Wednesday, December 31, 2008

PM To Launch Food Production Park In Lanchang Next Month

December 31, 2008 18:02 PM

PM To Launch Food Production Park In Lanchang Next Month

KUALA LUMPUR, Dec 31 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi will launch Taman Kekal Pengeluaran Makanan (TKPM), or permanent food production park, in Lanchang, Pahang on Jan 13, 2009.

In a statement here Wednesday, the ECER secretariat said the 3,600-hectare TKPM Lanchang was one of the three TKPMs within the East Coast Economic region (ECER) and one of 45 throughout Malaysia.

It said some 400ha were designated for individual smallholders, while the remainder would be for private sector and anchor companies to allow for modernisation and automation in agriculture practice.

"It is market-driven and will create a food chain from farm to table," ECER said.

The ECER said TKPM Lanchang was aimed at developing the country's fruit industry to reduce imports and improve the nation's balance of trade deficit for food.

"TKPM Lanchang is also expected to increase output, generate value and create more entrepreneurs and employment opportunities for the local populace.

"It will also address the growing demand arising from Malaysia's growing population and their increasing health consciousness," it said.

It said the fruits grown at TKPM Lanchang included papaya, guava, starfruit, banana, jackfruit, mangoes and melons and were produced according to international standards.

Meanwhile, the ECER said the Malaysian Agrifood Corp (MAFC) an anchor company for the development of papaya, would operate a collection, processing and packaging centre in Lanchang to buy fruits from smallholders to market.

"To date, MAFC's papayas, which adhere to international food safety standards such as Good Agriculture Practice (GAP), Hazard Analysis Critical Point and Global GAP, have reached key strategic markets including Singapore and the UK," it said.


Tuesday, December 30, 2008

Chinese Investors Offer Modern Agriculture Technology

December 28, 2008 16:55 PM

Chinese Investors Offer Modern Agriculture Technology

KOTA BAHARU, Dec 28 (Bernama) -- Two investors from China today offered to share modern agricultural technology to increase the production of rice in Kelantan in tandem with the government's aim to increase the income of padi farmers.

Kelantan Menteri Besar Datuk Nik Abdul Aziz Nik Mat said the investors also offered consultation services to ensure that the farmers reach production targets.

"They are offering technology in fertiliser and seed production, of which both could increase rice production in Kelantan," he said after receiving a visit from the Chinese investors at his office, here Sunday.

Nik Aziz said the state government wass willing to accept suggestions from both the investors on the condition that they see results as promised.

Meanwhile, the group's leader, Beijing Good To Great Investment Co. Ltd president, Qiao Li, said they viewed the proposal made by the Menteri Besar seriously because Kelantan had potential in the agriculture industry.


Tuesday, December 23, 2008

Developing bio-technology sector

Tuesday December 23, 2008
Developing bio-technology sector

KUANTAN: The Pahang government is opening its doors to Singaporean investors to invest in developing the biotechnology sector in the state.

”In agriculture, we cannot afford to give wide area of land to investors, but we can provide land for bio-technology development,” Pahang Menteri Besar Datuk Seri Adnan Yaakob told reporters after receiving a courtesy call from Singapore’s Information, Communications and Culture Minister Dr Lee Boon Yang.

Adnan said both Singaporean investors and the Pahang government could also collaborate in the information and communication technology (ICT) sector.

He said the state government had submitted a proposal to the federal government to develop highspeed broadband in the state by sharing expertise and technology with Singapore.

”However, it all depends on the federal government,” he said.

So far, Pahang has received RM230 million worth of investment from 19 Singaporean companies involved in the chemical, timber, steel and electronic industries, which provided 2,800 job opportunities for the local people.

Apart from that, Adnan said Pahang also recorded 5.2 million tourist arrivals from Singapore for the past six years with Tioman Island, Cameron Highland and Genting Highlands being the popular destinations.

Meanwhile, Lee said he and Adnan had a good discussion during their brief meeting.

”We talked about the developments that were taking place in the state and I am very impressed by what is happening here, both in terms of technology projects and agriculture development,” he said.—Bernama.

- Malaysia Star -

This past few weeks I have been experiancing the saying "Too much to do.. soo little time". Hmmm... a rightly busy weeks past and ahead, with me hoping that after 15 Jan 09 things would be a little clearer..

A bit of my programme for next year:-
i) First and foremost - the launching of MATRADE Wilayah Timur on 15 Jan 09. Lots of things keeping me occupied up till that time.
ii) 60 factory visits
iii) 1 Bussiness and Consultation Session with Exporters, Pahang & Terengganu sometime in October
iv) 5 briefings and clinics in the meantime.
v) Ad hoc thingy - will cropped up once in a while, of that I am very sure.

I have also created another webpage specially for MATRADE Wilayah Timur activities,

This webpage would not only contributed by me, but also my staffs as well as the practical students who would be joining us.. first batch in January and second in April. I think the move is timely especially it is hard, even for me to have information on companies in the East Coast. Well, the content might be similar from time to time, but I think both websites will complement each others.

Well, cherios! Merry Christmas & Happy New Year!

Monday, December 22, 2008

Malaysia to unveil more econ measures in Feb-report

Malaysia to unveil more econ measures in Feb-report
Mon Dec 22, 2008 2:04am GMT

KUALA LUMPUR, Dec 22 (Reuters) - Malaysia will announce more measures in February to boost its economy, as falling tech sales and an expected rise in job cuts raise the spectre of a recession next year, an influential news website reported on Monday.

Malaysia has banked on strong Asian and domestic demand to shore up its economy but a deepening global slowdown is triggering doubts about how well it will weather the U.S.-led economic crisis.

The Southeast Asian economy will unveil a series of measures next year and is ready to announce another multi-billion ringgit stimulus package if necessary, the Malaysian Insider said without citing sources.

An aide to Finance Minister Najib Razak said he was unaware of plans for an economic package.

The government has announced a 7 billion ringgit ($2.02 billion) package to stabilise its economy.

Government data shows that 30,000 Malaysians have lost their jobs so far and the Human Resources Ministry -- which expects a jump in unemployment in the first quarter of 2009 -- has asked the cabinet for 100 million ringgit to retrain retrenched workers, the report said.

Government officials have been asked to come up with initiatives to help middle-level management who could lose their jobs by next year and find work for 120,000 new graduates, it said.

Falling demand for the country's key tech exports is hitting the economy.

Western Digital (WDC.N), the world's second-largest maker of computer disk drives, has shut its operations in Malaysia's Sarawak state on Borneo island and laid off all its 1,500 employees.

Malaysia has forecast economic growth of 3.5 percent in 2009, the lowest in eight years.

"We still think that Malaysia will avoid going into a recession next year but nothing is being discounted," the report said quoting an unnamed government official.

"Much will depend on whether our trading partners sink further and the level of confidence in Malaysia." ($1=3.468 Malaysian Ringgit) (Reporting by Liau Y-Sing; Editing by Kazunori Takada)

© Thomson Reuters 2008 All rights reserved.

Pahang Offers Investment Opportunities For Singaporean Investors

December 20, 2008 22:06 PM

Pahang Offers Investment Opportunities For Singaporean Investors

KUANTAN, Dec 20 (Bernama) -- The Pahang government is opening its doors to Singaporean investors to invest in developing the biotechnology sector in the state.

"In agriculture, we cannot afford to give wide area of land to investors, but we can provide land for biotechnology development," Pahang Menteri Besar Datuk Seri Adnan Yaakob told reporters after receiving a courtesy call from Singapore's Information, Communications and Culture Minister, Dr Lee Boon Yang.

Adnan said both Singaporean investors and the Pahang government could also collaborate in the information and communication technology (ICT) sector.

He said the state government had submitted a proposal to the federal government to develop high-speed broadband in the state by sharing expertise and technology with Singapore.

"However, it all depends on the federal government," he said.

So far, Pahang has received RM230 million worth of investment from 19 Singaporean companies involved in the chemical, timber, steel and electronic industries, which provided 2,800 job opportunities to the local people.

Apart from that, Adnan said Pahang also recorded 5.2 million tourist arrivals from Singapore for the past six years with Tioman Island, Cameron Highland and Genting Highlands being the popular destinations.

Meanwhile, Dr Lee, said he and Adnan had a good discussion during their brief meeting.

"We talked about the developments that were taking place in the state and I, myself am very impressed by what is happening here, both in terms of technology projects and agriculture development," he said.


20,000 Hectare ladang Rakyat For The Poor In Terengganu

December 20, 2008 15:02 PM

20,000 Hectare ladang Rakyat For The Poor In Terengganu

HULU TERENGGANU, Dec 20 (Bernama) -- The Terengganu government is setting up a 20,000 hectare "Ladang Rakyat" (People's Estate) for oil palm planting next year to help the hardcore poor in the state.

Menteri Besar Datuk Ahmad Said said the project, costing RM100 million, would benefit 6,000 hardcore poor, including single mothers, in Terengganu.

He said the project would be carried out in stages, with the first, covering 8,000 hectare to be set up in Dungun and another 6,000 hectare in Setiu.

"If we can't get a suitable site in Terengganu, we may buy land in other states so that we can get 20,000 hectares for the project," he said after launching a programme to increase family household income and planting of oil palm in housing compound at Kampung Payang Kayu here, Friday.

In another development, Ahmad said the state government had approved a RM20 million allocation for repair of houses belonging to the poor in the state.


Abdullah: Speed Up Implementation Of ECER Projects

December 02, 2008 13:30 PM

Abdullah: Speed Up Implementation Of ECER Projects

KEMAMAN, Dec 2 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi wants the projects in the East Coast Economic Region (ECER) to be speeded up.

Abdullah said cooperation among the public, private sectors and banking institutions was important to ensure the projects were realised fast so that the rakyat would benefit.

"Focus on the opportunities available, find out what programmes that could be implemented, reduce the implementation time and build the infrastructure to improve the agro, technology, tourism and maritime sectors," he said at the opening of the seminar on "Making ECER a reality -- A Joint Commitment" here Tuesday.

Also present were Terengganu Menteri Besar Datuk Ahmad Said, Menteri Besar of Pahang Datuk Seri Adnan Yaakob, representative of Kelantan Menteri Besar Kelantan Datuk Husam Musa, Information Minister Datuk Ahmad Shabery Cheek and Chief Secretary to the Government Tan Sri Mohd Sidek Hassan.

Abdullah said efforts must also be made to develop human resources and conduct effective training programmes to ensure there were enough skilled manpower for the needs of the projects in the ECER.

He said related government agencies also needed to ensure there was no delay in the launch of the ECER projects because it would affect the costs later.

"The private sector is a catalyst of economic growth while the public sector still has a role to play.

"So implement the policy properly and if the projects need quick approval get it done fast. If there is a delay the costs will increase," he said.

Meanwhile, Abdullah wanted the seminar participants to come up with ideas which could help in the implementation of ECER projects.

Over 400 participants from the public and private sectors, academicians, non-governmental organisations attended the two-day seminar.

The seminar aims to examine critically the various aspects of the implementation of the ECER and offer constructive proposals.


Sunday, December 14, 2008

Exports to drive Malaysia's plastics growth

Exports to drive Malaysia's plastics growth
By Jeeva Arulampalam
Published: 2008/11/05

MALAYSIA'S plastics industry is expected to grow between five and eight per cent this year, driven by export sales.

Last year, it posted revenue of RM15.7 billion.

In the six months ended June 30 2008, revenue increased 8.3 per cent to RM7.96 billion compared with RM7.35 billion in the previous corresponding period.

"A lot of our subsequent growth will depend on the next two months and how fast it will drop because of the current global economic slowdown," Malaysian Plastics Manufacturers Association (MPMA) president Lim Kok Boon told reporters after the launch of the Fourth MPMA International Plastics Conference by Deputy Science, Technology and Innovation Minister Fadillah Yusof in Kuala Lumpur yesterday.

Export revenue was up 18 per cent to RM4.6 billion in the first six months of this year compared with RM3.9 billion a year ago.

With exports accounting for some 57 per cent of total revenue, demand for plastics will hold as producers need cost-efficient and cheaper products, Lim said.

"For instance, plastics can be used to make car parts, which will result in the car being lighter and having improved fuel efficiency."

Less fuel consumption also means that carbon emission is reduced, Lim added.

Key export markets for Malaysia's plastics industry include Japan, the US, Europe, Australia, Singapore, Thailand and the Philippines.

Lim also urged plastics manufacturers to move from being just original equipment manufacturers to designing and branding their own products.

"When you create your own design and brand, you can compete overseas and enjoy higher margins," he said.

Lim called on local manufacturers to work with foreign partners to produce complete products and build successful brand names.

There is also the Malaysian Plastic Design Centre, a unit of the MPMA, which provides training on how to design and purchase the software needed for designing.

The MPMA has some 900 members in the country.

- Business Time -

Tax perks, dedicated facilities may draw plastics makers

Tax perks, dedicated facilities may draw plastics makers
By Ooi Tee Ching Published: 2008/12/01

THE Malaysian Plastics Manufacturers Association (MPMA) expects some of its members to set up factories at the Kertih Plastics Park (KPP) in Terengganu, in view of attractive tax incentives and dedicated infrastructure to export plastics.

"Plastic manufacturers have long been scattered throughout the country," said MPMA president Lim Kok Boon.

"Now, there is this opportunity to be vertically integrated with just-in-time delivery and warehousing in KPP," he told reporters in Kuala Lumpur recently.

While MPMA has yet to embark on a roadshow for KPP among its members throughout the country, Lim foresees greenfield investment and new product expansions there.

"We've actually been wanting for a more systematic cluster development for our industry and now the opportunity has presented itself in Kertih. Therefore, new investments and expansions are likely to be in this dedicated cluster," he said.

Investors at KPP stand to benefit from tax holiday for 10 years from the year the company derives profit. The government will also waive stamp duty when investors buy or lease properties in KPP.

To top it off, investors can also claim investment tax allowance up to five years of capital expenditure in buildings and amenities.

MPMA represents some 900 plastic manufacturers, which collectively contribute to 80 per cent of the country's plastic output.

Lim expects members to make new investments and expansion next year because resin - the raw material to make plastic - has fallen by about 20 per cent from an all-time high in July.

"Resin or polyethylene is a derivative of crude oil. With falling oil prices, resin prices too have come down. Therefore, this is an opportune time to invest in new capacity and new product variants," he said.

By tapping the Kertih Integrated Petrochemical Complex, Lim said plastic manufacturers can benefit from reliable and just-in-time feedstock supply of plastic resin and savings in warehousing and logistics costs.

"Also, plastic exports can be shipped out from Kuantan Port via a dedicated railway line," he said.

The 140ha KPP, a project under the East Coast Economic Region (ECER) masterplan, is the country's first fully integrated plastics hub. By 2020, it is expected to draw RM2 billion investments and create new job opportunities for about 7,000 people in the manufacturing, support and ancillary services.

Malaysia's plastics industry is expected to grow by eight per cent to RM17 billion this year, driven by export sales of shopping bags, bottles and containers, film and sheets, excluding household wares.

- Business Time -

RM2b to pour into state with 'carrot'


RM2b to pour into state with 'carrot'
By : Rosli Zakaria and Sean Augustin

Prime Minister Datuk Seri Abdullah Ahmad Badawi says 7,000 jobs will be created.

KERTEH: The East Coast Economic Region is expected to attract up to RM2 billion in private investment following the approval of incentives by the ECER Development Council.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said investors who start their operations at the Kerteh Plastic Park (KPP) before Dec 31, 2015 will be eligible for the incentives.

"With the incentive package, KPP is expected to attract RM2 billion worth of investments that could create 7,000 jobs.

"KPP will also be able to generate development in the manufacturing industry and those related to packaging, medical equipment, building materials, composite and automotive materials.

"In addition, it will encourage the growth of local small- and medium-scale industries," he said at the opening of the Kerteh Plastic Park yesterday.

Abdullah also noted that KPP had attracted five investors, including Hi-Essence Cable Sdn Bhd, which is investing RM85 million, Latenfield Pipe Industries Sdn Bhd (RM40 million) and FMD Polypipes Industry Sdn Bhd (RM20 million).

He said of the 106 projects planned under the initiative, 77 have begun or were in the process of being implemented by next year.

In the next 12 years, he added, the ECER was expected to attract RM112 billion in investments, of which 47 per cent would come from the private sector.

Earlier, when launching the ECER seminar at the Public Service Department Institute in Kemaman, Abdullah said those involved in the implementation of the ECER must look at the initiative seriously.

"We don't want those who are not focused. That is why the training must be of high quality. We need to be serious."

- NST Online -

Saturday, December 13, 2008

Kertih Plastic Park Attracts RM145 Million In Investments

December 02, 2008 15:04 PM

Kertih Plastic Park Attracts RM145 Million In Investments

KERTIH, Dec 2 (Bernama) -- Malaysia's first fully- integrated 140-hectare Kertih Plastic Park (KPP), which was launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi Tuesday, has already attracted RM145 million in investments.

Hi-Essence Cable Sdn Bhd, manufacturer of wire and cable, is investing RM85 million, Latenfield Pipe Industries Sdn Bhd, RM40 million, while FMD Polypipes Industry Sdn Bhd will invest RM20 million to manufacture plastic pipes.

The park, located within the East Coast Economic Region (ECER), aims to promote further downstream investments in the plastics and plastic-related industries by tapping into the potential synergies with the nearby Kertih Integrated Petrochemical Complex (KIPC).

The park expects the industrial lots to be fully taken up by 2015. It also targets to attract RM2 billion worth of investment and creating more than 7,000 jobs.

"This project is in response to the need to enhance the competitiveness of Malaysia's plastics industry. The KPP will provide focused development to cater to the specific needs of the plastics industry," said ECER Development Council chief executive officer, Datuk Jebasingam Issace John Tuesday.

He said Kertih was uniquely positioned to become an important hub for plastics conversion with ready access to raw materials and export routes.

The other plastics parks in the world are Dow Olefinverbund GmbH Value Park in Germany, Jain Plastics Park in India and Abu Dhabi Polymer Park in United Arab Emirates, he said.

"By building this park, we plan to extend the local value chain for the country's petrochemical industry and encourage innovation in end-product plastic manufacturing," he said.

Jebasingam said the KPP would also serve as a haven for developing and enhancing capability in the local plastics industry by providing technical and vocational training to complement the work of the local educational institutions.

Malaysia is already one of the largest plastic producers in Asia with the industry increasingly dominant in Malaysia's export mix.

It registered a growth of 8.3 percent in the first half of this year with a turnover of RM7.96 billion compared with the same period last year.

He said over the last 35 years, Petroliam Nasional Bhd (Petronas) has laid the foundation by developing the oil, gas petrochemical and supporting facilities within the Petronas Petroleum Industry Complex, with investments worth RM70 billion.

"Now it is up to the private sector, especially small and medium enterprises to seize the opportunity to establish their plastics and plastic-related factories in KPP.

"The success of KPP is based on the easy access to feedstock and availability of existing infrastructure and support services in KIPC.

"This access to reliable and just-in-time feedstock supply translates into savings in logistics and warehousing cost," he said.

At the launch, Hi-Essence received its certification as an ECER investor.

The company also exchanged documents with Taiwan Stock Exchange-listed Hua Eng Wire and Cable Ltd for transfer of technology and technical collaboration, as well as with Petronas Polymer Technology Centre for technology collaboration on wire and cable products.

Latenfield Pipes also exchanged documents with Vinyl Chloride (M) Sdn Bhd for the latter to supply modified polyvinyl chloride (MPVC) dry blend compound as well as for technical support on the production and application of MPCV pipes.

Also present at the launching ceremony were Terengganu Menteri Besar Datuk Ahmad Said, the Minister in the Prime Minister's Department Tan Sri Amirsham, Information Minister Datuk Ahmad Shabery Cheek and Petronas president/chief executive officer Tan Sri Mohd Hassan Merican.


PTK : Branding

Branding can help Malaysian companies to improve its market position and international profile. Elaborate your answer.


East Coast Exporters Briefing Session.


Globalization is today’s buzzword. Coca-Cola is selling beverages in almost 200 countries worldwide while McDonald has over 30,000 restaurants in 118 countries. Brand names such as Microsoft, Disney etc are instantly recognizable internationally and consumer are willing to fork up premium prices as the brands spell quality, satisfaction and quality for money.

Nowadays, millions of packaged good producers, food and beverages, hardware and software as well as services providers are competing for consumers globally. In this regard, branding is vital to distinguish Malaysia’s good and services, provides market positioning as well as the edge for venturing the global market.



A brand can be defined as an asset that does not have physical existence and the value of which cannot be determined exactly unless it becomes the subject of a specific business transaction of sales and acquisition (Seetheraman, A et all, 2001).
The importance of branding is well captured by the Chairman of Interbrand: “He who owns the brands, owns the wealth” (Cass Creative Report, 2004). For 2007, the 100 top global brands recorded worth of USD 1,156.7 billion.

According to, Coca-Cola remains the best global brand valued at USD 65.32 billion while Hertz, occupying the 100th spot was valued at USD 3.02 billion. No Malaysian brand has ever been included at the top 100 global brand. According to Association of Accredited Advertising Agents Malaysa (4As), Malaysia’s top five most valuable brands in 2007 were Maybank (USD 2.8 billion), Public Bank (USD 2.0 billion), Maxis (USD 1.5 billion), Genting (USD 1.3 billion) and Celcom (USD 1.2 billion).

Branding is the fundamental aspects of successful business which Malaysian companies especially SMEs must seriously adopt and integrate in their current business practices. To gain market positioning, companies must undergo transition form price competition to branding in the domestic market. Over time, the brand will be able to undergo the routes towards globalization of the brands.


Even with Malaysia’s expanding economy and premier position in global trade, there is very little number of truly world class and internationally recognized Malaysia brands. The majority of the brands in Malaysia today are no more than well-known names, without the key attribute to real brands. By establishing a brand, firm’s reputation could be enhanced as well as foster brand loyalty. This leads to greater marketing advantages such as lower marketing costs, news customers as well as greater trade leverage (Calderon et al, 1997; Ewing et all, 2001).

To ensure their share in the market as well as product and services positioning, Malaysian products and services needs to have the three main components of brand awareness, loyalty and quality perception.

2.1 Brand Awareness
Brand awareness is a very important element in the branding process. Firms should make customers become aware of the products thus prompting them to choose the recognized brand among similar products. Demand of the brand will increase when more awareness and acceptances are created among customers.

Case Study: Madura Industries Sdn. Bhd., a Terengganu based producer of soft drinks can more effectively compete within Malaysia by effectively positioning it’s brand “Maduria” as totally halal, competitive pricing with same delicious taste of similar segmentation of medium priced soft drink market such as Cheers, F&N and Yeo’s.

2.2 Brand Loyalty

Brands add value to customer’s loyalty. To ensure continuous and growing share market, Malaysia firms need customer to pledge loyalty to their products which is recognizable via the use of branding.

Case Study: In the stretch of Kampung Losong, there are abundance of Keropok Lekor (Fish Sausage) stalls which was collectively branded as T’Lekor under the Terengganu Government initiatives. However, people who know that Kak Yah branded T’Lekor would only buy their keropok from her stall as it was the best. This highlights loyalty to a brand ensures it’s continuity as well as increased

2.3 Brand Quality

To ensure market positioning as well as stable pricing, brand may also be used to put perceived quality on a firm’s offering. Customers are more willing to pay price premium for products they perceive of higher quality.

Case Study: There are abundance of Batik materials all around Terengganu especially in Pasar Payang with prices starting from RM120 upwards. However, with branding, Noor Arfa Batek commanded higher prices doubling or even tripling the current prices due to the perception that Noor Arfa offers better quality and exclusive design.


Brand is the only one passport for companies to get into another country and go global. With branding, Malaysian products and services have tremendous potential for conquering the international market. International marketing strategy could enhance a firm's reputation and build strong brand awareness. It can also foster brand loyalty that leads to certain marketing advantages, such as lower marketing costs, new customers, and greater trade leverage (Calderon et al., 1997; Ewing et al., 2001).

International marketing strategy can also create brand loyalty and awareness that can reduce marketing costs and generate a price premium. Keller (2000) advocates that consistent marketing support is necessary in order for brands to be successful. All these studies suggest that international marketing strategy can influence directly a firm's performance.


In order to ensure successful foray in the global market, brands venturing outside should first formulate their international marketing strategy which could be summarized into four steps;

3.1.1 Assessment and Adjustment of Core Strategy

Firstly, the firm should do their internal analyses which also include assessment of it strength, current market positioning as well as potential market for global penetration. Competitive analysis should also be done in ensuring the viability of the new global venture. Core strength could include visionary leader, dedicated team, good product as well as effective branding.

3.1.2 Formulation of Target Countries, Segments and Competitive Strategies

The company must first understand the structure of the global market industry which includes potential customer requirements, choices of target countries, product selection, market segments as well as competitive strategies. The firm needs also to decide in series of strategic decision which includes competitive strategy choices whether to offer cost leadership, product differentiation or selective focus. Country market choices need to be analyzed on to concentrate in specific country or diversified over several countries or within certain region.

3.1.3 Development of Global Marketing Strategy

The firms also need to determine their product offering such as degree of standardization or adaptation. The firms should include the marketing mix of the product offering as well as advertising and promotion programmed that could be implemented.

3.1.4 Implementation

After all factors are taken into consideration as well as implementation, periodic review needed to be done in ensure that all steps are taken into consideration. Objectives such as set Key Performance Indexes (KPIs), sales figure target as well number of countries penetration within a set time limit. Monitoring as well as constant corrective action should be taken to ensure the goals are met.


In this regard, assistant from the Malaysian government via MATRADE can be utilized by firms in order to secure it branding position as well as secure international market profile via grants such as Brand Promotion Grant (BPG), Market Development Grant (MDG) and Services Export Fund (SEF).


To highlight the path of transition of Malaysian firm using branding to established market share as well as penetrate the global market, PENSONIC Group is chosen as a case study.


The PENSONIC Group had a legacy since 1965 since it’s started as a small retailer cum workshop for electrical home appliances, Keat Radio and Electrical Co. 1982 saw the birth of PENSONIC brand as the Group venture into importation of audio and visual products under the PENSONIC brand. The core businesses of the PENSONIC Group are now in manufacturing, distribution, import and export of electrical home appliances for the domestic and export markets.


1982 also saw the birth of the PENSONIC brand. The PENSONIC brand was first registered as a trademark in Malaysia in 1984 and till now it has registered trademarks in more than 20 countries. By 1995, PENSONIC core businesses are now in manufacturing, distribution, import and export of electrical home appliances for the domestic and export markets. The domestic distribution activities of the PENSONIC Group now span across 10 branches and more the 800 dealers countrywide. PENSONIC products are now exported to many countries in ASEAN, East Asia, West Asia and Middle-East.

The Strategy

Through its strong distribution-channel network, the PENSONIC Group adopts a multi-brand platform to cater for different product categories and different market segments. Through many years of focused brand-building efforts, competitive pricing, high quality and wide-ranging products, the PENSONIC brand is now well recognized as the premier Malaysian brand for electrical home appliances in the country.


Facing globalization, PENSONIC formulated a master brand strategy clearly defined brand vision and values to drive it to greater heights. Aggressive brand building activities are now planned and executed to transform the PENSONIC brand into an Asian brand at the first stage and a global brand in the future. It is also continually strengthening its capability in product innovation, design and development to support its next wave of growth. PENSONIC now has a vibrant, energetic and charismatic personality raring to forge ahead.


The continual efforts in building the PENSONIC brand have been well rewarded with positive results. The PENSONIC Group has grown tremendously over these last few years, doubling the mere turnover of RM93 Million in 2001 to RM187 Million in 2006.


Terengganu is famous for its excellent batik, making it a potential sector to consider as one of the state’s main exports. The noted brand for Terengganu batik is Noor Arfa Batik with its ready capacity and capability for global market. However, the majority of the other batik producers are from small, backyard cottage industries which are more inclined to just sell their products via middleman instead of selling it or branding it themselves. There are even less possibly of them exporting the batik themselves as each could only supply small number of batik material each month as opposed to the overseas importers who would normally demand large consignments for distribution in their area of coverage.

In order to ensure that Terengganu batik could be exported effectively, cooperation between the Yayasan Pembangunan Usahawan (YPU) Terengganu and the batik producers are vital. YPU could established a batik clearing house where all the micro batik producers could send their finished product for rebranding, further added value such as repackaging as well as quality control and design direction. Promotional activities as well as local and global marketing strategy could also be established in order to ensure “Terengganu Batik”’s brand awareness, brand loyalty and brand quality. Noor Arfa Batik could also act as a mentor or anchor to the project in giving the benefit of their experience and expertise in guiding the successful implementation of the state branding.

MATRADE will act in the advisory and monitoring capacity in the branding and exporting of Terengganu Batik. With the help of 38 MATRADE overseas offices, market intelligence could be done to identify the countries that are interested in importing batik along with the challenges that need to be conquered in ensuring successful export. MATRADE could also provide assistance in term of identifying the best trade promotions options such as specific international trade fairs or specialized visit to fashion houses. Monetary assistance such as Market Development Grant (MDG) as well as Brand Promotion Grant (BPG) could also be utilized to defray the cost of branding Batik Terengganu as well as established their presence globally.


Branding can be used to enhance the global reach and standing of Malaysian products and services as shown by successful Malaysian brand both locally and globally such as PENSONIC, Royal Selangor Pewter, Lewre and Petronas.

According to the Association of Accredited Advertising Agents (4As), Malaysia’s top 30 brands value has risen nine per cent to RM 61.8 billion in 2008 from RM 56.6 billion in 2007. This shows that the usage of branding do provide brand names good and services market preference.

It must be noted that most of Malaysian top enterprises were barely in existence 20 years ago. The potential and opportunities for these enterprises to become a global player in the future is highly possible especially with clear market positioning and international marketing strategy in place.

Too Busy...

Well.. have to comment a bit about my life in the past few weeks.. what can I say? Seems like the 24 hours day is not enough.. too much to do, so little time, I would like to post soo much, my experiance in INTRADE 2008, my PTK course, the African countries seminar, but as I said soo much to do.. so little time...

Even today, I have to finished off my SKT.. my Work Programme for next year (which I will upload soon).. not to say tomorrow's there's an interview for PAR... and I need to start on Kertih's Plastic Park Report.

Oh, had to say, I got good result for my EMBA, Management Accounting & Organisational Behavior (Both As) and Marketing Management (tough lecturer, Dr. Shukri - picture above at A-)... I had aimed for 4 flat but 3.89 is not bad either, alhamdulillah...

Anyway, just before I forgot, would upload my SKT subject for presentation on Branding in lieu of the marketing plan assignment which is confidential as it involved the company directly, hmmm...

Cabinet agrees to Terengganu’s own asset manager

Cabinet agrees to Terengganu’s own asset manager

KUALA LUMPUR, Dec 13 — A major obstacle to the setting up of a RM10 billion sovereign wealth fund by the Terengganu state government has been cleared. The Cabinet at its weekly meeting yesterday agreed that the federal government would provide a RM5 billion guarantee to the Terengganu Investment Authority, a move which would help the authority raise capital from the local and foreign markets at a lower cost.

The Cabinet decision to provide the all-important government guarantee is also a backhanded acknowledgment that the 5 per cent oil royalty money which the state has received since 1978 should be better managed.

For years, there has been a litany of complaints on how the oil royalty has been squandered by successive Barisan Nasional governments. Despite billions of ringgit flowing into the state over the last 30 years, Terengganu remains one of the poorest states in the country.

Disturbed by this situation and aware that oil and gas resources in the state will run out one day soon, the Yang di-Pertuan Agong, Tuanku Mizan Zainal Abidin, who is also the Sultan of Terengganu, mooted the idea of channelling some of the oil royalty money into a sovereign wealth fund run by a team of professionals and supervised by well-regarded Malaysian and foreign bankers and investors.

The King believes that only by managing the royalty money prudently can the prosperity of future generations be secured.

The setting up of the TIA was endorsed by the Menteri Besar Datuk Ahmad Said and his state exco on Wednesday. Under the authority, the Sultan of Terengganu will be the chairman of the Board of Advisors. The Menteri Besar will also be represented on the board.

The RM10 billion will be invested in Terengganu and in other parts of Malaysia. But the fund will also have the mandate to invest globally. Dividends will be declared to the state and its partner investors.

Without the 5 per cent royalty payment, Terengganu’s revenue amounts to about RM400 million a year.

- The Malaysian Insider -

Terengganu looks to the future with RM10b fund


Terengganu looks to the future with RM10b fund

KUALA LUMPUR: Terengganu is setting up a RM10 billion sovereign wealth fund to ensure its growth after its oil and gas resources are depleted.

Called the Terengganu Investment Authority (TIA), the idea for the fund was mooted by Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin and presented to the state and Federal Governments recently.

Tuanku Mizan, who is the sultan of Terengganu, said the state must plan for its future economic growth.

The king also said the state's wealth must be managed prudently and professionally so that its prosperity could be safeguarded.

Yesterday, the state executive council endorsed the setting up of the TIA with Tuanku Mizan as chairman of the board of advisers. Other board members will be professionals.

The TIA will operate as a sovereign wealth fund that invests and delivers long-term economic benefits and returns to its investors and Malaysia.

It aims to initially raise up to RM10 billion that will be invested in Terengganu and the country. It will also have the mandate to invest globally and hopes to bring international partners to the state.

The RM10 billion will be sourced from local and foreign capital markets with a proposal for the Federal Government to provide a government guarantee of up to RM5 billion and for the TIA to be declared a tax-exempt company.

The funds will be secured against a portion of the state's oil revenues.

- NST Online -

Get to work on growth areas, says Abdullah

Sunday December 14, 2008
Get to work on growth areas, says Abdullah

JOHOR BARU: Authorities managing four of five development corridors have to follow through and “cannot just depend on me to think for them,” said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

Abdullah said that with the exception of the Iskandar region, which has attracted RM40.2bil, the other corridors had to be more proactive in drawing in investments.

“I leave it to the respective authorities to think,” said Abdullah who told off the authorities managing the Northern Corridor Economic Region (NCER), the East Coast Economic Region (ECER), Sarawak Economic Development Corporation (SEDC) and the Sabah Development Corridor (SDC) for not doing enough.

“I’ve created the opportunity, a very big area for them and given them the money. So start thinking, start looking for investments,” he said.

Abdullah said the respective authorities had been given the green light to travel wherever they wanted to go and use whatever resources to lure investments to their respective states and regions.

On whether the other corridors would be reviewed or even have their funds redirected into Iskandar, Abdullah said that was not necessary as adequate funding had been given to all corridors.

He said this at the agreement-signing ceremony for the new RM750mil Legoland Malaysia theme park, which would be located in Iskandar. He also said he hoped Legoland’s arrival would inspire others to invest in the region and gave his assurance that the federal and state governments will remain committed to the projects.

On the impact of the global economic crisis on the country, the prime minister said he expected investments to continue flowing into the country.

He also hinted that a major investment announcement, dubbed as the first of its kind in South-East Asia, would be made soon.

“There is a very big investment that is going to take place. I’m so tempted to announce it, but you will soon hear of it,” he said.

- The STAR Online -

Wednesday, December 10, 2008

EU Believes Malaysia Still Best Place In Region For Investment

December 10, 2008 21:56 PM

EU Believes Malaysia Still Best Place In Region For Investment

KOTA BAHARU, Dec 10 (Bernama) -- The European Union (EU) believes that Malaysia is still the best place in Southeast Asia for investment and trading despite the global economic slowdown.

France's ambassador to Malaysia, Marc Baretty, in stating this, said the EU's confidence was based on the measures taken by the Malaysian government to minimise the impact of the slowdown and the country's ability in facing such crisis.

Baretty said together with Malaysia's good record in sustaining its economy, EU members remained keen to continue investing and trading in the country which is also known for its business-friendly policy.

"Malaysia has made well-planned preparations to face the crisis and this country is still the safest place for investments," he said, adding that for the first time last February, the EU was the main importer of Malaysian goods, overtaking the United States.

Baretty was speaking to reporters after he and 18 other ambassadors of EU member countries paid a visit to the Kelantan state government at Kota Darulnaim here Wednesday.

On the visit, Baretty said though economic issues were not discussed, the EU members were interested in investment and trading opportunities in the state.

"What we need is a special unit for economic planning to be formed and then we can discuss further on business matters," he said.


Terengganu told to boost tourism

Terengganu told to boost tourism


KUALA TERENGGANU: The state must intensify its promotions to boost the tourism industry in anticipation of the economic slowdown expected next year, Tourism Ministry secretary-general Datuk Ong Hong Beng said on Sunday. With the expected slowdown, he said, there was more reason for the state to up the ante on promotional advertisements as Terengganu needed to lure more domestic tourists, the industry's biggest earner here.

It is estimated that Malaysians make up about 90 per cent of tourists to the state.

He added that Pahang was currently number one in terms of hotel guests due to its efforts in promoting Terengganu.

"There's a lot to offer here, but many just don't know about it.

"Both the state and federal governments have done a lot in terms of promotion for Terengganu.

"But we need to see more participation from the private sector," Ong said after holding a discussion with non-governmental tourism organisations on Sunday.

Tourism Malaysia state director Suahimi Abu Hassan Shari agreed that more promotion was needed, adding that the agency would do so through its "Zoom" campaign.

"There is a perception among Malaysians that once you have visited places like Pulau Redang or Perhentian, it means you have visited all of Terengganu.

"But there is a lot more the state has to offer, areas which have not been highlighted.

"Our campaign next year will be more specific.

"I also hope the private sector here will take after their counterparts in Thailand and Indonesia, where there is an active follow-up after the initial promotion by the government," he said.

Ping Anchorage managing director Alex Lee, a tour operator, said there had been a lot of promotions for Terengganu but the scope covered was too general.

Lee said the promotions should be properly planned and include different tactics to tap into different markets.

"When promotions are too general, it won't hit any of the markets effectively.

"We can't sell a product to Europeans the same way we would sell it to locals."

- NST Online -

Elephant centre in Kuala Gandah attracts more visitors

December 11, 2008
Elephant centre in Kuala Gandah attracts more visitors

LANCHANG: The National Elephant Conservation Centre in Kuala Gandah here saw an increase of 34% in visitors last year.

This one-of-its-kind facility in Malaysia recorded 81,017 visitors last year comprising 59,468 locals and 21,549 foreigners.

The number of visitors had previously increased from 38,863 in 2005 to 60,436 in 2006.

The centre’s elephant unit chief Nasharuddin Othman said that most of the foreign tourists were from Australia, Britain, New Zealand, Japan and Germany.

“We attracted many visitors because it is the only place in Malaysia where visitors can observe and understand the handling and management of translocated Asian elephants.

“It offers an enriching experience by allowing visitors to participate in elephant rides, feeding and water activities such as swimming and bathing the elephants,” he said.

Under the East Coast Economic Region (ECER) masterplan, the centre was earmarked as a wildlife reserve.

Eco-tourism was one of the initiatives under the ECER, which includes transforming the centre into a world-class conservation site.

“There are plans under ECER to include our centre as an eco-tourism destination,” said Nasharuddin, adding that the Government had approved an allocation of RM2.9mil to upgrade the premises.

The centre was established in 1985 by the Department of Wildlife and National Parks and funded by an annual grant of RM700,000, apart from public donations.

It is manned by personnel of the elephant relocation team which began the elephant translocation programme in 1974.

The centre has 31 full-time staff working in shifts to care for the 12 elephants, and six part-time workers to clean the premises.

It is open from 12pm to 4.45pm from Mondays to Thursdays and from 2.45pm to 4.45pm on Friday.

During weekends and public holidays, members of the public can visit the elephants from 10am to 4.45pm.

For more information, call the centre at 09-279 0391.

- STAR Online -

ECER Set To Woo RM112 Billion Investments By 2020, Says Abdullah

December 02, 2008 18:25 PM

ECER Set To Woo RM112 Billion Investments By 2020, Says Abdullah

KERTIH, Dec 2 (Bernama) -- The East Coast Economic Region (ECER) is set to woo RM112 billion worth of investments in the next 12 years between 2008 and 2020, Prime Minister Datuk Seri Abdullah Ahmad Badawi said Tuesday.

He said the bulk of the investments or 47 per cent of the funds would come from the private sectors from within and outside the country.

Abdullah said the substantive investments would have long-term impact, particularly on the people in this region and Malaysians in general.

"So far, the encouraging progress shown by the ECER Development Council is very satisfying," he said when opening the Plastics Cluster Industrial Park in this oil town here.

He said many projects have been started since the park was launched in 2007.

Of the 105 projects in the drawing board, 77 of them will be implemented by June next year, he said.

The prime minister said he will visit the other economic corridors to personally gauge the progress achieved so far.

"Besides the basic infrastructures needed to attract investors, high-impact agriculture, manufacturing and education projects have already been implemented," said Abdullah who initiated the economic corridor development nationwide to stimulate economic growth and create employment for the people.

To jump-start the economic-centric projects, the government has allocated a a staggering RM2.6 billion approved under the Mid-Term Review of the Ninth Malaysia Plan, he said, adding that the projects will be continued under the 10th Malaysia Plan.

Abdullah said the ECER was committed to implement social development programmes to wipe out abject poverty among the rural folk.

For instance, the 25,000ha agropolitant project involving nearly 9,000 hardcore poor families has been started in line with the government's aim to wipe out abject poverty by 2010.

"The ECER's importance to the east coast states residents is indeed very clear. As a people-friendly socio-economic programme, the ECER's cherished goal is to transform Pahang, Kelantan and Terengganu into a developed region by 2020," he added.


Latenfield To Invest RM40 Million In Kertih Plastic Park Of Ecer

December 01, 2008 19:40 PM

Latenfield To Invest RM40 Million In Kertih Plastic Park Of Ecer

KUALA LUMPUR, Dec 1 (Bernama) -- Latenfield Pipe Industries Sdn Bhd plans to invest about RM40.23 million in building its first factory to manufacture pipes at the Kertih Plastic Park (KPP)in Kertih, Terengganu.

This follows an announcement in April by Hi-Essence Sdn Bhd that it would invest RM85 million to build a cable and plastic wire factory, said the East Coast Economic Region (ECER) in a statement Monday.

The KPP was built under the ECER masterplan to develop the petrochemical industry stream.

Located on a 4.8 hectare site within the plastic hub, the Latenfield factory will produce Modified Polyvinyl Chloride (MPVC) pipes that do not easily deteriorate and are of a high quality.

Latenfield managing director Chong Chow Yee said the company planned to penetrate the agricultural industry, water reticulation and sewage, mining and cabling as well as that for internal piping, for the MPVC pipes produced by the new factory.

"Latenfield is optimistic of netting RM40 million in annual sales when the new factory begins operations in two years time," he said.

Chong also said that orders for the MPVC pipies were expected from overseas, especially from among Asean countries.

"We are looking at having in place an extensive network for pipes as an orginal equipment manufacturer," added.

Chong who also heads EPMS Networking (K.Trg) Sdn Bhd, EPMS Home Titivation (Ktn) Sdn Bhd and EPMS Construction Sdn Bhd.

EPMS sells pipes and tanks of a high quality used extensively in the construction industry.

MPVC is a product widely accepted in developed countries such as Australia and New Zealand for application in pressure piping.

It is produced by combining a PVC resin with a polymeric switching agent, to yield a strong finish for the end product.

At the KPP, Latenfield will cooperate with Vinyl Chloride (M) Sdn Bhd, a Petronas subsidiary, who will supply the MPVC compound as well as the technical assistance.

The pioneer, integrated KPP, is expected to attract an investment of RM2 billion while creating jobs for more than 7,000.


Malaysia came in 7th placing for the Best Country for Value for Money

Tue, Dec 09, 2008
New Straits Times

KUALA LUMPUR, MALAYSIA: Malaysia came in 7th placing for the Best Country for Value for Money in a global study done by Futurebrand, a leading global brand consultancy, with public relations firm Weber Shandwick's Global Travel and Lifestyle Practice.
The report, Country Brand Index (CBI) 2008, also mentioned Malaysia as an example of a country brand that used a regional message to position itself in the global marketplace, setting itself apart from other comparable countries in the region.

The "Malaysia Truly Asia" tagline was cited as helping the country gain equity in markets inundated with comparable countries.

The CBI study examines how countries are branded and ranked according to key criteria, and identifies emerging global trends in the world's fastest growing economic sector such as travel and tourism.

For more information please visit

Wednesday, November 26, 2008

Tourism hit as Kelantan's beaches are washed away

Tourism hit as Kelantan's beaches are washed away

KOTA BARU, MALAYSIA: Most of Kelantan's beaches are badly eroded and this is affecting the state's tourism plans.

Department of Drainage and Irrigation (DID) director-general Datuk Ahmad Husaini Sulaiman said that erosion is eating away at some 30km of beachfront stretching from Sabak in Pengkalan Chepa up through the Thai-Malaysia border areas.

DID has placed those areas under category one, with erosion occurring rapidly over the past five years.

"To date, DID has not received any significant plans on how to arrest the natural phenomenon but we would undertake a study and recommend to the rightful authorities how best to tackle the problem," Ahmad Husaini said after inspecting the erosion at Pantai Kuala Pak Amat in the Pantai Cahaya Bulan (PCB) coastal area.

Erosion of local beaches is cited as a natural phenomenon due to the increasingly strong waves from the South China Sea.

It is disheartening to the state since Kuala Pak Amat, for instance, has sound tourist potential having been the historic landing site of Japanese troops in World War II.

This was the Japanese point of invasion into Malaya just hours before its carriers bombed the US Pacific fleet in Pearl Harbour, Hawaii.

For now, Ahmad Husaini said the DID planned to seek federal allocation to rehabilitate the Kuala Pak Amat beachfront next year.

It would also closely monitor the remaining stretches of beach to prevent the erosion from reaching coastal villages.

To date, the DID has installed two wave breakers at Sabak and in Pantai Irama, Bachok.

However, more are needed in the long-term to overcome the erosion, Ahmad Husaini said.

- The Star -

Terengganu spends RM4m on animated movies

Tuesday November 25, 2008
Terengganu spends RM4m on animated movies

KUALA TERENGGANU: The Terengganu government is spending over RM4mil to produce four series of animated movies which will be aired by Media Prima television stations next year, said Mentri Besar Datuk Ahmad Said.

He said that three of the series, with 13 episodes each, had been completed, namely Tiga Gadis Pingitan, Aca and Atok dan Kabilah.

The last of the series, which was in the process of completion, would premiere on Radio Televisyen Malaysia (RTM), he said.

“We will launch the series in March or April next year,” he told reporters after chairing the weekly executive council meeting at Wisma Darul Iman here recently.

Ahmad said that Media Prima and RTM would pay the state RM45,000 for each episode.

He said the state had set up a company named Eastern Pacific ICT Sdn Bhd with 45 local animators and workers to produce the series.

He added the state planned to market the series abroad as well. — Bernama

Sailing legend sees potential in Malaysian yachters

Wednesday November 26, 2008
Sailing legend sees potential in Malaysian yachters

KUALA TERENGGANU: Malaysian yachters will be moulded into professional skippers to lead foreign teams in international-class regattas like the America’s Cup in the near future.

Local talents have caught the eye of Monsoon Cup race advisor Datuk Peter Gilmour following superb performances in the Malaysia Match Racing held at Pulau Duyong.

International event: A passenger boat going past the participants of the Malaysian qualifier for the 2008 Monsoon Cup at Pulau Duyung in Kuala Terengganu yesterday.

Gilmour is eager to coach them.

The Malaysia Match serves as one of two qualifying regattas in the lead-up to the prestigious Monsoon Cup, which will be held at the same venue from Dec 3 to Dec 7.

The Malaysia Match saw the participation of Malaysia’s sole female skipper Nurul Aim Mohd Isa who led the Perak Sailing Team.

Gilmour said the Monsoon Cup was the best platform for the Malaysians to train as leaders and prepare to compete in the international arena.

“This is absolutely a great training ground to produce world-class skippers and I see a huge potential here,” he told The Star yesterday.

“We go step by step, first we will train the locals by letting them participate in Malaysia Cup then elevate to Monsoon Cup, eventually to Asian Qualifier, America Cup and the Olympic,” he said.

Gilmour said that the year 2012 – when the Monsoon Cup will end – would be a reasonable target to develop local talents.

He cited Ian Williams who shot to stardom after leading in last year’s Monsoon Cup.

Gilmour added that the event was expected to attract about 100,000 visitors to Terengganu.

He said the event would be broadcasted live to over 100 coun tries and that the number of viewers had increased from 671.9 million in 2005 to 1.2 billion in 2006 and 1.9 billion in 2007.

Twelve teams will take part in the five-day Monsoon Cup competition this year.

- STAR Online -

Adnan: Pahang being transformed by ECER projects

Thursday November 20, 2008

Adnan: Pahang being transformed by ECER projects

KUANTAN: The East Coast Economic Region (ECER) development masterplan which involves the states of Pahang, Terengganu, Kelantan and parts of Johor (Mersing) will transform Pahang into a rapidly-developing region when the projects take off.

Mentri Besar Datuk Seri Adnan Yaakob said more local and foreign investments were expected to come in, which augured well for the development of Pahang and the other east coast states.

Showing appreciation: Polyplastics staff performing an aboriginal dance during the dinner in Kuantan recently.

Adnan said that vast developments in the state would take shape with support from the Government, which practised a pro-business approach in administration.

He said this practice was combined with a people-friendly and business-friendly philosophy of governing which had proven successful.

“Since 1987, the value of investments in the state stood at RM24.88bil, or about RM2bil a year.

“From January to July this year, the Malaysian Industrial Development Authority approved 17 projects with investment value of RM700mil,” Adnan said in his speech during an investor appreciation dinner at the Sultan Ahmad Shah silver jubilee hall here recently.

The text of his speech was read by the state exco member in charge of the Agriculture, Agro-based Industries and Felda Affairs Committee, Datuk Mohd Tan Aminuddin Ishak.

Also present were Pahang State Development Corporation chief executive Datuk Lias Mohd Noor and Lynas Malaysia Sdn Bhd executive chairman Nicholas Curtis, who represented the Pahang investors.

Adnan said the corporation had converted 3,200ha into industrial areas offering good infrastructure to investors in the state.

“There are complaints on the quality of the infrastructure, however, we pledged to continuously upgrade facilities such as uninterrupted supply of water and electricity,” he said.

Adnan said the state would not rest on its laurels despite its achievements in the industrial sector.

“There is much to be done and we will continue to ensure Pahang remains a haven for investors, both local and foreign,” he said.

He said the state recently approved 418.77ha in Gambang to be developed into a techno park embodied by Bio-Technology Park (Pahang Science Park) and Pahang Cyber Park.

Adnan said that adjacent to the parks was 14.2ha for development into the Pahang Halal Complex.

During the dinner, 11 companies staged performances in a competition to show their support and appreciation for the state.

Nippon Precision Technology (M) Sdn Bhd was the winner followed by Polyplastic Asia Pacific Sdn Bhd and Kaneka (M) Sdn Bhd.


Loy Krathong Festival Lights Up ECER Tourism

November 05, 2008 19:27 PM

Loy Krathong Festival Lights Up ECER Tourism

TUMPAT, Nov 5 (Bernama) -- Kelantan expects to draw some 15,000 to 20,000 local and foreign tourists to the annual Loy Krathong festival, a cultural and heritage event for the East Coast Economic Region (ECER), which it is hosting on Nov 10-12.

Kelantan Tourism Action Council (KTAC) general manager Sulaiman Ismail said today that the festival, originating from Thailand and celebrated by the Siamese community in Kelantan, had attracted tens of thousands of visitors since 2004 and had been listed in the popular online encyclopaedia, Wikipedia.

He told reporters that various events had been drawn up for the celebration, including a car parade, decorated floats, beauty contest, exhibition and cultural performances on the heritage and legacy of the Siamese descendants in Kelantan.

The Loy Krathong festival, jointly organised by the Kelantan Siamese Association, KTAC, Department of Culture, Arts and Heritage Kelantan and Tourism Malaysia Kelantan, will be held at Wat Phukulthong Vararam in Kampung Terbak, here.

The word 'Loy' means to float while 'Krathong' means lotus shaped vessel made of banana leaves. The Krathong usually contains a candle, joss stick, some flowers and coins.

According to Siamese tradition, floating a candle raft is symbolic of releasing sins and bad luck, to start the coming year with fresh hope and good luck.


Abdul Ghani quizzed over Iskandar project

Wednesday November 26, 2008

Abdul Ghani quizzed over Iskandar project

JOHOR BARU: Johor Mentri Besar Datuk Abdul Ghani Othman was bombarded with questions over the multi-billion-ringgit Iskandar Malaysia project.

Among others, he was asked to explain what was special about the Iskandar corridor when the country had several other corridors including the Northern Corridor Economic Region (NCER) and the East Coast Economic Region (ECER).

Responding to Datuk Dr Hasni Mohammad (BN – Benut), Abdul Ghani said that Johor had the advantage of being strategically located, something Singapore had used to its advantage all these years.

Abdul Ghani pointed out that Johor was the leading exporter of various commodities and food products, but admitted that there was room for improvement within the service and tourism sectors.

“I promise you that within three years we will have everything in Iskandar, including the largest retail space in the region,” he said.

When Dr Boo Cheng Hau (DAP–Skudai) asked the status of the proposed Disneyland theme park within Iskandar, Abdul Ghani told the assembly that an announcement would be made mid next month in connection with a theme park.

Abdul Ghani also said that the greatest challenge Iskandar faced was in ensuring adequate manpower to fill up vacancies.

“We are happy to take in Malaysians who get retrenched from Singapore if they have the necessary skills, as long as they don’t go back to Singapore once the economy improves,” he said.

Meanwhile, Gwee Tong Hiang (DAP–Bentayan) urged the state to save money by terminating the Mentri Besar’s six special officers in view of the looming financial crisis.

Gwee said that it would save the state government RM237,600 in a year as it would not have to pay the officers their RM3,300 monthly allowance.

At that point, Speaker Datuk Ali Hassan interrupted to ask whether the Mentri Besar’s officers in Pakatan Rakyat led states had special officers who were paid a monthly allowance.

To that, Gwee quipped that Mentri Besars in those states did not have special officers who were paid allowances as they served for free.

- Malaysian Star -

Tuesday, November 4, 2008

Nine SMIs To Be Housed In One Complex To Boost Production

November 03, 2008 21:51 PM

Nine SMIs To Be Housed In One Complex To Boost Production

KOTA BAHARU, Nov 3 (Bernama) -- Nine small-and medium-scale industries in Kelantan, which have made a name for themselves in the market, will be housed in a complex by the State Economic Development Corporation (SEDC) to boost their production to international level.

SEDC chief executive Wan Yahya Wan Salleh said the SMIs will be provided with air-conditioned rooms, modern processing and packaging machines with vendor control to monitor the smooth operations of the factories.

Every entrepreneur produces one halal product each for the domestic and international markets, he told reporters after visiting the complex.

The complex at the Pengkalan Chepa 2 Industrial Zone is among the most developed industrial estates in Kelantan with a wide range of products produced by local and foreign entrepreneurs.

Several foreign companies are operating there including Rohm-Wako of Japan which manufactures electrical and electronic items. Some 5,000 people are working in the industrial zone.

Wan Yahya said part of the products manufactured by the entrepreneurs there are exported to countries like Britain and Canada, with monthly sales exceeding RM300,000.

"I hope the products will be of superior quality in future especially for the foreign market," he said.

On foreign investors coming to Kelantan, Wan Yahya said two German companies invested more than RM30 million in the state since a month ago.

He said concerted efforts are being made to woo more foreign investments to Kelantan as the federal and state government were offering a lot of incentives including a large factory site at a low price.

"The SEDC is also prepared to help speed up approvals with government agencies to build factories," he added.


Monday, November 3, 2008

Marketing Management - Term Paper II: Case Study

Pharmacia & Upjohn, Inc.: Rogaine Hair Growth Treatment


Since 1988, Rogaine Hair Regrowth Treatment had been sold as a prescription drug in United States of America (USA). As the only medically approved hair regrowth treatment, Rogaine has enjoyed cumulative sales of $700 million in the USA and exceeded $1 billion worldwide since its inception.

Rogaine was approved for sales without prescription or over-the-counter (OTC) by the U.S. Food and Drug Administration (FDA) on February 9, 1996. The company has further requested for FDA for a three-year period of marketing exclusivity for non-prescription Rogaine under the Waxman-Hatch Amendments to the U.S. Food, Drug and Cosmetic Act prescriptions.

With the launch of nonprescription Rogaine expected in April 1996, the company pursued a tight deadline in order to ensure Rogaine can be quickly and widely available to the consumers. Extensive marketing programs for Rogaine had been outlined, which targeted men and women aged 25 to 49. Rogaine would be positioned as the only medically proven hair regrowth treatment that was available OTC. Separate packages with different instruction and apparatus would be made available for men and women and priced at $29.50, approximately half of Rogaine’s prescription price for one-month supply. Rogaine would be made available widely in the pharmacies and hair-care section of food, drug and mass-merchandise retail outlets.

Estimated marketing spending of $75 million was allocated for the first six-month period of the Rogaine and related Progaine shampoo. More than half of the budget would be allocated to consumer advertising. Retail store buyers of health and beauty aids were also told by Rogaine officials that the brand had retail sales potential of $250 million per year.

However, Pharmacia & Upjohn, Inc had been notified by the FDA that it had been denied the marketing exclusivity of nonprescription Rogaine on April 5, 1996.


By 9th April 1996, the FDA had approved for non prescription sales, three competing generic version of Rogaine which also contained 2-percent solution of minoxidil, the active chemical ingredient in Rogaine that encourage hair growth. These generic brands would normally be priced 25 percent to 50 percent less than brand named product and not advertised.

These factors raised several sales and marketing questions:

1. The actual sales potential in term of units and dollars for Rogaine sales with the increased competition. Without competition, Rogaine had forecasted sales of $1 billion within a five years period.

2. The effect of Rogaine sales figure. Due to its loss of U.S. patent protection and marketing exclusivity as well as entry of generic competitors, Rogaine will lose its monopoly position.

Pharmaceutical industry analysts estimated that most prescriptive drugs would lose up to 60 percent of their sales volume within six months after their patents expired due to the entry of generic products. However, there are instances such as Nicorette Gum which enjoyed sales dollars increased of almost 6 percent in 1995 due to increased advertising as well as no direct branded or generic competition except nicotine patch.

In the case of Rogaine, there would be availability of directly similar generic with own branding treatment solution containing the 2 percent minoxidil active ingredient from Baush & Lomb, Alpharma and Lemmon Company. In addition, Merck was testing Proscar, a prostate medicine for hair growth which would be available in pill form.

Due to these developments, Rogaine need to review its U.S. marketing strategies and formulate ways to cushion the adverse potential impact especially as non-prescription Rogaine had already been distributed to retailers. Advertising as well as sales promotion activities were also ready for implementation.

Other steps that Rogaine could also consider include:

1. Evaluating repeat sales prospect of loyal customer via sales history of prescription Rogaine. Trial and repeat purchase pattern need to be stimulated. Sales pattern need to be studied in order to determine sales growth contribution.
2. Marketing plan modification to take into account the competitive environment that Rogaine would face as the generic brands emerged.


In the USA, there were an estimated 40 million balding men and 20 million women with thinning hair who were spending over $300 million annually for hair thickening treatment products such as prescription hair shampoos, lotions and conditioners. A further $1.3 billion were spend to prominent hair loss treatment such as hairpieces, wigs, hair transplants and drugs such as minoxidil. Other hair loss treatments such as elixirs, teas, horse-hoof ointment and the like commanded another $100 million.

1. Rogaine had been sold in the United States since 1988 as the only medically proven hair regrowth treatment for men and women with common hereditary hair loss problem.
2. Rogaine is a long term hair loss prevention products to be used twice daily for at least four to six months before results are seen. Lifetime usages of minoxidil are needed to ensure hair growth and retention are permanent.
3. Rogaine was earlier approved by FDA in the USA only for men starting 1988. Earlier marketing effort to introduced the prescription Rogaine were through the following medium:
- Medical community introduction by trained Rogaine sales force as well as advertisement in medical journals and periodical;
- Televisions and print advertising from soft messaging of “see your doctor.. if you’re concerned about hair loss” to outright naming of Rogaine as a solution for hair loss as approved by FDA.
4. The estimated amounts of consumer-measured media advertising for Rogaine were $4,914,500 (1989), $9,347,500 (1990) and $3,443,000 (1991).
5. Sales records in the USA were $70 million (1989), $95 million (1990) and $103 million (1991).
6. The price of prescription Rogaine may cost users from $600 to $900 per year depending on pharmacies or physician office fees. To stimulate physicians’ visits, rebates are given to users who received Rogaine prescriptions from their physicians in term of $10 certificate against the purchase of first bottle of Rogaine or $20 for sending the first four box caps from Rogaine bottles purchased. Other advertising media includes information packets distributed via barbershops and salons, 150,000 copies of informational videos as well as a 800 numbers for call queries. The Upjohn Company spend between $40 - $50 million annually to market prescriptive Rogaine since its introduction through 1991 which includes professional and consumer advertising, the price-sales promotion program, and selling expense.
7. FDA approval for women to use Rogaine begun in 1991. The female-market entry plans were similar to the men including the pricing and reference of Rogaine’s name in advertisements. Advertisements appeared in magazines such as Cosmopolitan, People, US, Vogue and Women’s Day. However, the advertising copies for women are differentiate in regards to the fact that women were less likely to discussed hair loss problem as opposed to men.
8. The price-sales promotions for women include a $10 incentive to visit a dermatologist or physicist and an 800 number for calls to receive Rogaine brochures. Other initiatives included distribution of brochures in drugstores or doctors’ office, journal advertisings, direct mails and sales staff support services. In 1992, the total marketing budget for the female market launch was $20 million and sales increased to $122 million due to expanded customer base. The total consumer advertising was $12,569,600.
9. By 1995, Rogaine was marketed to both men and women. Three new advertising campaigns were specifically targeted to the different gender. The aggressive advertising was essential in order to maintain the sales of Rogaine. Cost of advertising in measured media was $34,579,800 (1993), $32,404,000 (1994) and $40 million (1995). Rogaine also created the first ever infomercial for a prescription drug (1995) as well as a World Wide Web site.
10. Rogaine also build a Rogaine prospect and user database to support a relationship marketing program which was useful for targeting prospects and users for direct mail and telemarketing. This method resulted in people starting Rogaine treatments to remain with it longer. Sales of Rogaine was down to $84 million (1992) and plateau at $96 million (1994 & 1995). In 1995, Rogaine sales outside the United States were $30 million in face of generic brands and substitute products.
11. Among improvements to Rogaine line was examination of minoxidil concentrate that would only require one application daily, easier-to-use gel, Progaine hair thickening shampoo as well as Rogaine 5-percent minoxidil formulation.
12. However, FDA’s final decision of allowing three others generic brand forced Rogaine to retake new courses of action.


In view of the earlier FDA ruling, Rogaine had developed a new marketing planning process with mission to create a new product category “hair regrowth category”. The marketing program expenditure was $75 million. Half of the expenses were to be dedicated to advertising to create awareness as well as increasing trial of the product by the consumers.

1. Rogaine Targeting, Product Positioning and Packaging
- Target market were both men and women aged 25 to 49.
- Packaging for specific gender will be differentiated in term of box color, usage instruction and applicators.
- Single packs with one 60-mililieter Rogaine bottle as well as double and triple packs will be made available.
2. Rogaine Advertising and Promotion
- Advertising were done with the objectives of raising consumer’s awareness of Rogaine’s recently approved nonprescription status, encourage product trials as well as communicate user’s expectations.
- Advertising approach will also be gender specifics to address the needs and habits of each gender.
- Intensive media advertisements were targeted within four weeks of non-prescription Rogaine launce. These include television and print advertisements, direct mailing as well as Rogaine Pharmacy Kits.
- Direct marketing efforts will be done via money-saving coupons, hair care newsletters, styling suggestions as well as comments from users, dermatologists and other authorities.
3. Rogaine Distribution and Pricing
- Rogaine will be available at pharmacies or hair care sections of food, drugs as well as mass retail outlets;
- Non prescription Rogaine would be 50 per cent cheaper that prescription Rogaine with pricing from $29.50 (single-pack), $55.00 (double-packs) and $75.00 (triple-packs).

Rogaine will need to reconsider some of their objectives and marketing strategies due to the FDA ruling. Even with competitions, Rogaine can still retain its position as the ultimate hair loss treatment solutions with the right marketing strategies.

Goals and Objectives
1. Rogaine should capitalize its position as the pioneer in hair loss treatment technology in order to achieve superior positioning in the hair loss market segment preference.
2. Rogaine should aim for majority of market share in view of three others generic brands entering the market for 2 percent minoxidil solution for hair loss treatment.
3. At minimum, Rogaine sales should breakeven to its full total cost of production and marketing.

Target Market

1. Advertising and Promotion
Marketing plan effectiveness of non prescription Rogaine should be monitored. New marketing strategies focusing on retaining customer satisfaction as well as loyalty are vital to ensure continued success of Rogaine. The initial period of OTC drug status should be utilized to build brand loyalty as well as name recognition in the OTC market (Harrington & Sheppard, 2002).

As balding or thinning hair were natural occurrences to most men and women as they aged, advertisement should also cater to new potential users to persuade them in using Rogaine as their first choice of hair regrowth treatment. Efforts should be made to retain their loyalty to ensure possibility of lifetime usage of Rogaine which would result in bigger share of the market segment.

Dual strategy marketing directly to the customer as well as via physician can be further maintain to gain advantage by additional credibility of Rogaine as an OTC drug due to recommendations by physicians.

2. Capturing Other Hair Loss Market Segments
The ease of availability as well as cheaper prices may attract the other hair loss alternatives segments to purchase Rogaine. For hairpieces (toupees) and wigs users spend around $400 million annually for the products including periodic cleaning and styling. A further $800 million annually were spent on hair transplants procedures.

By positioning Rogaine as easily available, easy and effective treatment; these segments can be captured as Rogaine’s new consumers. Based on the new pricing of $29.50 per bottle for a month usage, there are around 3.4 million* new customers markets to be captured. (*1.2 billion/($29.50 x 12 months) = 3.4 million).

3. New Pricing Strategy
Prescription Rogaine cost around twice the price of non prescription Rogaine. Based on the Gallup Organization Survey of 1,000 U.S. Adults commissioned by Advertising Age, Rogaine would be positioned to capture a further 13.5 percent of men and 9.7 percent of women on top of 18.4 percent of men and 16.4 percent of women that would pay $600 and above for treatment of balding.

4. Retaining the Rogaine Brand
Despite increase competition, Rogaine would still retain its reputation as the pioneer drug for restoring hair growth both for men and women approved by the FDA. Effective marketing strategy as well as further R&D should be formulated to retain its reputation.

By being proactive, Rogaine would be able to reach its targeted clientele of male pattern baldness, which accounted for 95 percent of all hair loss cases of both genders. As Rogaine was a long term solution with minimum commitment between six months to a year before hair growth improvements can be seen, Rogaine customers would be a captive market for a certain period of time.

Sales history as well as trial and repeat purchase pattern of existing Rogaine client should be analyst to determine ways to ensure customer loyalty.

5. Production of Related Rogaine Products
Pharmacia and Upjohn, Inc. have allocated an annual budget of $1 billion for research and development (R&D) especially targeted for developing new product line and line extension. Rogaine could consider further development of R&D focusing on variation of Progaine shampoos, gels or mousse form as well as tablet remedies for hair regrowth. Research on the feasibility of increasing the minoxidil strength may result in Rogaine Extra Strength with better result in regrowing hair in shorter period of time.

Tools such as coupons or discounts for purchase of Rogaine related items such as shampoo etc could also be considered.


Kotler P, Keller KL, Swee HA, Siew ML & Chin TT (2006) Marketing Management: An Asian Perspective, Pearson Prentice Hall
Kerin R.A. & Peterson R.A. (2007) Strategies Marketing Problems, Cases and Comments, 10th Edition, Pearson Prentice Hall

Harrington, P. & Shephard, M.D. (2002), Analysis of the Movement of Prescription Drugs to Over-the-Counter Status, Journal of Managed Care Pharmacy

Waterfront city giving planners a headache


Waterfront city giving planners a headache
By : Rosli Zakaria

KUALA TERENGGANU: The urbanisation process at the Waterfront Heritage City here needs more than just an artist's impression of a changing skyline and money.

According to Menteri Besar Datuk Ahmad Said, it involved the relocation of residents in several traditional villages in the city area and buying over land for high-rise buildings for these residents.

He said it was a costly affair and a headache for city planners, as buying over land owned by individuals could become a sensitive subject if the price was not right or varied too much within the same area.

"These problems must be overcome before we start pro-commercial projects that expand the local economy or encourage investors to consider setting up regional offices here.

"It is tough to get the people to see the purpose and vision of an urbanisation programme. There is fear among landowners as they will lose their possessions and they don't mind living in cramped, fire-prone villages.

"Villages in the city centre also have a high incidence of dengue and the living conditions in some areas are unhygienic.

"It is a balancing act to get the most out of urbanisation and still keep the population in the same locality in new high-rise dwellings without burning a hole in their pockets," he said.

"We do not want to push existing residents out of the city centre. We want them to stay here and take advantage of the economic opportunities that come along with the urbanisation.

"Of course, there will be more space for business and more green lungs. The idea is to project Kuala Terengganu as a livable place and the safest city in the country."

Ahmad said that the government had recently spent RM6 million to buy a piece of land owned by the State Islamic and Malay Customs Council to build flats to relocate residents whose land will be affected by development.

"We have spent RM70 million to buy the land owned by the villagers. It is expensive but it is something that must be done if urbanisation is to become a reality."

NST Online

Firm to boost production of vanilla

Monday November 3, 2008
Firm to boost production of vanilla

LANCHANG: The country’s first vanilla plantation company based in the East Coast Economic Region (ECER), Rentak Timur Sdn Bhd, aims to produce 300 tonnes of vanilla by 2010.

Its chief executive officer Syed Isa Syed Alwi said this constituted 15% of global market demand.

He said, to boost production, the firm would collaborate with Vanilla Biomatrix Sdn Bhd to operate contract farms in the country.

“These farms will be spread out and comprise over 1,000ha planted with five million vanilla plants over the next two years.

“Our partnership will see more than 3,000 farmers involved in vanilla farming.

“It will generate an average income of RM3,000 a month from every 0.2ha with 1,000 vanilla plants,” he said in a press statement recently.

Syed Isa said their firm currently produced 1,500kg of vanilla extract per day.

He added that the company adopted a super-critical fluid extraction techno­logy which controlled pressure and temperature of the solvent fluid so that its density would be altered to between gas and liquid.

“This way, the purest-quality vanilla can be extracted with no residual contamination from chemicals.

“We started vanilla agriculture and research activities at a 1.5ha farm in Singaraja, Bali, in 2002,” he said, adding that the project was a collaboration with a vanilla producer with over 30 years experience.

Syed Isa said, after years of research and testing, the firm had created an inte­grated system to farm, harvest and process natural vanilla.

“We have brought together qualified and recognised research teams in Malaysia, Indonesia and Europe to standardise vanilla cultivation and deliver the best seedlings to contract farmers and customers,” he said.

Incorporated in April 2004, Rentak Timur owns and operates a 60ha farm in Kechau, Lipis.

Vanilla is the second-most expensive spice after saffron, and is used as a flavour enhancer in desserts, ice cream, confectionery, chocolate and liquor.

It is also used in perfumes.

The aggregate global demand for vanilla is estimated at 2,000 tonnes a year, especially for high-quality vanilla flavouring.

Madagascar dominates the world’s vanilla production with a 60% global share, followed by Indonesia with 21%.

The Star

Sunday, November 2, 2008

Marketing Management - Term Paper I


Select a particular marketing article from any credible journals, such as Journal of Marketing, Harvard Business Review, Journal of International Marketing and etc. Critically review the paper in terms of addressing i) the main issue discussed; ii) its explanation as a marketing body of knowledge; iii) its practicalities in the operation of domestic businesses (you may choose any type of business) and iv) its implication on the said enterprise.

Success in Electronic Commerce Implementation: A Cross- Country Study of Small and Medium Sized Enterprises.

Author : Sandy Chong, Curtin University of Technology, Perth Australia
Source : http://www.

Success in Electronic Commerce Implementation: A Cross-Country Study of Small and Medium Sized Enterprises

The journal aims to develop a model of electronic-commerce (EC) implementation success for small to medium-sized enterprises (SMEs). Australia and Singapore were selected for comparative study in order to explore differences in adoption strategies and variation of reasoning.

Main Issues Discussed

Due to the emergence of internet and World Wide Web (www), electronic commerce (EC) is identified as the most promising and opportunistic tool for businesses to reach out to customers, communicating with business partners and running of business operation. For firms, EC improves business processes and business communications which in turn benefited stakeholders such as consumer, suppliers, management teams and investors.

There are already shift in paradigm in using the internet as a tool for business. US expected increased of online sales from $172 billion in 2005 to $329 billion in 2010 (Forrester Research, 2005) while Asia Pacific Business-to-Business EC are expected to grow at a Compound Annual Growth Rate (CAGR) of 59 per cent (IDC, 2004).

SMEs are a vital sector in most countries economies with some reaching 90 per cent composition of the business sector. EC provides the SMEs opportunities in penetrate the global market which was previously the exclusive territory of multinational corporations. Successful implementation of EC will result in the SMEs increased sales; improved profitability; reduced inventories, procurement and distribution costs; services quality improvement as well as better competitive positions (Campbell, 1998; Dhokalia and Kshetri, 2004; Grandon and Pearson, 2003; Purao and Champbell, 1998; Smith, 1998; Stockdale and Standing, 2004; Whitely, 2000). On the other hand, failure of EC implementation will result in severe effect as SMEs have limited resources (Soh et al, 1997; Lee et al, 1999).

Despite obvious EC advantages, there are reluctance for majority of SMEs to implement EC due to technology costs, lack of managerial and technical skills as well as system integration and financial resources (Cragg and King, 1993; Iacovou et al. 1995; Stockdale and Standing, 2004).

The paper considered various factor in considering EC implementation including:
- Size of firms.
o Larger firms have higher perceived level of satisfaction of EC implementation due to better financial positioning enabling adoption of latest technology or latest innovation activities as well as ability to hire more skilled workforce which is necessary for implementation of new technology;
- Perceived readiness
o Most significant factor for the overall level of EC adoption satisfaction for Singapore’s SMEs. Firms with adequate resources contribute to EC effectiveness by their involvement during the requirement and design phases which encourage more realistic expectation from EC and comfortable implementation process and more satisfying experience of EC.
- Observability
o A significant factor for both Singapore and Australian firms. With the visibility of EC implementation results such as initiatives taken by other firms as well as positive exposure from media might influence SME to implement EC in their own organization.
- Variety of communication channel
o Australian was found to have positive relationship between overall satisfaction and variety of communication channel. Usages of more communication channel help encourage a firm’s trading partner to adopt EC as well which will improve business link. By increasing the awareness and knowledge of EC to their clients will improve their confidence resulting in higher level of use and satisfaction.
o The finding also suggested that the benefit of EC could be effectively communicated by promotional seminars, presentations and on site or demonstrations. Effective communications of EC benefits include on-the-job training for firm’s employees and usage of the EC for direct communication with their trading partners.
- Customer pressure
o Australian SMEs’ overall satisfaction was inversely related to customer pressure. Firms which adopt and use EC on their own initiative are less pressured by their customer and therefore have higher level of satisfaction.
- Supplier pressure
o There was directly positive relationship of supplier pressure to SMEs satisfaction level of adoption which is based on the fact that SMEs control the suppliers. Based on the research, supplier pressure should be considered as positive as implementation of EC would result in more supportive operational relation or environment which will result in more potential benefits such as ease and more efficient ordering system.
- Perceived level of governmental support
o The Australian SMEs overall satisfaction of EC implementation was positively affected by the perceived governmental support in the form of advisory support.

Based on the regression result of overall satisfaction, the adoptions of EC in Australia are based on five factors: observablility, communication channel, customer pressure, supplier pressure and perceived governmental support. For Singapore, there are only three factors: firm size; perceived readiness and observability.

Marketing Body of Knowledge
E-Commerce means that the company or site offers to transact or facilitate the selling of products or services online. EC applies to both business-to-consumer (B2C) and business-to-business (B2B). B2C would include upstream activities of a business operation such as information on customer’s preference and queries, sales of products and services as well as customer satisfaction feedbacks. SMEs could also use EC as a tool of marketing to conduct research study on market segmentation and customer preference. B2B involved relationship between supplier-customer which in turn makes the market more efficient (Kotler et al, 2006). With EC, buyers have access to numerous information giving them advantages in term of product knowledge and also price transparency.

EC functions also include support services for trading encompassing “inter-organizational emails, directories, trading support systems for commodities, products, customized goods and services, management information, and statistical reporting systems” (Clarke, 2005).

Practicalities in the Operation of Domestic Business
Malaysia, as well as other countries in the world is facing globalization which is further facilitated by the existence of the internet. As more consumes are getting more internet savvy, SMEs should definitely implement EC to capture both the domestic and global market.

Based on Census on Establishment and Enterprise 2005, a total of 548,307 or 99.2 per cent of Malaysia’s total companies in operation amounting to 552,849 were Small and Medium Enterprises (SMEs). The service sector comprised of 474,706 (86.6 per cent) followed by the manufacturing sector of 39,376 (7.2 per cent) and the agricultural sector of 34,225 or 6.2 per cent (

As of 15th October 2008, the Malaysia External Trade Development Corporation (MATRADE) registered 14,064 Malaysian exporters of which 11,876 or 84.4 per cent are SMEs. Of the total, 94.1 per cent (13,239) have emails but only 56.7 per cent (7,974) have websites. Only 56.5 per cent (7,751) is currently exporting ( Some of the website registered are through free listing online directory as opposed to full website with own domain name. The data indicated that most domestic SMEs do not have proper website to incorporate multi facet of e-commerce marketing strategies.

Based on similarity and near geographical location, Singaporean SMEs preference of EC implementation satisfaction of factors which are firm size; perceived readiness and observability might be also applicable to Malaysian SMEs (Chong, 2008).

Most of the Malaysian bigger SMEs have their own website such as Sepatu Timur Sdn. Bhd. A smaller number of smaller SMEs use the online directory such as Yellow Pages to register their contact details. In order to ensure competitiveness and fair leverage on international market share, Malaysian business entities should consider the implementation of EC as part of the marketing strategy.

The factors that further support the incorporation of EC include the increasingly efficient and cheaper internet infrastructure such as Broadband and Streamyx services. The cost of opening a website ranged from free via free web pages ( /, minimal fees ( for RM168.00 or to fully designed website fee from RM2,500.00 (

Implication of EC on Said Enterprises i.e. SMEs

Malaysia’s business-to-business (B2B) e-Commerce spending were expected to register a high growth of 77 per cent to RM 47.6 billion in 2006 with projected B2B spending projected to increase at CAR of 29 per cent (SMIDEC; IDC: Malaysia Internet & E-Commerce 2006 – 2019 Forecast: Tracking the Development).

Consumers are savvier in making their choices from the readily available information and e-commerce business in the internet. The existence of online bidding house such as eBay and gives consumer ample opportunity to get better bargain price. Discussion forums and chat rooms also give more detailed information of products to interested parties.

Sepatu Timur Sdn. Bhd. Is chosen as a representative for as a case study for SME entity embarking of e-Commerce usage (refer Appendix I). Via its website, the company boosts it global presence with related information posted for potential buyers such as Online Catalogue, Pricing and Shoe Sizes Variation Chart. Stakeholders’ needs are addressed by the existence of Company Profile section and Query/Feedback form are also included for feedback / comments / order purposes. Under the brand Minoli, it had exported Papua New Guinea, Fiji, Cambodia, France and Tahiti.

Sepatu Timur could further enhanced its EC usage by incorporating marketing related features such as online tracking of orders, just in time (JIT) ordering of material from suppliers when its raw material level dropped, continuous customer feedback system for further product development etc. It can also conduct surveys for market segment for its specialized products which includes Military Boots, leather footwear (Professionals) and Safety Shoes / Boots (Construction / Heavy Industry).

Further Research

The research may be further refined to ensure more countries to be included to prove generalization of EC adoption satisfaction level. Aspect of EC as a business strategy may be research such as a medium of more accurate market segmentation, feedback for research and development, medium of efficient marketing etc as the possibility of EC usage for SMEs is endless. Evidence of beneficial adoption of EC may be further research in term of increased sales, larger market segment targeting, and penetration into global market as well as higher projection of entity’s survival and success.


Champbell, A.J. (1998), “Embracing electronic data exchange now will keep your company in step with the competition’, Business America, Vol. 119 No. 6.
Clarke, R. (2005), “The past, present and future B2B e-commerce”, statement for panel session “Let’s go shopping”, Slattery’s Rewind Fast Forward Conference, Sydney, September available at:
Cragg, P. and King, M. (1993) “Small-firm computing: motivators and inhibitors”, MIS Quarterly, Vol. 17 No. 1, pp 47-60.
Dhokalia, R.R. and Kshetri, N. (2004). Factors impacting the adoption of the internet among SMEs”, Small Business Economics, Vol. 23 No. 4, pp. 311-22.
Forrestor Reaserach (2005), US eCommerce Forecast; Online Retail Sales To Reach $329 Billion By 2010, Forrestor Reaseach, 14 September, available at:,7211,37626,00.html (accessed September 2005)
Grandon, E. and Pearson, J.M. (2003), “Strategic value and adoption of electronic commerce; an empirical study of Chilean small and medium businesses”, Journal of Global Information Technology Management, Vol. 6. No. 3, pp. 22-43.
Iacavou, C., Benbasat, I. and Dexter, A (1995), “Electronic data interchange and small organizations; adoption and impact of technology”, MIS Quaterly, Vol. 19 No. 4, pp. 465 – 85.
IDC (2004), IDC Predicts Double Digit Growth of Asia / Pacific Internet Buyers from 2003 to 2008, IDC North Sydney, 6th August, available at (accessed September 2005)
Lee, C., Seddon, P. and Corbitt, B. (1999), “Evaluating the business value of internet based business to business electronic commerce”, Proceedings of the 10th Australasian Conference on Information Systems. Wellington,New Zealand: Victoria University of Wellington, pp. 508-19)
Kotler P, Keller KL, Swee HA, Siew ML & Chin TT (2006) Marketing Management: An Asian Perspective, Pearson Prentice Hall, pp. 513-14
Purao, S. and Champbell, S. (1998) “Critical concerns for small business electronic commerce: some reflections based on interviews of small business owners”, Proceedings of the AIS Conference, Baltimore, MD
Smith, A. (1998), “New Frontiers”, Intelligence, June.
Soh, C., Mah, Q.Y., Gan, F.Y., Chew, D. and Reid, E. (1997), “The use of the internet for business; the experience of early adopters in Singapore”, Internet Research, Vol. 7 No. 3, pp. 217-28.
Stockdale, R. and Standing, C. (2004), “Benefits and barriers of electronic marketplace participation; an SME perspective”, Journal of Enterprise Information Management, Vol. 17 No.4, pp. 301-11.
Whiteley, D. (2004), E-Commerce – Strategy, Technologies and Applications, McGraw-Hill Publishing Company, Maidenhead.

Internet Journal Article:
Chong S (2008). Success in Electronic Commerce Implementation: A Cross-Country Study of Small and Medium-Sized Enterprise. Retrieved 15 October 2008 from

Organization / Government Agencies
Malaysia External Trade Development Corporation
Small and Medium Industry Development Corporation
E-Commerce Internet Website
Sepatu Timur Sdn. Bhd.