasons for Germanys success in achieving its skilled work force, explains Michael. This three year training programme (there is no tuition fee) will create a pool of qualified professionals with practical skills and competencies paired with sound theoretical knowledge. Intake is starting from June this year.

Education in Germany

Malaysians have not traditionally looked to Germany as an education hub. This is slowly changing as more and more German universities have introduced bachelor and master degree programmes that are taught in English. Between 10 to 11 per cent of students in German universities, i.e. almost 300,000, are foreign students. Education is free in public universities because Germany does not consider education as a commercial

product. Foreign students in Germany are seen as partners and not as paying customers, says Michael. Currently there are about 1,000 Malaysian students studying in Germany mainly in science and engineering. The German Academic Exchange Service (DAAD) in Kuala Lumpur provides information on educational opportunities and scholarships for Malaysians to study in Germany. Besides, there are around 70 partnerships between Malaysian and German universities, especially in the fields of science and engineering which include exchange/ visiting programmes for both students and faculty. Vocational training and academic exchanges thus nicely complement trade and investment in forming a solid and innovative partnership, concludes Ambassador Michael. EU

EUMCCI Review is a magazine that is the voice of a business community that is vibrant, dynamic and is expected to grow by leaps and bounds. Generally, analysts believe that the EU-Malaysia trade relations is set to see tremendous growth.

EUMCCI Review is distributed on a quarterly basis to EUMCCI members, all Embassies, industry associations and government officials with whom the Chamber has dealings with as well as with European Chambers worldwide. It is also sold to the public in all the leading bookshops in Malaysia. EUMCCI Review is an excellent medium to showcase your company, products or services. Rest assured that your products and services will reach a very nice market that you are targeting.

Advertise with EUMCCI Review and grow from strength to strength. 2014 is a special year for EUMCCI Review as it celebrates its 11th year. Be a part of the celebration and advertise with EUMCCI Review.

Target MarketBusiness community with a vested interest in the growth of trade and investment between EU and Malaysia.

Distribution all EU Bilateral Business Councils / Chambers all Embassies all EU diplomats Business information counters at KLIA & MIDA EU Delegations & EuroChambers in SEA Chambers of Commerce in Europe, Government agencies & organisations

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SiemensAd_Sustainability_A4 (Outlined).indd 1 5/9/2014 6:01:22 PM

30 EUMCCI REVIEW

The Forum on Business and Anti-Corruption in ASEAN is an event organised by the ASEAN CSR Network (ACN). This series of meetings was held across the region starting with four countries: Thailand, Malaysia, Philippines and Myanmar. This event is supported by the Foreign & Commonwealth Office UK (FCO) through the British High Commission of Singapore. The UN Office on Drugs and Crime (UNODC) and the UN Global Compact (UNGC) are also supporting the event. In each country where the event takes place, there is also a local partner. The forum in Malaysia took place on 13th March 2014 at the Prince Hotel and Residence Kuala Lumpur. The International Chamber of Commerce Malaysia (ICC Malaysia) was the local partner for the event.

The objective of this forum is to provide a platform for: Introducing international principles

and frameworks on business and anti-corruption

BUSINESS AND ANTI-CORRUPTION IN ASEAN

Datuk Paul Low giving his keynote address

Sharing best practices and ideas on addressing corruption

Gathering recommendations and commitments on regional collective action against corruption

The keynote speaker for the event in Malaysia was the Hon Senator Datuk Paul Low Seng Kuan, Minister in the Prime Ministers Department for Integrity, Good Governance and Human Rights. In his speech, Datuk Paul Low stressed that both the enforcement and prevention of corruption was vital in the fight against corruption. He also talked about some of the steps that were put into place to combat corruption in the private sector. He ended his speech with a word of advice to those present: Events such as this Forum should be supported and encouraged as a means to exchange information and ideas, learn from one anothers experiences, and network with one another. But we must also be mindful to make sure that our ideas transform into actions, and that our networking transforms into partnerships, he advised. EU

CHAMBERNEWS

CSR OUTREACH PROGRAMME WITH

The EUMCCI Corporate Social Responsibility Outreach (CSR) Committee visited Carlsberg Brewery Malaysia for a CSR sharing session on 14th April 2014. CSR Committee representatives together with 21 attendees from 17 different organisations listened to a presentation by Ms Khoek Pei Chean, Manager, Regulatory Affairs and CSR of Carlsberg. Her presentation touched on the four key areas of the companys CSR framework covering community, environment, marketplace and workplace. Participants gained an insight into the companys CSR programmes including its efforts to reduce its carbon footprint. They also learned how the company actively engages with its partners in carrying out several community projects such as the Carlsberg Golf Classic, Olympic Council Malaysia

CARLSBERG MALAYSIA- Carlsberg Athletes Retirement Scheme, National Junior Sports, and the Top Ten Charity Campaign. In addition, Carlsberg supplied school bags to students in need and reached out to rural schools in East Malaysia via the J.C. Jacobsen Foundation.

After the presentation, participants enjoyed a tour of Carlsbergs famous brewery where they caught a glimpse of the actual production process for the companys famous brew. The event ended with a brief networking session. EU

31EUMCCI REVIEW

Ms. Monica Turek, Business Development Manager, Polish Chamber of National Defence Manufacturers

From left: Mr Zailani Safari, Director, Technology Depository Agency, MIGHT; Mr. Andrin Raj, Ms Minna Saneri, General Manager EUMCCI.

The 14th Defence Services Asia (DSA) exhibition, held from April 14th to 17th 2014 at the Putra World Trade Centre (PWTC), was a success. Around 1,000 companies from 60 countries participated in the exhibition which is considered one of the top five defence and security shows in the world. EUMMCIs Defence and Security Committee participated in the event. More than 33,000 people from 77 countries visited the exhibition. The next DSA will be held in 2016. EU

DEFENCE AND SECURITY COMMITTEE AT DSA 2014

Mr Krzysztof Splawiec, Head of Defence & Security Committee and Mr. Andrin Raj, Deputy Head of Defence & Security Committee at the EUMCCI booth

MALAYSIAN STUDY TOUR OF LONDON, GERMANY

AND AMSTERDAM

Ten Malaysian delegates from Petaling Jaya City Council, Ministry of Energy, Green Technology and Water, Ministry of Finance and Malaysia Greentech Corporation went on a nine day study tour last year starting from 23rd November to 2nd December 2013 to some of the greenest cities of the EU. The purpose of the study tour, which was supported by EUMCCI, was:

To gain knowledge and exchange information on other countries successful policies, institutional frameworks and programmes in relation to Green Technology and Green Growth

To strengthen the networking and relationship between Greentech Malaysia and key stakeholders as well as international partners and potential collaborators

To establish a platform for technology transfer and encourage investment in Green Technology towards realizing Malaysia as Green technology hub EU

32 EUMCCI REVIEW

CHAMBERNEWS

VIP LUNCHEON WITH YB SENATOR DATUK PAUL LOW SENG KUAN

AUTOMOTIVE COMMITTEE INDUSTRY DIALOGUE WITH MAI ON NAP 2014

NKRA Against Corruption hosted a VIP lunch for EUMCCI where the special guest was YB Datuk Paul Low Seng Kuan, Minister in the Prime Ministers Department for Integrity, Good Governance and Human Rights. The event held on 11th March 2014 at the Grand Hyatt Kuala Lumpur was well attended by members of EUMCCI. Siemens, Qatar Airways and TalentCorp were the Platinum sponsors for the event. During his speech, Datuk Paul Low touched on several matters, some of which were: His appointment is proof that Malaysia

does have the political will to combat corruption.

Change is coming but it will be a slow and long process. He attributes this to

When Malaysia announced its National Automotive Plan (NAP) earlier this year, there were some concerns from the automotive industry regarding certain aspects of NAP. In order to seek some clarification on some points of the NAP the EUMCCI Automotive Committee recently arranged a dialogue session with Malaysia Automotive Institute (MAI) held on 10th April at MAIs office in Cyberjaya. Topics discussed were Euro 4 fuel quality standard, the reduction of car

the largeness of the Government and the need to have the change not only at the top, but most importantly at ground zero.

The task is huge: it is about having to change cultural mindset among civil servants and it will take time.

Changes have been put into place. We are putting improvements into place step by step which will eventually be institutionalised, he said. It will take two to three years before the effectiveness of these changes will be felt he said.

Steps are underway to introduce reforms in terms of governance and integrity.

Datuk Paul Low feels grateful for the support he has received for his work so far from the cabinet ministers. There

is a realisation among the cabinet that something has to be done to combat corruption and this is a good thing.

He is optimistic that the steps that have been put in place will bear fruit in future. The ministers he works with are no longer working in silos to combat corruption. They all are working together to create a better Malaysia.

His speech was followed by a Q&A session with the members. It was a very frank session with members sharing their experiences and some uncomfortable questions were asked. Datuk Paul Low did not shy away from answering the questions and gave an honest assessment of the situation in Malaysia and the steps that are being taken to improve things. EU

prices to a competitive level, open approved permits (AP), voluntary vehicle inspection programme, incentives for energy-efficient vehicles (EEVs), availability of skilled workforce and a few terminology definitions in the NAP 2014. About 10 organisations attended this dialogue session officiated by MAIs CEO, Mr. M Madani Sahari. The discussion was spirited and fruitful. Those who attended the meeting were satisfied with the outcome and expressed their hopes for a more regular engagement with MAIs from now onwards.

For more information please visit the website at http://www.miti.gov.my/cms/content . j sp?id=com.tms.cms.ar t ic le .Article_ae97e763-c0a8156f-72974691-12fc5a75 EU

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EEGT STAKEHOLDER ENGAGEMENT WITH MIGHT

OIL & GAS COMMITTEE DIALOGUE WITH PEMANDU AND MPRC ON EPP 13

The EUMCCI Environment, Energy and Green Technology (EEGT) Committee engaged with Malaysian Industry Government Group for High Technology (MIGHT) on the Malaysia Biomass Industry Action Plan (MBIAP) 2020 and Solar Technology Roadmap on 21st March 2014 at the MIGHT Building in Cyberjaya. There were 24 participants from 15 different organisations including MIGHT who joined this engagement. The event started off with a presentation by Mr Sivapalan Kathiravale on MBIAP 2020 which aims to provide a common direction and concerted strategy and action plan to drive the growth of Malaysian SMEs in higher value added activities. The biomass industry in Malaysia receives positive support from the government and there is an abundance of biomass in Malaysia. However, despite the opportunities, the Malaysian biomass industry is facing a few setbacks such as the low value utilisation of biomass in Malaysia and the perceived risks from local financiers due to the lack

EUMCCIs Oil & Gas Committee was among the 15 organisations (some of the other companies were Shell Malaysia, Siemens Malaysia and Thales Malaysia) that were invited for a dialogue

of awareness of the potentials inherent to the biomass industry. The MBIAP 2020 recommends to unlock biomass feedstock for downstream utilisation, optimise utilisation of biomass for sustainable and high value production, and to position Malaysia as global and regional biomass hub. Dr. Wong Pui Wah presented on the Solar Technology Roadmap, which included Malaysias current progress in the solar industry, benchmarked against its initial targets. She said that the way forward for

with PEMANDU and Malaysian Petrol Resources Corporation (MPRC) on the latest development updates on the Pengarang Integrated Petroleum Complex (PIPC) and the Sipitang Oil & Gas Industrial Park (SOGIP).

the solar industry at different levels include improving industry-university collaboration, incentivise local and collaborative research and development, training for high-skilled and blue collar jobs, increase access to finance, enhance local market and to improve the legal and regulatory frameworks to support the industry. At the end of the presentations and the question & answer session, MIGHT and EUMCCIs EEGT Committee continued to discuss on areas of potential collaboration. The event ended with a brief networking session. EU

Both these projects are associated with the Refinery and Petrochemical Integration Development (RAPID) and the Sabah Ammonia Urea (SAMUR) projects. RAPID and SAMUR are part of the Entry Point Project (EPP) 13: Increase Petrochemical Outputs under the Economic Transformation Programme (ETP). RAPID is expected to create 40,000 new jobs while SAMUR work on the complex started in 2012 is expected to export 1.2 million tons of urea worth USD 4.8 billion annually upon its commissioning in 2015. During the dialogue the participants were told that the outlook for oil and gas projects in Malaysia is very positive and that there are several investment opportunities available for the two projects. EU

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HEALTHCARE AND GST

HR OUTLOOK AND REGIONAL TRENDS

Last year the Government declared that healthcare cost would not be impacted by the introduction of Goods and Services Tax (GST) as healthcare would be GST exempted. But is the situation really as clear cut as that? This question was among those discussed during the EUMCCI Healthcare Committee dialogue with Deloitte on GST healthcare issues. The dialogue which attracted representatives from 11 organisations, among them the National Pharmaceutical Control Bureau, Ministry of Health Malaysia, was held on 3rd March 2014 at the EUMCCI conference room. The invited speaker Mr Tan Eng Yew, executive director of Deloitte Tax Services Sdn Bhd, touched on several matters pertaining to GST and healthcare that were still cloudy, such as the supply of drugs to hospitals, medical insurance claims and the consultation billings by doctors.

What are the current HR trends in the growth markets in this region? What are some of the lessons that Malaysia can learn in the field of human capital development? These were some of the questions that were addressed

After his presentation, there was a sharing session with the participants. Some of the concerns raised by the participants were the impact of the GST on the pharmaceutical companies which are supplying to the Government and private hospitals, discounts and rebates, medical insurance claims and sponsorships, donations and other related issues within the healthcare sphere. EU

during the EUMCCI Human Resources Committees dialogue session with Towers Watson on HR Outlook and Regional Trends. The event took place on 20th March 2014 at the EUMCCI Conference Room and attracted participants from 10 organisations.

The invited speaker, Mr Sean Darilay, Towers Watsons Global Data Services Practice Leader for Southeast Asia, Towers Watson told participants that in growth markets such as Southeast Asia, organisations need to be more creative with their talent management strategies to attract and retain talents.

He cited Thailand as a country others should emulate where the national mindset was, We need to improve now because the future is here. Therefore, we need to upskill right. He also emphasised the importance of universities being able to align their curriculum to future requirements as the workplace evolves faster than the rate at which most universities can cater to those needs. During discussions with participants, one of the issues that was brought up was the way forward for Malaysias talent management strategies. EU

35EUMCCI REVIEW

WORKSHOP ON ENHANCING STAKEHOLDER COMMUNICATION FOR NGOS

Seventeen representatives from nine NGOs, focusing largely on the areas of childrens rights, women empowerment, welfare, education and the environment attended a workshop conducted by Strategic Public Relations Sdn Bhd (SPRG Malaysia) on 18 February 2014 at Universiti Tun Abdul Razak. The custom-made training workshop titled Enhancing Stakeholder Communication for NGOs focused on stakeholder and strategic communications. During the workshop, the NGOs disclosed the difficulties they faced in getting access to top-level management in corporations as they strive to raise funds and build a community

of supporters for their work and activities. These constraints, along with funding, resources, public awareness and engagements with government agencies, were among the common challenges highlighted by NGOs at the workshop. The attending NGOs were PEKA Malaysia, SOL 24/7, PINTAR Foundation, Kenchara Soup kitchen, Tech Outreach, Persatuan Kebajikan Good Shepherd, Persatuan Kebajikan Generasi Gemilang, PS The Children, and Sugam Karnatica. They are all winners of EUMCCIs Europa Sustainability Awards 2012 announced during its Social Responsibility Week themed Foundations of Social Enterprise. The awards were created to recognise and acknowledge excellence in the social, environmental and governance contributions of Community-Based Organisations, Charities, Societies

and Non-Government Organisations of all forms. The winners received a package of services provided by members of the EUMCCI and designed to provide help and support in creating, supporting or developing the organisational processes of NGOs in various areas such as training and capability development as well as business advice and introductions to partners for support and sponsorship of the programmes.

SPRG Malaysias general manager Stefanie Braukmann said, SPRG Malaysia, a member of EUMCCIs CSR committee and also as part of its own CSR initiative, was pleased to conduct this custom-made training

workshop for NGOs. We were one of the award sponsors and felt that it was great to have the Europa Sustainability Awards highlight the contributions made by these organisations. The workshop was intended as an introduction on strategies and techniques to enhance NGOs stakeholder communication, especially with the media, but also their outreach to companies as potential partners.

Some of the issues discussed during the workshop were: The need for NGOs to explore new

ways of approaching corporations and to present themselves as partners for long-term collaboration on sustainable as well as measurable programmes. The aim is to convince companies to not only increase their contributions but also their long-term involvement and is a true shift from the conventional

approach of corporate philanthropy. NGOs need to build their brands

and reputations to get onto the radar screens of CEOs. A sustainable and regular communication flow is essential as well as targeted media engagement strategies that go beyond the publicity activities usually organised around donation drives and events. NGOs need to understand the needs and constraints of the media and learn how to utilise available tools to be able to present information to the media efficiently.

NGOs must learn how to integrate social media into the overall communications plan to optimise stakeholder engagement. In summary, a well planned integrated stakeholder communications plan is an essential step for NGOs to increase awareness and to attract supporters to their cause, said Stefanie Braukmann, general manager of SPRG Malaysia.

As for funding, the NGOs were told to look for opportunities to work with corporations who can support and assist them through funding but also with hands-on involvement through volunteers. Corporations today are a looking towards forging positive and sustainable business partnerships with NGOs as an integral part of their own corporate responsibility objectives, revealed Braukmann.

In order to extend the outreach to NGOs beyond the workshop and establish a continuous link, SPRG, in conjunction with EUMCCI, created maNGOexchange a Facebook page and blog (www.facebook.com/malaysia.ngo) which will serve as a platform for Malaysian NGOs to find advice, share knowledge, best practices as well as case studies and training opportunities. maNGOexchange will be managed by SPRG Malaysia. NGOs are invited to reach out for information on the one hand, and to share their experience and advice with others via this platform. EU

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AEROSPACE COMMITTEE VISITS SKYPARK AND MIAC

LOGISTICS AND TRANSPORTATION DIALOGUE WITH PEMANDU

EUMCCI Aerospace Committee together with 27 other organisations, attended a talk given by the Malaysia International Aerospace Centre (MIAC) at the SkyPark Terminal in Subang. The talk entitled Aerospace Hub in Subang: Strategies and Takeaways held on 11th April 2014 showcased MIACs efforts to capture five per cent of the global Maintenance, Repair and Overhaul (MRO) market and establish Malaysia as a global aerospace player by 2015. Subang

The EUMCCI Logistics and Transportation Committee has always engaged with stakeholders in order to promote the development of the logistics and transportation industry in Malaysia. Its recent dialogue session with PEMANDU on the key elements of the regional logistics chain and transportation system received an overwhelming response from the industry. The session held on 16th April 2014 at the EUMCCI Conference Room, was attended by Mr Yoong Yoon Kit, Director NKEA Business Services and Mr Abdulmuiz bin Abd Aziz, Manager, NKEA Business Services. Three representatives from the Investment Policy and Trade Facilitation Division and Services Development Division, MITI and two representatives from the

SkyPark, one of the anchor tenants, is expected to grow with the construction of its Regional Aviation Centre (RAC) which will enhance its Fixed Based Operations (FBO) offering. During the interactive Q&A session that followed, participants learned about the current business opportunities which are available in this area. They also had the privilege to visit SkyPark RACs private jet hangar. Major Ir Kandiah Padmanathan (Rtd), the COO of

SkyPark, told the visitors that SkyPark, being Malaysias only Business Aviation Centre, takes pride in serving their clientele which includes industry leaders, corporate captains, diplomats, high net worth individuals, heads of government, celebrities and more. The visitors learned of Subangs potential to be the aerospace hub of the region. Subang, home to both SkyPark and MIAC, continues to attract investors because of its attr