Syor duti import jentera berat dikurang

Syor duti import jentera berat dikurang

CIDB hantar cadangan tambah baik industri pembinaan

Lembaga Pembangunan Industri Pembinaan (CIDB) sudah menghantar kertas cadangan kepada Kementerian Kewangan dan Lembaga Pembangunan Pelaburan Malaysia (MIDA) membolehkan duti import serta cukai jualan ke atas jentera dan peralatan berat dikurangkan.

Rundingan bagi cadangan yang disasarkan untuk menambah baik industri pembinaan negara serta mengurangkan kebergantungan kepada penggunaan tenaga kerja itu sudah bermula sejak setahun lalu.

Ketua Eksekutif CIDB, Datuk Seri Judin Abd Karim, berkata cadangan itu adalah antara usaha yang dilakukan bagi peralihan industri pembi-naan negara ke arah yang lebih moden, bernilai tinggi serta berorientasikan mekanikal.

“Kita mahu (industri pembinaan tempatan) bergerak ke arah mekanikal, yang mana langkah itu akan dapat dipercepatkan jika cukai ke atas peralatan berat dihapuskan atau setidak-tidaknya dapat dikurangkan.

“Industri memerlukan penggunaan peralatan berat yang moden secara meluas bagi menjadikannya lebih berdaya saing,” katanya da-lam satu temubual bersama BH di Kuala Lumpur, baru-baru ini.

Di Malaysia secara umumnya duti import serta cukai jualan yang dikenakan ke atas jentera, mesin dan peralatan berat seperti jentolak, jentera penggelek jalan, mesin pengorek dan pemampat tanah adalah agak tinggi iaitu antara 10 hingga 30 peratus.

Pasaran antarabangsa

Kertas kerja itu mencadangkan supaya duti import dan cukai jualan jentera, mesin dan peralatan berat pembinaan di samping aksesori dan alat gantinya dikurangkan tidak melebihi lima peratus.

Judin berkata, kadar yang dikenakan oleh Malaysia itu adalah lebih tinggi berbanding negara ASEAN lain seperti Thailand, Indonesia, Filipina, Vietnam dan Singapura.

Justeru, katanya, dengan kadar duti dan cukai yang tinggi maka kebanyakan kontraktor lebih cenderung mengimport jentera, mesin dan peralatan terpakai di pasaran antarabangsa.

“Dalam persekitaran semasa, kontraktor perlu lebih inovatif dan menggunakan teknologi serta peralatan berat yang lebih moden bagi membolehkan mereka menyelesaikan kerja dalam tempoh yang ditetapkan,” katanya.

Pengurangan duti import dan cukai jualan akan membolehkan kontraktor tempatan membeli jentera, mesin dan peralatan baru.

Antara kelebihan membeli peralatan baru ialah jangka hayat penggunaannya yang lebih lama, pengendalian yang lebih mudah dengan teknologi terkini, prosedur kerja lebih selamat, mempunyai tempoh jaminan di samping meningkatkan kapasiti serta keupayaan kontraktor tempatan untuk bersaing dengan kontrak asing.

Sementara itu, Judin berkata industri pembinaan negara yang mencatatkan pertumbuhan dua angka kali pertama sejak 1997 tahun lalu pada 18.5 peratus

Source: Berita Harian

Date : 25 March 2013

Today's Pick (25/03/13/47/972) Adapt to minimum wage, SMEs advised

Adapt to minimum wage, SMEs advised

Association: ‘Crucial period’ for companies to adjust

JOHOR BARU: Small and medium enterprises (SMEs) have been urged to start adjusting and adapting their operations when the payment of minimum wages to foreign workers comes into effect on Jan 1, 2014.

SMI Association of Malaysia national president Teh Kee Sin said they had to take into account the extra costs in their operations with the implementation of the minimum wage scheme.

“Our SMEs only have nine months to go, and this period is rather crucial as to whether they would be able to adjust and adapt to the new ruling, or continue grappling with escalating operating costs,'' he told StarBiz.

Teh said the SMEs that had already paid their foreign workers the minimum wage, effective Jan 1, 2013, would consider the January and February salaries as “bonuses”.

The National Wages Consultative Council (NWCC) had on Tuesday issued a statement that the SMEs would not have to pay the minimum wage to their foreign workers until Dec 31.

The SMEs are not allowed to make any deductions on levies, accommodation and other allowances from the salaries of their foreign workers.

However, the SMEs have to abide by the law which requires them to pay the minimum wage to Malaysian workers.

The minimum wage for private-sector employees has been set at between RM800 and RM900 per month.

The RM900 is for employees in the Peninsula, while the RM800 is for workers in Sabah, Sarawak and the Federal Territory of Labuan.

It covers employees in all economic sectors, except those in the domestic service sector such as maids and gardeners.

He said the SMEs were glad that the Government had listened to the proposal made to them via their associations to defer the payment of minimum wages for foreign workers.

“It might not be a good solution, but the best solution for us for the time being,'' said Teh, who is also the chairman of the South Johor SME Association.

He said hopefully, in the near future, the Government and the relevant agencies would listen to the voice of the SMEs pertaining to SME matters and not only to the NWCC.

Teh claimed that small-time employers, chambers of commerce and non-governmental organisations had not been consulted on the minimum wage scheme.

He said it seemed that the NWCC was the one that was making the recommendations to the Government on the scheme on behalf of the SMEs.

“With the minimum wage scheme already in place, the cost of doing business has gone up and we have not much choice but to pass it on to consumers,'' added Teh.

He said the only way for the SMEs to reduce the labour cost in their operations was to automate their operations, as it would help to offset the hike in operating costs.

Teh added that the Government could assist the SMEs by introducing soft financing loans for them to switch to automation, or to upgrade their current machinery to help improve productivity.

He said while the SMEs supported the move made by the Government on the scheme, at the same time, many of the SMEs in the second- and third-tier towns were not prepared for it. “Nobody would want to work with SMEs in Johor Baru, Penang or Kuala Lumpur if they are not paid RM900 or more, but how about SMEs in smaller towns?'' asked Teh.

He said many of the SMEs in the smaller towns hired senior citizens and pensioners and could only afford to offer a RM500 monthly salary, as the cost of living was low.

Source: The Star

Date : 25 March 2013

Today's Pick (25/03/13/47/972)

Afternoon Highlight (22/03//13/47/745) Glomac’s RM350mil price for mall exceeds market estimates

Glomac’s RM350mil price for mall exceeds market estimates

PETALING JAYA: Glomac Bhd's en bloc sale of its retail mall in Glomac Damansara for a potential RM350mil is higher than market estimates, but the property developer is buoyed by how well-received the mixed and commercial development has been.

Analysts have cited landed projects and the residential units of Glomac Damansara as a major factor for the developer's improved earnings for its 2013 nine-month period.

The retail mall is the final phase of the development, which is now 92% sold.

Hong Leong Investment Bank said in a report that it had earlier mentioned that it had expected the en bloc sale for the final phase, i.e. the retail mall, but with only a targeted value of RM50mil.

“Glomac has announced its intention to put up the retail mall for a potential en bloc sale of RM350mil, much higher than our initial estimate,” analyst Sean Lim said.

The research house added that the nine-month sales figure came in at RM519mil, 51% higher year-on-year, “thanks to strong uptake of its landed projects and the residential units of Glomac Damansara”.

“Note that the nine-month sales figure had yet to include Phase 3 of its flagship Lakeside Residences@Puchong with a gross development value of RM107mil, now 90% sold with remaining units being bumi lots,” Lim added.

RHB Research analyst Loong Kok Wen, meanwhile, told StarBiz that there had been no indication as to who the potential buyers were, although Glomac had stated that negotiations were ongoing.

“I believe it boils down to a matter of pricing. Glomac wanted to sell higher because the development was doing well,” she said, comparing it with Glomac Centro, which “was a bit low on the sales side”.

However, her outlook for the company is positive as Glomac has been able to deliver on its projects.

“The group has managed to replenish its unbilled sales and its Puchong townships are also doing well,” she said.

She added that the only reason she gave a “neutral” call on the developer was the impending general election.

Source: The Star

Date : 22 March 2013

Afternoon Highlight (22/03//13/47/745)

Today's Pick (22/03/13/46/971) Malaysia likely to liberalise services sub-sectors early next year

Malaysia likely to liberalise services sub-sectors early next year

KUALA LUMPUR: The Government is working on further liberalising the services sector sub-sectors and this is expected to be implemented early next year, said Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.

“Malaysia and the other Asean countries would be further liberalising the services sector under the ninth Package of Commitments involving 24 sub-sectors,” he said after launching the Asean Comprehensive Investment Agreement (ACIA) Guidebook for Businesses and ACIA Handbook for Investment Promotion Agenciesyesterday.

Overall, Mustapa said Malaysia's implementation rate was commendable at 87.7%, with the full implementation of 300 measures out of 342 measures specified in the Asean Economic Community (AEC) blueprint.

“We have also completed on schedule the elimination of duties for intra-Asean trade and liberalised 96 services sub-sectors,” he added.

The 24 sub-sectors to be liberalised broadly cover transport, logistics, environmental services, healthcare and tourism.

International Trade and Industry Ministry senior director P. Ravidran explained that there were 24 services sub-sectors, each to be liberalised under the ninth and tenth Package of Commitments, respectively.

He said it was currently work in progress for the liberalisation of these sub-sectors and it would probably be endorsed by year-end.

Meanwhile, ACIA is an agreement that encompasses four aspects of investments liberalisation, facilitation, protection and promotion, with benefits now extended to Asean-based foreign investors.

Mustapa said the ACIA's introduction would complete the final piece of the countdown towards the targeted date of AEC's formation on Dec 31, 2015.

“Malaysia looks forward to assuming the Chair of Asean in 2015 and witness the historic moment of the creation of an Asean community (AEC).”

He said the formation of the AEC was not without challenges. “The AEC requires countries to realign domestic policies with regional commitments; some of which would require amendments and changes to existing domestic rules and regulations,” he noted.

Additionally, Mustapa said Asean countries had been growing steadily, increasing by almost 170% in the past 10 years. Asean gross domestic product growth was at 5.2% in 2012 and has been projected to grow between 5% and 6% annually from 2013 to 2017.

In 2011, Asean's global trade with the rest of the world reached US$2.4 trillion (RM7.49 trillion), while intra-Asean trade stood at US$598.2bil (RM1.87 trillion).

Source : The Star

Date : 22 March 2013

Today's Pick (22/03/13/46/971) 

Afternoon Highlight (21/03//13/46/744) MITI To Discuss Batik Industry Development With Information Ministry

MITI To Discuss Batik Industry Development With Information Ministry

KOTA BAHARU, March 21 (Bernama) -- International Trade and Industry Minister Datuk Seri Mustapa Mohamed will soon meet Information, Communication and Culture Minister Datuk Seri Dr Rais Yatim for detail discussions on various issues plaguing the batik industry and its foray overseas.

"The batik industry needs serious attention and a strategic development plan come 2020," he said, adding that issues like pricing of raw materials such as plain white cloth, colours and chemicals, marketing and environment problems would be given upmost attention.

"We realise that our batik exports are negligible at around RM160 million, annually, due to stiff competition from other batik producing countries," he told reporters after a dialogue with batik manufacturers in Kelantan last night.

There are more than 400 batik manufacturers in Kelantan but only 150 are actively involved in the business.

Mustapa was concerned if the problem was left unresolved, the batik industry could end up becoming a sunset industry with many manufacturers folding up their business.

Source: Bernama

Date: 21 March 2013

Afternoon Highlight (21/03//13/46/744)

Today's Pick (21/03/13/45/970) 'Explain to foreign workers about minimum wages'

'Explain to foreign workers about minimum wages'

KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is urging all relevant authorities and agencies to explain to representatives of foreign workers on the latest changes to minimum wages.

In a statement yesterday, the trade body said this is to avoid any misunderstanding by the foreign workers and recurrence of riots in Muar.

Three days ago, Muar police foiled an attempt by 5,000 foreign workers from Nepal to hold a demonstration there.

Muar police chief Assistant Commisioner Mohd Nasir Ramli said his men prevented them from gathering in front of a supermarket in Jalan Ali. 

"We detained 106 people, including those believed to be the masterminds behind the gathering, for questioning and they were released at 1pm," he had said.

Last week, Muar police also arrested 32 Nepalese workers for rioting at a furniture factory over their salaries.

In view of these unfortunate incidents, the National Wages Consultative Council (NWCC) had two days ago, announced that small and medium enterprises (SMEs) are allowed to defer implementation of minimum wages for their foreign workers until end of the year.

Employers of other sectors who are facing difficulties in implementing minimum wages may also appeal for deferment by submitting their applications to NWCC in Putrajaya by June 30.

Following NWCC's decision, employers in the SME sector are not allowed to make deductions from the foreign workers' wages for the levy, cost of accommodation or other allowances.

Instead, they will be given more time to negotiate with their employees on ways to restructure their salary framework.

As for employers of big companies who have been implementing minimum wages for foreign workers from January 1, NWCC said they will be given blanket approval for deductions of levy and cost of accommodation.

NWCC said the amount of levy to be deducted is pro-rated monthly and it shall not exceed RM50 a month for each foreign worker. Both the deductions must be reported to the Labour Department.

However, under special circumstances and based on individual merits, the Labour Department may consider applications for cost of accommodation exceeding RM50 a month for each foreign worker, NWCC said.

The Minimum Wages Order 2012, which took effect on January 1, requires employers with six employees and above to pay a minimum wage of RM900 a month in the peninsula or RM800 a month in Sabah, Sarawak and the Federal Territory of Labuan. 

Source : New Straits Times

Date : 21 March 2012  

Today's Pick (21/03/13/45/970)

Afternoon Highlight (20/03//13/45/743)M’sia ready to compete under Asean Economic Community

M’sia ready to compete under Asean Economic Community

KUALA LUMPUR: Malaysia is ready for the implementation of the Asean Economic Community (AEC), driven by rapid growth in its small and medium-sized enterprise (SME) industry, the key to the nation's economic development.

The AEC's main objective is to transform all 10 members of the Asean into a one-stop global investment centre by 2015.

World Trade Institute external consultant Dr Sufian Jusoh said as a centre bordering most Asean countries, Malaysia had the advantage in terms of securing regional investment opportunities at the early stage.

“Our SMEs may produce components for other members countries as well as getting investors to come in to produce other parts of the same products, which can be supported by SMEs here.

“I would say that we are ready to be competitive because we have SMEs which are dynamic and we have conglomerates like Axiata and Petronas that can work together with these SMEs,” he said at a briefing on The Asean Comprehensive Investment Agreement (ACIA) forum.

He said Asean had the chance to become the new hub of global investment and benefiting from economic uncertainties in Europe and the United States. - Bernama

“We have 10 economic-diverse countries, and if they work together, with 500 million domestic consumers, we would manage to make Asean as a single destination for global investment,” he said.

The forum, which will be held here on Thursday, is expected to attract 200 participants. - Bernama

Date : 20 March 2013

Source: The Star

Afternoon Highlight (20/03//13/45/743)

Today's Pick (20/03/13/44/969) FGV perluas kilang gula di Perai

FGV perluas kilang gula di Perai

Syarikat akan bincang pembangunan tanah dimiliki KTMB

FELDA Global Ventures Holdings Bhd (FGV) bercadang memperluaskan lagi kilang gula milik anak syarikatnya, MSM Malaysia Holdings Bhd (MSM Holdings) di Perai bagi meningkatkan pengeluaran gula dalam negara.

Pengerusinya, Tan Sri Mohd Isa Samad, berkata langkah itu akan membolehkan MSM Holdings menambah pengeluaran gula kepada 4,000 tan sehari berbanding 3,000 tan sehari kini.

"Jika cadangan pembesaran kilang menjadi kenyataan dan bekalan untuk keperluan rakyat di negara ini mencukupi, maka lebihan yang ada boleh dieksport ke luar negara termasuk ke beberapa negara baru,” Tan Sri Mohd Isa Samad, Pengerusi FGV

Beliau berkata, untuk tujuan itu pihaknya perlu berbincang terlebih dulu dengan Keretapi Tanah Melayu Bhd (KTMB) bagi membolehkan tanah yang berhampiran kilang yang dimiliki KTMB dibangunkan.

Mohd Isa bagaimanapun tidak mendedahkan jumlah pelaburan dan keluasan tanah yang terbabit untuk tujuan itu.

“Jika persetujuan dapat dicapai, kami akan membesarkan kilang di sini. Ia masih pada peringkat awal, jika perbincangan mengenai tanah terbabit selesai dan mencapai kata sepakat maka pengeluaran gula dapat dipertingkatkan tetapi jika sebaliknya, kaedah lain akan difikirkan,” katanya selepas majlis pecah tanah surau MSM dan penyerahan wang tabung zakat FGV di Perai, Pulau Pinang, semalam.

Hadir sama, Presiden Kumpulan dan Ketua Eksekutif FELDA, Datuk Sabri Ahmad. Pada majlis itu, projek pembinaan surau yang menelan belanja sebanyak RM650,000 di atas tanah seluas 0.01 hektar yang memakan masa dua bulan mampu memberi kemudahan kepada 150 orang dalam satu masa.

Selain itu, sebanyak RM282,950 wang zakat disalurkan kepada 40 penerima yang terdiri dari kategori individu, pertubuhan bukan kerajaan (NGO), persekolahan, modal, bantuan kesihatan dan sara hidup.

Mengenai manfaat dari pembesaran operasi kilang gula itu, Mohd Isa berkata, pihaknya kini mengeksport gula ke lebih 15 negara yang mana berjumlah 159,000 tan setahun.

“Daripada jumlah eksport itu, sebanyak 15 peratus adalah dikeluarkan oleh kilang gula milik MSM Holdings, iaitu sebanyak 950,000 tan.

“Jika cadangan pembesaran kilang menjadi kenyataan dan bekalan untuk keperluan rakyat di negara ini mencukupi, maka lebihan yang ada boleh dieksport ke luar negara termasuk ke beberapa negara baru,” katanya.

Baru-baru ini, MSM Holdings dilaporkan bercadang untuk meningkatkan aktiviti pengeluarannya dalam usaha mengukuhkan lagi kedudukannya sebagai pengeluar gula terbesar negara serta menjadi antara pengeluar utama di peringkat global.

Presiden dan Ketua Eksekutif MSM Holdings, Chua Say Sin, berkata syarikat memperuntukkan sehingga RM100 juta daripada modal yang diraih daripada pelaksanaan tawaran awam permulaannya (IPO) pada 2011 bagi tujuan pengambilalihan strategik dan RM220 juta lagi bagi aktiviti pengembangan operasi di peringkat dalam.

Bagi tahun ini, beliau berkata, pihaknya memperuntukkan RM85 juga untuk aktiviti peningkatan pengeluaran dan pembesaran gudang.

Source : Berita Harian

Date : 19 March 2013

Today's Pick (20/03/13/44/969)

Afternoon Highlight (19/03//13/44/742) MARA sasar kutip hutang RM600j

MARA sasar kutip hutang RM600j

Majlis Amanah Rakyat (MARA) menyasar meraih kutipan pembayaran balik pinjaman antara RM550 juta hingga RM600 juta khususnya daripada usahawan dan peniaga kecil tahun ini.

Pengerusinya, Datuk Seri Idris Jusoh, berkata sasaran itu ditetapkan berdasarkan kemampuan usahawan dan peniaga kecil yang mendapat kemudahan pinjaman perniagaan termasuk untuk memula serta memperluaskan perniagaan. 

“Tahun lalu, kita hanya mensasarkan kutipan hutang daripada peminjam terutama usahawan dan peniaga kecil sebanyak RM500 juta, tetapi kita berjaya membuat pungutan berjumlah RM692 juta.

“Peningkatan pungutan melebihi 40 peratus itu membuktikan kedudukan ekonomi negara semakin kukuh, tidak seperti didakwa pemimpin pembangkang bahawa ekonomi negara semakin tidak stabil berikutan pelbagai inisiatif diperkenalkan kerajaan,” katanya selepas merasmikan Seminar Transformasi Imej Usahawan Penyewa, di Kuala Terengganu, semalam. Hadir sama Ketua Pengarah MARA, Datuk Ibrahim Ahmad.

Idris yang juga Ahli Majlis Tertinggi (MT) UMNO berkata, berikutan kejayaan itu, MARA melalui Bahagian Pembangunan Infrastruktur Perniagaan (BPI) akan memberi tumpuan kepada dua aspek iaitu pembangunan fizikal premis dan pembangunan penyewa.

Beliau berkata, Unit Perancang Ekonomi (EPU) memperuntukkan sebanyak RM167.9 juta bagi melaksanakan kerja pembangunan semula dan menaik taraf bangunan MARA berusia lebih 30 tahun.

“Setakat ini, MARA mempunyai 484 bangunan membabitkan 7,388 ruang niaga di seluruh negara dan premis itu disediakan dengan pelbagai kemudahan serta konsep termasuk arked, bazar, taman halal, taman keusahawanan dan hampir 50 peratus atau 3,694 premis berusia lebih 30 tahun.

“Saya berpendapat penyelenggaraan dan pembaikan semua premis milik MARA terutama yang berusia lebih 30 tahun perlu dinaik taraf dari semasa ke semasa seiring dengan aspirasi MARA sebagai sebuah organisasi bertaraf dunia berteraskan keusahawanan,” katanya.

Mengulas kerja penyelenggaraan premis MARA di negeri ini, Idris yang juga Ahli Dewan Undangan negeri (ADUN) Jertih, berkata sebanyak RM632,800 peruntukan diluluskan untuk meningkatkan kualiti dan fizikal semua premis di negeri ini.

Katanya, MARA juga meluluskan peruntukan sebanyak RM260,000 untuk melaksanakan projek penjenamaan semula kawasan industri MARA di Bukit Kor, Marang.

Dalam perkembangan lain, Idris berkata, kajian dilakukan mendapati anggaran pendapatan kasar tahunan penyewa MARA ialah sebanyak RM2.587 bilion, terutama membabitkan pendapatan diperoleh ahli perniagaan yang menjalankan perniagaan di 20 Kawasan Industri MARA (KIM), seluruh negara. 

Source: Berita Harian

Date : 19 March 2013

Afternoon Highlight (19/03//13/44/742)

Today's Pick (19/03/13/43/968) SMEs told to tap frontier marts

SMEs told to tap frontier marts

SMALL and medium enterprises (SMEs) must move out of the shadows and strive to make it on their own by tapping frontier markets like Myanmar.

Former international trade and industry minister Tan Sri Rafidah Aziz said SMEs must do their own networking through business councils to tap new markets under free trade pacts.

"Be a market leader and not a follower. Start small like a sole distributor, and build up gradually," she said during "Premier Talk with Tan Sri Rafidah Aziz", which was organised by SME Corp Malaysia in collaboration with Traders and Entrepreneurs Association of Malaysia (Perdasama).

Embark on a proper market analysis and, armed with strong business fundamentals, you can compete effectively, she advised.

Innovation and transformation of businesses are both important, irrespective of the size, she said, adding that they must also keep abreast of developments at home, in the region and globally.

The Asean Free Trade Area and the soon-to-be concluded Trans Pacific Partnership offer Malaysian SMEs new vistas to expand their businesses, be it goods, investments or services.

"SMEs in Malaysia have been mollycoddled for far too long," Rafidah said.

Any shortcomings in their undertaking should not be directed at the government but the companies themselves, she added.

Rafidah also launched P-Shoppe, a promotional and advertising portal of products owned by members of Perdasama.

During the event, SME Corp raised RM5,000 for Tabung Wira Lahad Datu Media Prima.

Source: New Straits Times

Date: 19 March 2013 

Today's Pick (19/03/13/43/968) 

Afternoon Highlight (18/03//13/43/741) Banks must quickly embrace digital evolution

Banks must quickly embrace digital evolution

NOT so long ago, banking for small and medium enterprises (SMEs) revolved around basic transactions and loans, with relationships typically forged through personal meetings at the bank.Now, many SME customers use their smartphones or computers to interact with banks while at the same time, SME banking has grown in complexity, with customers moving away from "plain vanilla" banking in favour of more bespoke and innovative solutions.

In the last few years, digitisation has had a profound impact on how SMEs do their businesses. Mobile technology, in particular, is transforming the way that SMEs source, produce, market and sell their products. The pace of change is also accelerating, with mobile phones widely predicted to become the preferred consumer payment device within just a few years.

Not surprisingly, all of this has changed what SMEs need from their financial service providers, ushering in a new age of SME banking. With the branch no longer the fulcrum of relationships, banks must find a way to reconnect with SMEs in the digital space. Despite impressive digital strategies and the launch of multiple new channels, however, many banks have yet to figure out how best to do this.
The choice they face is stark - either find a new relevance for SMEs, or risk losing touch with an important group of customers as new competitors close in.

So what should banks do to adapt?

First, banks should see digitisation as a great opportunity to reconnect with their SME customers. By investing time in understanding the digital agenda of SMEs, and developing a differentiated digital proposition, banks have the chance to recast themselves in a new role as digital partners to small businesses.

SMEs themselves have not changed. They are still on the constant lookout for ways to run their businesses faster, cheaper and better. They still need banks to support them as they grow and expand. Digitisation merely offers a whole new set of options for achieving this and allowing customers to do their banking and to access critical information while they are on the move.

SMEs - perhaps more than any customer groups - are embracing digital solutions at speed, with digital now widely predicted to become the main customer relationship channel for SMEs in the next couple of years. To a large extent, this is being fuelled by the rapid advance of smartphones and tablets globally.

In 2011, the sale of smartphones surpassed that of personal computers (PCs) for the first time. And by 2015, according to Gartner, tablets sold are expected to equal sales of PCs.

Driven by customer demand and the ever ongoing search for greater cost-efficiency, many SMEs are now actively embracing e-invoicing or mobile payment solutions to allow their customers to make purchases on the go. You only have to look at the fast adoption of mobile payments tools such as Square and iZettle highlight to see that this is an area of priority for SMEs.

Banks should focus on developing a strong mobile banking proposition for SMEs, allowing busy SME owners to manage their banking needs from a smartphone or tablet, so that they can concentrate on running their business.

Virtual advisers can be useful, reinforcing the relationship aspect of banking, while empowering SME customers to self serve and bring down costs. Banks can also develop mobile and Internet services that would help SMEs tap into new revenue streams and markets, and also to access re-levant information beyond traditional banking services.

By extending their online platforms, for example, banks could help create virtual communities that allow SMEs to network or promote their products and find new customers or suppliers. Such services would clearly add value to SME businesses and offer banks a point of differentiation at the same time.

Most important of all, while pursuing their digital strategies, banks should not lose sight of the basics. Like all other customers, SMEs expect a seamless banking experience. They want banking to be as simple, fast, cost-efficient and convenient as it can be. For all the investment in new digital channels and solutions, banks should continue to focus on this fundamental need.

This means fully integrating all channels. It means having a comprehensive and user-friendly website, and it means helping customers save time and money on basic tasks, such as opening a new account, applying for a company debit or credit card, or looking through past transactions.

SMEs are a core client group for banks, as they have always been. Prosperous economies depend on SMEs to drive growth and employment, and SMEs depend on long-term support from banks. Getting digital banking right for SMEs, and reinventing SME banking relationships for the digital age, should therefore be an urgent priority across the industry.

The writer is the global head of SME Banking, Standard Chartered Bank

Source : New Straits Times

Date : 18 March 2013

Afternoon Highlight (18/03//13/43/741)

Today's Pick (18/03/13/42/967) Alliance, CGC Form Partnership on SMEs

Source: The Malaysian Reserve

Date: 14 March 2013

Today's Pick (18/03/13/42/967)

Afternoon Highlight (15/03//13/42/740) Government Has Transition Plan For Automotive Industry, Says Muhyiddin

Government Has Transition Plan For Automotive Industry, Says Muhyiddin

KUALA LUMPUR, March 13 (Bernama) -- The government has a plan to ensure smooth and equitable transition for the automotive industry after its liberalisation, says Deputy Prime Minister Tan Sri Muhyiddin Yassin.

He said sudden changes to the industry could adversely affect the country's automotive ecosystem, while urging local automotive producers to become more internationally oriented to help them survive in an increasingly competitive global environment.

"We have seen a gradual drop in new vehicle prices by three to five per cent in the fourth quarter of last year," he said, attributing the price reduction to discussions between the government and automotive companies as part of the government's long-term plan to reduce vehicle prices.

"I want to stress that sudden price reductions would affect the industry as a whole as well as the country's economic development," he said in his speech at the launch of Perusahaan Otomobil Kedua Sdn Bhd's (Perodua) S series variants of the Viva, Myvi and Alza car models here Wednesday.

Muhyiddin said the government plans to make Malaysia a regional production hub for energy efficient vehicles (EEVs), and urged Perodua to help the research and development activities of local automotive component makers to enable them to become suppliers for the local and global automotive industry.

Source: Bernama

Date: 13 March 2013

Afternoon Highlight (15/03//13/42/740)

Today's Pick (15/03/13/41/966) Low interest rate among drivers of local economy

Low interest rate among drivers of local economy

KUALA LUMPUR: Increased revenue from the fast-growing tourism industry, a low interest rates scenario and rising consumer confidence will remain major drivers for Malaysia’s growth.

This is despite the bleak outlook, particularly in Europe over the next several years, from which export-oriented Asean economies might not be spared.

These supportive factors will help Malaysia, which grew by 5.6% last year, to maintain relatively commendable growth rates of 4.3% this year, 4.4 in 2014 and 4.6 in 2015.

“Malaysia will continue to outperform the global economy which is good news,” said Mark Billington, the regional director of the Institute of Chartered Accountants in England and Wales (ICAEW).

He said the low interest rates in Malaysia was also supporting private sector investment and increasing consumer confidence.

The country’s key interest rate has remained at 3%.

“ The good news for Malaysia at the moment is that low inflation means there is little pressure to raise interest rates, making investment attractive,” he told Bernama.

“One key to attracting global investment will be in ensuring transparency and global comparability in financial services, which in turn underpins business and market confidence,” said Billington.

He said Malaysia was likely to meet its aim of becoming a high income economy by 2020 but would have to meet certain pre-requisites such as increasingly moving towards a knowledge and skills-based economy and maximising the focus on service provision rather than manufacturing.

“It also means attracting global businesses” and making Malaysia a top investment and business location through greater transparency, strong corporate governance as well as ease of doing business.

“If Malaysia has the right skills pool, it can become a global or regional economic hub” which means it would compete with its close neighbours by attracting the right kind of talent and industries.

“This means, being a competitive place to locate a business and an attractive place for workers to re-locate to and build a career in,” he said, adding that main barriers to Malaysia achieving its aspirations are the lack of the right skills and knowledge in the workforce as well as bureaucracy.

“Growing the talent pool is not necessarily the problem as Malaysia’s young people are bright, adaptable and hardworking. But what remains the challenge is retaining what it currently has,” he added.

  

In this regard he said, professionals, educational bodies, and businesses all need to work together.

“This is to ensure that young people are not only trained with the right skills, but also given the option of a rewarding career, to eventually choose to stay in Malaysia,” he added.

Billington highlighted that red tape is a barrier to investment - both for local and foreign direct investments (FDIs)- and hence should be cut at every opportunity.

“Tackling these barriers gives Malaysia its best shot at attracting global businesses and investments that will support its aims,” he added. — Bernama

Source : New Straits Times

Date : 6 March 2013

Today's Pick (15/03/13/41/966)