2006 Malaysia Report

MALAYSIA
TRADE RELATIONS WITH JAPAN
Sponsored section in cooperation with Market Explorer Limited
Report by C. Lawrence
Malaysia
Country Business Report Vol. 4
Clarion Heeds Call For Human Mobile
Music Media Interface
T
he Asian market
for consumer
goods has a wide
base of technology
savvy youth. Heeding the
call for high tech devices
that cater to the market that
grew alongside laptops and
mobile phones, Clarion Malaysia has invested heavily
into research and development to come up with products that are not only attractive to the young Asian market, but could save lives as
well.
With its 60 engineers, Clarion Malaysia together with
its engineering partners in
the United Kingdom, France
and the United States develops new products with cutting-edge technology. “If we
are focused on pricing alone,
we are going to die. Our
competitive advantage is
how fast we can develop
new products with stunning
features and on how we can
create a trend,” said T. Nakazaki, Clarion Malaysia
director
Take for instance its interface between the mobile
phone and the car stereo.
With Bluetooth technology,
Clarion made it possible for
a driver to converse with a
R
T. Nakazaki, Director
mobile phone caller using
the audio from a car stereo.
More high tech human mobile music media interface is
in the offering. iPods can be
played through the car
speaker. Through video
streaming, a DVD movie
playing at home can still be
viewed inside the car provided the vehicle is within a
10-meter radius.
From this January, Clarion
Group unified a new global
brand “Clarion” and renewed its logo and color.
With the launch Clarion
looks to fulfill its customers’
high expectations.
The firm, which supplies car
audio equipment to automobile giants like General Motors, Nissan, Honda, Saab,
Peugeot and Malaysia’s Proton, intends to increase the
local share of its sales by
directly approaching car
manufacturers. Malaysian
motorists can definitely expect more state-of-the-art
car audio products. “After
all, our brand group target is
to give the driving public a
comfortable environment in
the car. Clarion Malaysia
can offer an extensive car
environment to the world
under Malaysian wellappointed infrastructure,”
Mr. Nakazaki said.
Stalheim Industries Bring High Quality
Malaysian Floors to Japan
T
STALHEIM
he Malaysian firm, Stalheim Industries, has been combining
German technology and
South Asian raw materials
to produce high-quality
wood-based laminate flooring materials for the past
eight years. Ninety percent
of its production is exported
to North America, Africa,
Australia and Asia where it
counts Japan, Singapore,
Hong Kong and India
among its lucrative markets.
Stalheim’s competitive advantage is that its laminate
flooring, manufactured usPC Tam, Managing Director
ing technology from Sweden’s Valinge Innovation, is
“Japan expects our shipments to have
water and stain-resistant, more durazero defects.
ble, cost comWhen we propetitive and
duce for Japan
available in
we do a 100
large quantipercent check
ties.
before we ship
Because of
out. We pay
the superior
extra attention
quality of its
to quality conflooring, Staltrol for the Japaheim was able
nese market,”
to penetrate
said PC Tam,
the Japanese
Stalheim’s manmarket in
aging director.
2000. Four
These quality
years later it
controls have
obtained a
www.stalheim.com.my
translated into
certification
increased sales.
from the
Japanese government for the compli- While Stalheim has remained committed to future success in Japan, Euroance of its flooring with the required
pean competitors have given up after
super E0 – F 4-star quality.
2006 Malaysia Report
page 1
Malaysian AE Models Holdings
Serves Customers Globally
one or two years,
and Chinese manufacturers have not
been able to meet
the Japanese expectations.
Stalheim continues
to gain market share
in the Japanese market over alternative
floor products such
as vinyl and hardwood made by competitors. Once it
introduces new features in its flooring
such as thicker floor
boards, a narrower
format, more designs coupled with
glue-free panels that
make installation
easier; it hopes to
gain five percent of
the 70 million square meter wood
flooring market in Japan.
To achieve this target Stalheim is open
to entering into arrangements with
new distributors and representatives in
Japan who can help it better access the
market. “Our company is strategically located to
serve the Japanese
market. As pioneers in producing
wood-based laminate flooring, we
have a proven
track record in
terms of quality
and the ability to
service our export
customers,” said
Mr. Tam.
evered as one
of the leading
providers of
automated
materials handling solutions, Malaysian AE
Models Holdings (MAE)
has created a global network to serve its clients’
needs in and out of their
domestic markets. For
over 15 years, MAE has
prided itself on its dedication to providing a onestop solution to a large
spectrum of industries.
Services include consultancy, design, manufacture, installation, maintenance, system integration
and management of materials’ handling solutions
suited for each customer’s needs and budgetary requirements. Setting MAE apart from the
competition is its ability
to provide advanced solutions for small to medium
sized volumes in the
service. So we are right
there in China to serve
them.”
Collaborating with its
technical partners, Maruyasu Kikai, Bando
Chemical and Vanriet,
MAE meets its Japanese
clients’ demands. In its
quest to be a global
player in this industry,
MAE is looking to create
new technical partnerships in the future.
This autumn, it will open
up a new office in Japan
Datuk Dr. Jimmy K.S. Lim, CEO
for the purpose of sourcing and marketing. Many
pharmaceutical, food and in and outside of Japan.
To complement its activi- of its suppliers of raw
bottling, packaging and
materials are already
ties in Malaysia, MAE
automotive industries.
from the Japanese market.
has set up a factory in
Present throughout the
China. According to Da- Utilizing its long history
Asian region, MAE has
tuk Dr. Jimmy K.S. Lim, of know-how and expericompleted successful
chief executive and group ence in this industry,
projects for notable cliMAE will follow internaents including Panasonic, managing director of
MAE, “Japan is impor- tional trends in providing
Sony, Sharp, Seagate,
Intel, IHI and Toyota.
tant to us because when a high quality, total mateToday, 60 percent of its
a lot of Japanese compa- rials handling solution to
its customers.
customers are Japanese
nies set up in China,
companies operating both they need support and
Goodmaid Chemicals Builds A
Quality Brand
G
oodmaid
Chemicals
produces efficient, effective and economical
cleaning agents that cater
to all its users’ needs.
Homemakers appreciate
both the quality and effectiveness of the products. The company also
produces products for
industrial buyers, like
hospitals, hotels, factories
and facility management
companies. In addition, it
produces OEM products
for major retailers with an
emphasis on quality.
Its “total cleaning solution” is comprised of six
categories, with over 25
products: floor and laundry care, fabric softener,
dish washing liquid,
bleach and surface cleaners. Its quality ranks with
that of multinational
brands, and low manufacturing costs in Malaysia
enable competitive value
pricing.
Goodmaid will consider
new categories, either
through its own brand,
via acquisition or even
partnership with overseas
local wholesalers and
distributors, and even
multinational distributors.
A different model applies
to industrial customers,
who serve as expert partners. They often distribute to other cleaning companies.
A major customer, Singapore Esplanade Bay, uses
Goodmaid’s range of
industrial products. A
leading retail chain there
is also its OEM customer.
Lim Bing Tik, CEO
Goodmaid’s next step is
to penetrate the high end
brand owners. The firm is executive of Goodmaid
of the Japanese market,
constantly developing
Chemicals. Mr. Lim,
by offering OEM brands.
new eco-friendly prodwho brings 20 years’
It also plans to expand its
ucts, such as its Goodsales and marketing exdistribution in Japan, by
maid Bio range. These
perience, is building an
cleaning products consist integrated brand through setting up a network of
agents to market both its
media
advertis- household and industrial
ing, PR brands.
“With good partners, we
and
can have a sizeable martrade
ket share in the household
fairs.
and industrial cleaning
With
exports market,” said Mr. Lim.
Goodmaid Chemicals office
in over “Japanese consumers
20 countries, he hopes to are looking for high
of natural ingredients,
expand overseas turnover quality products,
which are environmenfrom 15 to 40 percent.
tally safer.
which we are ready to
On the consumer side, a
“Our vision is to be a
produce.”
Malaysian global brand,” sales and marketing mansaid Lim Bing Tik, chief agement team supports
Monday, November 20, 2006 17:53
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MALAYSIA
TRADE RELATIONS WITH JAPAN
Pong Codan Rubber
Expands Market
Adabi Spices Up The Japanese Market
T
apping the vast
rubber resources of Malaysia, Pong
Codan is expanding its
product line of solid and
sponge rubber profiles,
shaped hoses and molded
products for the international industrial and automotive original equipment
manufacturers (OEM).
In 1988, Pong Codan was
established as an import
substitution company.
Working closely with its
technical partners Codan
Gummi, Pongpara Codan
Rubber and Toyoda Gosei, it has become Malaysia’s top manufacturer of
rubber products used in
the automotive industry,
industrial hoses and
molded rubber products.
The only rubber product it
does not produce for vehiKam Cheong Loong, General Manager
cles are the tires. Local
and foreign car manufacMalaysia means Pong
umes.
turers such as Mercedes
Codan has to work harder,
“Other companies view
Benz, Ford and homeconstantly find sources of
the small volume as an
grown Proton and Peronew technology and abide
obstacle to growth. We
dua are just a few of its
by best working practices.
instead develop ideas to
OEM customers.
Because of the small Ma- find a solution,” said Kam To achieve this, Pong
Cheong Loong, Pong Co- Codan will collaborate
laysian automobile marwith its existing technical
dan’s
ket,
general partners or new ones.
about
Pong Codan is looking to
manoneform new license partnerager.
third of
In addi- ships in Japan, primarily
its
for its hose segment, to
tion,
prodhelp maintain its top spot
Pong
ucts
Codan in Malaysia and to secure
are
a place in the international
has
exPong Codan office building
marketplace.
emported
ployed shorter lead proto overseas OEMs, with
“We want to continue
Japan as its biggest mar- duction time, shorter
to become better and
ket. To compete globally, change time and simple
grow our market in
tools to install or remove Japan. We ask Japan
the firm has adapted a
flexibility policy with the the rubber parts from its
to give Malaysia a
mould and machines.
ability to custom-make
chance,” said Mr.
Being a top company in
products in small vol-
Kam.
T
ment of a spice packet
wenty-three years ago,
for fish soup that neuDato’ Syed Manshor
Syed Mahmood and his tralizes the fishy smell
wife began hand-mixing – a first. The company
curries from old family recipes and is also working on new
canned soups and
marketing them under the brand
name Adabi. Today, Adabi Consumer Industries
has earned a reputation among Malaysian cooks as a
leading purveyor
of wholesome
goods worthy of
the slogan, “Food
for Kings.” Japan,
where the brand
already has a limhealthy herbal
ited presence,
products.
could soon be
Adabi fried rice
getting a bigger
mixes are availtaste of Adabi too.
Dato’ Syed M. Syed Mahmood able in Japan,
Adabi makes 50
where the comproducts, includpany has been selling through an
ing curries, fried rice mixes, soy
sauce and seasoned flour. It is also importer for five years. It is now
looking for a partner to help it furMalaysia’s biggest provider of
powdered soup mixes, its highest ther penetrate the market. “The
Japanese market is
selling product.
very complex and
As Adabi grows, it
very controlled,”
continues to invest in
says Syed Mahresearch and developmood, the comment. Those efforts
pany’s chief execuled to the develop-
toward the business.
One challenge Dato’ Syed Mahmood already foresees: an incorrect image of Malaysia as dirty and
unhealthy, especially among Japanese people who have never been
to Malaysia.
“Our food is natural and you
can eat it without worrying
about diseases,” he says.
“Our health laws are strict
and our food is safe to be consumed.”
tive. “Without a good partnership
it will be nearly impossible for us to do
this.”
Dato’ Syed Mahmood
is looking for a medium-sized partner to
help research the right
formulations for the
Japanese palate,
which is more sensitive to heavy spices
than Malaysia’s. He
says the partner
should be ready to invest in promotions and take a long-term view
Adabi plant site
Ceramiche Guocera Means More Than Just Tiles
G
tralia, tailoring specific styles to
uocera offers more
each geographical market.
than just tiles, or
Guocera’s tagline is “One stop
“coverings”, as they
are known in the trade. shop center”. Managing director
Richard Ng said:
It has created
“We are one of the
an ambience
few companies in
and lifestyle
the world that ofbrand to emfers a complete
brace the
range of ceramic
home, by
tiles; wall, floor,
assimilating
porcelain, mosaics
its products to
and third firing
natural mateproducts.” The
rials like
firm collaborates
stones or
with key Spanish
wood.
and Italian designWith a 30
ers, complementpercent maring its own inket share, the
house design team.
firm is the
Going forward,
leading
Guocera is buildmanufacturer
ing capacity, setof ceramic
Richard Ng, Managing Director
ting up facilities in
tiles in Malaysia, where it operates four fac- China and Vietnam. It is also expanding capacity in its Malaysian
tories and an R&D center. It exoperations, to grow from the curports about half its wares, prerent 28 to 62 million square meters
dominantly to Europe, the US,
Canada, the Middle East and Aus- per annum. With added volume, it
corporate values
plans to penetrate
are built upon the
the mid to high
eight tenets: Qualend of the Japaity, Entrepreneurnese market. It
ship, Innovation,
perceives a winHonor, Human
dow of opportuResources, Unity,
nity emerging
Progress and Social
there.
Responsibility.
Guocera already
“We want to do
sources raw matebusiness with
rials and equiphonor,” said Mr.
ment from Japan.
Ng. He allocates
Its suppliers have
the firms profits
been facilitating
among shareholdintroductions to
ers, employees and
potential Japanese
Guocera tile floors
projects for social
partners for distriresponsibility.
bution. Its business model is to orchestrate the
whole value chain from suppliers, “From the wealth we create,
distributors, retailers, manufactur- our social responsibility is for
ers and other support providers in the betterment of society, we
a tightly aligned and coordinated
give back each year to scholfashion.
arships for students, and
While it seeks a distributor with
excellent logistics for a long-term homes for children and destitute.”
relationship, Guocera insists the
partner share its uncompromising
corporate vision and mission. Its
Rubberex Gloves Keep Hands Safe Globally
F
or the past 10 years, the Japanese government has been
encouraging consumers to
replace their nonbiodegradable PVC gloves with more
environmentally-sound solutions. Rubberex, a manufacturer of general purpose and industrial gloves, is able to
offer these solutions.
The firm, listed on the Kuala Lumpur
stock exchange, and ranked number
three globally, sells 150 million pairs of
gloves each year of different varieties
in over 100 countries. “We offer a onestop center for gloves under one roof,”
said Khoo Thiam Chye, senior general
marketing manager at Rubberex.
Rubberex has been in the Japan market
since 1991. It is able to deliver to the
market’s unique quality requirements
due to its technical know-how and constant product development. Rubberex
is now among the top players in Japan,
supplying a wide range of products,
including disposable, supported and
unsupported gloves.
One of the most popular models, created specifically for the Japanese user,
2006 Malaysia Report
page 2
vents is quite
harmful, even
causing cancer.
With its multiple product
ranges, Rubberex offers
the right glove
for the right
application,
Rubberex plant site
increasing
safety for its
countries. Since 1994, the firm has
users.
been collaborating with a German laboThe company hopes to attract even
ratory, to monitor latex allergen conmore Japanese customers to those it
tent.
currently serves in Malaysia. Automakers like Toyota, Nissan and Mitsu- “As a country and company, our
Kok Koh Ping, Managing Director
bishi are already major customers there, knowledge in rubber glove prois the Maxx Grip with a natural rubber as are almost all local car manufactur- duction is second to none. We are
ers.
coating over a breathable knit glove.
very good on the technical side
Domestic Japanese building contractors To increase awareness in the Japanese
and on the production side,” said
market, Rubberex attends all major
have been using Rubberex products
since the government mandated all as- trade shows such as the Osaka and To- executive director Voon Chong
Kian.
kyo DIY shows. It is looking to form
bestos insulation be replaced.
Currently in Japan, vinyl gloves, which partnerships with new distributors in
have no resistance against oils, fats and Japan and Malaysia, with different dissolvents, are primarily used. Using the tributors for various product segments.
wrong glove in direct contact with sol- Rubberex gloves are CE marked in EU
Monday, November 20, 2006 17:53
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