We work around the clock in over 130 countries all over ... · PDF fileVolkswagen Group...

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We work around the clock in over 1 3 0 countries all over the world to attain one single goal: making your logistics even more efficient. And this is why we can offer you a seamless transportation chain from one single source – by r o a d , s e a or a i r . Our additional logistics services make even the most complex tasks anything but impossible. www.dbschenker.com.my Toll Free : 1800-88-8868 Schenker Logistics (M) Sdn Bhd Delivering solutions.

Transcript of We work around the clock in over 130 countries all over ... · PDF fileVolkswagen Group...

We work around the clock in over 130 countries all over the world to attain

one single goal: making your logistics even more efficient. And

this is why we can offer you a seamless transportation chain

from one single source – by road, sea or air. Our

additional logistics services make even the most

complex tasks anything but impossible.

www.dbschenker.com.my

Toll Free : 1800-88-8868

Schenker Logistics (M) Sdn Bhd

Delivering solutions.

Clean BatikInitiative (CBI)Wraps Up

MGCC Establishes Corporate Responsibility Competence Centre

Paving the Road to Islamic REIT in Malaysia

The Business Magazine of the Malaysian-German Chamber of Commerce and Industry (formerly known as MGCC Quarterly)

COMMERCIALREAL ESTATEMalaysia’s Business Friendly Policies Attract German Investor

malaysia.ahk.de January/February 2013

Vol 19, No.1 KDN PP 8818/3/2013

CST_MGCC_Horse Ad(OL).pdf 1 10/30/2012 11:52:38 AM

P: +60/3/8024 6373 · E: [email protected] · www.ssi-schaefer.my

Effective warehouse design means short routes for goods and staff. Using containers in conjunction with intelligent conveyor systems speed up and optimise logistics operations. We show you how to become fast, flexible and efficient. Contact us, we will gladly advise you.

Fast beats slow

P: +60/3/8024 6373 · E: [email protected] · www.ssi-schaefer.my

Effective warehouse design means short routes for goods and staff. Using containers in conjunction with intelligent conveyor systems speed up and optimise logistics operations. We show you how to become fast, flexible and efficient. Contact us, we will gladly advise you.

Fast beats slow

MGCC PersPeCtivesis published six times p. a. by the Malaysian-German Chamber of Commerce and Industry

PublisherDatuk Muhammad Feisol bin Haji HassanIt is distributed free of charge to members and qualified non-members in Malaysia and abroad.

Malaysian-German Chamber of Commerce and industry(171131-U)Supported by the Federal Ministry of Economics and Technology based on a resolution of the German Bundestag.

Level 47, Menara Ambank,No.8, Jalan Yap Kwan Seng,50450 Kuala Lumpur, Malaysia.Tel: 603-9235 1800Fax: 603-2072 1198homepage: malaysia.ahk.deemail: [email protected]

*All options expressed in articles do not necessary reflect the views of MGCC.

eDitOriAl teAMShobini KupperPauline Chong

COver PiCture bYLucien De Prycker / belgazone.comDigital imaging of picture on page 14 done by Lucien De Prycker / belgazone.com

DesiGNeD bYETC Creative

eveNtsMGCC’s La Rhumba Latina-Latino Night 2012 06World Marketing Summit Malaysia 2013 08 CBI Awareness Campaign 09

FOCusMalaysia’s Business-Friendly Policies Attract German Real Estate Investor 10Malaysia’s Real Estate Landscape 12

FeAtureEstablishment of a Competence Center for Corporate Responsibility 16 and Sustainable Business PracticePaving the Road to Islamic REIT in Malaysia 18Design Innovations: Why Are They Important in the Furniture Industry 20SSI Schaefer Malaysia is Committed to Sustainability! 23Facilititating Top Foreign Talent Towards Greater Investments 24and Economic GrowthVolkswagen Group Malaysia Announces New Managing Director 25

MeMbersAn Industry Recognised Eco Event for the Built and Design Industry 26Food Safety – Our Priority 27 Transforming Mercedes-Benz Autohauses 28Phoenix Solar Contributes to Green Schools Campaign in Malaysia 29Prince Hotel & Residence Kuala Lumpur Bagged a Spot as One of Asia’s Top 30Venue Provider Effective Enviromental Engineering 31MGCC Welcomes New Members 32

eCONOMiCsMalaysias Markt für Gebäudearmaturen profitiert von Bauboom 34Malaysia Leaps to 12th Position in World Bank’s Doing Business 2013 36Outlook for the German Economy 38Prospects for 2013 39

GerMAN iNstitutiONsSinfonietta – DSKL’s New Chamber Orchestra 40

leGAl & iNvestMeNtThe Acquisition of Property in Malaysia 41Investment Framework in Malaysia – 2013 43

trADe FAirsEuropean Coatings Show 2013 44Bauma 2013 46Powtech 2013 47Upcoming Trade Fairs: March - April 2013 48

2 CONteNts

The Business Magazine of the Malaysian-German Chamber of Commerce and Industry (formerly known as MGCC Quarterly)

CBI – Clean Batik Initiative Malaysia

The CBI Malaysia project, co-funded by the European Union under the EU Switch-Asia program and implemented by MGCC, will successfully come to an end in January 2013. The Initiative had an amazing impact on the domestic batik industry, where 100 SME batik workshops in Kelantan (83) and Terengganu (17) participated with great enthusiasm and appreciation in this project at a zero-cost-level.

In total, 800 visits and coaching to the participating workshops were conducted to train 400 batik workers which is equivalent to 7% -10% of the Malaysian batik workforce.

The project consisted of 3 different project phases, which are respectively, the Cleaner Production phase with 80% of the projects capacities and resources, followed by the Marketing Component phase and finally Policy Dialogues on a regional and national level, where both made up 10% of capacities and resources.

In order to implement the green concept of CBI into practice, the Technical Consultants (TC) identified problem areas in production, also known as “Hotspots” for improvement. These Hotspots for example covered

Housekeeping-, Health & Safety- and Energy saving issues. By applying this method, batik entrepreneurs and workers themselves identified problem areas and actively worked on improvement. CBI provided them with the required knowledge and equipment such as containers, racks and blowers.

CBI is proud to announce that 100% of the participating workshops have integrated Cleaner Production into their process thus, allowing them to proceed with the second phase. The Marketing Component of the project aimed at the cleaner consumption aspect and provided marketing seminars in Kelantan and Terengganu. The seminars benefited the participants by instilling them with skills and knowledge which would improve their marketing strategies. The topic of the seminars covers product design and packaging, pricing, branding and promotion, public relations as well as exhibition expertise.

With the completion of the local, regional and national policy dialogues, discussions on issues along with the sharing of expertise would further establish the efforts and goals of CBI to the ministry

level. Parties involved in the dialogue consist of government agencies, batik associations and batik entrepreneurs.

The participating parties demonstrated their willingness to carry on the efforts kicked off by the CBI-project for the shared aim of creating a sustainable Malaysian batik industry.

Visibility of the project is an important factor to increase the impact and public awareness of the initiative. The visibility aspect was achieved through press conferences, media coverage, online information and public awareness campaigns. The positive results of CBI visibility efforts can especially be seen during IGEM 2012, where Malaysian Prime Minister Datuk Seri Najib Tun Razak along several Federal Ministers and Chief Ministers visited the CBI information booth with much interest.

Overall, the CBI has impacted the batik industry by improving the working conditions of the batik industry and also identifying the industry challenges and furthermore instilling environmental concern and awareness to local Malaysians.

Top :The official launch of the Clean Batik Initiative on 24 May 2011 was attended by (from l. to r.) Mr. Muhammad Nahar Haji Mohd Sidek (Principal Assistant Director of EPU), Dr. Gary William Theseira (Deputy Under Secretary of Ministry of NRE), Dato’ Hajah Rosnani Ibrahim (Director General of Department of Environment/ Ministry of NRE), H.E. Vincent Piket (Ambassador and Head of European Union Delegation to Malaysia), Encik Mohd Kamil bin Mohd Ali (Director General of Malaysian Handicraft Development Corporation), Dato’ Leela Mohd Ali (CEO of Yayasan Budi Penyayang Malaysia), Mr. Thomas Brandt (MGCC General Manager and CBI Project Coordinator).

Left :CBI National Policy Dialogue.

Center :The first marketing seminar was also held successfully in Kota Bahru as the batik craftsmen were not only fed with the idea of marketing in the batik industry, discussions and knowledge exchange sessions were also conducted during the full-day event.

Right :CBI Technical Consultant conducting Technical Assistance at the Batik Workshop.

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RebrandingMore than a Facelift

Board of directors 2012-2013

ir. Lee sWee eNGPresident

roLaNd s. foLGerVice President

aLexaNder stedtfeLdExecutive Director

dato’ roBert teo KeNG tuaN Treasurer

datuK muhammad feisoL. hj. hassaN

yBhG taN sri dato’ G.s. GiLL

yB seNator dato’ sri mohd effeNdi NorWaWi

p. KaNdiah

raymoNd yeoh

Lim KhiaNG hua

dato’ herBert WeiLer

haraLd Burchardt

peter zuBer

WoLfGaNG LaaBs

jeNs reisch

matthias LudWiG

Following through on the new look and focus, our Communications Department has provided our bi-monthly Chamber magazine with a refreshing new visual concept, which was already introduced last year, and now also reflected in its new name. Besides rectifying a possible misconception that the magazine is only published four times a year (formerly “MGCC Quarterly”), more importantly, the name PERSPECTIVES reflects our editorial aim in exploring interesting facts and situations while judging their importance in relation to business, as well as assessing the way they might affect future developments.

The quote “The only constant is change” (Heraclitus, Greek philosopher) is a realization which shapes the professional and personal life of our readers. The key to success in a dynamic business environment is the ability to spot transformations early, evaluate their implications correctly, avoid imminent drawbacks and seize new opportunities. In particular, many challenges come from changes which are initially initiated by business leaders themselves, requiring adequate management solutions. By being more focused on the issues in the Chamber magazine, we want to provide our readers with insights into developments and strategies affecting relevant business topics and how they are taken on.

However, we are not only writing about change. We are also kick-starting changes at the Chamber. Apart from the dual vocational training program that I touched upon in my previous editorial, and where we have moved into the implementation phase, 2013 will be influenced by two other important areas. Firstly, expanding our regional activities and secondly, establishing a CSR Competence Center at the Chamber (Corporate Sustainability and Responsibility).

In November 2012, the five German Chambers (AHKs) in the ASEAN region (Indonesia, Malaysia, Singapore, Thailand and Vietnam) founded the German-ASEAN Chamber Network (GACN). The idea for GACN is based on the understanding that German companies active in the ASEAN region are increasingly developing regional strategies. GACN will create an open platform for German enterprises and their partners, and interlocutors from business, politics and administration. The platform is not bound by national frameworks and will facilitate a broad dialogue as well as regional initiatives. For companies with a regional orientation, GACN opens channels for exchange on various levels amongst all relevant stakeholders in ASEAN.

The establishment of the CSR Competence Center follows the first ‘Corporate Responsibility Conference 2012: How German Multinational Corporations are pushing forward sustainable development in Malaysia and beyond’, as well as a survey conducted by the Chamber to gain more information on CSR strategies and practices by our members, including major German corporations with changing strategic business approaches and long-term commitments in the ASEAN region.

The survey showed two distinctive results. Firstly, almost all of the respondents in Malaysia have a CSR program in place with a wide set of initiatives, comprising corporate governance, education & training, social development and environment. Secondly, while having an interest and seeing a demand for engaging their own staff as well of reaching out to other stakeholders, resources are limited and primarily focused on developing the companies’ business.

The Competence Center will address these limitations by conducting CSR trainings, providing project management services and inviting partners to set up a steering committee and offer them a regular series of high-level roundtable meetings with decision makers and opinion leaders on CSR topics.

Join our initiatives and you’ll expect a lot more from us.

alexander stedtfeldExecutive Director,

Malaysian-German Chamber of Commerce and Industry

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6 eveNts

Based on the Latin La Rhumba theme, guests were greeted by Latin clad talents at the pre-dinner drinks session, serving guests with mocktails and cocktails, followed by Polaroid pictures taken of each guests at the Latin themed entrance arch as a token of a memorable night.

The evening begun as lively dancers graced the stage with their performance with gusto. Guests were then welcomed to the dinner by the energetic master of

ceremonies (emcee), Jiggee Jon. MGCC’s executive director, Mr Alexander Stedtfeld begin the night by addressing those present with his utmost appreciate and gratitude to all the dinner’s sponsors, guests and staff in their contribution to make the dinner a success and their continuous support for the chamber.

While attendees continued to be entertained by the animated Jiggee Jon, they were also treated to an array of

scrumptious authentic Latin cuisine buffet throughout the night. Concurrently, attendees were engaged in a number of interactive games and lucky draws. A contrast from MGCC’s previous annual dinners, guests were kept amused by a comedienne showcase midway through the evening. Those who endeavored to dress according to the theme were requested to strut their ensemble, to garner best dressed male and female according to the theme for the night.

MGCC’s La Rhumba Latina-Latino Night 2012

It was indeed a spectacular night to remember on the 22 November 2012. Guests and MGCC staff were all dolled up and dressed up to the nines, geared up for MGCC’s La Rhumba Latina-Latino night at the Westin Kuala Lumpur, to once again celebrate the annual dinner for MGCC members, guests and staff.

7eveNts

We wish to thank the following sponsors for making it a memorable evening:

8 eveNts

The first day of the Summit is a special day as it coincides with the International Women’s Day. No better way to start the three-day convention as the Summit’s opening day will kick off with Millennium Development Goal No. 3 – Promote Gender Equality and Empower Women.

Envisioned by the Guru of Marketing, Professor Philip Kotler, from the 8th to the 10th of March 2013, the World Marketing Summit will be held for its second time since its launch in Dhaka last year. The Summit will be driven towards the theme of the United Nations’ 8 Millennium Development Goals (MDGs).

The Summit is a platform for marketers, corporate captains, organisations and individuals who share the same vision – to Create a Better World through Marketing. Marketing is a fully-loaded weapon, if utilized appropriately, could help millions of lives. This is the vision of the Summit -to make a difference in the realm of the corporate world by instilling corporate social responsibility in their day-to-day operations without losing their profitability.

The expected 2,500 delegates will be enlightened by the array of influential figures during the Summit. Sharing the

stage during the Summit, international figures such as Prof. Philip Kotler - the Father of modern Marketing, Mr. Sanjit “Bunker” Roy, Mr. Bernard Kouchner – co founder of Doctors Without Border, Ms. Mareike Dehmel – Head of International Marketing Management of Staedtler, and Mr. Stanley Litow from IBM Foundation to their designated MDGs.

Registration is now open. Visit www.wmsmalaysia.org for further details.

8 - 10 March, 2013 at Putrajaya International Convention Centre

9eveNts

After 3 years of the ongoing implementation of Clean Batik Initiative (CBI), the project has reached its final stages. The CBI continues to raise public awareness on the importance of creating a sustainable and environmentally friendly Batik industry in Malaysia. The CBI public awareness campaign was held on 4 January 2013 from 10 am to 5 pm at Kasturi Walk of Central Market Kuala Lumpur; the best place to showcase and promote the Malaysian cultural crafts, activities and art in Kuala Lumpur.

CBI displayed informative boards at the front of the busy Kasturi Walk and managed to attract curious onlookers to enquire more about the project. Local people, students and tourists have enquired about the project and the goals it aims to achieve and are impressed with the efforts carried out by the CBI team to the local Batik industry.

CBI Awareness Campaign

Top :MGCC Marketing Officers in charge of the CBI project.

Bottom Left :The canopy style booth attracted many passersby, from students to tourists.

10 FOCus

Q: economic problems continue to pressure global real estate markets. Do you foresee the current economic crisis in europe and other parts of the world affecting the property market in this part of the region? A: Despite leading global growth, Asia is not immune to the recent headwinds from the West. The slowdown in economic activity has significant ramifications on global real estate markets through various channels, as real estate is a derived demand.

As we have seen over the last few months, softened economic activity has led many corporates to rationalize their headcounts, streamline business operations and to defer expansion plans. As a result, the demand for office and retail space has moderated, which has in turn, restrained the growth of capital values and rentals.

On the investment front, sentiments have visibly tightened and we are experiencing a dearth of investment transactions, although some investors have also taken

the opportunity to rebalance their portfolios.

Q: how would you sum-up the real estate industry in this part of the region? A: Continued uncertainty about the future of the euro and sovereign debt problems has tampered real estate investors’ sentiments globally. Asia is no exception and we expect the global economic slowdown to weaken the short term performance of Asian real estate in 2012-2013.

However, we remain optimistic about the region’s medium to long term growth prospects and anticipate rentals and prices to pick up again in 2013-2014. Our confidence stems from Asia’s robust economic fundamentals, which includes its youthful demographics, dynamic workforce, rising income levels, growing consumer base, sound public finances, sizeable external reserves and healthy corporate balance sheets. This would underpin the healthy and sustainable growth of rentals and capital values across Asia’s real estate markets.

Malaysia’s Business-Friendly Policies Attract German Real Estate InvestorActive in the property investment business for 45 years, Union Investment Real Estate operates today in 25 countries around the world, with approximately 60% of property assets located in countries outside the domestic market. In 2007, Union Investment Real Estate entered the Malaysian market by purchasing the 56,000 sqm office project “Cap Square Tower” in Kuala Lumpur. MGCC speaks to Ulrich Dischler, Head of Asset Management International at Union Investment Real Estate, on his views about the Malaysian real estate sector.

11FOCus

Q: in your professional opinion, is the real estate market in Malaysia a case of boom or bust?A: In terms of asset class, outside Europe the fund’s focus is mostly on office properties and we will therefore limit our opinion to the office sector. Here, we are generally optimistic about the medium term growth prospects of Malaysia’s real estate, which explains our investment in Malaysia.

While some parties have expressed concern over the impending supply of office space in Malaysia, we actually view the new pipeline supply positively. Our positive view is due to the lack of high-quality, international Grade-A buildings in Malaysia, which will support the rental and investment demand for new investment-grade properties.

The gradual improvement of the office stock and infrastructure will consequently enhance Malaysia’s competitiveness as a business location and attract more multi-national corporations (MNCs) to house their operations in Malaysia. In fact, we understand from some property consultants that office space demand from the oil and gas sector has been growing relatively strongly in the last year.

Q: What are some of the factors taken into consideration by uire when investing globally?A: As a core fund, we have a mandate to invest in real estate which can confer secure and steady returns for our investors. This typically entails investing in real estate markets which are transparent and which have a stable political climate, as these directly affects the business

viability. In this aspect, we are glad to see that Malaysia has moved up 2 positions to rank as the 23rd most transparent real estate market in Jones Lang LaSalle’s Real Estate Transparency Index 2012. In addition, to remain globally competitive would require a tenacious push toward sustainable real estate. Demand for green buildings is gaining traction, as tenants and landlords are increasingly aware of the need to include real estate as part of their own corporate social responsibility agendas and targets.

Q: Why did it make sound business sense for uire to invest in Malaysia?A: Malaysia has been one of the fastest growing economies in Asia and has built up its reputation as a competitive business location, by putting in place the necessary infrastructure and business-friendly policies to facilitate foreign firms to set up their operations in Malaysia. We see Malaysia as a rapidly growing core-plus investment location, where there is immense scope for us to benefit from the first-mover advantage.

With real estate investment in Malaysia still being at its infancy stage, this presents more opportunities as well as options to add value. Cap Square Tower is an important investment for the fund, as it is in line with our strategy to grow our Asian portfolio, through yield accretive acquisitions in stable markets which are supported by sound economic fundamentals. As a core investor with a long term investment horizon, we are confident that Cap Square Tower will benefit from the positive rental reversion in tandem with the progressive growth of the Malaysian economy.

Lobby at Cap Square Tower

12 FOCus

While major cities such as Hong Kong and Singapore have been preferred real estate investment choices in the past given their vibrant international city status, the scarce land resources on their islands have caused real estate prices to soar to dizzy levels, raising local ire with the result that authorities are equally adamant at holding prices in check. Some of these new rules include imposing hefty property stamp duties and taxes that on purchases by foreigners.

fastest growing metropolitan cities in the region, from Klang Valley into Greater Kuala Lumpur (GKL) and Iskandar Malaysia (IM), located in Johor are being transformed into Asia’s most liveable cities. Foreigners are also welcomed with either a 10-year visa through Malaysia My Second Home (MM2H) programme or through special incentives such as lower tax rates under Talent Corporation for professionals with unique skillsets. Not surprisingly, the recent

Malaysia’s Real Estate Landscape

Opportunities abound for Greenfield projects in fastest metropolitan citiesMalaysia on the other hand, has a relatively larger land mass to its population size and has; in fact, relatively liberal rules regarding foreign property investment within Asia. Moreover, as the nation transits from a developing to a developed status, opportunities abound for foreign companies as many new greenfield projects are being identified for development in two of the

“Emerging Trends in Real Estate Asia Pacific 2013” report by Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC), named Kuala Lumpur as having huge potential in city development and investment prospects too. language and physical connectivity to the biggest, fastest and wealthiest marketsAs Greater Kuala Lumpur (GKL) and Iskandar

13FOCus

Malaysia (IM) are growing rapidly to be the new emerging business hubs of South-East Asia (SEA), there is an increasing demand from multi-national corporations as well as small-medium enterprise (SMEs) to set up their base of global operations here. This will enable them to expand their reach to some of the world’s biggest and fastest growing or wealthiest markets such as China, India and the Middle East. Malaysia’s competitive costs and relative ease of doing business is seen in its rankings; 14th in IMD’s “2012 World Competitiveness Yearbook” and 18th ahead of Japan in 2012 respectively. In the Economists Intelligence Unit’s 2012 report

Source: Property Barometer 2011, IP Global

– “Hotspots: Benchmarking Global City Competitiveness”, which ranks 120 cities globally, Kuala Lumpur is in second place as the most competitive global city in SEA.

resilient and transparentIn the latest IPD ”Research Note”, Malaysia has been ranked among the Top 5 for investment location in Asia based on growth, total return and liquidity in the REITs market. Along with this ranking, Malaysia is in the third position after Hong Kong and Singapore in the “Global Real Estate Transparency Index” by Jones Lang LaSalle. Furthermore, Malaysia is more resilient to recession and it’s not a volatile market compared to those countries. This has been proven during the financial crisis between 2008 and 2009, Malaysia House Price Index (MHPI) showed a decline in growth of -2% whereas Hong Kong and Singapore experienced more than double-digit drops in house prices of -12% and -14% respectively.

The market’s growth is led by the residential sector, followed by agriculture, commercial and development land and its total property transactions recorded was 430,430 units valued at US$45.9 billion (RM137.83 billion) as reported in 2011 by National Property Information Centre (NAPIC), an agency under the Ministry of Finance.

Clear statutory protectionMalaysia is also ahead in terms of property ownership and our transparent land administration system is based on Australian Torrens System. The Government of Malaysia allows 100% foreign direct ownership for all type of property (except agriculture land) with minimum foreign investment value of US$170,000 (RM500,000) and there is clear statutory protection on ownership, which tends to be vague in most of SEA countries like Vietnam, Indonesia and China.

residential real estate affordableThe Malaysian residential property market is vibrant and driven largely by local buyers and the relative ease of obtaining loans

with loan tenures up to 30 years and low mortgage rates at an average of 4% per annum. These factors combined with attractive promotions by developers such as Developer’s Interest Bearing Scheme (DIBS), waiver of legal and stamp duty, makes Malaysia an investor-friendly market. Even though the market is mainly dominated by local purchasers, foreign investors still vote Kuala Lumpur as the property hotspot after Southwark, London and Jersey City, New York according to IP Global “Property Barometer 2011 Report.”

Malaysia’s house prices are reasonable and comparatively affordable with an average price of US$220 per square feet with more than 6% gross rental return per annum where average buying price in countries such as Hong Kong, Singapore, Japan and India are six to 10 times higher with less than 4% appreciation per annum according to the Global Property Guide. An example is, investors can own a freehold condominium in the heart of Kuala Lumpur or a freehold landed property in Iskandar Malaysia at only half the price of a private apartment in Singapore. Other comparative advantages of Malaysian property are its international quality standards which includes water and green features, ranging from US$150 (RM450) to US$600 (RM1,800) per square feet.

14 FOCus

A world-class financial district in the makingA new world-class financial district is also being planned in the city of Kuala Lumpur and by 2017, plans are underway to build a High-Speed Rail (HSR) that will connect Kuala Lumpur to Singapore and cut travelling time from six hours to 90 minutes, providing access to more than 6,000 MNCs and about 16,000 SMEs in Singapore. The next step would be the ASEAN Rail Express (ARX), which will connect Kuala Lumpur with Bangkok, Vietnam, Cambodia, Laos, Myanmar and China and it will be the best bet to increase a business traveler’s traffic from SEA countries to the GKL. These efforts will generate a stream of demand in the office, retail and industrial sectors. In other words, the vision of GKL to be among the world’s top-20 cities in economic growth and livability will be achieved.

Between 2010 and 2014, about 14.9 million square feet of office space are already in the pipeline, with about 7 million square feet scheduled for completion in 2012, Kuala Lumpur’s office market will soon offer around 3.5 million square feet of certified “green” spaces, ready to be occupied with a rental rate ranging from US$2 to US$4 (RM6 to RM12) per square feet per month. These new Grade A buildings will also have a Multimedia Super Corridor (MSC) certification, an important requirement by most MNCs as it will provide buildings with energy stability, 24 hours security surveillance and high fiber optic connection which will raise both capital and rental offerings to the market.

MPi matchmakes foreign investors to real estate opportunitiesAs a conclusion, Malaysia is the perfect hub for MNCs, SMEs and foreign businesses to expand their businesses in SEA. Malaysia also welcomes foreign developers, contractors, operators and investors to contribute their unique experiences, skills and knowledge to the development of GKL and IM. This can be realized through a joint-venture or other

forms of property investments and development projects to continuously fund the transformation of Malaysia’s property landscape especially in Greater Kuala Lumpur and Iskandar Malaysia to one of the most dynamic in the region. The Government of Malaysia will support foreign investors by offering various fiscal and non-fiscal incentives such as income tax exemption for period of five to ten years, including services and assistance provided by respective parties to facilitate a potential business’s operationalization and entry to the market.

To help foreigners navigate their way into Malaysian real estate, Malaysia Property Incorporated (MPI) connects them with the relevant parties including top Malaysian developers, Government-linked companies and state players and match the appropriate opportunities to their needs.

About MAlAysiA ProPerty incorPorAted (MPi)MPI is a non-profit organisation formed under a public-private partnership to promote the Malaysian property industry and to help foreign investors find a stress free opportunity to invest in Malaysia. MPI helps connect interested parties through an extensive network of government agencies, private sector companies, real estate firms, business councils and real estate related associations.

For foreign companies or individuals who seek to invest in Malaysian real estate, please contact MPI at [email protected] or [email protected] or call us at +603-77241878 Your contact :

[email protected]

Find a list of all Panalpina offices

on www.panalpina.com

Whether a standard shipment or complex project, we offer you the right solution for your transport needs.

Operating at 500 locations in over 80 countries, our air freight specialists are ready to apply their experience,

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on www.panalpina.com

Whether a standard shipment or complex project, we offer you the right solution for your transport needs.

Operating at 500 locations in over 80 countries, our air freight specialists are ready to apply their experience,

expertise, and creativity to find just the right solution for you. We maintain local contacts and a global network,

all in order to live up to your expectations – anytime and anywhere.

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16 FeAture

As part of its effort to change the game of global business behavior, the Malaysian-German Chamber of Commerce & Industry (MGCC) is in the midst of establishing a Competence Center for Corporate Responsibility and Sustainable Business Practice under its roof.

As known to many, corporate sustainability and responsibility are at the heart of MGCC’s activities as a bilateral Chamber of Commerce in Asia. Being a representative of the German private sector, the MGCC wants to address issues related to how to act as a sustainable company in an emerging country such as Malaysia. Based on an initiative which was launched at the Southern Africa German Chamber of Commerce and Industry (SAGCC) last year, the Center will strengthen the social, ecological and governance related impact of member organizations. It aims to bundle forces to make a positive change towards responsibility, sustainability and ethical business behavior in the transforming Asian region.

Over the years, Malaysia has been offering German companies a growth market for its exports, services and soft skills development. The German private sector has a genuine interest to assist the country in tackling development issues and being is pursuing such initiatives to fulfill their own responsibility and sustainability targets. German responsible businesses

have a positive impact on working and living conditions in Malaysia. However, those global companies rely on small and medium-sized enterprises (SMEs) which embrace sustainability objectives in their business operations, too. Supplying the multinational corporations (MNCs) which

have professional strategies in place, dependent SMEs can benefit from strong initiatives of their business partners.With this understanding, the MGCC will be establishing a Center to provide a systematic approach to support its members in the project management and coordination of CSR initiatives, training and research. Referring to its vast network, the Center will be able to draw upon resources, synergies and experiences and support companies in implementing corporate sustainability and responsibility in its core activities. The Competence Center working group will determine the main activities of the project. An annual Corporate Responsibility training program will offer regular one- or two-day seminars at the MGCC. Moreover, the MGCC will provide project and event management facilities to members and non-members that want to push forward their CSR initiatives.

“We will focus on building a training hub for companies who want guidance in specific areas of CSR implementation. Ideally, the Center will serve as an incubator for sustainable change management in Malaysia and beyond, leveraging on training, project coordination and collaboration”,

says project manager Katja Schulze.

The recent Corporate Responsibility Conference 2012 and the findings of a survey conducted among MGCC members highlighted the

particular focal interest of individual companies:• Good Governance• Carbon Reduction / Climate Change• Sustainable Supply Chain Management

To kick-start the initiative, the MGCC is currently planning a project in cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH: a CSR training series which will take place in Malaysia, Singapore and Thailand.

Establishment of a Competence Center for Corporate Responsibility and Sustainable Business Practice

for more information on the competence center for corporate responsibility and sustainable Business practice, please contact:ms. Katja schulze, project managertel.: +603 9235 1821 (dL)email: [email protected] or visit www.malaysia.ahk.de.

MGCC aims to expand CSR related services for its members

“MGCC aims to bundle forces to make a positive change towards responsibility,

sustainability and ethical business behaviour…”

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AZ_Malaysia_2011_210x297 28.12.11 12:29 Seite 1

18 FeAture

Malaysia with a majority of more than 60% muslims in her religion component, would most probably be assumed by international investors as the natural settings for Islamic REIT. However the path to this choice of investment was only ventured into much less than a decade ago. It was only in the beginning of the millennium, did Islamic banking begin to gain its footing which was progressively followed by Islamic REIT, with the arrival of international Islamic financial institutions such as Al Rajhi and Kuwait Financial House, as well as existing financial institutions branching out into the Islamic banking.

Islamic REIT is extremely lucrative within the Malaysian and global financial landscape due to its fairly stable characteristics and its tax exemptions, and of late gaining a wide acceptance from potential investors. These include international investors notably from the Middle East in search for an international diversified Islamic financial portfolio inclusive of Islamic REIT, which is often thought as a strong and sturdy investment. Malaysia, having a proper ‘Syariah’-compliant environment in place, with the Islamic REIT market governed by Syariah Advisory Council of the Malaysian Securities Commission, ensures the stability of such investments. Due to these compelling factors, Islamic REIT industry players are encouraged to capitalize on the demand of the financial product based on the mounting interest in this choice of financial instrument.

Malaysia is known to be one of the few countries which has developed ‘Syariah’

REIT guidelines in compliance to the Syariah Advisory Council of the Malaysian Securities Commission for Islamic REITs. The guidelines established ensure that not only Islamic REIT fund managers adhere to its regulatory framework and governance for this form of REIT, but aspires to strengthen the development of Islamic REITs in the global financial arena.

An example of these guidelines include a rental income of an Islamic REIT must be derived from permissible business activities in according to the ‘Syariah’ principle. Any income derived from non-permissible business activities, the guideline requires that the non-permissible business activities must not occupy more than 20% of a rental space. However, Islamic REIT fund managers will be strongly advised against investing these funds in any rental space explicitly conducting non permissible business activities such as gambling or gaming activities, the sale or manufacture of non-halal, tobacco and weapons or related products. Thus Islamic REIT may be considered an ideal investment for investors who are adverse to these business activities.

According to the financial academia, compared to investing in a conventional REIT, Islamic REITs are generally considered

a low risk investment by nature and provides a more diversified portfolio which also reduces the obvious risks inherent to investing in one particular portfolio. Nonetheless, scholars theorize that the confidence in investing in Islamic REITs may have dampened by the limited supply of Islamic REITs available to invest in Malaysia, as well as the presumption of potential investors that the investment is only available to Muslim investors due to the investment’s compliance to ‘Syariah’ principles.

From the perspective of Islamic banking industry players, majority Islamic Banking heads encourages the growth of Islamic REIT by advocating the advancement of this financial instrument in the market, thus in hopes to increase the demand for the financial instrument – creating a more attractive market for investors. However, certain quarters of the industry cautioned investors that despite the overall favourable features of Islamic REITs, it is also just as susceptible to the perils of a financial crisis, similar to conventional REITs.

Islamic REITS that continuously to report a strong yield and return in Malaysia are Al-Hadharah Boustead REIT which is backed by plantation assets while Al-Aqar Healthcare REIT backed by 6 hospital properties.

Paving the Road to Islamic REIT in MalaysiaBy Haliza Hisham, Communications Dept, MGCC

“Islamic REIT is extremely lucrative within the Malaysian and global financial landscape due to its fairly

stable characteristics and its tax exemptions…”

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Asia in Focus.

20 FeAture

Design Innovations: Why Are They Important in the Furniture Industry?Nowadays, the technical aspects of products are no longer consumers’ primary focus; rather the decisive factor for many purchases is the appearance of a product – or its design. Strong aesthetic designs can add to the distinctiveness of a product, therefore acting as a company’s signature of quality. Designs are particularly important in products where the function and cost is comparable, as the design then becomes the differentiating factor which makes the consumer choose one product over another. Hence the reason why design innovation is so important in the furniture industry!

The protection of designs is a crucial part of any business strategy. It enables the owner to have exclusive rights to the design, thereby preventing any unauthorized copying and subsequently retaining their market position.

Source: OHIM, Prospective Study about the Design Registration Demand at a European Union Level (2002)

reasoNs for protectiNG desiGNs iN the europeaN uNioN

70.0%

23.4%

20.3%

10.1%

6.5%

5.8%

to prevent being copied

company policy

to get ahead of the competition

matter of company prestige

to prevent people thinking “i copy”

others

Here are some famous furniture designs that you may have come across:

Ball ChairDesigner: Eero Aarnio

Year: 1963

Diamond ChairDesigner: Harry Bertoia

Year: 1953

Egg ChairDesigner: Arne JacobsenYear: 1958

Barcelona ChairDesigner: Ludwig Mies van der Rohe

Year: 1929

By Geetha K.

Images sourced from http://www.famousfurnituredesign.com/

21FeAture

There are a variety of reasons for registering a design. However, as illustrated by a study conducted by the Office for Harmonization in the Internal Market (OHIM), the official trademarks and designs office of the European Union (refer to above graph), the standout reason is to protect against unauthorized copying.

Unauthorized copying is a significant problem for designers, and registration will ensure that their rights have been safeguarded and can thus be enforced against infringers. Registration acts as a deterrent – a potential infringer would definitely think twice about copying if he/she sees that the design has a Registration Number, as the consequences of doing so would far outweigh any “benefits” reaped.

The study also revealed that a considerable number of designers register their designs to get ahead of the competition. To maintain their market share, businesses these days need to constantly innovate and produce new products in a shorter time span than before. Registration enables the owner to maintain their lead by granting them a monopoly over that particular design.

The length of the monopoly varies from country to country. In Malaysia, a designer can have 15 years of monopoly over his registered design whereas in the UK, design protection is awarded for 20 years.

In order for a competitor to compete with the design, they must create a design

Registered EU Design No: 000152715-0001Owner: Apple Inc.

Registered EU Design No:000450796-0001Owner: Apple Inc.

Registered EU Design No: 000450796-0003 Owner: Apple Inc.

which equals or surpasses the original. A good design will maintain a lead over competitors. The iPod (shown below), for example, has dominated the mp3 market for years due to its distinctive design.

Another main motivation for registration is to maintain company prestige. By conferring a property right onto the owner and creating an additional asset which can be attractive to potential investors, registration will contribute to a company’s good name, reputation and prestige. A protected design can also increase commercial buoyancy, since the owner now has a monopoly right which can be licensed, therefore generating additional revenue and even potentially enabling a company to penetrate unreachable markets.

Note: The trademarks and images used in this newsletter belong to their respective owners. KASS does not claim any proprietary rights whatsoever; they are used solely for educational purposes.

Geetha K. is the Director of Trademarks and Industrial Designs Division at KASS International. She has extensive experience in handling all aspects of trademarks and designs in various industries, including pharmaceutical, food & beverage, property development, automotive and apparel industries, and manages local, regional and international portfolios. She has written articles for various local and overseas publications, such as the Institute of Trade Mark Attorneys (ITMA) magazine. Her comments on case law in Malaysia and Singapore have also been quoted in publications abroad such as Asia IP magazine and Managing Intellectual Property magazine, a Euromoney Publication (UK). If you have any queries or need more information, please visit www.kass.com.my or drop an e-mail to [email protected].

22 FeAture

As a leading supplier of industrial storage and material handling equipments in Malaysia, SSI Schaefer believes in product innovation with a strong focus on environmental protection.

We are committed to sustainability towards the betterment of society, the environment and the economy the company operates in. SSI Schaefer continuously innovate safer, environmentally friendly products and manufacturing processes.

Going further beyond the legal framework requirements, we have undertaken several initiatives to showcase our environmental responsibility seriously. Our environmental initiatives covers all aspects of a business’ processes, including environmental protection, resource conservation, occupational health and safety, process safety, research and development, transportation, sourcing, security and social responsibility.

SSI Schaefer has made a pledge to sustainability based on the following Waste Hierarchy.

the green movements at the Malaysia factory

harnessing Natural light energy: Factory lighting illumination is entirely by natural light during day time. A trial photovoltaic system is installed to reuse solar energy.

harnessing Natural Wind energy: The 12M eve height shop floor building with louver window on all side offer natural ventilation without the means of electrical driven appliances.

reusing Water & recycling Waste Materials: A 10,000 m³ rain collection pond, which was built for the purpose of preventing flashflood, is in turn use for storing rain water for washing and gardening. All factory waste and rejects are also reused.

Other waste are segregated with paper and packing materials sold for further recycling.

reducing Air Pollution: We use the cleanest from of energy of LPG Fuel Energy for the painting oven.

Achievement

464 KWhr of electrical energy on lighting saved for every day. The trial solar energy collected was used to power the Factory Director’s notebook, printer and room lighting.

800 KWhr of electrical energy on ventilation saved for every 16 hours shift.

A 10,000 m³ rain water pond, harvested for the factory’s washing and gardening needs.

About 15,000 kg of emission of carbon is reduced per year.

SSI Schaefer Malaysia is Committed to Sustainability!

23FeAture

As a company with forefront experiences in the fields of waste technology and recycling, SSI Schaefer ensures that recycling never becomes more expensive, but rather becoming simpler and effective

RERERE

USEDUCECYCLE

12th from left : Prime Minister YAB Dato’ Sri Mohd Najib Tun Abdul Razak with eminent expatriate corporate leaders, each of whom were personally offered Residence Pass-Talent (RP-T) status by the Prime Minister.

Facilitating Top Foreign Talent Towards Greater Investments and Economic Growth

enhancing expatriate facilitationIn addition, to better facilitate foreign talent to work and settle in Malaysia, YAB Prime Minister also announced that expatriate service delivery would be further improved with the rebranding and launch of the Expatriate Services Division (ESD) by the Immigration Department. Scheduled for operation by the end of Q1 2013, the ESD will act as an integrated service facility, offering efficient, seamless service to expatriates and their dependants in matters relating to immigration procedures.

For more information on the Residence Pass-Talent (RP-T) or TalentCorp’s other global talent initiatives, please visit www.talentcorp.com.my.

to move up the value chain in line with the Economic Transformation Programme (ETP). The expatriates offered RP-T today comprise 21 corporate leaders, foreign investors and experts in their respective fields. They represent leading corporations in NKEA sectors such as Business Services, Oil & Gas, Financial Services and Education.

Attracting and facilitating global talentLaunched on 1 April 2011, the RP-T is an immigration instrument introduced by the Ministry of Home Affairs (MoHA) and administered by the Immigration Department together with Talent Corporation Malaysia Berhad (TalentCorp) to attract and retain foreign talent. The RP-T is issued personal to holder and enables foreign talent to live and work in Malaysia for up to 10 years and is renewable.

“Since its launch in April 2011, more than 1,000 RP-T applications have been approved. The RP-T initiative has been followed through with implementation, testament to strong public delivery of ETP projects,” said Johan Mahmood Merican, Chief Executive Officer (CEO) of TalentCorp. “More importantly, success of the Government in attracting foreign talent is necessary in increasing investments and promoting growth, which in turn creates more jobs for Malaysians.”

The Government is committed to further facilitate the entry and retention of foreign talent, towards promoting greater ease of doing business and attracting Foreign Direct Investments (FDIs) in Malaysia. This was emphasised by the Prime Minister YAB Dato’ Sri Mohd Najib Tun Abdul Razak in early December in a meeting with several eminent expatriate corporate leaders, each of whom were personally offered Residence Pass-Talent (RP-T) status by the Prime Minister.

“The Residence Pass - Talent is an immigration innovation introduced last year, enabling top foreign talent to apply to work here for 10 years. Today, some need not even apply as we continue to innovate by offering the RP-T to eminent expatriates. Next, immigration will launch the Expatriate Services Division by March 2013 to further enhance services to foreign talent,” said Dato’ Sri Mohd Najib at the meeting.

The offer of RP-T to selected expatriates reflects the shift towards a more open and pro-active approach in immigration towards top foreign talent. The offer made by the Prime Minister today recognizes the contributions made by leading expatriates to Malaysia’s transformation agenda, in meeting critical skill requirements and driving FDIs, which supports key economic sectors

24 FeAture

bAckground inforMAtionTalentCorp was established on 1 January 2011 under the Prime Minister’s Department to formulate and facilitate initiatives to address the availability of talent in line with the needs of the country’s economic transformation. Collaborating closely with relevant Government agencies and employers in priority economic sectors, TalentCorp develops demand-driven initiatives focused on three strategic thrusts, specifically (1) Optimise Malaysian talent, (2) Attract and Facilitate Global Talent and (3) Build Networks of Top Talent.

25FeAture

Volkswagen Group Malaysia has appointed Dr Zeno Kerschbaumer as its new Managing Director with effect from 1 January 2013.

Dr Kerschbaumer takes over from Mr Ricky Tay who helped steer Volkswagen to becoming the Number One European brand in Malaysia. Under his stewardship, Volkswagen Group Malaysia posted more than a 100 per cent increase in sales volume, having launched some 18 models and variants.

Dr Kerschbaumer, has been with the Volkswagen Group since 1990, his most

Volkswagen Group Malaysia Announces New Managing Director

recent position being Managing Director of Volkswagen Group Singapore. Prior to this, he was Director, Business Development and Strategy at Volkswagen AG. From 2004 to 2005, he played a prominent role in spearheading brand-building efforts in Singapore when he was the Executive Director of International Sales at Volkswagen AG.

“I am delighted to be assuming the role of Managing Director at Volkswagen Group Malaysia, especially during this remarkable period of growth for the Volkswagen brand,” said Dr Kerschbaumer. “I look forward

to working closely with the strong existing team and to lead the company in its next phase of progress.”

Dr Kerschbaumer reports directly to Mr Weiming Soh, who is the President of Commercial Operations for Greater China/ASEAN of Volkswagen AG and Executive Vice President and Member of the Board of Management at Volkswagen Group China.

Dr Zeno Kerschbaumer to lead the Volkswagen brand in Malaysia.

26 MeMbers

ECO-B 2013 (2nd Malaysia Eco Building & Design Exhibition) will take place from 26 – 28 March 2013 at the Kuala Lumpur Convention Centre Malaysia. Jointly organised by the Malaysian Institute of Architects (PAM) and C.I.S Network Sdn Bhd, this trade exhibition is the platform where local and international exhibitors will showcase the latest in green building technologies and designs, new solutions, the latest methods and expertise, sustainable materials and product innovations, local governmental legislations as well as incentives, green building assessment and rating consultations, amongst others.

Recognised as an Industry Recognised Event for the Built and Design Industry, ECO-B is in Collaboration with Green Building Index (GBI), and Supported by MGBC (Malaysian Green Building Council). ECO-B is also endorsed by the Ministry of Works, Ministry of Energy, Green Technology and Water and MATRADE.

Healthcare Forum 2012

An Industry Recognised Eco Event for the Built and Design Industry

ASLI’s Healthcare Forum was held on 22 October 2012 at the Swan Convention Centre with the theme “The New World of Healthcare – Rise of Healthcare Consumers & Opportunities for Malaysia”.

The Forum was officiated by YB Dato’ Sri Liow Tiong Lai, Minister of Health Malaysia. In his keynote address, the Minister updated the audience on the progress made to-date with regard to the Healthcare NKEA. There are: Enablers for Medical Devices EPPs – i) Setting up of the Medical Devices Authority (MDA); ii) Medical Device Act (Act 737); EPP 2 - Clinical Research Malaysia; EPP 4 – Healthcare Travel; and many more.

The Minister also spoke about the Senior Living Business Opportunity where the main objective is to provide a high level care and support in the residents’ homes and promote healthy living in a lifestyle retirement setting that is different from conventional retirement homes.

Green architecture and designs for a more sustainable built and design industry starts here at ECO-B 2013.

Airfoil Services Sdn Bhd (ASSB) recently hosted the 4th Asian Lean Conference for 2012. The 3-day workshop was attended by representatives of various Lufthansa Technik (LHT) subsidiaries from Germany and Asia.

Over the next 3 days, over 22 colleagues of Lufthansa Technik and various subsidiaries followed presentations and external speakers as well as worked and discussed in workshops on the various success stories of Lean implementation among the units.

4th Asian Lean Conference at Airfoil Services Sdn Bhd

Participants were also taken on a grand tour throughout ASSB’s production area by ASSB’s Production Manager, Mr Abu Bakar. “The main focus of this was for participants to observe the various improvement initiatives perfected at ASSB and also to promote new ideas and concept as well as receive feedback on further improvement.

The finale of the final day ended with a closing speech by Airfoil Services Managing Director, Mr Steffen Richter, who thanked all the participants for attending the event.

Participants of the 4th Asian LEAN conference at AIRFOIL SERVICES

YB Dato’ Sri Liow Tiong Lai, Minister of Health Malaysia delivering the Keynote Address. On the right is Tan Sri Dato’ Dr Michael Yeoh, CEO of ASLI.

27MeMbers

UTS Intermovers Welcomes our New Managing Director, Mr. John Preston

Food Safety – Our Priority

John joined Intermovers on 1 August 2012 and is not a new face to our Unigroup Worldwide UTS family here in Malaysia. He brings with him over 15 years of senior management experience in the Removals & Relocation industry, not only in Malaysia but also Thailand, Korea and Australia. John’s main focus over the next 12 months is to build on the Intermovers culture to provide a “five star service” to UTS agents, Corporate Accounts and our customers. He can be reached at [email protected].

Fuchs Petrolube (M) S/B organised an ‘EAT & LEARN’ seminar on December 4th, 2012 where members from food manufacturers and processers were updated on the latest development on food grade lubricants requirement and food manufacturing guidelines with Moody International Certification, a certified regulator on food safety. Fuchs Cassida range of products does meet all the approvals by governing bodies. Participants were also informed on the latest equipment and machine technology involved in food production.

It was wrapped up with a well-coordinated forum where the speakers took turn to address concerns in the marketplace especially who to drive this direction to use food grade lubricants within these facilities. It was agreed by all this should be government driven and not industry as enforcement need to be in place to ensure compliance from all food manufacturers since it involves human lives. Safety especially in the food industry remains top priority!

On February 1st 2013 Malaysia Airlines becomes the 12th member of oneworld, the world’s leading alliance of quality airlines. Its customers enjoy the full range of services and benefits of the partnership and its Frequent Flyer members of Enrich will be able to earn and redeem miles also on oneworld carriers. Malaysia Airlines passengers have seamless access to the oneworld carriers’ network of some 840 destinations in 156 countries served by a combined fleet of 2,500 aircraft.

Malaysia Airlines is the alliance’s second carrier (after Qantas) to operate the A380. In Europe Malaysia’s National Carrier offers double daily flights on its new flagship between Kuala Lumpur and London including connecting services to and from Germany.

New in Business Class is the tantalising Chef-on-call menu, featuring 25 meal options like Malaysian favorites, Chef’s recommendations, light choice, healthy choice and ever-changing monthly specials.

Food Industry Panel

John Preston, MD of Intermovers

Malaysia Airlines’ Exciting New Perspectives for Customers

Fine dining in Business Class of Malaysia Airlines’ A380

28 MeMbers

The 28-year-old Cycle & Carriage Bintang (CCB) Mercedes-Benz Autohaus is the first in Malaysia to be renovated and refurbished in line with Daimler AG’s global transformation programme to enhance the design, ambience and functionality of its Autohauses.

The four-acre Autohaus located a stone throw’s away from Batu Caves, now boasts of 22 mechanical work bays, 22 body and paint bays and four commercial vehicle work bays. It is one of only two outlets in Malaysia authorised by Daimler AG to offer aluminum body repairs and body and paint service capability.

The refurbishment incorporates the Mercedes-Benz Presentation System II (MPS II), which aims to deliver consistent imagery of Mercedes-Benz dealerships worldwide while reflecting the quality of the products and services offered.

From now up to 2015, Mercedes-Benz dealers will invest more than RM200 million to enhance its 27 Autohauses and open new outlets in order to augment customer comfort and satisfaction.

Transforming Mercedes-Benz Autohauses

L – R: From Mercedes-Benz Malaysia, Michael Moh, Vice-President of After Sales and Roland S. Folger, President & CEO; and from Cycle & Carriage Bintang Bhd., Wong Kin Foo, CEO and R. Devaraju, Director of Operations

Check In to Check Out the World’s Best HotelOne World Hotel, Petaling Jaya was named the Best International Convention Hotel at the International Hotel Awards held in London recently. Having won the title of Best Convention Hotel for Malaysia and Asia Pacific in April this year, One World Hotel competed against other winning entries from around the world to emerge as the world’s best.

“One World Hotel is known for its excellent MICE facilities with over 5000 sqm of meeting space. With a total of 18 meeting rooms of various sizes, meeting organisers can expect not only flexibility, but warm and personalised service from our team. The meeting rooms are equipped with state-of-the-art audio visual equipment. The award affirmed our position as the leading convention hotel in Malaysia and recognition globally for the hotel’s excellent service.” says Mr Ho Hoy Sum, the hotel’s general manager.

One World Hotel won the Best International Convention Hotel at the recent International Hotel Awards 2012 in London

MONIER in Malaysia is the undisputed leader with unmatched production capacity to meet the needs of the local market. We lead the industry with our continuous innovation process to develop high quality products and services that enhance our customers’ quality of living.

Our commitment to ‘going green’ reflects the brand’s stance on ecological awareness and all MONIER products are developed on the basis of MONIER’s core values of building a sustainable and

Harvesting the Promise of a Green Future

better living environment for the future.

In line with our core values, the Energy Efficient Roofing Solutions range of products which comprise of MONIER CoolRoof® and MONIER SolarRoof is our most significant innovation to date. In pursuing our on-going green agenda, MONIER now ventures into the third “E” in our energy efficient roofing solutions equation, i.e., the Environment. This is embodied in the latest offering from MONIER - the MONIER EcoRain Rainwater Harvesting System. Monier Rainwater Harvesting System

Receiving the award on behalf of One World Hotel at the International Hotel Awards ceremony was Dato’ Teo Chiang Hong (2nd from left), the hotel’s owner accompanied by Mr Teo Eng How (second from right), from Mr Stuart Shield MD of International Hotel Awards (far right) and Mr Philippe Rossiter, Chief Executive of Institute Of Hospitality (far left).

29MeMbers

ECO-B 2013 (2nd Malaysia Eco Building & Design Exhibition) will take place from 26 – 28 March 2013 at the Kuala Lumpur Convention Centre Malaysia. Jointly organised by the Malaysian Institute of Architects (PAM) and C.I.S Network Sdn Bhd, this trade exhibition is the platform where local and international exhibitors will showcase the latest in green building technologies and designs, new solutions, the latest methods and expertise, sustainable materials and product innovations, local governmental legislations as well as incentives, green building assessment and rating consultations, amongst others.

Recognised as an Industry Recognised Event for the Built and Design Industry, ECO-B is in Collaboration with Green Building Index (GBI), and Supported by MGBC (Malaysian Green Building Council). ECO-B is also endorsed by the Ministry of Works, Ministry of Energy, Green Technology and Water and MATRADE.

Phoenix Solar Contributes to Green Schools Campaign in Malaysia

Pico Malaysia’s 30th Anniversary

Phoenix Solar Sdn Bhd has been awarded the design and installation of 10 PV systems of approximately 5kWp each under the PenjanaBebas-KeTTHA Green Schools Campaign. Launched in 2009, the initiative is a community project driven by PenjanaBebas (The Association of Independent Power Producers of Malaysia) and KeTTHA (The Ministry of Energy, Green Technology & Water). Schools are an excellent platform to promote the use of solar energy in the community at large - going from classroom to main stream. This familiarises students with PV’s crucial role in improving living conditions around the world, as well as displacing the use of fossil fuels to generate electricity. Established 2006 in Singapore and 2010 in Malaysia, Phoenix Solar is a market leader in the rooftop segment with over 4MW projects in both countries.

Celebrating Pico Malaysia’s 30th Anniversary

21st August 2012 marked the signing of a landmark Technical Collaboration Agreement between Natural Elixirs Sdn Bhd and Dr. Förster; a German, premium healthcare company based in Neu-Isenburg town; located just a few miles from Frankfurt. 85 years as specialists in herbal-based Skincare, Over-The-Counter Medicines and Food Supplements have established Dr. Förster as an industry leader of premium quality herbal healthcare products. Its plant is a 2-acre, state-of-the-art facility built

The Pinnacle of Innovation in Herbal Healthcare and Nutraceutical Contract Manufacturing

utilising German technology with exacting European Standards in place. This historic accord worth over 2 million Euros is significant to the expansion and positioning of NESB, a forerunner in traditional herbal extracts, in the niche herbal healthcare segment as a Global Nutraceutical Contract Manufacturer. The affiliation between NESB and Dr. Förster is expected to bolster continued growth and capability in pioneering high quality, plant-based products on a global scale.

SMK Assunta installed with a 5kW Solar Roof

An 85-year Legacy of Quality All Natural Healthcare for the Whole Family

30 MeMbers

Santa Fe Packs in a Jubilant Christmas BashSanta Fe recently threw their personnel a delicious Christmas BBQ get-together as a sign of appreciation for the unprecedented work that was contributed throughout the year as well as to get the festive cheer underway. The inaugural affair transformed its usual staid warehouse into a festive hot spot as attendees walked in clad with their Christmas get-up. Christmas carols and the delicious aroma of grilled meat filled the air while camaraderie of close-knit colleagues echoed throughout the night. The soiree was an excellent end to the year as Robert Comier, the new Managing Director of Santa Fe Relocation Services Sdn Bhd takes the company to the next level. Packed with a team of dedicated employees and a strong foothold in the Malaysian market, the company is set to see many more celebrations in 2013.

As SCHÜTZ continue to invest in its production sites, one of the latest developments has been installation of a new three-layer continuous extrusion blow-moulding unit at its production plant in Malaysia.

The three-layer extrusion unit turns out IBCs with not just the two usual layers of high-density polyethylene (HDPE) but also a third, ultra-thin, outer layer, making the use of alternative functional materials possible. Since September, the Malaysian plant has been able to produce not only the standard models but also IBCs with either a conductive or an antistatic outer layer, such as the MX-EX antistatic, which is suitable for use in ex-zones! This innovation opens up new fields of application for us in the fast-growing Southeast Asian market.

Our plant in Malaysia was established in 2006 and occupied site 60,000 square metres. SCHÜTZ Malaysia also supported by sales organisations in Indonesia, Thailand and Indonesia.

New Three-Layer Blow-Moulding Unit for SCHÜTZ Malaysia

Prince Hotel & Residence Kuala Lumpur was recognised as the Finalist in the “Best Contribution to an Event by a Venue” category at the recent “The Marketing Events Awards 2012” held in Singapore. Competing against other venue providers around Asia, Prince Hotel & Residences Kuala Lumpur is the only hotel in Malaysia which secured a spot in the Top 5 finalists. This category recognises the venue which gave excellent support and assistance in every capacity possible to ensure the smooth execution of the event including advice on décor, food & beverage and manpower support.

The campaign that scored the spot was the Miss Malaysia Chinatown International 2012. The event specialists and banquet team at the hotel has proven to be able to strategise and execute a successful event.

“We are committed to provide the best service and creative ideas to clients, event organisers and ensure that every event run smoothly,” said Tim Quarm, General Manager of Prince Hotel & Residence Kuala Lumpur.

Prince Hotel & Residence Kuala Lumpur Bagged a Spot as One of Asia’s Top Venue Provider

With 11 meeting rooms and one grand ballroom, we are one of the most preferred venues for meetings, events and social functions

Cheerful Santarinas of Santa Fe

KEB Blow Moulding Machine

31MeMbers

Contour Positioning System – A New Technology for Distance Estimation in Electric Vehicles

From L-R: Chee Ken, Mr. Alexander Stedtfeld, Yu Han

The Contour Positioning System (CPS) is a new technology proposed for electric vehicles (EV) to calculate and estimate accurately the amount of battery energy needed (%) to reach a desired destination. This new idea takes into account the extra battery energy needed for an EV to travel on a slope especially during uphill conditions. For example, driving uphill for 100km on a 10% slope uses a lot more battery energy compared to driving 100km on a normal straight highway. Conventional distance estimation system could not tell the difference mentioned above. Therefore, this new technology will help to improve the current battery energy estimation system in EVs by taking into consideration road slope angles and elevation profiles so that users can reach their desired destination safely.

This new invention also aims to solve the biggest problem that EV users face at the moment, which is ‘range anxiety’. With an accurate distance estimation system, users will no longer worry about being stranded in the middle of the road in their EVs. The CPS was developed and patented (PI 2012002380) by Gan Yu Han and Leong Chee Ken and both of them have been involved in EV research and developments for the past three years. Both Gan and Leong have proven track record and multiple successes in previous projects, research and competitions, and they recently won the Best Young Technopreneur Award at the recent 4th Technopreneurship & Innovation Symposium (TISE) 2012.

Effective Environmental Engineering

Sarawak is the only state in Malaysia with an Integrated Solid Waste Management System (ISWMS) in place, allowing for the holistic management of both municipal and hazardous waste. The System’s 25-year concession is held by Sarawak Wastes Management (SWM); a joint-venture company formed by the state government and Trienekens GmbH. The System’s appointed operator is Trienekens (Sarawak) Sdn Bhd.

In a proactive move to mitigate negative impacts brought about by Sarawak’s surge in industrial development, SWM recently formalised a contract with Japanese developers JFE Engineering Consortium and Tsukishima Engineering Malaysia to undertake the design, building, testing and commissioning of a second hazardous waste incinerator at the Kuching Integrated Waste Management Park; Asia’s only state-of-the-art waste management facility and a core element of ISWMS. The partnership with the successful bidder of the turnkey contract follows several years of research and feasibility studies including comprehensive technical, financial, institutional, social and economic analysis.

(from left) Representatives from JFE Engineering Consortium and Tsukishima Engineering Malaysia; Shigeki Minami and Kazuyosmi Fukuda with SWM Directors, Jurgen Pickenhagen and Datuk Fong Joo Chung. Pickenhagen is also the Executive Chairman of Trienekens (Sarawak) Sdn Bhd

Malaysian Experience and German Manufacturing Concept, Machinery & Culture with TrumpfRepresentatives from leading Malaysian manufacturing companies joined a delegation to Germany organised by TRUMPF to visit the world’s biggest sheet metal EUROBLECH Exhibition (Hannover).

Taking the opportunity at Germany, the Malaysian delegation visited the TRUMPF Headquarters (Ditzingen), where the participants experienced company’s manufacturing lines known as SYNCHRO concept which aims productive and efficient just-in time production.

The Malaysian delegation took the chance to acquire with cultural impression of Germany by visiting different places along the road through the country. The group climbed up to the Heidelberg castle for a relaxing view, and enjoyed Swabian cuisine at the historical city centre.

The highlight was to create synergy between Malaysia and Germany. The journey extended to Germany Sheet Metal Manufacturer visit to establish cooperative business network offering a platform to discuss and share manufacturing technique, and market knowledge.

Malaysian with TRUMPF venture to Germany Exhibition for the latest technology

32 MeMbers

MGCC Welcomes New Members

The BORSIG Group, a member of the global process technology player KNM Group Berhad, offers customized solutions for pressure vessels, heat exchangers, compressors, membrane technology, boiler and power plant technology, as well as comprehensive industrial services.

BORSIG Industrial Services Sdn Bhd and BORSIG Boiler Systems Sdn Bhd together with KNM Group of Companies established its production and manufacturing facility at Gebeng, Kuantan early in year 2012. The plant which will be ASME & EN certified is positioned primarily to cater for the oil, gas, petrochemicals, chemicals, utility, power plant and general industries in Malaysia and the Asia Pacific region.

Originating and located in Werdohl in the German Sauerland region, STAUFF has become an internationally leading developer, manufacturer and supplier of pipework components, measuring equipment and hydraulic accessories since its first inception over 50 years ago. STAUFF products play a crucial role in many key sectors such as mobile and industrial hydraulics. Our product range includes:

• STAUFF Clamps• STAUFF Test• Filtration Technology• Diagtronics• Hydraulic Accessories• Ball Valves• Fluid Connectors

In line with its tagline “Local Solutions For Individual Customers Worldwide”, STAUFF is spreading its reach within South East Asia, by establishing sales and support offices in major cities of ASEAN beginning with the Malaysia operation in 2011. The KL office, STAUFF South East Asia Sdn Bhd will serve as the operational headquarter and distribution center for the entire geographical region.

The establishment of Malaysia office was soon followed by the foundation of STAUFF Vietnam Limited in Ho Chi Minh City, which will cater to Vietnam domestic market as well as requirements from Laos and Cambodia. The setting up of the upcoming branch i.e. Thailand, at its capital in Bangkok is currently in progress and it’s expected to be operational in 2013.

Contact persons:Mr ulf G.l. skarp, Managing Director Mr Wilmo C. Cesario, Snr. Manager-Projects & Contract

A-26-9, Level 26, Tower A, Menara UOA BangsarNo. 5, Jalan Bangsar Utama 159000 Kuala Lumpur

Tel: +60 3 2287 3066Fax: +60 3 2287 5066Email: [email protected] Website: www.borsig.de/www.knm-group.com

bOrsiG industrial services sdn bhd

stAuFF south east Asia sdn bhd (953819-D)

All BORSIG products and services are synonymous for top quality, reliability, optimum technical implementation and smooth order processing. The BORSIG Boiler Systems Sdn Bhd production facility is equipped with the very latest machine technology for automatic/semiautomatic production of membrane walls, collectors, coils/winding systems (super heaters and evaporators), pre-heaters, steam drums, inner boiler pipes, connecting lines and also non-pressure parts such as binding materials etc.

The head office of the BORSIG Group is BORSIG GmbH based in Berlin. This year the company celebrates its 175th anniversary alongside dedicated work of over 600 highly qualified employees.

Contact persons:Mr Yves Clerc, Managing DirectorMr shamsul Kamar Abdul rahman, Chief Operating Officer

2nd Floor, Lot 834, Jalan Subang 7Kawasan Perindustrian SubangOff Persiaran Subang47500 Subang JayaSelangor

Tel: +60 3 8024 6168Fax: +60 3 8024 8168Email: [email protected]: www.stauff.com

33MeMbers

As a global operating consulting and engineering company, we support our customers and partners with strategic management consultancy and comprehensive project management. We concentrate on sustainable solutions in the fields of mobility, water, energy, raw materials and the environment.

We have been elaborating individual, customised solutions around the globe for over 20 years. Over 400 reference projects indicate the extent of our growing success. Our staff are experienced and highly qualified, creating an international team of experts.

Contact persons:Mr. stefan hofsaess, Member of the BoardMr. Juergen schulze, Project Director

Friedrichstrasse 9510117 BerlinGermany

Tel: +49 30 88 71 73 173Fax: +49 30 88 71 73 701Email: [email protected]: www.tewet.com

tewet Aktiengesellschaft

We always offer our clients the best solutions based on the magic triangle of quality, resources and time. Our quality management is standardised and is DIN EN ISO 9001: 2008 certified.

We offer a wide range of services tailored to the value added chain of our clients. Our many years of in-depth experience in the fields of consultancy, project management, engineering, procurement and training have made us experts in these areas. Detailed know-how and comprehensive training count – and we work on these aspects continuously. We combine knowledge of markets and systems, methodology and the latest trends.

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100 YEARS OF RHENUSShaping Logistics for the Future

The Rhenus Group is one of the world‘s leading logistics services

providers with annual turnover amounting to EUR 3.3 billion. Rhenus

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provide innovative value-added services.

Rhenus ProLog Logistics Sdn Bhd · [email protected] · www.rhenus.com Kuala Lumpur HQ / Port Klang +603 3343 8886 · KLIA: +603 8787 1208 · Penang: +604 641 5700 · Johor: +607 351 5886

“Growth of the Malaysian construction sector could be flattening out after the boom of the past years. It is also moving towards more affordable housing. Nevertheless, the sanitary ware industry could still expect good revenue growth from the premium segment. High-end hotels and private healthcare facilities offer good prospects. The green building trends are slowly catching on, which favour water and energy saving components and technologies.”

Nach dem Boom der vergangenen Jahre kann sich das Wachstum in Malaysias Gebäudebau etwas abflachen. Darüber hinaus dürfte es stärker in Richtung preiswerter Wohnungsbau gehen. Trotzdem erwarten Hersteller von Sanitärarmaturen im Premiumsegment weiter solide Absatzzuwachsraten. Chancen bieten auch Hotels in den obersten Sternekategorienund neue Privatkliniken. Hinzu kommt langsam ein Trend zu “grünem” Bauen, der wasser- und energiesparende Komponenten und Technologien favorisiert.

Malaysias bislang boomender Gebäudebau wie auch das Industriewachstum bescherten den Importeuren von Armaturen 2011 einen Zuwachs von 20%, nachdem es im Vorjahr fast 5% gewesen waren. Auf der Basis der im 1. Halbjahr 2012 fertiggestellten Wohnungen, Geschäftsgebäude und Einkaufszentren könnte die Verwendung ausländischer Armaturen in Gebäuden weiter zugenommen haben. Schließlich lagen die von Januar bis Juni 2012 bezugsfertig gewordenen Gebäude über der Hälfte der Vorjahreszahl beziehungsweise -fläche. Lediglich bei Bürobauten war ein Einbruch zu verzeichnen.

Einen wachsenden Markt für Sanitärarmaturen, insbesondere im oberen Marktsegment, sieht das Unternehmen Grohe Malaysia Sdn. Bhd. Nachdem es 2011 offiziell in den Markt eintrat, konnte es

seinen Umsatz gleich um 130% gegenüber dem Vorjahr steigern. Für die kommenden Jahre nehme man jährliche Wachstumsraten von 20 bis 30% ins Visier, erklärte Geschäftsführer Villy Lee gegenüber Germany Trade & Invest. Der Gesamtmarkt für Sanitärarmaturen im oberen Segment, den er auf rund 73 Mio. Malaysische Ringgit (circa 18 Mio. Euro; 1 RM = 0,25 Euro) taxiert, wächst im Zeitraum 2011 bis 2013 in der Größenordnung von 5 bis 10%.

Auch wenn die Regierung nun stärker den Bau von bezahlbarem Wohnraum in den Vordergrund schiebt, nimmt der Bedarf an Sanitärarmaturen im Premiumsegment weiter zu. Kunden legen im Zuge des Wellnesstrends mehr Wert auf eine gehobene Badezimmerausstattung, konstatiert Villy Lee. Entsprechend zielt Grohe zum Beispiel mit seinen Produkten “Made in Germany” auf Abnehmer, die ein privates Spa im eigenen Badezimmer wünschen.

Die Einfuhr von Armaturen und ähnlichen Apparaten insgesamt, die neben Gebäuden auch Industriezwecken dienen, nahm 2011 um fast 20% gegenüber dem Vorjahr zu. Damit erreichte sie einen Wert von umgerechnet rund 690 Mio. US$. Die größte Warengruppe waren “andere Armaturen und ähnliche Apparate”, zu denen auch Sanitärarmaturen zählen. Lieferungen aus Deutschland hatten an der gesamten Armatureneinfuhr einen Anteil von 7,4% und machten es zum siebtgrößten Lieferland. Die ersten Ränge belegten die VR China, die USA, Singapur, Italien,

Japan und Großbritannien.

Während Malaysias gesamter Bausektor 2012 und 2013 - getragen vom Infrastrukturbau - real um rund 10% oder sogar etwas stärker wachsen dürfte, wird es im Gebäudebau nur einstellige Steigerungen geben. Hier zeigen sich Sättigungstendenzen, vor allem in den oberen Qualitätsetagen, konstatierten führende Bauunternehmen im Gespräch mit Germany Trade & Invest im Herbst 2012.

Der Wohnungsbau - wichtiger Nachfrager am Armaturenmarkt - spürt aufgrund hoher Immobilienpreise, strengerer Vergaberichtlinien der Zentralbank seit Anfang 2012 und eines Überangebots im oberen Segment eine gewisse Zurückhaltung. Die Verlangsamung derImmobilienverkäufe in der ersten Jahreshälfte könnte sich 2013 fortsetzen, prognostiziert das Malaysian Institute of Estate Agents. Einen Einbruch fürchtet es aber nicht, lediglich Preiskorrekturen.

Wohnungsbauer fokussieren sich nun stärker auf kleinere und erschwingliche Einheiten im Wert von 150.000 bis 500.000 RM. Auch hat die Regierung in ihrem Haushaltsentwurf für 2013 den Bau von 123.000 “bezahlbaren” Wohnungen mit einem Finanzvolumen von 1,9 Mrd. RM angekündigt.

In den neun Monaten bis Ende Juni 2012 rangierten 37% der neu gebauten Häuser in der Preiskategorie von 250.000 bis 500.000 RM und annähernd 22% zwischen 500.000

Malaysias Markt für Gebäudearmaturen profitiert von Bauboom

34 eCONOMiCs

Fertiggestellte immobilien nach Kategorien 2008 2009 2010 2011 1. Hj. 2012Wohnungen (in Einheiten) 130.309 102.411 95.938 64.538 37.092Geschäftsgebäude (in Einheiten) 9.987 10.066 7.721 6.178 3.176Einkaufszentren (in qm) 472.347 317.361 501.106 600.400 367.086Bürofläche (in qm) 314.982 568.244 431.450 600.975 120.234Quelle: National Property Information Centre (NAPIC)

“von Rainer Jaensch” www.gtai.com

und 1 Mio. RM. Nur 6,1% konnten sich mit einem teureren Preisschild schmücken.

Der Wohnungsbau wird, angetrieben durch ein jährliches Bevölkerungswachstum von 1 bis 2%, weiter zunehmen. Hinzu kommt mit steigendem Wohlstand der realisierbare Wunsch nach den “eigenen vier Wänden”. Schließlich teilen sich noch 6,4 Personen eine Wohnung (Stand 2011). Neue Wohnungen dürften vor allem in den Metropolen und in deren Einzugsgebiet (Verstädterung) entstehen. Im Großraum Kuala Lumpur und insbesondere entlang des 2013 in die aktive Bauphase eintretenden MRT - Stadtbahnprojekts entsteht neuer Wohnraum. Dieses dürfte auch für den südlichen Wirtschaftsgürtel Iskandar gelten. Er ist Singapur direkt vorgelagert und profitiert von Industrie - und Wohnungsverlagerungen aus dem immer enger werdenden Stadtstaat.

Ermutigt durch steigendeTouristenzahlen, die zunehmend tiefer ins Portemonnaie greifen, zeichnen sich neue Hoteltürme auf den Reißbrettern der Investoren ab. Dabei streben sie stärker in die höheren Sterne-Kategorien. So mangele

es der Metropole Kuala Lumpur immer noch an 6-Sterne-Hotels, konstatieren Branchenvertreter. Entsprechend zielt Asiens erstes Harrods Hotel und Residence, das im Bukit-Bintang-Einkaufsgebiet mitten in Kuala Lumpur geplant ist, aufbetuchtere Gäste. Im südlichen Teilstaat Johor, wo im September 2012 das erste Legoland Asiens seine Tore öffnete, steht der Bau von 40 Hotels an, überwiegend in der 3- und 5-Sterne-Kategorie. Fast die Hälfte der Projekte soll bis 2017 fertig werden.

Immer mehr Touristen lassen sich in Malaysias modernen Kliniken behandeln. So stieg deren Zahl 2011 um 35% gegenüber dem Vorjahr auf nahezu 580.000. Für diese, wie zur besseren Versorgung der Inländer, ist der Bau weiterer Krankenhäuser, vor allem im Privatsektor, geplant. Im Frühjahr 2012 befanden sich mindestens 17

Privatkrankenhäuser in Planung, Bau oder bereits in der Fertigstellungsphase. Mit Investitionen von 4,5 Mrd. RM sollen bis 2015 ungefähr 4.500 Betten hinzukommen.

Ein zunehmender Bedarf besteht für Sanitärprodukte, Armaturen und Technologien, die wasserund energiesparend sind. Der Trend zu “grünem” Bauen ist zwar in Malaysia noch ein “zartes Pflänzchen”, wächst aber langsam und wird durch Steuererleichterungen gefördert. Nachdem der Green Building Index (GBI) im April 2009 eingeführt wurde, haben bis Ende August 2012 immerhin 354 Projekte Anträge gestellt. Zertifiziert sind aber bislang erst 86 Gebäude mit einer Fläche von rund 3 Mio. qm. Dazu zählen Regierungsstellen, Firmenbüros, Hotels, Apartments, Geschäfte und vereinzelt auch Einfamilienhäuser.

35eCONOMiCs

Geplante immobilien nach Kategorien 2008 2009 2010 2011 1. Hj. 2012Wohnungen (in Einheiten) 673.871 658.381 660.032 678.302 607.278Geschäftsgebäuden (in Einheiten) 56.626 57.422 58.361 63.067 57.581Einkaufszentren (in Mio. qm) 1,9 2,0 1,6 1,8 1,2Bürofläche (in Mio. qm) 2,4 2,4 1,8 1,5 0,7Quelle: NAPIC

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M_NWA_210x140_e_110504.indd 1 04.05.11 10:29 Uhr

We welcome you to our services:

in Advanced Technology, WE are the piece that makes it complete

KP(BPSG)5195/331/(5) No. Perakuan Pendaftaran : B4P4063

German-Malaysian Institute (247980-K)Jalan Ilmiah, Taman Universiti, 43000 Kajang, Selangor Darul Ehsan

: +603-8921 9191/9045, : +603-8921 9003, : www.gmi.edu.my, : [email protected]

: @gmiofficial : www.facebook.com/GMiNewsbreak

Industrial Services & Consultancy

Short Courses& CustomizedProgrammes

Teacher Education& Development

(TED)

DiplomaProgrammes

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(GAPP)

GMI GERMAN-MALAYSIAN INSTITUTETraining for Advanced Technology

In a report released recently by the World Bank, Malaysia was ranked as the 12th most competitive economy in the world for doing business. This ranking places Malaysia ahead of economies like Sweden (13th), Taiwan (16th), Germany (20th), Japan (24th) and Switzerland (28th). The World Bank announced its findings in the latest edition of its “Doing Business” Report. The Report surveys 185 economies across competitive criteria such as ease of starting a business, getting licensing approvals, efficiency of tax administration and ease of trading across borders.

Malaysia improved its competitiveness in five areas of business in particular: Getting Electricity (from 59th to 28th); Registering Property (59th to 33rd); Paying Taxes (41st to 15th); Trading Across Borders (29th to 11th) and Dealing with Construction Permits (113th to 96th).

It ranks Malaysia 4th in the world in the category of ‘protecting investors’ and 1st position, together with South Africa and the United Kingdom, in the category of “ease of getting credit”.

Malaysia’s new ranking of 12th position is a significant improvement over last year’s 18th position and 23rd in the year 2010,

continues a trend of improving competitiveness which began four years ago. This year’s climb by six notches to 12th position represents the country’s largest leap in competitiveness rankings in recent years.

The World Bank’s findings affirms Malaysia’s competitiveness as an economy, and reflects the successful implementation by the Government to improve the business environment and make it conducive for sustained economic growth. The World Bank

has also recognised the Government’s reform agenda driven by the Special Taskforce to Facilitate Business (PEMUDAH) and the Performance Management Delivery Unit (PEMANDU). This is a reflection of continuous improvement in the delivery of public services and the overall efficiency of the government machinery through the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP).

Source of article: PEMANDU (Performance Management and Delivery Unit)

Malaysia Leaps to 12th Position in World Bank’s Doing Business 2013

36 eCONOMiCs

indicator rank rank Change in 2013 2012 Performance

Starting a Business 54 50 4Dealing with Construction Permits 96 113 17Getting Electricity 28 59 31Registering Property 33 59 26Getting Credit 1 1 -Protecting Investors 4 4 -Paying Taxes 15 41 26Trading Across Borders 11 29 18Enforcing Contracts 33 31 2Resolving Insolvency 49 47 2

Source of table from Doing Business 2013 by The World Bank

Malaysia’s Performance in the 10 Areas of Doing business 2013

We welcome you to our services:

in Advanced Technology, WE are the piece that makes it complete

KP(BPSG)5195/331/(5) No. Perakuan Pendaftaran : B4P4063

German-Malaysian Institute (247980-K)Jalan Ilmiah, Taman Universiti, 43000 Kajang, Selangor Darul Ehsan

: +603-8921 9191/9045, : +603-8921 9003, : www.gmi.edu.my, : [email protected]

: @gmiofficial : www.facebook.com/GMiNewsbreak

Industrial Services & Consultancy

Short Courses& CustomizedProgrammes

Teacher Education& Development

(TED)

DiplomaProgrammes

German A-LevelPreparatoryProgramme

(GAPP)

GMI GERMAN-MALAYSIAN INSTITUTETraining for Advanced Technology

Outlook for the German Economy Macroeconomic projections for 2013 and 2014

38 eCONOMiCs

The cyclical outlook for the German economy has become gloomier. There are even indications that economic activity may decline in the final quarter of 2012 and the first quarter of 2013. The main factors in this context are a number of difficult adjustment recessions in the euro area along with a slowdown in global economic activity. Nevertheless, there is a realistic prospect that the phase of economic weakness will not persist for all that long and that Germany will soon return to a path of growth. This is predicated on the global economy regaining momentum, continued progress in the reform process in the euro area and the absence of major negative surprises. Even so, given the difficult economic situation in parts of the euro area and widespread uncertainty, economic growth is likely to be lower than assumed hitherto. Still, the sound underlying state of the German economy suggests that it will ride out the

temporary lull without suffering major harm, in particular in the labour market.

Following an expansion of 0.7% in real gross domestic product (GDP) in the current year, or 0.9% after adjustment for calendar effects, economic growth could decline to 0.4% on an annual average in 2013 (0.5% after adjustment for calendar effects), before strengthening to 1.9% in 2014. Under these circumstances and assuming a slight downward path for crude oil prices, inflation in Germany should ease. An HICP inflation rate of 2.1% in 2012 could be followed by rates of 1.5% in 2013 and 1.6% in 2014. Excluding energy prices, higher wage agreements would mean the inflation rate rising from 1.6% in 2012 to 1.8% in 2014. The general government budget will probably be close to balance again in 2012 for the first time since the beginning of the economic and financial crisis in 2008. A marked deficit is likely to arise again in the coming year, however, in the wake of the overall economic slowdown. After adjustment for cyclical effects, the deficit ratios in 2013 and 2014 are likely to be more or less unchanged at roughly ½%.

The current projection is characterised by a high degree of uncertainty. It is quite conceivable that the euro area will recover sooner and the world economy will accelerate faster than is assumed in this projection. In that case, there is every prospect that the German economy, in view of its sound underlying condition, will make use of the opportunities that present themselves. The downside risks predominate, however. If global economic growth falls short of expectations or if the debt crisis escalates again in some countries, it is likely that growth will be weaker than in the baseline assumption.

Source: Deutsche BundesbankDecember Monthly Report 2012

The growth projection is premised upon the expectation of an improvement in the resolution of the debt crisis in the euro area and stronger growth momentum in the economies of Malaysia’s major trading partners. Domestic demand is expected to maintain its strong momentum driven by robust private investment and strong private consumption. Private sector activity will be supported by an accommodative monetary policy in an environment of low inflation coupled with a robust financial sector.

Recovery in the external sector, particularly increasing external demand from regional economonies and major trading partners will further provide the impetus for a private-led growth.

The overall public expenditure is expected to increase, led by higher Non-Financial Public Enterprises’ (NFPE) capital investment which will further augment growth. Thus, nominal GNI per capita is expected to increase 6.4% from 4.4% in 2012. In terms

of Public-Private Partnership (PPP), per capita income is expected to grow 4.4% from 3.2% in 2012.

broad-based growthOn the supply side, growth in 2013 is expected to be broad-based supported by expansion in all sectors of the economy. Of significance, external trade-related industries are envisaged to benefit from stronger global growth, particularly during the second half of 2013.

The services and manufacturing sectors are expected to contribute 4.2 percentage points to the GDP growth. Growth in the manufacturing sector is expected to strengthen in tandem with the recovery in E & E demand from the US and euro area. The services sector is expected to benefit from the recovery in external trade-related activities while strong domestic economic activity will provide further impetus for wholesale and retail trade, and financial activities to grow. The construction sector is expected

to register a double-digit growth as the implementation of major construction-related Economic Transformation Programme (ETP) projects accelerates.

Domestic demand, which is expected to grow 5.6% (2012:9.4%) will remain the main driver of growth in 2013 underpinned by string private sector expenditure. Private consumption is projected to expand 5.7% (2012:7%) on account of higher disposable income arising from better employment outlook, firm commodity prices and the wealth effect from the stable performance of the stock market following strong domestic economic activities. In addition, the expected completion of major projects under the ETP, 10 Malaysian Plan and the five growth corridors will spur high-value hob creation and raise living standards. Hence, increasing net disposable income will contribute to higher consumption spending.

Source: Ministry of Finance MalaysiaEconomic Report 2012/2013, The Economy 2013

Prospects for 2013

39eCONOMiCs

Malaysian domestic economy to remain resilient

The Malaysian economy is expected to strengthen further and projected to grow at a faster rate of 4.5% - 5.5% in 2013. Growth will be supported by improving exports and strong domestic demand on the assumption that global growth will pick up, especially during the second half of 2013.

40 GerMAN iNstitutiONs

The Deutsche Schule Kuala Lumpur (DSKL) has always been performing and promoting music. Numerous ensembles have been set up over the years, incorporating rock, pop and classical music. A large number of students have already gained experience as successful soloists and have performed in other formations.

Based on this musical potential the new deputy principal and music teacher Mr. Sostmann initiated a new ensemble at the beginning of this school year. Due to different levels of music experience and abilities, a music tutor system became necessary in helping the student with individual training to further develop their musical talent.

The German Embassy has been kindly acknowledging and supporting the new chamber orchestra. With the help of the Embassy’s Department of Culture, the purchase of music notes, which are usually

very difficult and expensive to obtain in Malaysia, was made possible. Thanks to this financial support the range of musical pieces could be expanded. Sinfonietta’s repertoire now includes compositions from Pachelbel, Händel, Telemann, Rameau, Hebrew Klezmer music and Argentinian Tango as well as film music from ‘Harry Potter’ and ‘Pirates of the Caribbean’.

The young musician’s professional conduct led to further concerts. The Sinfonietta were invited to perform at the German Ambassador’s residence, at the Austrian German Swiss (AGS) Charity Bazaar 2012 and at the DSKL Christmas Concert as well.

The highlight so far was a performance held at the “Christmas Open House” hosted by the Lutheran Church and organized by the Christians Federation of Malaysia, where over 1,000 people, including Prime Minister Datuk Seri Najib Razak, attended. Both the

Sinfonietta – DSKL’s New Chamber Orchestra

Prime Minister and Bishop Dr. Philip Lok were greatly pleased by the young orchestra’s performance. On Christmas Day, Sinfonietta also played at St. Andrews Church in Kuala Lumpur. Plans for the year of 2013 include a concert tour abroad: Sinfonietta will prove its versatility and competence at the New Year Reception of the Catholic Church of Singapore.

Like all orchestras, Sinfonietta is an orchestra that loves to perform in public and show its prowess to an audience. If you have an upcoming event and feel like highlightening it with orchestra music, give us a call or send an email. Sinfonietta would be glad to play for you.

“Sinfonietta’s repertoire now includes compositions from Pachelbel, Händel, Telemann, Rameau, Hebrew

Klezmer music and Argentinian Tango as well as film music from ‘Harry Potter’

and ‘Pirates of the Caribbean’. ”

for more information, please contact:mr. Werner sostmannLot 5, Lorong utara B, off jalan utara,46200 petaling jayatel: +603-7956 6557email: [email protected]

41leGAl & iNvestMeNt

The Acquisition of Property in MalaysiaGenerally, the acquisition of property by foreign companies or individuals in Malaysia cannot proceed without the Government‘s notice.

The transfer of any kind of assets to foreigners is subject to complex state regulation. Charged with the oversight on the transfer of property ownership is the Economic Planning Unit (ECU) of the Prime Minister’s Department. The ECU Guideline on the Acquisition of Properties helps to navigate through the details.

Certain restrictions entirely bar foreigners from acquiring assets in Malaysia. The most noticeable one comes in a form of a strict value threshold. Access to Malaysian property is only granted to assets with a value exceeding MYR500.000 (it was raised from MYR250.000 for residential units in 2010). Although the threshold does not apply to transactions among immediate family members and to agricultural land, it does to acquisitions with certain objectives (e.g. the purpose to undertake agricultural activities on a commercial scale using modern technology). Other restrictions on foreign acquisitions include those on residential units under the category of low and low medium cost as determined by the State Authority or properties built on ‘Malay reserved’ land.

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State approval for the transaction is only required when a considerable Bumiputra (meaning people which are considered to be Malaysian indigenous people) or government interest is concerned. The Economic Planning Unit’s blessing is necessary when the transaction with a volume of at least MYR20million results in the dilution of Bumiputra or state ownership or change of control of a Bumiputra or state owned company. The approval will only be granted if the following conditions are met before the transaction is completed: the acquiring company must at least have 30% Bumiputra interest shareholding and paid-up capital must at least reach MYR100.000 in a local company owned by a local interest or at least MYR250.000 in a local company owned by foreign interest.

Extensive Exemptions from the approval requirement are granted to transactions in line with other Government endorsed interests, such as acquisitions of real estate in regional development corridors, those by manufacturing companies or under the “Malaysia My Second Home” Programme. The application for the ECU approval requires intensive documentation, but the guideline promises that decisions on the applications will be made within period of ten working days.

All other transactions can be completed without state approval. Still, commercial units, agricultural and industrial land need to be registered under a locally incorporated company and the ECU must be notified before the transaction is completed. The notification requirement applies to residential units and transfers among family members as well.

Acquiring property, especially real estate, can produce heavy costs that are generally borne by the buyer. Under the Stamp Act 1949 stamp duty has to be discharged in case of transfer of real estate or the transfer of stock, shares and other marketable securities. Furthermore, fees for the registration of transferred real estate at the Land Registry or Land Office will be due. Under the Real Property Gains Tax Act 1976, the seller might also face real property gains tax for any financial gains resulting from the disposal of real estate property.

The Acquisition of property in Malaysia (cont’d)

for more information, please contactthe mGcc Legal & investment department.

43leGAl & iNvestMeNt

What can the Malaysian government do to further improve the country’s investment climate? The new Policy Peer Review on Investment (IPPR) by the Organization for Economic Co-operation and Development (OECD), currently underway, might bring forth some answers. The study aims to assess Malaysia’s investment related policies and their impact on the investment climate. The recently published draft is keen to emphasize the continuing success Malaysia has achieved in being an admired role model for attracting and retaining investment in the South East Asian region. For instance, Malaysia has improved its World Banks Doing Business rankings from 23rd to 18th out of 185 economies in 2012 and has also increased its attractiveness as a location for investment according to several surveys.

Generally, foreign corporations are attracted by a strong economy that has steadily produced GDP growth-rates exceeding 5%, a developed, western-standard infrastructure and a pool of talented, young, educated and still cost-productive workforce. English is widely used in Malaysia, especially in business- thus facilitating the investor’s communication with local personnel and suppliers. With the all-embracing Vision 2020 the government has committed itself to transform Malaysia into a dynamic and vibrant high-income economy. For the implementation of the plan the government actively pursues pro-business policies. They include liberal investment regulations and attractive tax and other incentives. One longstanding scheme of providing investment incentives is the Investment Tax Allowance (ITA). It provides tax allowances for investments in certain sectors, regions and technologies that the Malaysian government deems to be of national importance. Eligible for the incentives are, among others, investments in the manufacturing sector, the Biotechnology-Industry, Research and Development and are granted for environmental management,

such as energy conservation. As an example, a manufacturing company granted ITA is entitled to an allowance of 60% on its qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within a five-year-period. The company can offset this allowance against 70% of its statutory income for each year of assessment and can carry any unutilized allowances forward to subsequent years. Investments in government promoted areas such as Sabah or Sarawak in Borneo are entitled to even greater tax incentives.

The ready availability of highly skilled workers is key to sustain the growth rates needed for the ambitious economical transformation. The government subscribed to the task of securing top talent for Malaysia’s economy by establishing an integrated platform for all government activities in that field. TalentCorp, a company under the Prime Minister’s Department, has the mandate to formulate and facilitate policy initiatives in close cooperation with employers to address the availability of talent in the market. Since in the short term domestic recruitment cannot satisfy the high demand in certain skills, one of TalentCorp’s focuses is the attraction of foreign talent. Specific programs, such as the Residence Pass, the Employment Pass (category II) or the Scholarship Talent Attraction & Retention Program have been launched

to expand the opportunities for foreigners to work or study in Malaysia (for more information, you may contact the MGCC’s Legal & Investment Department.)

Despite the impressive past achievements, the draft OECD report identifies several areas with potential for reform. The preliminary key recommendations include to consider accelerating and broadening the liberalization of the service sectors (in particular increasing the competition with Government-linked companies), to consider introducing more competition to the financial sector, to strengthen intellectual property rights, to promote better cooperation between institutes of higher learning in order to address skills shortages. The final report is expected to be published in the first quarter of 2013.

It remains to be seen how Malaysia’s foreign investments will fare in 2013, however with the current business and regulatory climate, things seem set to improve and grow even further.

Investment Framework in Malaysia – 2013

“…foreign corporations are attracted by a strong economy that has steadily produced GDP

growth-rates exceeding 5%, a developed, western-standard

infrastructure and a pool of talented, young, educated and still cost-productive workforce.”

the legal and investment Department serves as a ‘one-stop shop’ for setting up your business in Malaysia. Our services include;

• CompanyFormationinMalaysia• ResidenceandWorkingPermit• CompanyValidation&BusinessCheck• ContractConsulting• InvestmentinGermany

for more information, please contact:ms. miriam shastritel: +603-9235 1800

44 trADe FAirs

The European Coatings Congress and European Coatings Show in mid March 2013 once again present the latest developments for the production of high-quality coatings, paints, sealants, construction chemicals and adhesives.

From milling, mixing, screening, filtering and dosing to filling – the European Coatings SHOW 2013 again offers the entire spectrum of laboratory and production equipment and testing and measuring equipment for manufacturing high-grade paints and coatings from raw materials. About 30% of the exhibitors present solutions in this

segment. This platform has been used successfully for years by companies.

At the European Coatings SHOW 2011, 887 exhibitors from 45 countries presented their product spectrum of high-grade coatings and paints, sealants, construction chemicals and adhesives on more than 30,000 m2 of net display space. Some 26,000 trade visitors came to Nürnberg to update on the latest products and services during the three days of the exhibition.

The 12th edition of Europe’s leading congress on coatings technology promises

EUROPEAN COATINGS SHOW 201319 – 21 March 2013 – Nuremberg, GermanyPlus Adhesives, Sealants, Construction Chemicals

specialist knowledge at the highest level. Congress visitors can update on the most recent developments from science and industry at the altogether 24 series of presentations on the two days.

for more information, please contact:ms michelle Lim of mGcctel: +603-9235 1800 fax: +603-2072 1198email: [email protected]

Source: www.european-coatings-show.com

YOUR SPECIALIST FOR MACHINE RELOCATION AND INSTALLATION

From A to B. All over the word. And always on schedule, 365 days a year. Big, small, fragile - we can move it all. Flexibly, Precisely and using the right equipment. We provide professional service of machine dismantling relocation reassembling including the electrical and piping job.

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No. 16, Jalan Ringgit 23/11, Seksyen 23,40300 Shah Alam, Selangor Darul Ehsan,MalaysiaTel.: +60-3-5548 4390Fax: +60-3-5548 4391Website: www.scholppasia.comEmail: [email protected]

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BAUMA 201315 – 21 April 2013 – Munich, GermanyInternational Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment

The growth in the construction market worldwide is giving rise to a surge in demand for concrete products, concrete pipes and shafts as well as precast components. This demand is in turn boosting developments among the manufacturers of the machinery and plant that is used to produce these components. At bauma in Munich, between April 15 and 21, 2013, a whole range of new products made of concrete and other materials will be on show at the booths of systems suppliers and components specialists, across the spectrum from newcomers to market leaders.

No other fair has a wider range of fascinating technologies in the sectors for construction machinery, building-material machines, mining machines, construction vehicles and construction equipment. No other

fair captivates its visitors with more world premieres. And no other fair offers its exhibitors a more international audience. bauma also manages to strengthen its leading position each year – new records were set again in 2010.

The last bauma, in 2010, attracted 3,256 exhibitors from 53 countries, and over 420,000 visitors from more than 200 nations. Covering a total of 555,000 square metres of exhibition space, bauma is the largest trade show in the world.

for more information, please contact:ms sherena Wong of mGcctel: +603-9235 1800 fax: +603-2072 1198email: [email protected]

Source: www.bauma.de

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Process engineers from all over the world meet again at POWTECH in Nürnberg from 23–25 April 2013 to discuss technological innovations in size reduction, dosing, mixing, screening and granulation of powders and bulk solids.

More than 700 exhibitors will present products and services from the segments of mechanical processing technologies and instrumentation in the five halls of POWTECH. They are supplemented by about 300 exhibitors at TechnoPharm, who show the latest developments in process technologies, cleanrooms and

packaging for pharmaceuticals, food and cosmetics. The exhibitions are enhanced by an extensive supporting programme ranging from explosion protection and “easy-to-clean” solutions to cleanrooms and sustainable packaging at TechnoPharm.

POWTECH is part of a worldwide alliance of international exhibitions and conferences on mechanical processing technology and bulk solids handling. The Powder & Bulk Network covers all the industry’s major world markets − Europe, India and China − and so creates a specialist, high-quality and global platform for all sectors involved

with mixing, conveying, milling, screening and granulating bulk solids.

PARTEC 2013, one of the largest international conferences devoted to all aspects of particle and powder technology, will take place simultaneously with POWTECH 2013 and TechnoPharm 2013.

for more information, please contact:ms michelle Lim of mGcctel: +603-9235 1800 fax: +603-2072 1198email: [email protected]

Source: www.powtech.de

POWTECH 201323 – 25 April 2013 – Nuremberg, GermanyInternational Trade Fair for Mechanical Processing Technologies and Instrumentation

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ITB Berlin The World’s Leading Travel Trade Show

6 – 10 March 2013

cohIT Connecting Healthcare IT

9 – 11 April 2013

IWA and OutdoorClassics 2013High Performance in Target Sports, Nature

Activities, Protecting People8 – 11 March 2013

SMT Hybrid PackagingSystem Integration in Microelectronics

16 – 18 April 2013

analytica Vietnam 2013International Trade Fair for Laboratory

Technology, Analysis, Biotechnology and Diagnostics

17 – 19 April 2013

fairs&moreGo GloBal WITh US

March-april 2013

9–11 April 2013

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

E-mail: [email protected]

In the heart of Southeast Asia near Kuala Lumpur, in the Malaysian town of Banting, we have built a fully integrated, central graphite electrode and cathode manufac-turing plant. It not only integrates all bench-mark technological innovations from all the different SGL Group plants worldwide, but also it is the most state-of-the-art and most efficient manufacturing plant in the graphite industry. From this hub we are well positioned to supply and serve the rapidly growing steel and aluminum markets in Asia.

SGL GROUP’S CARBON AND GRAPHITE HUB IN ASIA

Broad Base. Best Solutions. | www.sglgroup.com

SGL CARBON Sdn Bhd (343147-M) 11, Jalan Graphite 1 | Kawasan Perindustrian Bandar Mahkota 42700 Banting | Selangor | Malaysia | Phone +603 3182 3000