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