DATELINE - ea, Inc.

DECEMBER 2005
DATELINE
THE VOICE OF U.S. BUSINESS IN MALAYSIA
Malaysia: Catching the Wave of Foreign Direct Investment in 2006
PRESIDENT’S MESSAGE
AMCHAM HIGHLIGHTS
2005 YE Program Achievers’ Showcases 4
MIDA Business Information Centre
6
ISSUES & POLICY UPDATES
MIOC Highlights
Third Wave of Globalization
- Offshore Outsourcing
Advertising Opportunities 2006
Budget 2006 Highlights
Avian Flu
OTHER HIGHLIGHTS
Lincoln Corners Malaysia
AMCHAM EVENTS
Upcoming Events Schedule
16
AMCHAM MEMBERS
Member Highlights
New Members
19
20
AMBASSADOR’S PAGE
1
3
7
AMERICAN MALAYSIAN CHAMBER OF COMMERCE
8
10
11
12
15
Volume 10 Issue 6 KDN PP3800/6/2006
AMCHAM PRESIDENT’S MESSAGE
AMCHAM
DATELINE
Dear Members,
Dateline is a bi-monthly journal
of AMCHAM Malaysia, and it
is distributed free to members,
government officials, the media, and
other relevant parties. The views
expressed do not necessarily reflect
those of AMCHAM or its members.
All material is copyright protected.
The last quarter of 2005 began with the Budget 2006 announcement
by Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is also the
Finance Minister of Malaysia. The Chamber is supportive of the policies
outlined by Prime Minister Abdullah in his Budget address on
September 30.
Volume 10, Issue 6, December 2005
Publications Staff
Wong Yoke Cheng, Editor
Barbara Devaraj, Advertising Sales
Design & Layout
Tre-Van Mark Sdn Bhd
Board of Governors
Vince Leusner
President
Datuk Tim Tariq Garland P.J.N
Immediate Past President
Tom Scott
Vice President
Karen Albertson
Martin Axe
Rick Bender
Datuk Paddy Bowie
Anand Chelliah
Stuart Dean
The 2006 Budget is supportive of the business community, both from
the perspective of foreign investors, and in helping to strengthen and
develop further the capabilities of local SMEs/SMIs. The policies and
incentives proposed, particularly those relating to increased support for HR training and skills
development, are important to Malaysia’s future, and will help to make the nation more competitive in
the coming years. The Malaysian government has done well in improving the quality, efficiency, and
responsiveness of public service and government’s delivery system in recent years, and continued
focus on this area will help to ensure that American and other foreign direct investment (FDI)
continues to grow in 2006 and beyond.
On September 22-23, 2005, I visited Penang, in conjunction with the Malaysian American Electronics
Industry (MAEI)’s quarterly meeting, and had the opportunity to meet with several key officials,
including: YB Dato’ Dr. Toh Kin Woon, Chairman of Penang State Economic Planning; Dato’ Nazir
Ariff, Chairman of the Malaysian International Chamber of Commerce & Industry (MICCI)’s Penang
branch; Dato’ Boonler Somchit, CEO of Penang Skills Development Center (PSDC), and Zailena
Noordin, CEO of Invest Penang. I also toured Dell’s and Intel’s manufacturing facilities, and
participated in MAEI’s quarterly meeting, to get a more in-depth view of the committee’s activities,
and important issues affecting these companies.
Robert Fisher
Piyush Gupta
Naser Jaafar
John Latham
C.F. Lee
To further enhance our working relationship with the Malaysian government and to explore additional
opportunities and services for foreign investors in Malaysia, several Board members, AMCHAM staff,
and I visited the Malaysian Industrial Development Authority (MIDA)’s Business Information Centre on
October 11, 2005.
Lim Beng Teck
Patrick Lockwood-Taylor
Valerie Lynn
Greg Nelson
Mike Pease
Dato’ Robin Seo
On November 8 and 14, AMCHAM hosted the AMCHAM 2005 Young Enterprise Program Achievers’
Showcases in Penang and Kuala Lumpur, respectively. These annual awards were introduced to
recognize and encourage higher standards of excellence in the performance of companies involved
in the Young Enterprise (YE) Program. I am proud to note that since its inception, more than 7,000
students have participated in YE.
Paul Walters
Yoon Khai Cheow
Datuk Nicholas Zefferys P.J.N
Honorary Governors
Colin Helmer
Economic Counselor, U.S. Embassy
Don McCloud
In this issue of Dateline, we will feature several articles by members on the recent 2006 Budget
highlights on proposed tax measures, offshore outsourcing, and the threat of the avian flu epidemic.
In 2006, there will also be a change in the publication dates for Dateline. The magazine will be
published three times in a year (i.e., April, August and December.) Keep a look out for Dateline, where
we will provide you with more in-depth reports on current issues and policies.
Executive Director, MACEE
C.B. Teh
Co-Chairman, Young Enterprise Program
Dato’ S.H. Wong
Chairman, MAEI
Joe Kaesshaefer
Please do not hesitate to contact AMCHAM at (60-3) 2148 2407 or [email protected], if you
would like more information on our activities and services. We look forward to your involvement and
participation in the New Year and beyond.
Commercial Counselor, U.S. Embassy
Best Wishes and a Happy New Year!
Ex-officio Board Member
Dom LaVigne
Sincerely,
Executive Director
AMCHAM MALAYSIA (Co. No. 37216W)
11.03-11.05, Level 11, AMODA
22 Jalan Imbi, 55100 Kuala Lumpur
Tel
: (60-3) 2148 2407
Fax
: (60-3) 2142 8540
e-mail : [email protected]
Web : www.amcham.com.my
Vince Leusner
President
DECEMBER 2005 • AMCHAM Dateline • 1
U.S. AMBASSADOR’S PAGE
Dear AMCHAM Members,
When I traveled with other U.S. Ambassadors from this region to the U.S. for the annual ASEAN
Ambassadors’ Tour, I was surprised by how quickly the focus of the questions we were asked
turned from Southeast Asia to China. I returned thinking that ASEAN countries, including
Malaysia, needed to work harder to raise their profile in the U.S. Recently, however, I’ve come
to appreciate that the U.S. needs to work harder to raise awareness of its economic
partnership with Malaysia. As I noted in my last letter in this space, the U.S. and Malaysia
have enjoyed a strong and fruitful relationship since this country’s independence, but it’s
surprising how little of this is known to the general public.
For example, according to United Nations statistics, in 2003 Malaysia imported goods worth
93% of its GDP and exported goods worth 114% of its GDP. Only a few economies report a higher level of integration with
the world economy. Malaysia’s position as one of the world’s most successful trading nations drives its socioeconomic
development, but trade is a two-way street. Which countries have played the biggest role in Malaysia’s trading success?
According to MITI statistics, the U.S. receives about 19% of Malaysia’s exports, followed by Singapore with 15%, Japan with
10% and China with around 7%. Moreover, it’s a reasonable bet that many of the exports Malaysia sends to its other big
trading partners also end up being re-exported to the U.S. in some form, suggesting that the U.S. role in Malaysia’s export
success is even larger than is indicated by the raw numbers.
Despite this, a glance through the morning paper would give a different impression. There the headlines are about new markets
and predictions that others will soon become Malaysia’s most important economic partners. New friendships make better copy
than old ones, of course, and everyone acknowledges that new and rapidly growing economies are going to generate big
changes in the global economy. But what remains to be seen is the effect the entry of these new players will have on Malaysia.
Will their imports from Malaysia outweigh the losses Malaysia is likely to experience in other markets as the new entrants expand
their manufacturing base? And will those new partners provide the continuing flow of foreign capital and technology that have
been key to Malaysia’s success and that help support rising standards of living here? I firmly believe the U.S. will remain
Malaysia’s most important economic partner for years to come, but we need to work harder to remind the Malaysian people of
the great relationship we share, and persuade them to work with us to grow and enhance it for future generations.
At the Embassy, we have been exploring new avenues for outreach. One vehicle has been the “Doing Business with the USA”
seminars we have hosted with the Federation of Malaysian Manufacturers (FMM) and MATRADE, and that we hope to hold with
other influential organizations. I and other members of the Embassy are trying to do more public speaking, going not just to the
usual round of foreign affairs symposia, but also to universities, investment conferences and basically any venue that will have
us. We’ve opened six Lincoln Corners that offer the best of U.S. information and culture, and amazing research capabilities, and
we have plans to open two more. I think we’ve made a good start, but I plan to focus even more energy and attention on this
challenge in the months to come. I’d welcome your ideas and support for our effort to tell the real story about the
U.S.-Malaysia relationship.
Sincerely
Christopher J. LaFleur
Ambassador
AMCHAM HIGHLIGHTS
2005 YE Program Achievers’ Showcases
AMCHAM held the highly anticipated 2005 Young Enterprise Program Achievers’ Showcases in Penang and Kuala Lumpur
on November 8 and 14, respectively.
These annual awards were introduced to recognize and encourage higher standards of excellence in the performance of
companies involved in the Young Enterprise (YE) Program. The 2005 YE Program Achievers’ Showcase is the successful
culmination of a nine-month program in which students created and ran their own mini-businesses at their respective schools.
The YE Program taught students about entrepreneurship, and gave them a hands-on opportunity to learn about the day-to-day
aspects of the business world.
YAB Tan Sri Koh Tsu Koon, Chief Minister of Penang, and The Honorable Christopher J. LaFleur, U.S. Ambassador to Malaysia,
attended the respective Penang and KL events, where they spoke and presented the awards.
The highlight of the events was the presentations made by the winning teams on their experiences of running their own
companies. It was also a time of recognition for the sponsors’ financial support and tremendous contributions of their staff,
who mentored students weekly throughout the 2005 YE Program.
Ambassador LaFleur said, "The Young Enterprise Program exposes Malaysian young people to the fundamentals of business,
and as they develop entrepreneurial skills, they will have an extra edge in the increasingly competitive job market." He added,
"U.S. firms in Malaysia consistently have been good citizens, giving back significantly to the community. The Young Enterprise
Program is just one more example of U.S. commitment to the international communities in which we live and serve."
“The YE Program has transcended from an initial school project to a platform to nurture Malaysian young people in developing
managerial and entrepreneurial skills. The YE Program is also in line with Citigroup’s global community efforts to promote
financial literacy,” said Piyush Gupta, Chief Executive Officer of Citibank Berhad, and co-Chairman of the YE Program.
Citigroup sponsored two of the 2005 Young Enterprise Achievement Awards, which were The Best Product Award and The
Best Annual Report Award. The Best Product Award selected winning products based on their creativity, production process,
planning and marketability. The Best Annual Report Award emphasized the development of clear financial reports, relevant
corporate information, and good command of the English language.
In line with the Multimedia Super Corridor (MSC)’s objective to encourage the use of Information Communication Technology
(ICT) and to develop local Technopreneurs (Technology Entrepreneurs), the Multimedia Development Corporation (MDC) has
introduced two new awards for the Central Region in 2005 which are The Best Use of ICT and The Best Enterprise Awards.
AMCHAM thanks the Citigroup Foundation, the Malaysian American Electronics Industry (MAEI) and all other corporate sponsors
and their schools for their involvement in the 2005 Young Enterprise Program.
AMCHAM would also like to give special recognition to Nor Hayati Yahaya, Country Manager of the Motion Picture Association
(MPA), for MPA’s generous sponsorship of free movie passes to the winning teams in the Central Region, who attended the
premiere showing of “Harry Potter and the Goblet of Fire.” This screening took place as part of MPA’s nationwide campaign to
promote IPR and anti-piracy efforts.
If your organization is interested in becoming a supporter for the 2006 YE Program, please contact Barbara Devaraj at
[email protected] or ( 60-3) 2148-2407.
DECEMBER 2005 • AMCHAM Dateline • 4
AMCHAM HIGHLIGHTS
2005 YE Sponsors
Advanced Micro Devices/FASL
Agilent Technologies
American Home Assurance
American International Assurance
Bumiputra-Commerce Bank
Citigroup Malaysia
Dell Asia Pacific
Federal Express Services
Freescale Semiconductor
GE Engine Services Malaysia
IBM Malaysia
Intel Technology
KESM Industries
Komag USA
Malaysian Automotive Lighting
Motorola Technology
Multimedia Development Corporation
Nestlé (Malaysia)
2005 YE Achievement Awards
ON Semiconductor
Osram Opto Semiconductors
Penang Seagate Industries
Shangri-La Hotel, Penang
STATS ChipPAC Malaysia
Texas Instruments
Tractors Malaysia
Universiti Sains Malaysia
Western Digital Malaysia
2005 YE Achievement Awards
Central Region
Northern Region
The Best Product Award
Winner
: SMK Wangsa Maju Sek. 5
STATS ChipPAC Malaysia
The Best Product Award
Winner
: Penang Free School
Osram Opto Semiconductors
1st Runner-Up
: SMK Wangsa Maju Sek. 2
Citigroup Malaysia
1st Runner Up
: SMK Bukit Jambul
Advanced Micro Devices/FASL
2nd Runner-Up
: SMK Damansara Utama
Federal Express Services
2nd Runner Up
: SMK Tanjung Bunga
Universiti Sains Malaysia
3rd Runner-Up
: St. John’s Institution
American Home Assurance and
American International Assurance
3rd Runner Up
: Union High School
Citigroup Malaysia
The Best Annual Report Award
The Best Annual Report Award
Winner
: St. Xavier’s Institution
Shangri-La Hotel, Penang
Winner
: SMK Subang Utama
GE Engine Services Malaysia
1st Runner-Up
: SMK Damansara Utama
Federal Express Services
1st Runner Up
: SMK Dato’ Onn
Dell Asia Pacific
2nd Runner-Up
: SMK (P) Sri Aman
Western Digital Malaysia
2nd Runner Up
: Methodist Girls’ School
Penang Seagate Industries
3rd Runner-Up
: SMK Wangsa Maju Sek. 2
Citigroup Malaysia
3rd Runner Up
: SMK Bukit Gambir
Komag USA
The Best Use of ICT Award
Winner
: SMK Subang Utama
GE Engine Services Malaysia
1st Runner Up
: Sekolah Alam Shah
Multimedia Development Corporation
2nd Runner Up
: SMK Dengkil
Multimedia Development Corporation
3rd Runner Up
: SMK Assunta
Multimedia Development Corporation
The Best Enterprise Award
Winner
: SMK Subang Utama
GE Engine Services Malaysia
YE Challenge Trophy for The Best Managed YE Company
(Prizes sponsored by Dell Asia Pacific Sdn. The YE Challenge Trophy is
courtesy of Agilent Technologies)
Winner
: Penang Chinese Girls’ High School
Agilent Technologies
1st Runner Up
: SMK Kampung Kastam
Universiti Sains Malaysia
2nd Runner Up
: Chung Ling High School
Intel Technology
3rd Runner Up
: SMK Sg. Ara
Malaysian Automotive Lighting
DECEMBER 2005 • AMCHAM Dateline • 5
AMCHAM HIGHLIGHTS
MIDA Business Information Centre
On October 11, 2005, AMCHAM organized a visit to the Malaysian Industrial Development Authority (MIDA)’s Business
Information Centre (BIC) for several Board members and staff from AMCHAM’s Executive Office.
Vince Leusner, AMCHAM’s President; Tom Scott, the Chamber’s Vice President; Don McCloud, Honorary Governor and
Executive Director of MACEE; Valerie Lynn, Governor; Ray Castillo, Economic Officer from the U.S. Embassy; Dom LaVigne,
AMCHAM’s Executive Director; and several Chamber staff were given a tour of the BIC by Yeow Teck Chai, Deputy Director
General II, N. Rajendran, Deputy Director - Foreign Investment Promotion Division, and Puan Rahimah Othman, Manager of
MIDA’s Library Management Division.
MIDA's Business Information Centre, located at Plaza Sentral in Kuala Lumpur, is a convenient, one-stop resource center with
free access to useful and authoritative information on investment, trade, financing, productivity, and services, particularly on
Malaysia's manufacturing and related services sectors. There are comfortable meeting areas located just above the BIC, where
investors can read or discuss their investment-related inquiries with a BIC Duty Officer.
After the tour, Datuk R. Karunakaran, Director General of MIDA hosted the group for lunch at the Hilton Kuala Lumpur. AMCHAM
would like to thank Datuk Karu, Yeow Teck Chai, N. Rajendran, and Puan Rahimah Othman for their hospitality and for taking
time out of their busy schedules to give the AMCHAM Board members a tour of the BIC.
Chamber members who are interested in the BIC’s services should contact MIDA at http://www.mida.gov.my, by e-mail at
[email protected], or by phone at (60-3) 2267 3716.
Yeow Teck Chai, Deputy
Director General II of MIDA
showing Vince Leusner,
President of AMCHAM,
one of the information
kiosks available at the BIC.
Datuk R. Karunakaran, Director
General of MIDA (left) with Vince
Leusner, President of AMCHAM at
the Hilton Kuala Lumpur.
From left to right: Dom LaVigne, Executive Director
of AMCHAM, Valerie Lynn, Governor, Vince
Leusner, President of AMCHAM, and Ray Castillo,
Economic Officer at the U.S. Embassy, tour the
BIC’s facilities.
DECEMBER 2005 • AMCHAM Dateline • 6
OTHER HIGHLIGHTS
Lincoln Corners Malaysia
By Gerard George, Director of Lincoln Resource Center
With the opening of the Lincoln Corner Perpustakaan Kuala Lumpur, the U.S. Embassy has established six
Corners across the country where significant American books, poster exhibits, CD-ROMs, DVDs, and several U.S.
electronic databases are accessible to the Malaysian public, free of charge. Another Lincoln Corner will soon be
opened in Johor, which has also expressed interest to host one.
To promote better understanding between the U.S. and Malaysia, the U.S. Embassy is working with various Malaysian public
libraries to host “Lincoln Corners,” (small branches of the Lincoln Resource Center) to enable the Malaysian public to access
accurate, timely and adequate information about the United States.
Lincoln Corners are special collections covering a broad spectrum of topical issues with materials that are not generally found in
most Malaysian public libraries. These special collections focus on American history and government, literature, art, culture,
business, trade and commerce, educational opportunities, statistics, travel information, religious and cultural diversity,
biotechnology, sustainable development, rule of law and civil rights, etc. Books and magazines on American sports, hobbies,
fashion and entertainment and those which appeal to young children are included.
The Lincoln Corners are also venues where Malaysians and Americans meet to discuss topics of mutual interest. To support
these initiatives, the U.S. Embassy has presented to the Lincoln Corners in KL, Melaka, Sabah, and Sarawak, digital video
conferencing equipment (DVC), in order to permit U.S. experts who cannot travel to Malaysia, to confer in “real time” with their
Malaysian counterparts, and to broaden the U.S.-Malaysia experience. Today, Lincoln Corners are located at:
Lincoln Corner Kuala Lumpur
Kuala Lumpur (City) Library
No. 1, Jalan Raja, Kuala Lumpur
50050 Kuala Lumpur
Tel:
(60-3) 2612 3500
Fax: (60-3) 2693 7313
E-mail: [email protected]
Lincoln Corner Kelantan
Jalan Mahmood
15200 Kota Bahru
Kelantan
Tel:
(60-9) 744 4522
Fax:
(60-9) 748 7736
E-mail: [email protected]
Lincoln Corner Melaka
Melaka State (City) Library
Tingkat 1, Dewan Hang Tuah
75572 Melaka
Tel:
(60-6) 282 4859/861
Fax:
(60-6) 282 4749
E-mail: [email protected]
Lincoln Corner Sabah
Sabah State (City) Library
Jln Tuanku Abdul Rahman
Kota Kinabalu, Sabah
Tel:
(60-88) 260 526
Fax:
(60-88) 267 167
E-mail: [email protected]
Lincoln Corner Sarawak
Pustaka Negeri Sarawak
Jln Pustaka, Off Jln Stadium
93050 Petra Jaya
Kuching, Sarawak
Tel:
(60-82) 441 853
Fax:
(60-82) 449 944
E-mail: [email protected]
Lincoln Corner Terengganu
Terengganu State Public Library
Jln Kemajuan, Padang Hiliran
21572 Kuala Terengganu
Terengganu
Tel:
(60-9) 622 1100
Fax:
(60-9) 622 1534
E-mail: [email protected]
For further information on Lincoln Corners, go to http://malaysia.usembassy.gov/lincoln/lincoln.htm
From left to right: The Honorable Christopher J. LaFleur,
U.S. Ambassador to Malaysia, Ambassador Karen Hughes,
Under Secretary for Public Diplomacy and Public Affairs, and
Encik Sariffuddin, Director of Administration, Dewan Bandaraya,
at the opening of the Lincoln Corner Perpustakaan Kuala Lumpur
on October 23, 2005.
DECEMBER 2005 • AMCHAM Dateline • 7
ISSUES AND POLICY UPDATES
MIOC Highlights
Vince Leusner, AMCHAM’s President, and Dom LaVigne, the Chamber’s Executive Director, represented the Chamber at the
quarterly Malaysia Inc. Officials Committee (MIOC) meetings, chaired by Tan Sri Samsudin bin Osman, Chief Secretary to the
Malaysian government, on August 29 and November 21, 2005 in Putrajaya. AMCHAM received positive outcomes on several
legislative items submitted at past MIOC forums, and made several recommendations on other areas affecting its members.
Legislative Successes
1.
Amendments to the Moneylenders Act of 1951
In November 2003, amendments were made to the Money Lenders Act of 1951, which required any person who lended
money to others for a consideration of a larger sum than being repaid, to have a valid license for conducting such a business.
The well-intentioned legislation, which sought to restrict the activities of ah long and other illegal moneylenders, would also
cover legitimate inter-company loans, corporate loans to staff, etc.
At the August 29 meeting, MAMPU officials announced that an Exemption Order for companies not primarily involved in
moneylending activities was signed by the Honorable Minister of Housing and Local Government (MHLG), and was gazetted
on July 14, 2005. AMCHAM appreciates the hard work of the MHLG, Attorney-General’s Chambers, and other government
agencies in resolving this issue.
2.
Tax on Personal Digital Assistants (PDAs)
In late 2004, AMCHAM expressed concerns regarding the Malaysian government’s decision to impose a 10% tax on PDAs
with GSM capabilities (i.e., WiFi, Bluetooth features). The Chamber felt that this policy decision could have negative
implications for Malaysia’s ICT industry.
The Ministry of Finance (MOF) has agreed to grant a 10% sales tax exemption on PDAs with wireless connectivity (i.e., PDAs
with GSM capability). An Exemption Order under the Sales Tax Act of 1972 is being prepared for gazette and will be
enforced shortly.
AMCHAM appreciates the intensive review which MOF and Royal Malaysian Customs undertook on this issue, and their
continuous consultations with the Chamber and its members, to find a solution in the best interests of all parties concerned.
3.
Age Limits for Expatriate Teachers
The age limit for expatriate teachers employed in schools in Malaysia was recently lowered from 65 to age 60. It was
AMCHAM’s understanding that expatriate teachers – upon reaching the age of 60 – would not be allowed to extend their
work permits and would need to leave the country. The Chamber knew of five specific cases of teachers who were recently
affected by this policy change.
Given that Malaysia has a severe shortage of highly-qualified teachers, and that older teachers bring a wealth of experience
which can benefit future generations, AMCHAM felt that this policy was counterproductive to Malaysia’s goal of developing
further the capabilities and skills of the country’s youth.
The Chamber advocated for a complete removal of all age-related restrictions on expatriate teachers in Malaysia, and that
continuation of the teachers’ work visas should be subject to renewal by their respective schools (in conjunction with
approval by the Ministry of Education (MOE)). Additionally, AMCHAM indicated that renewal of work permits for teachers is
usually done on an annual basis, and should be standardized to a two-year period, as per the normal DP-10 approval
process for most expatriates.
The Ministry of Education recently agreed to relax the age limit of expatriate teachers teaching in international schools or
expatriates schools until the age of 65, with the following conditions:
•
•
•
•
He/she had undergone a health examination from registered clinics and does not have any indication of unhealthy
symptoms.
The subject that is being taught must be a tough subject or critical.
The institution agrees to employ the teacher of the particular country.
The institution prepares an agreement/a contract clearly stating that the applicant has his/her own insurance.
DECEMBER 2005 • AMCHAM Dateline • 8
ISSUES & POLICY UPDATES
AMCHAM greatly appreciates the very quick response by the Ministry of Education, and its help in reviewing these guidelines
and making the relevant amendments.
However, the Chamber is following up on part of its original request which was not amended. AMCHAM believes that expatriate
teachers should be given two-year work permits, which is consistent with the normal DP-10 Immigration process for most
expatriates living and working in Malaysia. Expat teachers in Malaysia are currently on one-year work visas.
New AMCHAM Issues
1.
Standardized Identity Cards for Direct Selling Distributors
Malaysian government officials met with representatives from the direct selling industry in February 2005, to announce the
government’s intention to require all direct selling companies (DSCs) to comply with a standardized, government-issued ID
card system for their distributors. Currently, each DSC issues its own ID card to its distributors.
AMCHAM members in this sector were against this proposal, believing that it would have a detrimental impact on the
RM5.05 billion direct selling industry in Malaysia. The current ID system was seen as working very well, and it was believed
that the new proposal would add unnecessary costs and bureaucratic red tape. While companies can currently issue IDs to
their distributors in a day, the new system might require 10-14 days to issue IDs. DSCs also expressed concerns about the
sole vendor who would provide the new IDs having access to private/confidential information on the DSCs’ individual
distributors. The new proposal would also burden DSCs and consumers with additional costs.
AMCHAM asked MIOC officials and relevant ministries involved in the process to not implement the proposed single-ID plan,
and to keep the status quo.
Further information on this issue will be provided in future editions of AMCHAM’s e-Update newsletter. At the time of printing for Dateline,
the Chamber was awaiting feedback from the relevant government ministries.
2.
Taxes on Motorcycles
Malaysia currently imposes very high excise duties on completely built-up (CBU) motorcycles, a significant market barrier to
international motorcycle companies wanting to sell their bikes in Malaysia, and making these products extremely expensive
to the majority of Malaysian consumers.
The excise tax on CBU motorcycles above 800cc had been 110% (40% import duty, 60% excise duty, 10% sales tax),
making Malaysia one of the most expensive places in the world to own a motorcycle in this class. While MITI announced
earlier a 10% reduction on import duties for CBU motorcycles, AMCHAM felt that the government should completely remove
all remaining taxes (excluding the 10% sales tax), as firms selling bikes in this class (>800cc) would not pose a threat to local
industry, since no local companies were producing similar types of motorcycles.
In early November, the Ministry of Finance (MOF) recently announced a 10 percent reduction on import duties and 10 percent
reduction on excise duties for CBU motorcycles in this category. The current tax on CBU motorcycles (>800cc) is now 90
percent (30 percent import duty, 50 percent excise duty, and 10 percent sales tax). However, the effective reduction in the
tax is only 5%, based on how the duty and excise tax are assessed.
The Chamber feels that the tax is still high and this still makes it very cost-prohibitive for many Malaysians to buy
foreign-made motorcycles.
In response to arguments that the tax is intended as a revenue raiser, given that very few foreign-made motorcycles in this
class are being sold in Malaysia (only 450 foreign motorcycles in all categories were imported into Malaysia in 2004), the tax
revenues being derived from these taxes are minimal. If Malaysia were to reduce significantly the taxes on these types of
motorcycles, it would encourage more international companies to increase their sales of bikes in Malaysia, resulting in an
overall higher tax revenue for the country, than under the current system.
DECEMBER 2005 • AMCHAM Dateline • 9
ISSUES AND POLICY UPDATES
“Third Wave of Globalization”
- Offshore Outsourcing
by EA Consulting Asia Pacific (ea cap)
While some businesses may be driven out of business during this unpredictable time, others may be able to manipulate the
market so that they can continue thriving. The volatility of the business climate today hails for better business strategy. Offshore
outsourcing is undoubtedly another strategy management tool that helps organizations meet their business objectives while
sustaining competitive advantage, in this age.
Outsourcing, in general, differs from the use of consultants or contract workers because the activities outsourced are usually
recurring; resources for performing the activities as well as the responsibility for making decisions regarding the activities are
transferred to other organizations. And, offshore, is generally defined as undertaking work using labor that is usually based in a
remote location.
More businesses have decided to outsource some of their non-core competencies and processes to offshore destinations.
Business activities commonly outsourced offshore may include call center, document processing, investment management,
back office management and human resources.
IT outsourcing is the more recent addition to the offshore outsourcing list. In the year 2000, the Information Technology (IT)
industry reached an important milestone. For the first time, more than 54% of IT services purchased in North America were
outsourced. Areas offshored include application development and maintenance, infrastructure management and embedded
technology solutions, to name a few.
In 2004, Gartner, Inc., projected that outsourcing would account for 53% of the total worldwide IT services market, and that it will
make up 56% of the market by 2007. Goldman Sachs estimates the BPO market in 2005 to be US$585 billion. Among US
manufacturers, IDC reports BPO will grow by 10.7% over 2004-2005 with the top three growth areas of engineering, logistics,
and finance (Source: A Growth Focused Outsourcing Strategy White Paper, Think3).
The outsourcing market’s robust growth is driven by the fact that customers demand access to a more reliable infrastructure
that can ensure smooth core business operations at lower costs and with greater flexibility. The willingness to pay for outsourcing
services is high especially among players in the banking, insurance, manufacturing, healthcare, and government sectors.
The use of offshored IT and BPO services can generate significant bottom line benefits through new service delivery model. The
growth in the use of offshored services has shown that its benefits are no longer just about price – they could include service
quality improvement, scalability, better risk management and the freeing up of internal resources to focus on core value-adding
activities.
Good business practices in IT outsourcing should consider service providers that demonstrate the following:
•
•
•
•
•
•
Strong executive management staff
An understanding of the scope of services required
A proven track record of performance in meeting the scope of responsibility
Financial depth and stability
The service department to meet the greatest number of needs as a single source
Technical and human resources
Each is equally important to the overall business impact and quality of services provided (Source: The IT Outsourcing Dilemma
Executive White Paper, Verizon).
One of the greatest challenges will be to overcome resistance within the organization to placing work with organizations
hundreds or thousands of miles away. Winning hearts and minds within the organization is a critical part of the change
management necessary to deliver the benefits of offshoring.
DECEMBER 2005 • AMCHAM Dateline • 10
ISSUES & POLICY UPDATES
India continues to lead the global outsourcing picture. However, many new countries such as Czech Republic, Malaysia, China,
Philippines and Singapore are entering the market and challenging India in selected areas by virtue of cost, political stability and
cultural compatibility. On the local front, A.T. Kearney’s 2004 Offshore Location Attractiveness Index positioned Malaysia in third
place, and a rising alternative, after India and China. While offering costs competitive with other Asian locations, Malaysia’s
qualifying factors also include well-developed, low-cost infrastructure and strong government support.
Malaysia views the growth of the global IT outsourcing sector very positively with strong government backing. Its dynamic IT
hub and the Multimedia Super Corridor (MSC) continue to provide world-class infrastructure like high-capacity digital fiber optic
network, well-equipped offices and business centers, and efficient transportation to leading ICT companies of the world.
Malaysia too, has an educated multi-lingual work force that can instantly accommodate the needs of most multinational
corporations. Besides the physical provisions, strong “soft” infrastructure in the form of cyber laws, financial and non-financial
incentives, and appropriate strategic policies as well as a large pool of skilled knowledge workers have qualified Malaysia
as an emerging contender in the IT outsourcing market. In addition to its central location in Southeast Asia, Malaysia's costs are
relatively low and the country remains one of the most stable in the region. A number of foreign firms are already benefiting from
lower cost alternatives by basing service call centers, back office operations and overseas headquarters in Malaysia.
More businesses are realizing that outsourcing provides greater efficiency and lower operating cost that enable enterprises the
ability to focus on their core business processors.
For more information, please visit www.eacap.com.
Advertising Opportunities in 2006
AMCHAM Malaysia’s publications are well read and widely respected. Filled with articles and reports on relevant news,
economic trends and policies/issues updates, members use our publications to help them make buying decisions.
In addition to providing AMCHAM members with the editorial they want to read and use, the Chamber’s publications are one of
the most competitive advertising vehicles in Malaysia. As an advertiser with AMCHAM, you are in an advantageous position to
maximize your company's potential, exposure and business links.
By advertising in our publications, your message will reach thousands of leading business executives, government officials, in
Malaysia and the U.S., the media and other relevant parties worldwide. With a total readership of over 1,500 business
professionals, AMCHAM’s publications will help your company reach critical mass. They will also give your company a branding
edge, particularly as they are the only publications targeted at the American-Malaysian business community.
In addition, AMCHAM also provides corporate sponsorship opportunities for
Chamber business and networking events, including its annual golf tournaments.
We also hold regular business briefings with companies who are new to Malaysia,
and for others that are looking to invest in the country. These briefings are an
opportunity for firms to get an in-depth perspective of the economic, political, and
business climate in Malaysia, and to have a better understanding of the American
community and resources that are available. These discussions also give
companies an on-the-ground perspective for conducting business in the country.
Consider these benefits and review our advertising guide brochure, which is available
on our website, www.amcham.com.my. For more information on AMCHAM
publications, investor briefings, and sponsorship opportunities, please contact
Barbara Devaraj, AMCHAM’s Programs Administrator, at (60-3) 2148 2407 or
[email protected] to sign up, or if you have any questions.
DECEMBER 2005 • AMCHAM Dateline • 11
ISSUES AND POLICY UPDATES
Budget 2006 - Highlights
of Proposed Tax Measures
by Ms. Yeo Eng Ping, Tax Director, Ernst & Young Malaysia
The 2006 Budget was delivered on September 30, 2005 and from a tax perspective there were many significant “firsts,” for
example, broad-based group relief for sharing of tax losses and new prescriptive rules on carry forward of tax losses and capital
allowances (CAs). The tax measures reflect both the government’s effort in promoting a business friendly environment and
concern in preventing revenue loss. In this article, we highlight some of the key tax changes that would be relevant to you, and
briefly share our analysis of their impact and technical issues which need to be ironed out. We will look – in particular – at the
taxation of share plans and treatment of tax losses and CAs, and touch briefly on the other measures.
Share Plans
One significant area affecting employees is the proposal to change the basis of taxing income arising from employee share plans.
The measures would potentially cover share option schemes (ESOS), share purchase plans (ESPP), and free shares given to
employees. Here, we discuss the proposed changes by reference to an ESOS.
Under an ESOS, the amount taxable is the difference between the market value of shares on the date the option is granted (“grant
date”) and the exercise price. Tax is crystallized when the option is exercised, but taxed in the year the option was granted
(i.e. related back). Hence, any gain from the increase in the market value/price of the shares between the grant date and the date
the option is exercised, will not be taxed in the hands of the employee.
With the proposed changes, this will no longer be the case. The taxable amount will be the difference between the market value
of the shares at (i) the first exercisable date (i.e. the first day of the period when the option can be exercised) or (ii) the actual
exercise date (whichever the lower), less the price paid for the shares. The tax will crystallize upon exercise of the option, but will
be taxed in the year of exercise.
The proposed changes take effect for all share options which are exercised from January 1, 2006 onwards – the new rules will
apply even to options which are granted prior to 2006. Hence, it appears there is still a small window period between now and
December 31, 2005 where employees can consciously decide whether or not to exercise their options and to minimize their tax
exposure. (However, it is understood that as a transitional arrangement, the Ministry of Finance will be allowing employees to
opt for application of existing rules, for share options which are exercisable before 2006, and are in fact exercised in 2006 –
details of this have not yet been released.)
The draft legislation provides two methods for determining “market value.” For shares listed on the Bursa Malaysia (only), the
market value will be the average price of shares (ascertained by averaging the highest and lowest price for the day). The market
value of shares which are not listed or listed on other exchanges will be the “net asset value” of the shares for the day. Two
comments here - the market value method should be extended to shares listed on other stock exchanges, and guidelines should
be issued for determination of “net asset value”.
Employers need to notify the Inland Revenue within 30 days of the launch of a share plan. (Indeed, what would be the stand
taken for those share plans which have already been submitted to the Inland Revenue and for which written confirmation has
been obtained on the taxable amount and timing of tax?) Under the existing requirements, employers must deduct tax for
employees under the monthly schedular tax deduction scheme, in the month the option is exercised (unless the employee
obtains approval from the Inland Revenue to pay by monthly deductions or elects in writing to make payment by himself at the
point of filing his tax return). Employers also need to report the benefit in the Form EA for the employee, for the year the option
is exercised, and also submit to the Inland Revenue the list of names of employees who have exercised their option. It is
expected that these obligations will continue to apply to employers.
DECEMBER 2005 • AMCHAM Dateline • 12
ISSUES & POLICY UPDATES
Use of tax losses and capital allowances (CAs)
For the first time, “change-in-ownership” rules will be introduced to deny the use of tax losses or CAs where there is a change
of more than 50% in shareholding of the loss company. This formalizes an anti-avoidance measure designed to prevent the
acquisition of loss companies in order to shelter profits. Many other countries, such as Australia and the United Kingdom,
already have in place similar - if not more stringent - rules.
To use losses/CAs, a shareholding test must be performed on the last day of the financial period in which the losses and CAs
arose, and on the first day of the financial period in which the same is to be used. The test requires that more than 50% of the
paid-up capital and the nominal value of allotted shares in respect of ordinary shares are held by or on behalf of the same
persons. On this point, there is some uncertainty on how the test would apply in a case where the proportion of ownership
among shareholders in the loss company changes (albeit there is no change in the identities of the shareholders).
Where shares in the loss company are held by or on behalf of another company (say A Co), the legislation deems those shares
to be held by the shareholders of A Co. A company may apply to the Minister for dispensation of the provision.
Whilst the proposal is intended to curtail indiscriminate use of loss companies, it has serious far-reaching and perhaps
inadvertent consequences. For example, it would adversely affect a genuine acquisition to turnaround the operations of a
loss company. In certain other jurisdictions, losses would continue to be available if the same business continues to be carried
on. Groups undertaking a restructuring or reorganization would also need to beware – a transfer of loss company to a “sister”
company where both companies are 100% owned by a common shareholder, could for example, fail the test based on a literal
reading of the draft law. Another restructuring/reorganization scenario which may fail the test, is where a new company is
“inserted” one-tier or two-tiers above the loss company. Utmost care and planning is therefore necessary when handling any
group restructuring involving a loss company.
In order to use accumulated tax losses and CAs from year of assessment (YA) 2005 going forward, the shareholding test must
be carried out on September 30, 2005, and on the first day of the financial period in which those losses/CAs is to be used. This
provision applies only to those companies with a (2005) financial year that ends on or after October 1, 2005 – this prevents the
artificial acceleration of acquisitions of such companies before the new law comes into effect.
However, this would also mean that for deals involving loss companies with a pre-September 30, year-end (which were
concluded after their 2005 financial year), the tax losses and CAs would be lost. This will be the result, despite the fact that the
purchaser could not have known about this new law and may have given value for those tax assets when negotiating the terms
of acquisition. This is an adverse retrospective operation of the law! It is certainly hoped that the Minister exercises his discretion
to address these situations.
Other tax measures
The Budget will also introduce changes to make tax rules more business friendly; these include measures such as:
• “group relief” to allow the transfer of tax losses between companies within the group allowing the carry forward of business
losses and capital allowances for companies enjoying pioneer status, for companies whose pioneer period expires on
or after October 1, 2005
• “flexibility” for companies to reduce their tax estimates to 85% of the tax estimate or revised estimate for the last financial
year
• permitting immediate deductions for small value assets
However, these well-intentioned measures may not have their anticipated effect given that the fine print imposes strict qualifying
conditions that limit the number actual beneficiaries. The restraints presumably allow the government to “test the waters” and
to curtail any unexpected strain on revenue collection from these measures. To illustrate:
Group relief
The group relief provisions can only apply among Malaysian incorporated and tax resident companies that have a paid-up capital
above RM2.5 million. The companies must have at least a 70% beneficial relationship, and such relationship must exist for at
least two years. The transfer of losses is limited to 50% of current year “adjusted loss” only (not prior year losses), and in any
event, cannot exceed the aggregate income of the recipient (claimant) company. Also, companies which are enjoying certain
incentives during the tax year, such as a tax holiday under a pioneer status or investment tax allowance, reinvestment allowance,
etc., will not qualify.
DECEMBER 2005 • AMCHAM Dateline • 13
ISSUES AND POLICY UPDATES
Budget 2006 - Highlights of Proposed Tax Measures (cont’d)
Tax estimate
The current rule to prevent companies from reducing their current year tax estimates (from their tax estimate or revised estimate
of the previous year) due to business or economic downturns has contributed to the build up of tax refunds due from the Inland
Revenue (estimated at RM841 million by the Auditor-General). The reduction by 15% assumes that earnings only change by that
variance! Where a lower tax estimate is necessary, presumably, the current practice of approaching the Inland Revenue for
approval, will continue.
Small value assets
The underlying purpose behind allowing an immediate deduction for small value assets is converge the tax and accounting
treatment and also to reduce record-keeping needs. Unfortunately, the RM10,000 ceiling detracts from this purpose, since
taxpayers will need to keep records to “track” when the threshold of RM10,000 is reached and which assets are included.
***
Overall, the measures introduced in this Budget are steps in the right direction. However, certain fundamental issues some of
which have been raised here, need to be addressed to ensure that the rules can be implemented fairly and within the spirit for
which these measures were designed, and ultimately to maintain the integrity of the tax system.
ISSUES & POLICY UPDATES
Avian Flu
by David Stallings, Physician Assistant with the U.S. Department of State
Avian Influenza is also called Bird Flu. There are many strains of flu that affect birds, but the one
causing the global scare is the H5N1 subtype. It has circulated in migrating wild birds for years,
and has spread to poultry flocks, starting in Southeast Asia, spreading to Russia and now
reaching into Europe. It is highly lethal to domesticated birds.
Avian flu was first identified in Italy around a century ago. It was not thought to be transmissible
to humans until 1997, when the first human cases were seen in Hong Kong. In the latest
outbreak, around 60 people in Asia have died, amounting to roughly half the known number of
infections. Almost all of these casualties were directly exposed to infected fowl.
Bird flu in humans causes symptoms that are similar to human flu, such as fever, cough, sore throat and muscle aches,
conjunctivitis, pneumonia and other severe respiratory diseases.
At present, H5N1 is not easily transmitted from birds to humans. Nor is it easily passed from human to human. There have been
only three suspected cases, in Thailand, Hong Kong and Vietnam, where this is believed to have happened and these involved
family members who were in close, consistent, contact with the affected person.
The big worry, though, is that H5N1 could pick up genes from conventional human flu viruses, making it both highly lethal and highly
infectious. Because it would be a radically new pathogen, no one would have any immunities to it. The mutation could occur if
H5N1 co-infects a human who already has ordinary flu, or the agent is picked up from poultry by an animal such as a pig that can
act as a mixing vessel for the flu strains.
In the 20th Century, there have been three flu pandemics, in 1918-19, 1957-58 and 1968-69. The worst of all was the 1918-1919
pandemic, in which as many as 50 million people died. This is not surprising considering the limitation in communications, medical
facilities, diagnostic capabilities and treatment. The latest research suggests that the so-called Spanish Flu virus was itself a bird
flu virus that leapt the species barrier to humans. Influenza pandemics have occurred in 30-40 year cycles. There has not been a
pandemic for 37 years.
Veterinary controls are the first line of defense in any outbreak of animal disease. The task is to identify farms where there is an
outbreak of H5N1, quarantine the area, cull all fowl suspected to be in contact with it, disinfect the environment, and bar sales of
poultry products from the affected region. But these controls are only really dependable if a country has a good surveillance
network and responds quickly and effectively to an outbreak. The Malaysian Department of Veterinary Services conducts regular
surveillance and random testing in the northern states of Malaysia.
It is highly recommended that all people get the annual flu shot. It is approved for everyone over the age of six months old. This
will not only help protect individuals from contracting the annual flu, but will also help differentiate, if one were to become ill – and
hopefully prevent – the mixing of the two strains.
Oseltamivir, “Tamiflu” is being marketed as the drug of choice for those with Avian Flu. It has been used with great success for the
treatment of human flu and has been used with limited success for those with H5N1. It is a neuraminidase inhibitor and, along with
“Zanamivir,” “Relinza,” are the only two drugs of this type. Neither of these medications are a cure for the virus (unlike antibiotics,
which cure bacterial infections). It is hoped that they will relieve the severity of, and shorten the course of symptoms.
One may contact his/her physician for a prescription for Tamiflu. It is recommended that this be stored and taken only after
contacting the physician and providing him/her with a description of their symptoms. It is not to be taken prophylactically, except
in rare cases and after being directed to do so by their physician. If directed by a physician to do so, Tamiflu 75mg, is to be taken
one tablet in the morning and one tablet at night for five days. It is not to be taken prophylactically, except in rare circumstances
and after being directed to do so by a physician.
If H5N1 became endemic in one’s region, it would be necessary to follow a few important guidelines:
1)
2)
3)
4)
5)
Do not go to work or school if you are ill in any way.
Stock up on enough necessary supplies for your home to last for at least two weeks.
Purchase one gallon of bleach, to be used for frequent cleaning of contact surfaces, counters, doorknobs, sinks,
bathroom fixtures, etc.
Waterless, alcohol-based hand cleaner for frequent hand washing.
Be willing to quarantine yourself and your family.
David Stallings PA-C, 10-19-2005
Sources: WHO, CDC, US National Institute of Health and Infectious Diseases (NIAID), World Organization for Animal Health (OlE), Channel News Asia
DECEMBER 2005 • AMCHAM Dateline • 15
AMCHAM EVENTS
Upcoming Events Schedule
AMCHAM EVENTS
Dec 6
MICCI-AMCHAM Briefing on U.S. Visa/Consular Policies
Location
: Bankers Club, Level 22, AMODA, Kuala Lumpur
Time
: 12:00 - 2:30pm
Cost
: RM100 for members/spouse and RM110 for non-members
Registration : e-mail Linda Tey at [email protected]
Dec 15
AMevents Christmas Cocktail
Location
: The Library & Lounge, Bankers Club, Level 22, AMODA, Kuala Lumpur
Time
: 6:00 - 8:00pm
Cost
: RM60 for members/spouse and RM80 for non-members
Registration : e-mail Linda Tey at [email protected]
Feb 6
Superbowl Party
Location
: TBA
Time
: 5:30 - 11:30am
Cost
: TBA
Registration : e-mail Linda Tey at [email protected]
COMMITTEE MEETINGS
*Meetings indicated as “open” are open to all AMCHAM members.
Those marked “closed” are limited to companies from those industries.
Jan 18
Board of Governors
Location
: AMCHAM Executive Office
Time
: 11:00am - 1:00pm
Information
: Contact Sharon Ong at [email protected]
Status
: Closed
Feb 14
Fast-Moving Consumer Goods (FMCG) Committee
Location
: PJ Hilton, Boardroom, Level 2 (East Wing)
Time
: 9:00 - 11:00am
Information
: Contact Shirley Saw at [email protected]
Status
: Closed
Feb 15
Board of Governors
Location
: AMCHAM Executive Office
Time
: 11:00am - 1:00pm
Information
: Contact Sharon Ong at [email protected]
Status
: Closed
Mar 10
Pharmaceutical Committee/Local-Area Working Group (LAWG)
Location
: TBA
Time
: 2:00 - 4:30pm
Information
: Contact Shirley Saw at [email protected]
Status
: Closed
Mar 22
Board of Governors
Location
: AMCHAM Executive Office
Time
: 11:00am - 1:00pm
Information
: Contact Sharon Ong at [email protected]
Status
: Closed
DECEMBER 2005 • AMCHAM Dateline • 16
AMCHAM MEMBERS
Member Highlights
American International Assurance Co. Ltd’s (AIA) Penang
Malayan Banking Bhd (Maybank) has been awarded the
branch office has relocated from its former premises
Best Domestic Commercial Bank Award for 2005 by
along Jalan Masjid Kapitan Keling to Wisma Leader, in the
Asiamoney, because of its strong financial performance
heart of George Town. This is in line with AIA’s emphasis
and quality management throughout the year. Factors
on continuous growth and improvement.
considered
for
selection
included
financial,
non
performing loans (NPLs) level, product innovation, and
Another prime reason for the relocation was the continuous
overseas strategy and expansion. Maybank’s earnings,
expansion of AIA’s agency force, with the need to recruit
which rose 14% year-on-year for the first half of 2005,
more agents and financial planners. The move will allow
chalked up net profits of RM1.25 billion. Maybank had
the company to provide unemployed graduates with career
also ramped up its non-interest income by 47%,
opportunities as financial planners and agents.
AIA’s
increased Islamic banking by 38% and cut NPLs to
Training Academy Program aims to produce confident and
5.79% in the second half of 2004 from 5.97% in June
successful insurance professionals who are also intrepid
the same year.
entrepreneurs. At the launch of the new branch office, AIA
contributed RM20,000 to Sekolah Kebangsaan Wellesley
from the company’s unspent funds allocated for its
launching expenses. AIA also donated another RM42,000
from
the
“AIA
Have-A-Heart”
Fund
to
two
children
from
Penang, who are in need of
pediatric heart surgery.
TNT Malaysia has emerged as the first business logistics
solutions provider in Malaysia to be recognized for
its safe working environment, when it received the
internationally-recognized OHSAS 18001 certification. TNT
Worldwide has been actively implementing Occupational
Health and Safety Management Systems program for
many years; this helps to create a safe working
environment, minimizes risks to employees, and helps
to boost productivity and morale. The OHSMS program
The Crown Worldwide Group recently opened its Phase II
Facility in Subang Hi-Tech Park, Shah Alam. The Phase II
has helped identify elements of the business that have
an impact on health and safety.
facility is a new 20,000 square foot household goods
storage facility. With this purpose-built development, the
Group will have the most modern Household Goods
Storage and Records Management Facility in Malaysia
enabling them to provide an expanded and superior
service to the growing Malaysian and international
clientele. With this new building complete, the Phase I
Records Management Center has expanded to 70,000
square feet. The Phase I facility also boasts a 30,000
square foot office complex.
The Crown Worldwide Group has invested RM4.5million
(US$1.2million) into Malaysia over the last 12 months.
The
Group
provides
employment for up to 120
people in Malaysia.
Veritas Design Group has recently signed a joint venture
agreement with a local property developer in Dubai,
Bonyan Emirates Properties. The joint venture partnership
with Veritas, which was signed in August 2005, will
establish a project management company capable of
providing the full scope of real estate development
consultancy services for both Bonyan’s in-house projects
as well as external clients. For the Veritas Design Group,
with its specialist divisions for architectural teams,
interiors and management, the move is an ideal way to
enter the Middle Eastern
market.
DECEMBER 2005 • AMCHAM Dateline • 19
AMCHAM MEMBERS
New Members
International SOS (Malaysia)
Sdn. Bhd.
Logistic Edge & Maritime
Sdn. Bhd.
L'oréal Malaysia Sdn. Bhd.
Woo Mei Har
Dr. Tuan Feroz Musa
Managing Director
General Manager
Lydia Cheong
Business Development Director
Carolyn Loong Li-Lin
Global Assistant Network Manager
Dr. Ralph Nirven Kumar
Medical Advisor
Level 10, Menara Chan
138 Jalan Ampang,
50450 Kuala Lumpur
Tel:
(60-3) 2716 3000
Fax:
(60-3) 2711 1311
Website: www.internationalsos.com
International SOS provides medical
and security assistance, international
health care, and premium outsourced
customer care.
International Business Lawyer
111 & 111A, Jalan Molek
3/1 Taman Molek
81100 Johor Bahru
Tel:
(60-7) 3584 381
Fax:
(60-7) 3576 961
Website: www.drs.com
Logistic Edge & Maritime is a
logistic provider for air, land,
and sea transactions.
Jean-Francois Couvé
Muhammad Zain Ibrahim
Corporate Communications Manager
Level 13A & 15, Uptown 2
Jalan SS21/37
Damansara Uptown
47400 Petaling Jaya
Tel:
(60-3) 7651 8000
Fax:
(60-3) 7660 2360
Email:
[email protected]
Website: www.loreal.com.my
L'oréal imports and markets major
cosmetic brands in hair-care,
skin-care, make-up and fragrance
categories, and in the principal
distribution channels of hair saloons,
department stores, and high
traffic outlets.