Afternoon Highlight (14/03//13/41/739) myNEF: Workshop to develop sustainable entrepreneurs

myNEF: Workshop to develop sustainable entrepreneurs

KUALA LUMPUR: The New Entrepreneurs Foundation (myNEF), in its continuous bid to develop sustainable Bumiputera entrepreneurs, has conducted its first mergers and acquisition (M&A) programme workshop.

In a statement yesterday, myNEF said 44 companies participated in the workshop which aimed to brief them about the possible development and implementation of successful M&A strategies.

"The programme is part of myNEF Pemangkin Usahawan (PUsh) initiative which was launched by Prime Minister Datuk Seri Najib Razak last year," it said.

myNEF said among topics discussed during the workshop were potential sectors with regard to entrepreneurship and innovation, rationale of pursuing acquisitions and techniques used in consummating acquisitions and the regulatory framework required.

"As an industry facilitator, myNEF helps companies determine the rationale, select acquisition targets, value them and evaluate the long-term potential of the partnership," it said.

The companies represented at the workshop were from information communication technology (ICT) and creative industries, it said.

myNEF chief executive officer Ferdaus Johar said since the launch of PUsh, the foundation has been making great strides in introducing the various programmes to Bumiputera entrepreneurs via its ICT & Kreatif Karnival and now with this workshop.

"We have reached out to about 500 companies with regard to national distribution network programmes and we hope to identify more companies who can participate in our M&A programmes," he said.

He said the foundation aims to help Bumiputera entrepreneurs run a successful and sustainable business. 

myNEF is a non-profit organisation tasked to develop and implement comprehensive programmes to ensure the sustained growth and competitiveness of ICT and creative industry in the country. Bernama

Source : New Straits Times

Date : 14 March 2013

Afternoon Highlight (14/03//13/41/739)

Today's Pick (14/03/13/40/965) Alliance banks on SMEs, sees above-average loan growth for the segment this year

Alliance banks on SMEs, sees above-average loan growth for the segment this year

PETALING JAYA: Alliance Bank Malaysia Bhd foresees an above-average loan growth for its small and medium enterprises (SMEs) portfolio this year, given the long-term strategies of SMEs and Government projects that would benefit them.

Alliance Bank head of group business banking Steve Miller said the bank was optimistic about the market, as SMEs generally took conservative long-term views on their investments.

“Assuming everything stays as it is and there are no hiccups in the economy, we think our SME business can outgrow the market,” Miller said, adding that Alliance Bank had about 10% market share at present.

He said SMEs would also reap the benefits of big projects under the Government.

“Many of the big projects are starting to gain momentum and that flows through the value chain and comes down from the big players to the SMEs,” he said.

In line with this expectation, the bank has signed a portfolio guarantee agreement with Credit Guarantee Corp Malaysia Bhd (CGC) to make access to financing for SMEs easier, beginning with an RM50mil initial tranche.

Under the agreement, CGC, a credit guarantee provider for local SMEs, will provide 70% guarantee cover of the approved total principal amount undertaken by the SMEs, and assist in verifying the credibility of the applicants in consultation with Alliance Bank.

Miller said that the RM50mil was only an initial tranche, as the bank would consider the second tranche in the second half of its financial year 2013.

CGC managing director Datuk Wan Azhar Wan Ahmad said that with the portfolio size of RM50mil, CGC's aim was to reach out to about 300 SMEs from various sectors, offering a loan range of between RM100,000 and RM300,000.

“Since the inception of the first portfolio guarantee arrangement in 2009, we have provided guarantees to the amount of about RM605mil worth of loans through this delivery system,” he said.

CGC's non-performing loans (NPL) have been on the decline from 4.8% in 2010 to 4.3% in the following year and 3.8% last year.

“Our NPL has come down and we hope it will continue to reduce as we enhance the quality of loans,” he said, adding that CGC was looking at smaller types of loans as the impact was greater on SMEs.

Last year, CGC guaranteed loans in excess of RM1bil, benefiting over 3,000 customers. Wan Azhar is confident that CGC could double the figure this year.

“We are more focused on graduating' the SMEs from the guarantee mechanism and Government support. We also have more products in the pipeline in collaboration with more banks,” he said, adding that CGC would be signing with four more institutions in 2013.

Source: The Star

Date: 14 March 2013

Today's Pick (14/03/13/40/965) 

Afternoon Highlight (13/03//13/40/738) Malaysia eyes more Japan deals

Malaysia eyes more Japan deals

MALAYSIA will further strengthen its partnership with Japanese corporations, which have emerged as top foreign investors in the country's manufacturing sector with RM62 billion realised investments to date.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Malaysia has set its sights on more investments from Japan, particularly in the high-technology manufacturing industry.

The ministry is confident that with steady economic growth, Malaysia will maintain its position as an attractive destination for both domestic and foreign investors in the manufacturing sector.

As such, Mustapa is mooting more trips to Japan to meet investors there, saying that strong ties between both countries will give Malaysia an edge.

"We regard the Japanese corporations as very important partners because Malaysia plans to attract more high technology-based investments in the manufacturing sector," he said at the official opening of Boon Siew Honda's new motorcycle manufacturing plant in Batu Kawan here yesterday.

Also present were Boon Siew Honda Sdn Bhd chairman Datuk Seri Loh Cheng Yean, its managing director and chief executive officer Satoshi Okada, Honda Motor Co Ltd president and chief executive officer Takanobu Ito and Honda officials from the Southeast Asian region.

Mustapa also paid tribute to the late Tan Sri Loh Boon Siew, the first Malaysian who formed a strategic partnership with a Japanese company to assemble Honda motorcycles here 56 years ago.

He said Honda motorcycles have contributed immensely to the country's development as they provide cheaper transportation mode for Malaysians to commute to work and in their daily lives.

Meanwhile, Cheng Yean, who is also the daughter of the late Loh, said the completion of the new RM200 million plant is a significant milestone for the company.

Boon Siew Honda is jointly owned by Oriental Holdings Bhd and Honda Motor Co Ltd.

Cheng Yean said the plant, built on a 23.7ha site, is five times bigger than the company's previous plant in Mak Mandin, Butterworth.

Equipped with advanced manufacturing facilities, the plant has an annual production capacity of 350,000 motorcycles for the domestic market.

Among the Honda motorcycle models manufactured at this plant are the EX5 Dream, Wave Dash, Wave 100, Future, PCX, Spacy and Icon.

Boon Siew Honda is the leading motorcycle manufacturer in the country with about 47 per cent market share. The company targets to maintain its position following the opening of the plant.

Source: New Straits Times

Date:13 March 2013   

Afternoon Highlight (13/03//13/40/738)

Today's Pick (13/03/13/39/964) Franchise business targeted to grow 10%-15% this year

Franchise business targeted to grow 10%-15% this year

KUALA LUMPUR: Malaysia, which wants more local franchise companies to venture overseas, is targeting an increase of between 10% and 15% in the business for this year.

Deputy Minister of Domestic Trade, Co-operative and Consumerism Datuk Rohani Abdul Karim said that to date, 47 local franchise companies had penetrated the international market with 1,424 outlets in 50 countries.

The top franchisors overseas include Nelson's with 675 outlets, DailyFresh (481) and Secret Recipe (25) while England Optical and Marrybrown had opened 21 outlets each.

Speaking at the signing of a memorandum of understanding between Export-Import Bank of Malaysia (Exim Bank) and Malaysia Franchise Association (MFA), Rohani said the ministry was actively promoting the local businesses in developing their franchise systems for the international market.

“We provide the platform to promote and market the franchise business through expos and international franchise events such as the Franchise Malaysia Goes Global initiatives.

“From the initiatives, 258 potential franchisees had registered their interest with our local franchisors with a potential RM242mil worth of investments,” she added.

Last year, the franchise industry made up about 2.5% of the total gross domestic product (GDP) amounting to some RM24.3bil.

It was previously reported that the Government targeted a 9.4% contribution from this industry to the country's GDP by 2020.

“Our target markets include Indonesia, China and India. This year, we are going to explore more opportunities in the European market,” Rohani said.

Exim Bank and MFA plans to spur the franchising business by providing financial, promotional and knowledge support to eligible franchise players venturing abroad.

“This collaboration with MFA is testament to Exim Bank's commitment towards supporting the SMEs' cross-border ventures,” Exim Bank managing director and chief executive director Datuk Adissadikin Ali said.

On the bank's maximum amount of loan disbursement to the franchise industry, Adissadikin said “the sky is the limit” and that it depended on the business.

  

He said that this year, the bank targetted RM5bil in total loan disbursement, mainly for companies to expand their business overseas, with 60% of the amount for those in the construction industry and infrastructure.

“For example, we are supporting the power plant and highway projects in Indonesia as well as projects in Kuwait,” he noted.

Exim Bank also managed the RM180mil fund allocated by the Government for the Malaysia Kitchen Financing Facility, which is used to assist in the setting up or expansion of Malaysian restaurants overseas.

Source: The Star  

Date: 13 March 2013

Today's Pick (13/03/13/39/964) 

Afternoon Highlight (12/03//13/39/737) Assistance for aspiring SMEs

Assistance for aspiring SMEs

KUALA LUMPUR: Aspiring small and medium enterprises in Malaysia will be supported via the Creative Product Development Programme, a collaborative effort between the Malaysian Investment Development Authority (Mida) and industry players PhisonTech Electronics (M) Sdn Bhd, Pensonic Holdings Bhd, Fusionwave Fusionwave Creative Consultancy Sdn Bhd and EMTEC Inc.

The programme aims to tackle longstanding local industry issues such as designers' lack of understanding of market trends and capabilities; insufficient financial resources and expertise; an unreliable supply chain and limited market access.

Upon the submission of a business proposal and a panel screen, admission into the programme would entail support such as understanding market trends, manufacturing, promotion and branding, as well as product distribution.

“Designs, particularly industrial products, are significant when it comes to brand image. It is no surprise that companies that master the art of aesthetics are on top of their game,” Mida chief executive officer Datuk Noharuddin Nordin said when announcing the programme at Mida headquarters yesterday.

Mida has introduced tax incentives to endorse the design services industry.

For instance, registered enterprises that have recruited qualified Malaysian designers to provide industrial design services meant for mass production are now eligible for income tax exemption on 70% of their services for five years.

“To say that our aim is to export our products to Taiwan would be stretching it because frankly, I'm rather disappointed with our progress. We are lagging behind and that's why we need to do this to develop not just engineers but the entire supply chain,” PhisonTech Electronics Corp founder Datuk K.S. Pua said.

“We are thankful for Mida's strong support in overcoming local handicaps. Integration is the only way to help our local industry progress.”

Research company IC Insights estimated the global digital entertainment and lifestyle market in 2013 to be worth US$170bil (RM510bil), and this is important because product and industrial design contributed to 30% of the total development costs of digital products.

Noharuddin said there were over 35,000 creative entities in Malaysia that were engaged in a broad range of design-related fields such as multimedia, fashion and industrial design.

He urged these fragmented communities to team up with industrial design engineers.

Source : The Star

Date : 12 March 2013

Afternoon Highlight (12/03//13/39/737) 

Today's Pick (12/03/13/38/963) More SMEs can enter global market via MIHAS

More SMEs can enter global market via MIHAS

JAKARTA: Malaysia International Halal Showscase (MIHAS) annual trade fair, which brands Malaysia as the world halal hub, has enabled more local small and medium enterprises (SMEs) to export their halal products and services globally.

Malaysia External Trade Development Corp (Matrade) deputy chief executive officer Datuk Zakaria Kamaruddin said the SMEs had especially benefitted from the Incoming Buying Mission (IBM), which have been part of Mihas’s attraction every year.

“IBM brings more than 500 pre-selected foreign buyers every year to partake in personalised and pre-arranged one-to-one business meetings with local manufacturers of halal products and services. Last year the IBM had recorded total sales of US$127mil (RM394mil),” he told Bernama in an interview on Monday.

Zakaria, who is here on a mission to promote the Kuala Lumpur World Halal Week scheduled on April 3-6 at the Kuala Lumpur Convention Centre, said over the last nine years, MIHAS has enabled Malaysia to continue recording an increase in its export of halal products and services.

Data showed that in 2010, Malaysia’s total export of halal products were valued at US$7.17bil (RM22.23bil), representing 3.6% of Malaysia’s total export value of US$198.3bil (RM614bil).

The figure increased to US$10.9bil (RM33.8bil) or 5.1% of the total export value of US$215.6bil (RM669bil) in 2011.

Zakaria said Matrade had always encouraged Malaysian companies and SMEs to market their halal products and services in Indonesia for the benefit of both countries, to the extend that they could eventually venture into opening factories in Indonesia.

Indonesia was fast emerging as an important market in the global economy and provided a great potential for the two countries to develop the halal industry within the region together, he said.

Indonesia was Malaysia’s 10th largest trading partner in 2012, accounting for 4.5% of Malaysia’s total trade.

In the coming MIHAS 2013, Indonesian exhibitors will represent the largest participation taking up 30 booths while 18 Indonesian companies with 27 representatives will participate in the IBM.

Source : The Star

Date : 12 March 2013

Today's Pick (12/03/13/38/963)

Afternoon Highlight (11/03//13/38/736) Hab halal terima pelaburan RM7b

Hab halal terima pelaburan RM7b

Santubong: Hab Halal Tanjung Manis (HHTM) di Mukah, Sarawak menerima pelaburan mencecah RM7 bilion tahun lalu dengan 80 peratus daripadanya adalah pelaburan langsung asing (FDI).

Perkembangan positif itu bakal menjadikan HHTM sebagai pusat ekosistem halal utama dunia selepas mengambil kira pasaran halal global bernilai RM6.9 trilion.

Industri halal Malaysia mencatatkan nilai dagangan mencecah RM38 bilion dan menyumbang 5.1 peratus kepada keseluruhan eksport negara.

Kedudukan strategik HHTM berhampiran China dijangka melonjakkan lagi sektor halal negeri ini kerana nilai eksport produk halal tahun lalu ke negara Tembok Besar itu berjumlah RM4.1 bilion.

Timbalan Menteri Kemajuan Luar bandar dan Wilayah Datuk Joseph Entulu Belaun bekata, bagi merancakkan lagi industri halal di negeri ini, Kawasan Industri Mara (KIM) kini menjalani transformasi kepada Taman Halal.

Katanya, perubahan dilakukan untuk memenuhi permintaan kerana menjelang 2030 penganut Islam dijangka mewakili 27 peratus jumlah penduduk dunia.

“Definisi halal ini luas dan lebih bersifat sejagat kerana mementingkan kualiti produk membabitkan makanan, farmaseutikal atau kosmetik.

“Piawaian halal negara ini yang diiktiraf seluruh dunia menyebabkan produk tempatan mendapat perhatian negara luar seperti Russia, Amerika Syarikat dan Jepun,” katanya ketika merasmikan Taman Halal Mara, di KIM Demak Laut, di sini, semalam.

Hadir sama, Ketua Pengarah Majlis Amanah Rakyat (MARA) Datuk Ibrahim Ahmad dan Naib Presiden Pembangunan Industri Halal (HDC) Dr Malik Musharaf.

Joseph berkata, jumlah jualan tahunan usahawan di KIM itu pada tahun lalu, kira-kira RM5 juta setahun dan ia dijangka meningkat kepada 30 peratus menerusi program yang dirangka bersama HDC.

Source: Harian Metro

Date: 11 March 2013

Afternoon Highlight (11/03//13/38/736) 

Today's Pick (11/03/13/37/962) SME Bank targets 700 more young entrepreneurs, plans to finish giving out RM50mil govt fund by Sept

SME Bank targets 700 more young entrepreneurs, plans to finish giving out RM50mil govt fund by Sept

JOHOR BARU: SME Bank Bhd hopes to finish disbursing the RM50mil allocation from the Government for the Young Entrepreneur Fund (YEF) by September to 700 recipients nationwide.

Vice-president and head of priority banking Abd Karim Ahmad said it had received 42 applications for the scheme as of to date and would disburse RM5mil to them.

He said that by April, the bank targeted to receive another 100 applications for the YEF and it would disburse RM15mil to the young entrepreneurs.

“We are hoping that the Government will allocate more budget for the YEF under Budget 2014,'' Abd Karim told StarBiz at the final leg of the SME Bank entrepreneur funding scheme roadshow.

Similar event was held in Ipoh, Kuala Lumpur, Kuching, Miri, Kota Kinabalu and Kota Baru, focusing on the YEF and the SME Development Scheme (SDS) for small and medium enterprises (SMEs) and young entrepreneurs.

The YEF is specially tailored for young entrepreneurs aged between 18 years and 30 years who plan to start or already run a business.

Each eligible applicant will receive up to RM100,000 as a start-up capital or working expenditure and has seven years to service the loan.

“We hope young enterprising people who want to start businesses to fully utilise the financial assistance given by the Government to them,'' said Abd Karim.

He said the main objective of the scheme was to assist young entrepreneurs who were not qualified to borrow money from commercial banks or other Government-related funding schemes.

Separately, SME Bank would open two new branches this year in Johor one each in Batu Pahat and Pasir Gudang in May and June respectively.

This will bring the number of its branches in the state to three.

South Johor SME Association chairman Teh Kee Sin said with the YEF and SDS schemes, there were no reasons for young entrepreneurs and SMEs to get loans from unlicensed money lenders.

“There are many Government-initiated schemes to assist our SMEs and they should take advantage of the schemes for their own benefits,'' he said.

Teh, who is also SMI Association of Malaysia national president, said the Government was now becoming more pro-active, adding that unlike before, it was now less hassle for SMEs to get loans.

He said the YEF scheme would also open doors of opportunities for young graduates to start business.

“My advice to first timers (young entrepreneurs) who have succeeded in getting the loan to honour the contract and pay your installments on time,'' said Teh.

He said they should be a responsible borrower as their act of not paying the loans on time or not servicing the loans at all was tantamount to denying other eligible applicants from getting the financial assistance.

Teh said young entrepreneurs and SMEs must have the mission and vision of making profits when venturing into businesses and able to expand over time.

“If you think you cannot do it, then don't do it, as doing business is challenging and not as easy as one might think but the reward is good,'' he said.

Source: The Star

Date: 11 March 2013

Today's Pick (11/03/13/37/962)

Afternoon Highlight (08/03//13/37/735) MAHB: KLIA2 terminal building 80% completed

MAHB: KLIA2 terminal building 80% completed

KUALA LUMPUR: The terminal building at the new KLIA2 low-cost airport had surpassed the 80% completion rate, said Malaysia Airports Holdings Bhd (MAHB) senior general manager (commercial services) Faizah Khairuddin.

Construction of the 257,000-sq-m KLIA2 was on track, she said, adding that MAHB was working with the contractor to make sure the construction and internal works of the terminal building concluded by May 1.

Faizah said that although the commencement date had been delayed to June 28, the two-month grace period would be utilised by the airport operator to perform testing and commissioning activities.

She said KLIA2 would be launched on June 28, the date chosen by Prime Minister Datuk Seri Najib Tun Razak, and which coincided with the launch date of the KL International Airport (KLIA) in 1998.

Faizah also said retailers could come in in stages while the terminal building was being completed.

“According to the timeline, we would be able to make it for the commencement,” she told Bernama.

She said 82% of the commercial floor space had been tendered, and no new brands would be entertained anymore.

Asked about Malindo Air’s plan to begin operations in mid-March, she said MAHB was very happy with the presence of new airlines and welcomed Malindo into the family.

“I think it’s also good for consumers because now they have more choices and I believe that would induce further growth in our passenger numbers,” she added.

The RM4bil KLIA2, built to cater to the explosive growth expected in low-cost travel, is envisaged to handle a maximum of 45 million passengers per annum.

It will have 60 gates, eight remote stands and 80 aerobridges, plus a 32,000-sq-m retail space with 225 retail outlets.

Source: The Star

Date : 08 March 2013

Afternoon Highlight (08/03//13/37/735)

Today's Pick (08/03/13/36/961) Bangsar building comprising luxury serviced suites and hotel to be ready within 4 years

Bangsar building comprising luxury serviced suites and hotel to be ready within 4 years

KUALA LUMPUR: Local property fledgling Keystone Land Developments Sdn Bhd says there will be a new building of luxury serviced suites and hotel rooms in Bangsar via partnership with Singapore-based Alila Hotels and Resorts.

The new hotel, Alila Bangsar Kuala Lumpur, which links directly to the Bangsar LRT station, will be set in The Establishment, an existing 50,000 sq ft property acquired by Keystone at the time of its startup two years ago.

“This is our maiden project which we are happy to operate with Alila Hotels given their five-star ratings and our shared vision,” Keystone business development director Joshua Chuah told a press conference yesterday.

Upon completion in three to four years, The Establishment will be a 41-storey development comprising 646 luxury serviced suites, six floors totalling 124 hotel rooms, a spa and several food and beverage outlets with a total gross development value of RM450mil.

“Alila Bangsar KL, being the first hotel offering from Keystone Land Developments, will set a strong design statement for the hospitality business in Kuala Lumpur. It will be an elegant event venue and a hip night spot ” Alila Hotels and Resorts development VP Arjan De Boer said.

Construction is scheduled to commence in May and complete within three to four years.

Alila Hotels and Resorts, which has been in the industry for 11 years and has nine hotels and resorts that are currently in operation in Bali and Jakarta in Indonesia, Cambodia and Singapore.

Projects under way include a resort in Dalit Bay in Kota Kinabalu, and others in India and China.

“Fifteen projects are currently in construction. By 2017, 22 hotels and resorts will be in operation,” De Boer said. “We are looking to build hotels in Penang and Langkawi.”

Source: The Star

Date: 08 March 2013

Today's Pick (08/03/13/36/961)