A Monthly Bulletin for Entrepreneurs

Issue 12

January - February 2017

Complimentary Copy

INSIDE THIS ISSUE

PP18996/04/2016(034470)

COVER STORY

RINGGITS DEPRECIATION:
ANY RESPITE FOR
THE ROOSTER?

s we usher in the Year of the

Rooster, there appears to be
little respite for the ringgit as it
persists on its declining trend.
Since breaching the 3.80 technical level,
a peg set by the government between
the years 1998 and 2005, the ringgit
had crossed the 4.50 barrier against the
greenback, a level unseen since the Asian
financial crisis in 1998.
The ringgits poor performance sets in
as investors continue selling off emerging
market assets following Donald Trumps
victory at the US presidential election.
The American businessmans win has
fueled expectations for the roll-out of
stimulus proposals such as tax cuts
which would bolster US economic growth
and inflation, thereby compelling the
US Federal Reserve to hike its interest
rate. This is evidenced by the US Federal
Reserves decision to increase its key
interest rate by 0.25% in mid-December
2016, only the second time it had done so
in a decade.
Although the strengthening of the US
dollar is also impacting other emerging
market currencies, the question is, why is
the ringgit among the hardest hit? Over
the span of two years, the ringgit has
weakened within circa of 26% against
the US dollar, 27% against the Japanese
yen, 16% against the Singapore dollar,
13% against the Chinese renminbi, and
so forth.
Many analysts link the unfavourable
position of the ringgit to the relatively
high proportion of foreign holding of the
Malaysian government bonds, which

by Dr Ghaz

makes the country extremely susceptible

to capital outflows whenever global
rotation of funds occurs. This is further
compounded by several detrimental
factors such as the volatility of the
crude oil price, the depletion of our
foreign exchange reserves, the weak
global economic growth as well as the
unrelenting and lingering 1MDB saga.
The fact that the Organisation of
Petroleum Exporting Countries (OPEC)
surprise announcement to cut oil
production by 1.2 million barrel per day
last 30 November 2016 had not arrest
the ringgits depreciation despite
Malaysia being a net oil exporting
country - supports our inference that the
currencys unfavourable performance is
possibly a result of a mix-bag of factors.
In its effort to stabilise the ringgit, Bank
Negara Malaysia (BNM) has taken
several measures including compelling
exporters to convert at least 75% of their
export proceeds to ringgit and restricting
speculative activity in the offshore nondeliverable forwards (NDF) market. It had
also recently signed MoUs with Bank
Indonesia and Bank of Thailand on a
framework of cooperation to promote the
settlement of bilateral trade and direct
investment using our local currencies.
Nevertheless,
given
Malaysias
prevailing economic fundamentals and
economic growth prospects of between
4% and 5%, many economists seemed
to be in agreement that the ringgit at its
current level is very much undervalued

ANALYSIS:
Ringgit Volatility Page 2-3
PRODUK:
Dana Transformasi Teknologi PKS (STTF)
Page 4
POINT-OF-SALE:
Are You a Goal-Getter? Page 5
BUSINESS ALERT Page 6-7
URUS BESTARI:
Membina Kekayaan Dengan Menjana Nilai
Page 8
PENGURUSAN SUMBER MANUSIA:
6 Amalan Terbaik dalam Pengurusan
Prestasi Pekerja Page 9
SEMBANG USAHAWAN:
Rahmat bin Tambi Page 10
KNOWLEDGE SPA:
Getting to Yes - Negotiating Agreement
Without Giving In Page 12
ENTREPRENEURS EVENT CALENDAR
Page 12

continue on page 2

Download our mobile apps at www.smebank.com.my

2
ANALYSIS

Adviser
Datuk Mohd. Radzif Mohd. Yunus
Group Managing Director
Editor-In-Chief
Sheikh Ghazali Abod, Ph.D
Chief Operating Officer, CEDAR
Editor
Norhisham Hamzah
Contributors
Khairil Anuar Mohammad Anuar
Shahrir Amran
Mohd Zafri Ismail Khan
Hayati Abu Seman
Ahmad Azuar Zainuddin
Rusydan Hamedy Rusli

Ringgit Volatility

Design & Layout

Haja Sharoni Shah
Rafiq Asyraf

by Corporate Planning, SME Bank Malaysia

Printed By
RV Print Enterprise (001284709-A)
No.127, Jalan Sultan Abdul Samad
50470 Kuala Lumpur
Tel: +603 2273 2421
Fax: +603 2276 1124
Published By
Small Medium Enterprise
Development Bank
Malaysia Berhad (49572-H)
Menara SME Bank
Jalan Sultan Ismail
50250 Kuala Lumpur
Wilayah Persekutuan
Tel: +603 2615 2020
Fax: +603 2698 1748
Customer Service Centre:
1-800-88-3131
www.smebank.com.my

Currency depreciation is a decrease in the level of a currency in a floating

exchange rate system due to market forces. Currency depreciation can
occur due to any number of reasons which are economic fundamentals,
interest rate differentials, political instability, risk aversion among
investors and so on.

Project Management
Centre For Entrepreneur
Development And Research
Sdn Bhd (CEDAR) (1042601-M)
Level 6, Menara SME Bank
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: +603 2615 2063
Fax: +603 2692 5916
www.cedar.my

DISCLAIMER
The views and opinions expressed
throughout this newsletter are those of the
authors and do not necessarily reflect the
official position and views of the SME Bank.
Copyright Small Medium Enterprise
Development Bank Malaysia Berhad.
All rights reserved. This publication is not to
be reproduced in part or whole without the
express permission of the copyright holders.
Materials on this publication are protected by
copyrights law. Unauthorised reproduction
or distribution of copyright materials, or any
portion of it, may result in severe civil and
criminial penalties and will be prosecuted to
the maximum extent possible under the law.

SME Bank Group of Companies

BizPulse | Issue 12 : January - February 2017

ountries with weak economic fundamentals

such as chronic current account deficits
and high rates of inflation generally have
depreciating currencies.

Currency depreciation, if orderly and gradual,
improves a nations export competitiveness and
may improve its trade deficit over time. But
abrupt and sizeable currency depreciation may
scare foreign investors who fear the currency
may fall further and lead to them pulling portfolio
investments out of the country, putting further
downward pressure on
the currency.

On Malaysia Ringgit, the volatility is most
probably due to high foreign investment in
government bonds and like Indonesia, any
external shocks will have an immediate impact
on the currency. Overseas ownership of
Malaysian debt has climbed four times over in

the past decade to 36 percent, and Indonesias

has tripled to 38 percent.

According to the latest report by Malaysian
Rating Corp Bhd (MARC), which focused on
the countrys economic prospects for 2017,
estimated that as much as a quarter of foreign
funds in the bond market would leave the
country, if sentiment on local assets were to
worsen, heaping pressure on the ringgit.

Foreign-investors had pumped in a record
amount of money into the Malaysian bond
market in 2016, pushing their holdings of
ringgit-denominated bonds to an all-time high
of RM240bil in October. But the surprise US
presidential election win by Donald Trump in
November had reversed the flow. His campaign
of boosting spending on more infrastructure
projects, reducing taxes and imposing tariffs

continue from page 1

and they expect the currency to strengthen at
a support level of between 4.2 and 4.3 against
the US dollar by end of 2017.
ITS IMPLICATIONS ON THE SMEs
Logically, the ringgits depreciation should
augur well for businesses involved in the export
market when earnings in export currencies
are exchanged into the local currency. In fact,
these businesses may also experience an
increase in external demand for their products
and services as international customers seek
to benefit from the cheaper ringgit.
However, this expectation may not
necessarily be true, considering that a
sizeable percentage of our exports involved
the foreign purchase of intermediate goods,

thus diminishing the possible forex margins

the exporters could realise from their
ultimate export value. Besides, the fact
remains that only a small percentage of our
Malaysian SMEs are involved in the export
business, contributing only about 18% of our
total exports.
Meanwhile,
many
analysts
have
cautioned that the ringgits depreciation
could further increase the countrys inflation
level, measured by the consumer price index
(CPI) by up to 2.8% in 2017. There could also
be upward pressures on the food and oil
prices with the potential tariff adjustments
for gas and electricity and further
subsidy rationalisation.

BizPulse | Issue 12 : January - February 2017

Analysis

Ringgit performance against select currencies in 2016

on imports are causing global investors to
lose their appetite for risks.
The sell-off by foreign investors in
November had caused the ringgits sharp
depreciation against the US dollar in the
past two months, reversing earlier gains.
To counter the outflow threat and to shore
up the local currency, Bank Negara had

made some policy adjustments including

making it compulsory from last December
for companies to convert the bulk of their
exports proceeds to the ringgit.
Today, it has weakened to RM4.48
and some forex analysts, including
those at Nomura, are predicting that the
ringgit could fall to around 4.70 against

Most Vulnerable

Ringgit, rupiah are the most volatile Southeast Asian currencies

One-month implied volatility
9%
8%
7%
6%
5%
4%
3%
2%

the greenback, before recovering. The

ringgit exchange rates against a host of
regional currencies had also depreciated in
recent years.
In conclusion, according to RHB
Research, the ringgit is expected to remain
volatile in the near term on the vulnerability
in the large foreign holdings of fixed
income instruments in the country and the
challenging global economic environment.
The other factors included the possibility of
a rate increase by the US Federal Reserve
and further Chinese Yuan devaluation.
Affin Hwang Investment Bhd believed
that ringgit to remain under pressure and
is expected to trade at current levels at
least for the first quarter of the year while
however more positive on the second half,
expecting the ringgit to recover to levels of
between 4.10 and 4.20.

1%
0

Malaysian
Ringgit

Indonesia
Rupiah

Philippine
Peso

Thai
Baht

Singapore
Dollar

Source: Bloomberg

The implication of inflation means

that the SMEs could face further squeeze
in their profit margins. Unlike their larger
counterparts, most SMEs do not enjoy
the economies of scale to negotiate with
their suppliers. Under such challenging
market environment, they may have
little options to manoeuvre especially
in transferring the rising cost to
their customers.
Nevertheless, there are still several
strategies the SMEs could explore in
protecting their bottom lines. Cost
optimisation, business efficiencies,
quality in delivery, speed in production
and turnaround time, are among the
basic strategies one could employ.

Sometimes, even the business and

operating models need to be reviewed,
revised and restrategised. In times
of stiff competition and unforgiving
competitors, perhaps the order of the
day is to explore strategic collaboration
rather than direct confrontation. Another
critical area to review is the cost of
funding and cash flow management
- if need be, there is no reason not to
renegotiate with the bank/ financier
for possible re-scheduling of the loan
outstanding rather than waiting for it to
become bad and non-performing. The
possibilities are always out there waiting
to be tapped.

Source: Bloomberg, Malaysian Rating Corp Bhd

(MARC), RHB Research, Mizuho Bank and Affin Hwang
Investment Bhd, The Star Online

Unless and until we are very clear with

the real issues we are facing, we shall not
be able to chart the strategic course of
direction in resolving them.
Until then, taking this opportunity
to wish all our Malaysian Chinese
entrepreneurs a happy and prosperous
Chinese New Year.
Gong Xi Fa Choy!

Dr Sheikh Ghazali Abod is the COO of the Centre for

Entrepreneur Development and Research (CEDAR),
a wholly owned subsidiary of the SME Bank
Malaysia. He can be reached at sheikh.ghazali@
smebank.com.my.

Issue 12 : January - February 2017 | BizPulse

BizPulse | Issue 12 : January - February 2017

PRODUK

engan peruntukan sebanyak

RM200
juta
dalam
belanjawan Negara 2016,
Dana Transformasi Teknologi
PKS diletakkan di bawah SME Bank
bagi menyediakan akses kewangan
kepada
perusahaan
kecil
dan
sederhana (PKS) untuk meningkatkan
/ memperbaiki keupayaan operasi
mereka untuk mencapai produktiviti
yang lebih tinggi, meningkatkan
kecekapan
proses,
pengurusan
kos yang cekap dan menembusi
pasaran eksport.
Dana
tersebut
ditubuhkan
untuk menyokong PKS dengan
bantuan kredit yang diperlukan
untuk menubuhkan perniagaan atau

menjalankan operasi mereka. Untuk

melayakkan PKS mendapatkan
kelulusan
yang
diperlukan,
perniagaan mereka perlu beralih
daripada kaedah tradisional kepada
sistem berkuasa ICT.
Dana Transformasi Teknologi
PKS - digunakan untuk menaik
taraf PKS yang berminat untuk
mengaplikasi teknologi ICT dalam
perniagaan mereka. Ini termasuk
pembelian sistem dan perisian
baru serta memberikan latihan
yang diperlukan, dan membuat data
sokongan dan maklumat untuk
memastikan peralihan teknologi
berjalan lancar.

Dana Transformasi Teknologi PKS

by Muhammad Zafri Ismail Khan

Pembiayaan
Dana
Transformasi
Teknologi PKS
Dana Transformasi Teknologi PKS
adalah program pembiayaan untuk
kerja menaik taraf / peningkatan /
pembetulan teknologi PKS untuk
mencapai produktiviti yang lebih tinggi,
meningkatkan
kecekapan
proses,
pengurusan kos yang cekap dan
menembusi pasaran eksport.

BizPulse | Issue 12 : January - February 2017

FASILITI
Berdasarkan konsep syariah: pembiayaan berjangka, berputar dan
sewa pajak
Pembiayaan asset tetap (jentera/peralatan)
Pembiayaan pengubahsuaian kilang dan loji
Pembiayaan modal kerja (tetap/pusingan)
MANFAAT
Pembiayaan maksimum sehingga 100% untuk loji dan pengubahsuaian
kilang dan sehingga 80% untuk jentera dan peralatan (sehingga maksimum
RM5,000,000)
Kadar rata pembiayaan sebanyak 4% setahun
Tempoh pembayaran balik maksimum sehingga 5 tahun (Terma dan syarat)
KELAYAKAN
Memenuhi definisi PKS.
Berdaftar di bawah Suruhanjaya Syarikat Malaysia Akta 2002 atau Akta
Koperasi 1993.
Syarikat telah beroperasi minima 2 tahun.
Laporan Audit Teknologi yang dikeluarkan oleh SIRIM.
Minima sekurang-kurangnya 51% pemilikan ekuiti rakyat Malaysia.
Syarikat adalah solven.
Tiada tindakan undang-undang ke atas Syarikat dan Pengarahnya.
Mohd Zafri Ismail Khan merupakan Ketua Jabatan Pembiayaan Kontrak, SME Bank. Beliau boleh
dihubungi di muhammad.zafri@smebank.com.my

BizPulse | Issue 12 : January - February 2017

POINT-OF-SALE

oal-setting has been written

about in many ways. This article
is a little bit about setting, but
more about accomplishing the
goal. The kind of goals you set is certainly
important, but for the sake of brevity,
Im going to assume youre setting an
uncertain goal that has some reasonable
chance of success. The human brain is
set up to help you achieve goals that you
sincerely believe are achievable. If you
want to stretch yourself or your business
to new heights, here are my thoughts on
goal-setting and goal-getting.
Dream, but be motivated.
Its OK to dream and have big
goals. But if youre actually going
to accomplish them, you have to DO
something about them, and that takes
motivation. The very first thing you need
to achieve a goal is a reason and deep
desire to achieve it. The path to achieving
goals is fraught with boredom, excuses
and difficulty. You will have a lot of
opportunities to talk yourself out of the
goal. But if you can keep going back to the
reason and your desire for the goal, those
will help you stay on track.

Break it down into 24-hour bites.

The brain has a built in B.S. monitor
that rings out when all you do is set
an enormous goal but then dont manage
it to 24-hour cycles--daily mini goals.
If your goal is to shed 50 pounds, your
brain doesnt see you 50 pounds lighter in
24 hours, but it can see you five ounces
lighter in that time. Set your goals so
that your B.S. alarm doesnt go off. To
prevent that alarm bell, the mini goal must
be reasonable and sustainable. Losing
one pound in a day is doable, but its not
reasonable or sustainable, so the B.S.
sentinel will scream its head off, and youll
eventually stop going after your big goal.

Do something daily.
Nothing replaces repetition and
creating momentum like doing
something to get you closer to your goal
every day. You will naturally take some
time off, but if you dont take seriously
the first 30 days of work on the goal

and use them to create momentum, its

almost guaranteed you wont get there.
The first 30 days are critical to convincing
your B.S. monitor that youre serious.
Organizationally, it convinces colleagues
youre serious.
Adapt and adjust.
As you work on your daily mini goals
and toward the bigger goal, be willing
to adapt. Make the mini goals more
difficult if they seem too easy. Make them
easier if they become too taxing. The main
thing is that if your brain deems the mini
goal to be too difficult, youll quit. If its
too easy, youre running in place. Find the
middle so you have advancement each
day.

Feedback and reward.

The human brain responds to two
things to learn and attain new
behaviors and knowledge: feedback and
reward. As you go about your goal-getting,
be brave enough to request feedback
from others, and then reward yourself
each day for accomplishing your little
goals. Research has shown that even
keeping a calendar where you put a little
gold star on the days you are successful
(a la kindergarten) can be effective
positive reinforcement. The visual is

enough reward for the brain to know its

doing something right.
Know youre going to get bored.
Doing something in small pieces
each day can lead to boredom. Do
it anyway. Achieving goals isnt always
about a daily cork-popping ceremony to
celebrate something sensational you did.
Its usually about sticking to the daily,
boring small stuff. Get that right, make
it slightly more difficult each day, and do
it again and again. People who achieve
their goals usually do it because they kept
going when it gets tough and boring.

There is no secret formula to success.

Sure, luck comes into play, but its
foolhardy to count on that. Mostly, its
having a direction and place you want to
get to and then showing up for the daily
grind. Hopefully, its not about overeating.
Go get them.
- Adapted from: entrepreneur.com (USA)

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Ar Getter?
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search

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DAR R
by CE

Team

Issue 12 : January - February 2017 | BizPulse

BizPulse | Issue 12 : January - February 2017

BUSINESS ALERT

BUSINESS ALERT
by Corporate Planning , SME Bank Malaysia

OIL, GAS AND ENERGY

RECENT DEVELOPMENT

Oil prices (3rd January 2017, Tuesday) Oil

made the biggest annual gain since 2009 as
the Organization of the Petroleum Exporting
Countries (OPEC) and other producing
nations plan to start supply cuts in January
2017 to reduce swelling global inventories.
Brent for March settlement closed USD0.03
lower at USD56.82 a barrel.
Petroliam Nasional Bhd (Petronas) will reduce
its output on a voluntary basis beginning
January 2017 in line with an initiative taken
by members and non-members of the OPEC
to help improve prices. The production cut
is part of a collective effort by major oil
producers globally to ease the current supply
glut of crude oil. Petronas would make a
voluntary adjustment involving up to 20,000
barrels per day (bpd) of crude or represents
about 3% of the current daily output.
Gas Malaysia Bhd has received approval
from the government to effect the revision of
natural gas tariff for the non-power sector in

Peninsular Malaysia from January 1, 2017 to

December 31, 2019, in line with the Incentive
Based Regulation (IBR) framework. The IBR
framework set the base tariff for a regulatory
period of 3 years from January 2017 and
allowed changes in gas costs to be passed
through via Gas Cost Pass Through (GCPT)
mechanism every 6 months. The new average
Base tariff effective from January 2017 is
RM26.71 per million British Thermal Units
(mmbtu), a reduction from RM27.05/mmbtu
in 2H2016 after applying a tariff rebate of
RM0.40/mmbtu to all tariff categories.

OUTLOOK: NEGATIVE

International Energy Agency (IEA):

The global crude oil glut will start to
draw in the 1H2017, on condition OPEC
and its non-OPEC partners stick fully to the
production cut agreement. If OPEC promptly
sticks to its production target, assessed at

32.7 million bpd and non-OPEC producers

deliver the agreed cuts of 558,000 bpd, then
the global inventories is likely to move into
deficit in the first half of 2017 by an estimated
0.6 million bpd. Meanwhile, following
revisions to Chinese and Russian data, the
agency have raised global oil demand growth
in 2017 by 110,000 bpd to 1.3 million bpd.
MIDF Research: Oil prices are expected
to remain volatile, averaging higher at
approximately USD50 per barrel in 2017.
Despite accords have been reached to limit
the supply of crude oil from OPEC member
countries, the actual production cut remains
to be seen both Iran and Iraq have been
producing at record high at over 90% of their
production capacity. In addition, the recently
agreed production ceiling is only for the
period of six months and no firm figures have
been set. As such, downside risks to global
crude oil prices remain.

TOURISM
RECENT DEVELOPMENT

Malaysia Airports Holdings Bhd (MAHB)

registered a 7.3% growth in passenger traffic
to 9.8 million, throughout its entire airport
system in Malaysia and Turkey, in November
2016, from 9.1 million a year ago.
The traffic growth was largely driven by
Malaysian operations, where the number
of passengers grew by 8.8% to 7.5 million
in November 2016 from 6.9 million in the
preceding year.
International
passengers
registered
a 12.1% YoY growth at 3.6 million
passengers, while domestic passengers
grew by 6.0% YoY in November, registering
3.9 million passengers.
Chinese low-cost carrier Lucky Air has
officially executed a direct air route between
Kunming City and Penang. The twice-a-week
flight from Kunming City to Penang will
further promote the airport as a preferred hub

in this region. Yearly, there is an average 1.6

million Chinese tourists visiting Malaysia.

OUTLOOK: NEUTRAL

CIMB Research: The year 2017 is

predicted to be a good year for the
tourism sector due to the weaker ringgit
against regional currencies which benefits
tourists spending and various initiatives and
programs undertaken by the government
to spur the tourism sector. On top of that,
Malaysia will play host for the 29th SouthEast Asia (SEA) Games in August 2017 and
the 9th Para ASEAN Games will also attract
more people to the country from neighboring
ASEAN countries.
Business Monitor International (BMI):
Malaysia's inbound tourism market is
expected to inch upwards from 25.9 million
international arrivals in 2016 to 26.4 million

arrivals in 2020. Asia Pacific will continue to

account for the bulk of international arrivals
and analysts expect to see relatively strong
growth in arrivals from the Middle East, which
is a relatively small source region for Malaysia
currently, but one with enormous potential
given the country's large Muslim population
and its marketing initiatives towards Muslim
travelers.

COMMUNICATIONS CONTENT AND INFRASTRUCTURE

RECENT DEVELOPMENT

CIMB Research: Industry analysts anticipate

a flat industry mobile revenue growth in 2017
due to market maturity and tight competition.
Meanwhile, Malaysian Communication &
Multimedia Commission (MCMC) will start
the process of refarming 700MHz in 2017.
If the commission decided to allocate the
spectrum to new/smaller players, it would
create more competition for the existing big
3 telcos companies in the medium-term.

Maybank expects its newly-launched
Maybank Samsung Pay in Malaysia to boost
the number of customers using contactless
payments. This follows the success of the
Maybank Pay launched in July 2016, which
has seen nearly 40,000 installations of the
digital wallet. The continuous innovations

BizPulse | Issue 12 : January - February 2017

made especially in the field of digital wallets

will enable customers to benefit from this safe
and secure payment mode, thus enhancing
their lifestyles in todays fast-paced global
environment.

OUTLOOK: POSITIVE

Gartner Inc.: Researchers have

predicted 20% of smartphone user
conversations will take place via virtual
personal assistants (VPAs) by 2019. As the
usage of VPAs such as Apples Siri and Google
Now increases, such platforms will become
more intelligent, helping smartphone users to
complete tasks in more intuitive ways.
VPAs usage is bound to accelerate as
they add many new features, including

integration for business services,

further language support and appear
across more devices.
VPAs are now used for tasks such
as setting the alarm or retrieving
information from the web, but in the
near future these systems will be able
to deliver more complex tasks such as
completing a transaction based on past,
present and predicted context.

Note: A virtual assistant (VA) is a
conversational,
computer-generated
character that simulates a conversation to
deliver voice- or text-based information to a
user via a Web, kiosk or mobile interface.

BizPulse | Issue 12 : January - February 2017

Business Alert

WHOLESALE AND RETAIL

RECENT DEVELOPMENT

Retail Group Malaysia (RGM): Malaysia's retail

industry recorded a dismal growth of 1.9% in
3Q2016 from a year ago as the department
store sub-sector reporting disappointing
sales. The result for the July-September
2016 quarter was 68% lower than market
expectations of its members in August 2016
at 5.9%. However, it was slightly better than a
year ago when it expanded 1.6%.
Online payment service solution provider
iPay88 Sdn Bhd expects to double its online
transactions and value in 2017, driven by
the use of smartphones. In 2016, iPay88
recorded 38.2 million online transactions and
RM3 billion sales via its payment gateway
systems, compared with 14.6 million online
transactions in 2015.
The transactions generated by mobile
commerce has more than doubled to
9.3 million in 2016, from 3.7 million in
2015. Comparatively, online shopping on
desktop rose only 29.7% to 7.6 million

transactions in 2016, from 5.8 million

transactions in 2015.
The fastest growing areas in 2016 was
in delivery services (243% increase),
followed by marketplace (183%) and telco
services for bill payment (81%).

OUTLOOK: NEUTRAL

AllianceDBS
Research:
Analysts
remain cautious on the Malaysian
consumer sector as they do not
foresee any significant re-rating catalyst for
the sector. Despite the fading effect of GST
(implemented in April 2015), the recovery in
domestic consumer spending has been slow,
uneven and fragile. This is supported by the
recent statistics released by the Malaysian
Institute of Economic Research (MIER) where
the Consumer Sentiment Index (CSI) dropped
by 5 points quarter-to-quarter to 74 points in
September 2016 and remains well below the
threshold level of optimism of 100. Besides

that, private consumption growth (as a

component of GDP) had also moderated in
3Q2016 at 6.4% YoY (2Q2016: 6.3% YoY).
RGM: Malaysian retailers are in for
challenging times in 2017, with a significant
recovery in sales only expected in the
second half of 2017.
The economy is not expected to recover
strongly in the immediate term whilst
Malaysian consumers are expected to
hold back on their spending during the
first half of 2017.
The cost of living of average Malaysians
will continue to rise in 2017, including
food and beverages, medical and
transport.
The continued weakening of the ringgit
will impact the costs of retail goods.
Retailers may be forced to raise prices
again during the first six months of next
year.

HEALTHCARE
RECENT DEVELOPMENT

KPJ Healthcare Bhd will be building a RM80

million private hospital in Taman Saujana.
The 8-storey KPJ Kluang Specialist hospital
is expected to be completed by early-2019
and will cater for Kluang residents and
surrounding areas. KPJ has been operating
Kluang Utama Specialist hospital since 2008
and have reached maximum capacity. The
new KPJ Kluang will have 20 specialists in
various fields and will hold 90 beds. This is
part of KPJs 2017 expansion with 347 beds
in the pipeline, that is, 174 beds from 2 new
hospitals (KPJ Perlis & BDC) and 173 beds
from the expansion of 3 existing matured
hospitals (KPJ Seremban, Sri Manjung & KPJ
Johor) which have been experiencing optimal
occupancy levels of above 70.0%.

OUTLOOK: NEUTRAL

MIDF Research: Industry analysts

continue to believe that the demand for

healthcare is still resilient despite increase in

medical consumable costs which is mainly
due to unfavorable forex environment.
Going into 2017, analyst opine that the
demographic factors such as increase
in ageing population and increase in
lifestyle diseases will continue to drive
the adoption of private healthcare
services.
Additionally, with Ringgit at its current
level, it will be attractive for medical
tourism travelers to seek medical
treatments in Malaysia as opposed to its
neighboring countries.
The increasing adoptions of medical
insurance policy and employer tie-up
with private hospital operators are also
expected to encourage the usage of
private medical services.
BMI: Malaysia's pharmaceutical market
outlook is positive. The government has

adopted a policy which prioritizes the

welfare of the Malaysian including raising
healthcare expenditure, improving medical
access and looking to mitigate the impact
of the GST on medicine prices. These
themes will work to boost pharmaceutical
demand, particularly when coupled with
the country's growing population and
increasing disease burden.
Pharmaceutical sales totaled RM7.88
billion (USD2.02 billion) in 2015 and
forecasted to grow by 8.9% in 2016 to
RM8.58 billion (USD2.09 billion) and
RM9.34 billion (USD2.34 billion) in the
year 2017.
Combined sales of prescription drugs
and over the counter (OTC) drugs are
forecast to increase to RM11.94 billion
(USD3.16 billion) in 2020, equating to a
compound annual growth rate (CAGR)
of 8.4% YoY.

by 22% to RM1.46 billion in 2017, after an

exceptional 2016 performance. In 2016, total
net profit surged to RM1.19 billion in the nine
months ended September 2016 compared
with a loss of RM222 million for the same
period in 2015. This is due to capacity
discipline which demand grew by 6% but
supply shrunk by 1% to 2% year on year. This
mismatch has caused a surge in load factor
and yields. Coupled with low fuel prices in
2016, profits have soared.
International Air Transport Association
(IATA): The global airline industry is forecast
to record another strong net profit of USD29.8
billion (RM131.84 billion) in 2017, with four
billion travelers expected to travel by air.
Expected higher oil prices will have the
biggest impact on the outlook for 2017.

In 2016 oil prices averaged USD44.6/

barrel (Brent) and this is forecast to
increase to USD55.0 in 2017. This will
push jet fuel prices from USD52.1/
barrel (2016) to USD64.9/barrel (2017).
By region, the strongest financial
performance is being delivered by
airlines in North America. Net post-tax
profits will be the highest at USD18.1
billion in 2017, although down slightly
from the USD20.3 billion expected
in 2016. Meanwhile, the Asia-Pacific
region are expected to generate a net
profit of USD6.3 billion in 2017 (down
from USD7.3 billion in 2016) for a net
margin of 2.9%.

BUSINESS SERVICES
RECENT DEVELOPMENT

Sepang Aircraft Engineering (SAE) Sdn Bhd

aims to service 80 aircraft in 2017 compared
with 60 in 2016, as the companys three
new hangars will start operations. SAE, an
Airbus SAS unit and part of the Airbus Group,
provides maintenance, repair and overhaul
services for commercial aircraft, engines
and components and support services
for Airbus aircraft in South-East Asia. The
company remains positive on the outlook
as the industry will move in parallel with the
travelling trend. As the order for aircraft is still
there, the fleet order is still growing so with
that maintenance has still to continue.

OUTLOOK: NEUTRAL

Maybank Research: Net profit for the

aviation industry is expected to decline

Issue 12 : January - February 2017 | BizPulse

BizPulse | Issue 12 : January - February 2017

URUS BESTARI

Membina Kekayaan
Dengan Menjana Nilai

atu fakta yang diketahui ramai

bahawa usahawan menjana nilai.
Usahawan yang berjaya adalah
mereka yang mencipta nilai yang
paling banyak dan nilai adalah istilah
digunakan yang bermaksud pengeluaran.
Istilah 'usahawan' pula digunakan oleh
dunia lama untuk menggambarkan
perniagaan yang berjaya - kerana pada
abad yang lalu, jutawan paling berkuasa
adalah pengeluar. Apabila kadar penduduk
bertambah dan sumber berkurangan,
usahawan terkaya datang dari perniagaan
hartanah - pemaju dan pembina. Dalam
dekad semasa, kekayaan baru boleh
didapati pada mereka yang mengawal
maklumat dan data - orang seperti
Google, Facebook dan Alibaba. Takrif baru
nilai, oleh itu, adalah sesuatu yang tidak
mudah didapati. Jadi, lebih banyak anda
membuat dan menambah nilai, maka
anda menjadi lebih keusahawanan.

Oleh itu, perkara asas di kalangan
usahawan yang berjaya adalah nilai.
Pengilang A menghasilkan barangan.
Penyedia perkhidmatan menawarkan
perkhidmatan.
Pasaran
internet
menyediakan
platform.
Bank
A
menyediakan kecairan dan keselamatan
transaksi.
Walaubagaimanapun,
jika perniagaan anda semata-mata
memborong dan menjual produk untuk
membuat keuntungan, anda tidak
mempunyai nilai tambah. Masih ada
ruang untuk mendapat keuntungan yang
lebih banyak, tetapi perniagaan menjadi

BizPulse | Issue 12 : January - February 2017

kurang mampan dan pertumbuhan anda

adalah terhad.
Untuk anda menjadi pencipta
kekayaan sebenar, anda perlu menambah
nilai
kepada
kitaran
penggunaan
keseluruhan. Jika anda seorang peruncit,
anda perlu menawarkan pilihan (iaitu
kualiti dan pelbagai barangan yang anda
tawarkan) dan memudahkan pelanggan
dari segi penyampaian perkhidmatan.
Jika anda penyedia pengangkutan, anda
perlu pastikan tidak hanya penghantaran
sampai ke destinasi, malah memastikan
ketepatan masa dan keselamatan
barangan. Jika perkhidmatan anda
memudahkan pelanggan dan konsisten
setelah dimasukkan nilai tambah tertentu,
pelanggan anda tentunya tidak keberatan

oleh Bahagian Penyelidikan CEDAR

untuk membayar lebih dan kekal sebagai

pelanggan anda dalam tempoh lama.

Sebahagian daripada kita mengambil
mudah bagaimana perniagaan dijalankan
pada masa sekarang dan gagal untuk
melihat bagaimana perniagaan perlu
dijalankan pada masa hadapan. Kita perlu
sentiasa bertanya adakah kita menambah
nilai (atau kurangkan nilai) kepada
pelanggan. Hanya selepas itu, kita pasti,
bahawa perniagaan kita boleh menjadi
mapan dalam jangka masa panjang.
- Sumber: ASIA SME Magazine

Diolah & alih bahasa oleh CEDAR

BizPulse | Issue 12 : January - February 2017

PENGURUSAN SUMBER MANUSIA

Amalan Terbaik
dalam Pengurusan
Prestasi Pekerja

oleh Shahrir Amran

etiap
hujung
tahun,
majikan
memuktamadkan
penilaian
prestasi pekerja mereka. Mari kita
tinjau 6 amalan terbaik pengurusan
prestasi pekerja:

tahun. Apabila maklum balas disediakan,

pastikan bahawa ia diberikan dengan cara
supaya pekerja boleh bertindak secara
langsung dan memahami bagaimana untuk
memperbaiki kelemahannya.

tahunan mereka untuk memastikan ianya

munasabah. Ini membantu pekerja untuk
merasa semangat kekitaan dan pemilikan
ke atas proses kerja dan merasa terdorong
untuk mencapai matlamat mereka.

Pastikan petunjuk prestasi utama

pekerja adalah sejajar dengan
matlamat dan objektif organisasi.
Sebagai contoh, jika organisasi
mempunyai matlamat untuk meningkatkan
keselamatan, pastikan pekerja individu
mempunyai matlamat yang berkaitan
untuk mengurangkan kemalangan dan
kecederaan.

Menggunakan penilaian prestasi

sebagai satu peluang untuk
membincangkan matlamat masa
depan. Ini termasuk pembangunan
kerjaya, latihan, dan banyak lagi. Ia
juga boleh dijadikan input untuk pelan
penggantian organisasi kerana anda
menentukan
pekerja
tertentu
yang
mempunyai kemahiran dan keinginan untuk
mara ke jawatan yang lebih tinggi lagi.

Seseorang pekerja pasti memahami

apa komponen daripada gaji mereka
yang terikat kepada prestasi mereka
dan apa yang mereka perlu lakukan
untuk mendapatkan komponen itu. Ini
juga dikenali sebagai bayaran berisiko
kerana ia tidak dijamin akan dibayar
melainkan pekerja itu memenuhi matlamat
prestasi tertentu. Inilah jenis perbincangan
yang perlu berlaku pada awal kitaran
perancangan prestasi, bukan akhirnya,
supaya tidak ada kejutan apabila penilaian
dijalankan.

Melatih kakitangan pengurusan

(dan sesiapa sahaja yang terlibat
dalam
menjalankan
penilaian
prestasi)
bagaimana
untuk
mengelakkan amalan berat sebelah, iaitu
diskriminasi atau tindakan balas semasa
proses tersebut. Sebagai contoh, jika
seseorang pekerja mengambil Cuti Bersalin,
ia akan dilihat sebagai perbuatan balas
jika pengurus itu berkata prestasi pekerja
tersebut lebih rendah akibat daripada
mengambil cuti. Ini boleh berlaku secara
tidak sengaja, supaya pengurus perlu sedar.

Ingatlah untuk memberi pekerja

maklum balas sepanjang tahun;
tidak hanya menilai berdasarkan 1
projek yang berjaya untuk penilaian
prestasi keseluruhan tahun tersebut dan
mengabaikan beberapa projek lain yang
tidak siap. Ia juga dapat menjadi satu topik
latihan yang berterusan dengan pihak
pengurusan untuk memastikan mereka
memberi maklum balas yang kerap (bukan
hanya maklum balas negatif) sepanjang

Mendapatkan maklum balas pekerja.

Pekerja perlu digalakkan untuk
memberi maklum balas mengenai
organisasi, proses kerja mereka, dan
banyak lagi. Mereka juga perlu digalakkan
untuk memberi input kepada matlamat

Seperti yang anda boleh lihat, perlunya

komunikasi yang kukuh dengan seluruh
pasukan pengurusan dan penyeliaan
untuk melaksanakan penilaian prestasi
dengan berkesan. Ia memerlukan latihan
yang berterusan untuk memastikan semua
orang berada pada halaman yang sama,
konsisten di dalam melaksanakan ideaidea, dan budaya kerja yang kuat, dan positif
di tempat kerja. Semua ini boleh membantu
pekerja untuk mencapai matlamat mereka,
dengan itu membantu organisasi untuk
mencapai matlamat dan objektifnya yang
tersendiri.
- Diadaptasi dari UK HR Magazine

Shahrir Amran merupakan Pengarah Pengurusan

Modal Insan , SME Bank. Beliau boleh dihubungi di
shahrir.amran@smebank.com.my.

Issue 12 : January - February 2017 | BizPulse

10

BizPulse | Issue 12 : January - February 2017

Outlook

Temubual oleh Norhisham Hamzah

SEMBANG USAHAWAN bersama

Rahmat bin Tambi

Ketua Pegawai Eksekutif

Nama Syarikat
ERP Two One Technologies &
Innovations Sdn Bhd

Bidang Perniagaan
Proses pembuatan, pengekstrakkan herba,
pengadunan, pembungkusan dan formulasi
produk herba kesihatan, minuman
pra-campuran kesihatan dan
produk suplemen kesihatan
berasaskan herba
Alamat Perniagaan
25, Jalan Saujana
Indah 8,
Kawasan
Perindustrian
Saujana Indah,
40150, Shah Alam, Selangor
Telefon
+603 7885 0478
Website
www.ERP21technologies.com

RP Two One Technologies &

Innonations Sdn Bhd (ERP) mula
beroperasi pada tahun 2004
dan merupakan syarikat milik
Bumiputera yang menghasilkan bahan
ekstrak herba Tongkat Ali, Kacip Fatimah,
Manjakani dan Tocotrienol Vitamin E.
ERP21 juga mula menghasilkan
minuman pra-campuran kesihatan yang
berkualiti tinggi pada tahun 2009, di
bawah jenama LARAS seperti :
Mocha Latte dengan kacang hazel dan
Stevia,
Coffee Latte dengan Tongkat Ali
Ekstrak, Ginseng dan Stevia,
Chai Latte dengan Kayu Manis dan
Stevia,
BoBoiBoy Koko, Susu coklat dengan
Pre-Biotik, Fiber serta
Vitamin D, Kalsium
dan mineral.

Selain itu, ERP21
juga mengeluarkan
produk suplemen
kesihatan berbentuk
kapsul
menggunakan
ekstrak
herba
yang
dihasilkan
oleh
syarikat mereka sendiri.
Kapsul yang dihasilkan
m e n g g u n a k a n
100%
ekstrak
herba
tulen
yang
diproses
menggunakan
saintifik

BizPulse | Issue 12 : January - February 2017

protokol untuk memastikan nilai

mutu yang terjamin tinggi dan seragam
(Standardized Extract).

Kapsul Tongkat Ali Euryco Extract
merupakan salah satu formulasi suplemen
herba kesihatan popular yang dihasilkan
oleh ERP21 dengan menggunakan ekstrak
larut air yand dikeringkan secara Freeze
Dried (pengeringan sejuk beku) untuk
memastikan keberkesanan phytonutrien
agar terus aktif. Kapsul ini di edarkan
dibawah jenama LARAS dan juga AlivEL
untuk pasaran ekspot.

ERP21 juga menyediakan formulasi
dan bahan ekstrak herba seperti Kacip
Fatimah, Manjakani, Misai Kucing
dan Tocotrienol Vitamin E yang siap

diproses untuk digunakan oleh industri

nutraseutikal.
Kesemua produk ERP21 telah
mendapat
kelulusan
Kementerian
Kesihatan dan mempunyai sijil Halal
JAKIM. Di samping itu, produk ekstrak
herba syarikat telah mendapat kelulusan
FDA (Amerika Syarikat) dan JFDA (Japan).

En Rahmat Tambi, Pengarah Urusan
ERP21, telah sudi meluangkan masa
untuk ditemuramah oleh BizPulse barubaru ini bagi berkongsi pengalaman dan
pengetahuan beliau dalam perniagaan
produk kesihatan tambahan.
S: Bolehkah ceritakan secara ringkas
tentang perniagaan anda dan apakah
yang mendorong anda untuk menceburi
perniagaan sekarang?
Syarikat kami mula beroperasi di Kuala
Lumpur bermula pada 2004 dengan
menghasilkan ekstrak herba Tongkat
Ali mengikut protokol saintifik yang
dibina dan diselia oleh penyelidik pakar
dan ahli teknologi pemakanan yang
berpengalaman untuk memastikan kualiti
dan keberkesanan produk.

Di atas faktor kualiti yang tinggi dan
premium, ekstrak herba kami mendapat

BizPulse | Issue 12 : January - February 2017

ANALYSIS
pengiktirafan pelanggan-pelanggan luar
negara dan kini dieksport ke Amerika
Syarikat, Jepun, China, Timur Tengah,
Afrika dan Australia. Kebanyakan
pelanggan antarabangsa kami terdiri
daripada pengeluar produk suplemen
kesihatan tambahan dan nutraseutikal.
Sebelum menceburkan diri di
dalam bidang perniagaan minuman
pra-campuran dan produk kesihatan
berasaskan herba, saya terlibat di dalam
perniagaan teknologi maklumat dan
komunikasi (ICT). Saya telahpun tahu
tentang pelbagai manfaat kesihatan
produk herba daripada pengalaman
keluarga dan isteri. Dan saya pun ada
mengamalkan mengambil beberapa
produk herba sebelum itu. Saya mula
berminat mengikuti perkembangan
industri herba komersial setelah
beberapa tahun di dalam perniagaan
ICT. Kebetulan pula saya mempunyai
sahabat yang berpengalaman dalam
penyelidikan secara saintifik di dalam
bidang herba. Dari situ saya mula
serius untuk menceburi industri herba
berteknologi tinggi dan berpotensi untuk
menembusi pasaran global.
S: Apakah strategi atau konsep
perniagaan anda yang berbeza daripada
pesaing lain?
ERP21 menekankan pentingnya
menjam i n ku al i ti p e mp ro s e s a n
produk esktrak herba kesihatan
yang dihasilkan serta mengelakkan
sebarang
pencemaran.
Oleh
itu,
syarikat menjalankan sendiri rantaian
bekalan (Supply Chain), dari prapemprosesan (iaitu Penuaian Pokok),
sehingga peringkat pemprosesan, dan
seterusnya ke peringkat hiliran dengan
mengeluarkan produk untuk pengguna.
Selain dari kualiti tinggi yang
konsisten, kami juga mementingkan
keunikan rasa, aroma yang menarik
dan keberkesanan bagi kesemua produk
minuman pra-campuran LARAS untuk
kepentingan
kesihatan
pengguna.
Kami menggunakan bahan dan ekstrak
herba berkualiti tinggi yang terpilih
dan didokong oleh pasukan pakar di
dalam minuman kesihatan dan juga
penyelidikan dan pembangunan. Kami
mengawal kualiti produk dari awal
pemilihan bahan mentah hingga ke akhir
proses pengeluaran dengan merangka
dan mengadun produk menggunakan
formulasi yang sentiasa mementingkan
kesihatan dan manfaat pengguna.

Produk yang dihasilkan mestilah
melalui penyelidikan dan pembangunan
berterusan
dan
terkini
(seperti
pengurangan penggunaan gula dan

lemak trans); menggunakan ekstrak

herba-herba berkualiti tinggi serta efektif;
mempunyai kemudahan pemprosesan
lengkap untuk memastikan keunikan
produk dan mengekalkan piawaian
kualiti yang konsisten.

Selain dari menghasilkan produk
minuman pra-campuran dan suplemen
kesihatan
berasaskan
formula
proprietari yang unik dan premium, kami
merupakan pemimpin industri dalam
menghasilkan ekstrak herba di Malaysia
dengan gred saintifik yang terkawal
dan mengikut piawaian bertaraf
antarabangsa. Ini disokong dengan
perolehan sijil GMP (Good Manufacturing
Practice) dan sistem pengurusan kualiti
MS 1480:2007 [Food Safety according
to Hazard Analysis and Critical Control
Point (HACCP) System] yang mematuhi
standard pengeluaran produk-produk
kesihatan
yang
ditetapkan
oleh
Kementerian Kesihatan Malaysia.
Sebagai syarikat IKS dengan
bajet yang terhad, syarikat ERP21
mengusahakan kerjasama menjalankan
projek secara kolaborasi dengan rakan
niaga di luar negara, universiti tempatan
dan universiti luar negara (di Jepun dan
United Kingdom) untuk kajian klinikal
yang dapat membuktikan keberkesanan
produk dan seterusnya memantapkan
lagi keyakinan terhadap produk yang
diguna pakai.
Semangat berpasukan ERP21
amat penting untuk memajukan syarikat
dan menempuh cabaran. Oleh itu,
bimbingan, latihan dan empowerment
amat penting untuk meningkatkan
kemahiran dan gerak kerja secara
berpasukan dan professional.
Kami juga mementingkan
pembangunan insan sebagai
tanggungjawab sosial korporat
(Corporate Social Responsibility)
syarikat dengan menjalankan
latihan untuk Orang Asli bagi
menaik taraf kemahiran dan
ekonomi keluarga yang terlibat.

mendapat permintaan eksport dari luar

negara.

Bagi produk supplemen kesihatan
yang mendapat sambutan baik di
pasaran adalah Tongkat Ali Euryco
Extract (Eurycoma longifolia atau Long
Jack) yang mengandungi ekstrak tulen
Freeze Dried dan larut air berasaskan
kajian
farmakokinetik
di
dalam
bentuk kapsul.
Kami
menghasilkan
ekstrak
tongkat ali Standardized Freeze Dried
100:1. Tongkat Ali telah terbukti untuk
meningkatkan
tahap
testosteron,
anti
penuaan,
themogenik
(baik
untuk
mengurangkan
demam
panas), menguatkan otot dan juga
bertindak sebagai afrodisiak sebagai
bonus tambahan.

Satu lagi produk yang mendapat
sambutan hangat adalah LARAS DwiManja yang menggunakan ekstrak kacip
Fatimah (Labisia pumila) dan Manjakani
yang digunakan secara tradisional
sebagai suplemen khusus untuk
penjagaan kesihatan wanita.
Produk Tocotrienol Vitamin E
yang baru dilancarkan juga mendapat
sambutan yang menggalakan. Produk
ini dihasilkan dari minyak Kelapa
Sawit yang telah dikaji secara saintifik
dan terbukti keberkesanannya untuk
kesihatan jantung serta mengelakkan
penyakit strok dan demensia.
Yang penting produk LARAS
mengenengahkan Kebaikan Semulajadi
untuk Kesihatan (Natural Goodness for
Wellness) ..... Janji LARAS !!!

S: Apakah antara produk

syarikat yang mendapat
sambutan baik daripada
pelanggan?
Pada umumnya,
kesemua
produk
minuman kesihatan pracampuran kami boleh
didapati di pasaraya
ternama seperti Giant,
M y d i n , Te s c o , A E O N
dan mendapat sambutan
menggalakan di kalangan
pengguna tempatan dan juga

Issue 12 : January - February 2017 | BizPulse

11

12

BizPulse | Issue 12 : January - February 2017

KNOWLEDGE SPA

Getting to Yes

Negotiating Agreement Without Giving In

Reviewed by Ahmad Azuar Zainuddin

W
Author : Roger Fisher and
William Ury
Hardcover : 200 pages
Publisher : Penguin Books;
Revised Edition
(1991)

Whether it is discussing
a raise with your boss,
trying to agree with
a stranger on a price
for his house or two
lawyers trying to settle a
lawsuit arising from a car
accident, negotiation is a
fact of life

e are all negotiators. Basically,

negotiation is a means for us to
get what we want from others. It
is the back-and-forth negotiation
designed for us to reach an agreement when
we have some interests that we shared and
others that are opposed.

Although we negotiate every day not
many of us could say that we do it well.
Often people have two approaches to
negotiation; soft or hard. The soft negotiator
wants to avoid personal conflict and readily
makes concessions in order to reach
an agreement. This type of negotiator
often ends up exploited and feeling bitter.
Meanwhile, the hard negotiator sees every
situation as a contest of wills in which the
side that takes the more extreme positions
and holds out longer fares better. This
type of negotiator often ends up producing
equally hard responses; exhausting the
resources and harms the relationship of both
negotiating parties.
In Getting to Yes, authored by Harvard
professors, Roger Fisher and William Ury,
presents a third way to negotiate that is
neither hard or soft, but rather hard and
soft. Developed by the Harvard Negotiation
Project, the method of principled negotiation
where negotiations are decided on merits
rather than a haggling process focused on
what each side says it will and wont do. This
principled negotiation method is hard on the
merits, yet soft on the people. Rather than
tricks and posturing, principled negotiation
shows you how to obtain what you are
entitled to and still be decent. This approach

enables you to be fair while protecting you

against those who would take advantage of
your fairness.

The principled negotiation method is
the central idea of Getting to Yes. In the first
chapter, the authors describe the problems
which arise in using the standard negotiation
strategies of positional bargaining. In brief,
the negotiation strategy produces unwise
agreements due to the interest of saving
face, inefficient as bargaining takes a lot
of time, endangers ongoing relationship
with anger and resentment and extremely
complex when the negotiation involves
many parties. Being nice is also not wise
as it will certainly be more favourable to the
hard positional bargainer.
In the subsequent chapters, the
book expands on the four basic points of
principled negotiation strategy, namely:
Separate the PEOPLE from the problem
Focus on INTERESTS, not positions
Invent OPTIONS for mutual for gain
Insist on using objective CRITERIA

In ending, since its original publication
nearly thirty years ago, Getting to Yes has
helped millions of people learn a better way
to negotiate. The book offers proven, stepby-step strategy for coming to mutually
acceptable agreements in every type
of conflict.
Ahmad Azuar Zainuddin is a Senior Associate at the
Centre for Entrepreneur Development and Research
(CEDAR), a wholly owned subsidiary of the SME Bank
Malaysia. He can be reached at ahmad.azuar@smebank.
com.my.

ENTREPRENEURS EVENT CALENDAR

8-11

March

The Export Furniture

Exhibition

15-17
March

Electric, Power and

Renewable Energy
(EPRE)

23-25
March

Automechanika Kuala
Lumpur 2017

Venue:

Venue:

Venue:

One of the regions most important and

comprehensive event in the furniture
industry provides the ideal accessible
venue and one of the biggest furniture
trade exhibitions of the year. With
more than 300 exhibitors, all the main
Malaysian and many international
brands will be there. It provides the
ideal opportunity and timing to launch
new ranges, make sales and re-engage
with existing customers.

EPRE is Malaysia's flagship show for power

generation and transmission and will focus on
all the current methods of energy generation
placing much emphasis on the increasing
importance of renewable energy in line with the
Government's commitment to increasing the
percentage contribution from non-fossil fuel
sources. Provides unique international content
coupled with the strong local government
support that will enable to maximise on the
business opportunities.

Malaysias leading regional trade fair for the

automotive service industry targeting trade
visitors from ASEAN. As the automotive
market in the ASEAN body continues to
grow, it is becoming increasingly important
for firms to connect with companies and
customers. Automechanika Kuala Lumpur,
the only Malaysian automotive trade show
co-organised with Malaysia Automotive
Institute (MAI) and endorsed by MATRADE,
offering a myraid of business opportunities!

www.efe.my

www.mte.org.my

www.automechanika-kualalumpur.com

Kuala Lumpur Convention Centre

(KLCC)

BizPulse | Issue 12 : January - February 2017

Kuala Lumpur Convention Centre

(KLCC)

Kuala Lumpur Convention Centre

(KLCC)