business “angels” – risks and rewards · 2015-01-20 · 2nd quarter 2003 survey. vistage-mier...

MAL AYSIA NE WS

IMPACT OF CHINA’S REFORMSAlthough China recently embarked on some market-friendly reforms (more transparency, less red tape), majority (61%) of the respondents did not think it has any impact on their businesses, while 36% replied favourably and only 3% negatively.

TO REMAIN COMPETITIVE Amidst the external developments in major economies such as the US which recently reduced its purchase of financial assets, Japan’s economy given a boost by policies of Prime Minister Shinzo Abe, and China’s economic slowdown, Malaysian businesses can expect a weakening of the Ringgit and rising costs. Going forward, 69% of the respondents plan on cutting down costs to remain competitive, while 48% will be exploring alternate sourcing and 21% will likely undertake forward forex contracts through banks.

STATE OF PREPAREDNESS FOR GST IMPLEMENTATIONGiven that the Goods and Services Tax (GST) will be effective 1 April 2015, 51% of the CEOs stated that they are in the process of getting ready for its implementation, while 36% have not even started getting prepared yet. Only 8% are ready and 4% said that the GST is not applicable to their companies.

IMPACT OF MEASURES ON LOCAL PROPERTY MARKETRecently the government implemented several cooling-off measures to curb speculative activities in the local real property market. While the real property gains tax (RPGT) was increased, a ban was imposed on the developers’ interest bearing scheme (DIBS) and all mortgage financing are now based on the net selling price instead of gross. These measures, however, have no impact on 49% of the CEOs surveyed as they are not applicable to them. 27% considered the impact of these measures on them as “moderate”, while 18% and 7% rated it as “low” and “high”, respectively.

THE HIES SURVEYThe Household Income, Expenditure and Basic Amenities (HIES) Survey will be carried out in 2014. 91% of the respondents revealed that they have never participated in the survey before. To increase the survey participation rate so that the results would be more representative of the country’s population, 46% opined that the current practice of face-to-face survey should be maintained, while 66% are in favour of a face-to-face interview, including allowing voluntary online surveys.

FURTHER DENT IN CONFIDENCECEOs are increasingly becoming more wary of the Malaysian economy and prospects of their firms as 2014 unfolds. After plummeting to a two-year low in 4Q2013, the Vistage-MIER CEO Confidence Index dipped even further three months on. At 85.6 points, the Index lost 1.7 points quarter-on-quarter and 14.1 points year-on-year.

53% of the 384 respondents were of the view that economic conditions have worsened in recent times, the highest proportion tabulated since 2Q2009. 9%, however, thought otherwise, up from 7% in 4Q2013. Economic anticipations are equally cool. While 11% are forward looking in their outlook, a majority (52%) of the respondents are bracing for an economic downtrend in the coming months, the largest polled since 1Q2009. The latest expected profitability component index (124 points) also scored lower than 4Q2013, with 45% of the CEOs hoping to see an improvement in their firms’ profitability soon, although 61% are expecting their sales revenue to beef up in the near term.

Other component indexes comprising this Index that performed better this time are planned fixed investment and the employment outlook with scores of 127 and 130 points, up from 121 and 127 a quarter ago, respectively. 43% of the CEOs are contemplating injecting additional capital investment, while 42% are planning to expand their employee headcount within a year.

IMPORT AND EXPORT TO MAJOR ECONOMIES Given the current development in the major economies of Japan, China, the EU and the US, a total of 23, 35, 42 and 29 of the respondents indicated that their imports from Japan, China, the EU and the US, respectively, constitute less than 10% of their total revenue. Not only are 34 of the respondents importing more than 50% of their total revenue from China, most of those whose imports are 20-30%, 30-40% and 40-50% of their total revenue have such imports also sourced from China.

Respondents whose exports to Japan, China, the EU and the US that are less than 10% of their total revenue numbered 24, 23, 23 and 21, respectively. Those who engage in exports comprising 10-20% of their total revenue are mainly to the EU (11), followed by China (8), Japan (6) and the US (6). Firms with exports more than 50% of their total revenue are primarily to the US, with 8 of the respondents affirming this.

IMPACT OF RISING COSTS Given the current rising cost trend, 95% of the CEOs surveyed foresee a parallel increase in their costs, while 71% expect their sales to pick up in the first half of 2014. Against this backdrop, respondents were asked of their plans to mitigate the adverse effects, if any.

The most prominent of the many plans put forth are the following: increase sales to raise revenue and trim operating costs, raise consumer prices and increase productivity and efficiency of existing manpower. Other plans such as automation, increasing expenditure on promotional activities and advertising, expanding markets and products range, sizing down inventory, venturing in high-margin niche market and high-technological products, expanding/relocating overseas, outsourcing and sourcing for alternative and additional suppliers were the more popular plans listed.

The World’s Leading Chief Executive Organization

1Q2014 VISTAGE-MIER CEO CONFIDENCE INDEX

Note: All component questions are scored as the percent giving favorable replies minus the percent for unfavorable plus 100. The VISTAGE-MIER CEO Confidence Index is the sum of the components calculated as a percentage of the level recorded in 2nd quarter 2003 survey.

VISTAGE-MIER CEO CONFIDENCE INDEX

COMPONENTS

Current Economic Conditions

Expected Economic Conditions

Expected Change in Employment

Planned Fixed Investment

Expected Revenue Growth

Expected Profit Growth

Q32013

100.9

90

101

144

134

153

141

Q42013

87.3

63

79

127

121

144

126

Q42012

91.7

71

83

134

126

149

130

Q22013

104.4

94

119

143

138

158

137

Q12013

99.7

91

102

136

133

155

137

Q12014

85.6

56

59

130

127

151

124

UPDATES• WelcomeNew

VISTAGEMembers• LongTenureMembers• NewVistageGroups

BUSINESS “ANGELS” –

RISKS AND REWARDS

VISTAGE-MIER CEO

CONFIDENCE INDEX

NEWSROOM• BacktoNatureFor

Vce-1• VEE-15RetreatsDown

Under

ANNOUNCEMENTS• VistageUk25thYear

Conference&AwardsCelebration

• NewVistageLogo

AndDescriptor• VistageChairColin

WhiteheadBidsFarewell

• RichardWongleadsAngelInvesting

• VistageAwarenessEvents

• NewAccreditedChairs

EVENTS• SettingYourGroups

on‘Fire’• FirstAwarenessEvent

inMandarin

CEO ACHIEVEMENTS• DaretoChange

AWARDS• 2014MVCompanyof

theYear

Vistage Malaysia Sdn Bhd (296405-U)

Suite B-19-2, Wisma Pantai, No 5, Jalan 4/83A, Off Jalan Pantai Baru, 59200 Kuala Lumpur

Phone : (603) 2284 2126 / 2127 Fax : (603) 2284 2100 / 2139 E-mail : [email protected] Website : www.vistage.com.my/

Published by

JANUARY - APRIL 2014

Private advisory boards for CEOs,executives and business owners.

BUSINESS “ANGELS” – RISKS AND REWARDS

mailto:[email protected]

http://www.vistage.com.my/

2VISTAGE MALAYSIA NEWS • JANUARY - APRIL 2014

LEADER

OnApril18,adozenVistageChairs,membersandIattendedaone-day

forumentitled“MBANAngels:LearningtoFly”atRoyaleChulanHotel.

MBANrefers to thenewly formedMalaysianBusinessAngelNetwork.

Thisforum(partlyfundedbyEU-MalaysianChamberofCommerceandIndustry

and British High Commission) brought in “super angels” (experienced angel

investors) from Europe Business Angel Network (EBAN),Mumbai, Hong Kong

andSingaporetosharetheirangelinvestmentexperienceswith60-70attendees.

Ithelpedtoopentheeyesof thosewhowereconsideringangel investing. It

alsoincludedeightpitchesbyselectedearlystart-upstoshowcasethequality

oftheirventures.

Anangelinvestororangelisahighincomeoranaffluentnetworthindividual

who invests in the growth of a small business, generally in start-up or early

stagebusiness.Anangelcanmakeinvestmentonhisownoraspartofagroup

(syndicate).

“Angel investment is still in its infancy and involves extremely high risk but can be very rewarding.”

BUSINESS “ANGELS” – RISKS AND REWARDS


Angelinvestmentisstillinitsinfancyandinvolvesextremelyhighriskbutcan

beveryrewarding(e.g.Carlist,SoftSpace,Microkiosk).Malaysiahasnoshortage

of promising start-ups but is often constrained by financial limitations.

Recognising this and to encourage angel investment, the Government

announcedin2013ataxincentivewhichwillaccordapersonaltaxdeductionof

uptoRM500,000perannumaftertwoyearsofshareholding.Interestedinvestors

needtogetaccreditationfromMBAN,nowdrivenbytheprivatesector.

StudiesdoneintheUSin2007bytheAngelCapitalAssociation(ACA)has

shown that overall returns to angel investment were 2.6 times in 3.5 years.

StudiesintheUKshowedsimilarreturnsinfouryears.About9%ofsuchangel

investmentgeneratedareturnofover10times!

Angelinvestingisalearnedprofession.Ittakesabout18-24monthsforan

investortoexperiencethefullcycleofangelinvesting.

MBAN in collaboration with EBAN and Business Angel Network of South

East Asia (BANSEA) will be rolling out programmes to help itsmembers, the

accredited angel investors to avoid early stage setbacks, develop an

understanding of the angel investmentmindset, apply best practices in deal

screening, due diligence, best in class term sheets, and valuation; and act on

improvingthesuccessrateofstart-ups.

MBAN, incollaborationwithBANSEA,willalsoprovideadvisoryservices in

dealstructuringandnegotiationforbothinvesteesandangelinvestorstoensure

awin-winforboth,ifrequested.

Whoaretheseinvesteecompanieswhichangelscanconsiderinvesting?They

mustbeaSdnBhdcompany,atleastaminimumof51%Malaysianownedand

thecorebusinessmustbeinthequalifyingactivitiesapprovedbytheMinistry

ofFinance(highgrowthorhightechnologyrelatedindustries)andinoperation

ofnotmorethanthreeyearswithacumulativerevenueoflessthanRM5million.

Ifyouhavemotivationofbecominganangelinvestororaninvesteeunder

theAngelTax Incentive Scheme, please contactMBAN Secretariat – harlida@

cradle.com.my.- Richard CM Wong

Chairman & Chief Listener

LEADER




VCE VISTAGE CHIEF EXECUTIVE MEMBERS

●● Andrew Tan,ManagingDirector,

PusacoIndSuppliesSdnBhd●● Andy Cham,ManagingDirector,

SaiKimEnterpriseSdnBhd●● Goh Kar Chun,GroupExecutiveDirector,

MultiCodeElectronicsIndustries(M)Bhd●● James Cheong,ManagingDirector,

MacCitySdnBhd●● Kweh Soo Teong,ManagingDirector,

TreleafMartSdnBhd●● Lau Boon Liang,ManagingDirector,

MaxiStonesSdnBhd●● Lee Siew Mui,Manager,EkspresT.H.SdnBhd●● Ong Fok Tick,ManagingDirector,

OngKimTakHoldingsSdnBhd●● Raymond Gan,ManagingDirector,

KedaiKasutYouSdnBhd●● Sam Chua,GroupManagingDirector,

MostwellHoldingSdnBhd●● Soh Yok Kim,ManagingDirector,

NESHMarketingSdnBhd●● Tan Sok Gim,ExecutiveDirector,MESBBhd●● Yap Heng Or,ManagingDirector,

TimuranSetiaIndustriSdnBhd●● Jeffrey Khor,Director,

Khind-Mistral(M)SdnBhd●● Magnus Johan Alvarsson,HeadofCountry,

AtosServices(M)SdnBhd

UPDATES

Welcome New VISTAGE MembersVistage extends a warm welcome to CEOs,

entrepreneurs and key staff who joined us to

improvetheirleadershipandmanagementskills.

VEE VISTAGE EMERGING ENTREPRENEURS MEMBERS

●● Annie Pang,GeneralManager,

ZealSystem(M)SdnBhd●● Bryant Kooh,ManagingDirector,

TSecuritySdnBhd●● Calvin Ong,ChiefExecutiveOfficer,

TerraInteriorSdnBhd●● Capt Hillary Lee,ManagingDirector,

DynamicPositioningTechSdnBhd●● Caroline Oi,Manager,

DynacosmosCareProductsSdnBhd●● Cheah See Chew,Director,

AgihanMurni(M)SdnBhd●● Ernest Liao,BizDevDirector,JazzCapital●● Florence Lambert Lee,Founder/Director,

GadisManis(M)SdnBhd●● Frederick Siew,ManagingDirector,

TheWallGallerySdnBhd●● Fully Chye,ManagingDirector,

MostwellSdnBhd●● Henry Yee,ManagingDirector,

EntexCarpetIndustriesSdnBhd●● Imran Clyde,ExecutiveDirector,

NextdorPropertyCommunicationSdnBhd●● Jason Low,ChiefExecutiveOfficer,

CurtainsPlaceSdnBhd●● John Lim,ChiefExecutiveOfficer,

AcePremier.ComSdnBhd●● Johnny Lim,Director,

ZunUtaraIndustrySdnBhd●● Jon Chow,Director,GenesisOnlineSdnBhd●● Justin Cheong,ExecutiveDirector,

WaltexCorporationSdnBhd●● Kamal Hadany,ManagingDirector,

IntegratedProcessSolutionsSdnBhd●● Kelvin Tan,Director,

ExclusiveMagnitude(M)SdnBhd●● Kenny Chin,ManagingDirector,

FamilyConfectionarySdnBhd


UPDATES

●● Ko Teik Wai,AssistantGeneralManager,

M&DPrecisionSdnBhd●● Koay Kah Yeow,Director,WeligentSdnBhd●● Lee Kong Lian,OperationManager,

OptosemTechnologiesSdnBhd●● Lim See Tat,ManagingDirector,

KakiMotorSdnBhd●● Low Kai Meng,GeneralManager,

PanMajesticHoldingsSdnBhd●● Ng Chuan Hoo,ManagingDirector,

Vern’sHoldingSdnBhd●● Ng Kean Thong,Director,

JidokiHighTechSdnBhd●● Nyim Sui Choeng,ManagingDirector,

LightboxMediaSdnBhd●● Percy Lee,ChiefExecutiveOfficer,

EasternFoodsIndustrialSdnBhd●● Peter Cheong,MarketingDirector,

PaneltekSdnBhd●● Rafel Affendy,HeadofBusinessTechnology

Services,RentwiseSdnBhd●● Roger Ang,ManagingDirector,

ABSEngineering&TradingSdnBhd●● Sam Lee,Director,

Saintinkincorporation(M)SdnBhd●● Tan Meng Teik,ChiefExecutiveOfficer,

IdeahouseCorporationSdnBhd●● Teoh Yeoh Soon,GeneralManager,

InterlinxAutomation(PG)SdnBhd●● Tung Xin Ning,Director,

ClazroomAcademyofMediaArt●● William Du,CEO,IngeniousHausLtd●● Yong Shao Hen,ManagingDirector,

SurespeedTechnologySdnBhd

KEY VISTAGE KEY MEMBERS

●● Ang Kim Hiong,DirectorofMarketing&

ProductDevelopment,NplaySdnBhd●● Au Men Thian,AccountsManager,

EasternFoodsIndustrialSdnBhd●● Chan Fong Wai,OperationManager,

LinkkBuswaySystems(M)SdnBhd●● Chee Suan See,ProcessTechnologist,

MolnlyckeHealthCareSdnBhd●● Chew Boon Khoon,DepartmentManager,

GamaSupermarket&DepartmentStore

SdnBhd●● Desmond Chin,AssistantSeniorManager,

MegaliftSdnBhd●● Gan Bee Yow,GroupSeniorManager,

KhindHoldingsBhd●● Khoo Nee Xon,Director,

HPMTIndustriesSdnBhd●● Khor Phey Shien,ActingGroupFinance

Manager,MegaliftSdnBhd●● Koh Lay Hong,PurchasingManager,

LinkkBuswaySystems(M)SdnBhd●● Leanne Tee,GroupHRManager,

KhindHoldingsBhd●● Mark Lee Eng Cua,ChiefExecutiveOfficer,

TatekSdnBhd●● Ng Hui Nooi,FinanceOfficer,

RedtoneTelecommunicationsSdnBhd●● Rave Yap,ProjectManager,

LinkkBuswaySystems(M)SdnBhd●● Wong Chew Kong,Director,

HPMTIndustriesSdnBhd●● Wong Lai Peng,GroupFinanceManager,

KhindHoldingsBhd●● Woon Yen Nie,FinanceManager,

LinkkBuswaySystems(M)SdnBhd


UPDATES

15 YEARS ●● Len Meng Fui (VCE-1),Director,

BridgeICDSdnBhd●● Rodney Yee (VEE-2), ManagingDirector,

PanweldSdnBhd

10 YEARS ●● Dennis Tan (VCE-1),ManagingDirector,

OcnedWaterTechnologySdnBhd●● Jason Tan (VCE-9),Director,

FellaHoldingsBhd●● Dato’ Jimmy Lim (VCE-16),ManagingDirector,

TokaiEngineering(M)SdnBhd●● Liew Yu-Gene (VCE-27),AssistanttoChairman,

PagodaFoods(Malaysia)SdnBhd●● Loh Liew Mao (VCE-610),ManagingDirector,

MaoCheangHangSdnBhd●● Shaifulizam Bin Mohd Saleh (VCE-9),

ManagingDirector,

TriSystemsEngineeringSdnBhd●● Tang Khay Khiang (VEE-37),GeneralManager,

FastenersMarketingSdnBhd

5 YEARS ●● Abdul Razak Abdul Aziz (VEE-13),

ManagingDirector,E-Magineers(M)SdnBhd●● Alastair Fraser Bishop (VEE-18),

ProductCareManager,

MolnlyckeHealthCareSdnBhd●● Brendan Pang (VEE-9),

Marketing&SalesManager,ParvusSdnBhd

Long Tenure MembersCongratulationstoourloyalVISTAGEmembers!!

●● Bruce Tan (VCE-16),ManagingDirector,

LimaBintangLogisticsSdnBhd●● Cheah Yong Hock (VCE-16),CEO,

AsiaBrandsBhd●● Chiew Cheik Yee (VEE-2),ManagingDirector,

VectorInternational(M)SdnBhd●● Colin Yong,Owner-Manager,

JadiBatekGallerySdnBhd●● Keith Colins (VCE-19),CEO,

VestigoPetroleumBerhad●● Kit Lim (VEE-13),CEO,

WorldHubCommunications(M)SdnBhd●● Dato’ Lim Soo Kok (VCE-18),President,

CMEGroupBhd●● Tan Ah Seng (VTA),ManagingDirector,

Multi-TransSdnBhd●● William Ng (VEE-12),Director,

PerfectCombustionSdnBhd●● Wong Wing Kin (VEE-9),ManagingDirector,

NSSteel&MetalSdnBhd


UPDATES

VEE-18

Anew groupVEE-18galloped into theequineyearon

9January2014steeredbyWooKhyeThyeandsupported

bySeniorVistageChairChoongWengKong.

FormoreinformationabouttheVEE-18Chair,please

goto:●● www.vistage.com.my/experience/advantage/

vistage-chairs/woo-khye-thye/

NEW VISTAGE GROUPS

Standing from left to right: Vistage Chair Woo Khye Thye, K Y Koay, Caroline Oi, Sam Lee, Johnny Lim, Alastair Bishop, Kelvin Tan, Vistage Senior Chair Choong Weng Kong.

Feeling great to be in the group.

VEE-21

Congratulations to Robbin Khoo, Vistage Chair who

kickedoffVEE-21on18February2014.Clicklinkbelow

toreadmoreonRobbinKhoo.●● www.vistage.com.my/experience/advantage/

vistage-chairs/robbin-khoo/

VEE-22 ThesecondVistageinMandarin(VIM)groupunderVEE-

22madeitsdebuton19March2014withatotalofnine

members,chairedbyLokEngHock.

ClicklinkbelowtoreadLok’sprofile.●● www.vistage.com.my/experience/advantage/

vistage-chairs/lok-eng-hock/

Birthday celebration of Ng Chuan Ho, MD of Vern’s Holding (Standing 4th from left - with the group members and Chairs)


takingrisksandleapsininnovationarenotcommon

traitsamongMalaysianCEOs.ButCCNgei,isafine

exampleofonewhodaredtochangeandisnow

enjoying the fruits of his labour. Avant-garde designs,

branding and customer service have transformed his

companyFeruniCeramicheintoamarketleaderinthe

premiumceramictileindustry.

Goingagainstthegrainisnevereasy.Fouryearsago,

CC Ngei, Managing Director of Feruni Ceramiche Sdn

Bhd, ignoredmany objections, andwent ahead to sell

onlyonebrandoftiles.Healsointroducedavant-garde

tiledesigns,built theFerunibrandandstreamlinedthe

buyingexperienceforcustomers.Whiletheinitialgoing

was tough, his critics have been proven wrong. Sales

are six to seven times higher than before and Feruni

Ceramiche is now the market leader in the premium

ceramictilemarket.

CCNgei, aVistageChief Executive (VCE-22)member, is drivenby themantra of

“ThinkDifferent”afterbeinginthetileindustryfor20years.Hestartedasakidhelping

hisfather,atiler,andcontinuedtoworkinhisfather’sbusiness,pickingupallthetools

ofthetrade.After11years,heventuredintohisowntiletradingbusinesswithpartners.

Nineyearson,herealisedthattherewashardlyanyinnovationintheindustryinterms

ofproductsandservicetocustomers.“Iwantedtochangetheindustry”,heproclaimed

andsetupFeruniCeramiche,withnewpartnersin2010.

ToCCNgei,changemeantmakingitsimple,convenientandpleasantforcustomers

topurchasetiles,plusendearingthemtooneandonlyFerunitiles.“Iwantedtosimplify

theprocessforcustomersandmakethebuyingprocessahappyone,”hepointsout.

HisvisionbecamerealitywiththedebutofthethoroughlymodernFerunishowroom

inPetalingJaya in2010. The trendy, two-storeyshowroomhasa lifestyle feel,where

only Feruni tiles are installed in various settings like bathrooms, kitchens and living

rooms.Informationandspecificationsoftiles–shapes,texture,sizesandcolouroptions

-areneatlydisplayed.Morethanafancyshowpiece,customersgettoseeandfeelthe

innovativechangesthatFerunihasintroduced.

Walkingthetalkoninnovation,CCNgeidisplaysthecompany’sSignatureproducts,

E-shapetilesinsevenshapesandsizesthatbreakthetraditionalsquareshapeoftiles.

CEO ACHIEVEMENTS

DARE TO CHANGE

CC Ngei - Think Different


Thesecomeinshapeslikejig-sawpuzzle,cross,hexagonandcircle.Theseuniqueshapes

openupmanyideastodecoratewallsandfloors.Itcanbeseenintheshowroomthat

thejoiningoftheseirregular-shapedtilescanbesowelldone.

AlsoinnovativeisFeruni’smarketingof“mixandmatch”tileswheredifferentcolours,

patternsandsizesoftilescanbecombinedinanendlessarrayofdesigns.Howdoyou

knowwhether it looksgoodorghastly inyourbrandnewhouse? A special interior

designsoftwareandin-houseconsultantsenablethecustomertoseein3-Ddrawings

howthemixedandmatchedtilesfitandlooktogether.Selectionsandre-arrangements

canbemadewithjustaclickofthemouse,atanyofitssevenretailoutletsinMalaysia.

AnotherfirstinMalaysiaisthesaleoftilesinapre-packedboxcalledModular.The

modularbox contains a combinationof a few sizesof tiles that formanexceptional

patternwheninstalled.Thereisnoneedforcomplexcalculationsandpre-orderasthe

boxesarereadyandthepackedtilesaremadetofitinto1.44sqmofspace.

Thrivingonideasandstyle,CCNgeichose“designedfor luxury”asFeruni’sbrand

identity.Heexplainsthatluxurydoesnotalwaysimplyhighprices.Theonusisadding

“oomph”toplainwallsandfloorswithgooddesignsanddecoratingideasforresidential,

retailandcommercialcustomers. Ferunihasateamofdesignerswhocomeupwith

severalproductrangeseveryyear.Thecompanyalsocollaborateswithfamousforeign

designers to capture theworld’s latest tile trends. All Feruni tiles aremadebyOEM

factoriesinMalaysia,ChinaaswellasItalyandSpain.

Besidesdaring tobedifferent inbusiness,CCNgei, 42, is alsovery seriousabout

changinghimself.Acknowledginghislackofformaleducation,hehassethimselfgoals

tobetterhiscommandofEnglishandhonehismanagementskills.“Ihavetobethree

timesmoreefficienttocatchup,”heasserts.Onhisto-dolistarereading20booksayear,

CEO ACHIEVEMENTS

“I wanted to simplify the process for customers and make the buying process a happy one”

Wide variety of tiles in the Mix and Match counter at Feruni's showroom


allocating30daysinayearforprofessionalcoursesandexercisingthreetimesaweek.

AlsoincludedisqualitytimewithhisfamilyandBiblestudy.

JoiningVistage has enabled him to have 12 days of intensive learning in a year

(whenhehasone-to-onesessionswithhisChairLaiKeong).“Igetinspirationfromthe

memberstoo,“headdsasheenjoystheinteractionwithotherCEOsinhisVistagegroup

andlearningfromtheirexperience.“Whenyouarealone,youhaveoneproblemand

onesolution.ButinaVistagegroup,youcanhaveoneproblemand13solutions”,he

illustrates.

CCNgeifindsthatVistagehas“openedhismind”tomanysituations,likethewayof

doingthings,facingchallengesandacceptingcriticism.Hesayshegetspositiveenergy

toperformandgrowbecauseotherCEOsareconstantlysharingandshowcasingtheir

achievements.

Whatliesahead?CCNgeinotesthattheearlierchallengewasbuildingthehardware

(products, system,warehouse,showroom). Nowthechallengeissoftwarewherethe

focusisonpeople.Heemphasizesthatpeopleandpassionareveryimportant,besides

profits.“Withpassion,youcandoanything,”hereiterates.Hehasplannedmanytypes

oftrainingprogrammesforhis180stafftobetterthemselvesinproductknowledgeand

leadership,usinginternalandexternaltrainers.

Forhimself,he is keen to learnhow tobuildagoodcorporate cultureaswell as

howtocontinuetoinnovatesothathiscompanykeepsgrowing.Hehasalreadysethis

sightsonthecompanygoingglobal,inthenextfiveyears.

CEO ACHIEVEMENTS

“When you are alone, you have one problem and one solution. But in a Vistage group, you can have one problem and 13 solutions”

Feruni's headquarters in Petaling Jaya


Umesh Bharadwaj receiving the ‘MV Company of the Year’ Award from Todd Ashton, President – Ericsson Malaysia & Sri Lanka.

Tamco Switchgear (Malaysia), medium voltage (MV)

switchgear brand of L&T Electrical & Automation, was

conferredthe‘2014MVCompanyoftheYear’Awardbythe

leadingconsultancyfirm,Frost&Sullivan.

ThecitationlaudsTamcoasanoutstandingcompany

thathasexcelledinitsbusinesssegment,andisnotedfor

itseffortstoimprovetheindustryasawhole.

UmeshBharadwaj,CEOofTamcoSwitchgear(Malaysia),

VCE-18 member, received the award at the Malaysia

ExcellenceAwardsNighton15April2014.

AWARDS

2014 MV Company of the Year


ANNOUNCEMENTS

VISTAGE UK 25TH YEAR CONFERENCE & AWARDS CELEBRATIONRichardWongattendedVistageUK’s25thYearConference

&AwardsCelebrationon7February2014inLondon.The

occasion saw the gathering of worldwide Vistage/TEC

partnersinLondonstrengtheningtheirrelationshipsand

sharingtheirupdatesontheworldwidebusinessmission.

Richard Wong together with other Vistage/TEC parners in London

NEW VISTAGE LOGO AND DESCRIPTORWith the new ownership and new leadership changes

atVistageHQ in 2013, there’s an updated branding to

Vistage.

Vistage International advised that the rebranding

toVISTAGE,minus the stepping stones and tagline, is

that theywanted a bolder identity and amore clearly

expressedvalueproposition.

The new descriptor - Private advisory boards for CEOs, executives and business owners.

Vistage Malaysia will follow Vistage HQ in the

rebrandingprogressively.


VISTAGE CHAIR COLIN WHITEHEAD BIDS FAREWELLVistageChairColinWhiteheadbidsfarewelltotheChair

community to focus his attention on personal family

matters. WethankColin forhiscontributionsandwish

himallthebestinhisnextsteps.

Following this, VCE-9 has been transitioned from

ColinWhitehead to Simon Soh, Master Chair effective

April 2014. Simonwill continue to chairVEE-2,VEE-15,

KEY-10&KEY-12andwilltransitionoutoneVEEgroup.


RICHARD WONG LEADS ANGEL INVESTINGRichard Wong, Chairman and Chief Listener of Vistage

Malaysia was elected as the President of Malaysian

Business Angel Network (MBAN) 2014/2015 in February

2014. The new grouping aims to build up a network of

high net worth individuals who are keen to invest in

start-ups, particularly in technology-related or high-tech

businesses.

MBAN will set out to create greater public awareness

on angel investing and the angel tax incentive, educating

angels and guiding them to set up their own angel clubs

or networks, or to join existing ones.

ANNOUNCEMENTS

NEW ACCREDITED CHAIRSBernard Chong and Michael Tan have joined Vistage

as new Chairs. They earned their accreditation after

undergoing a two-day intensive training course on 25-26

April 2014 at Pullman Kuala Lumpur Bangsar Hotel.

VISTAGE AWARENESS EVENTSShare the Vistage experience with someone you care

about or do business with. Invite your friends or Business

Associates to Vistage upcoming CEO events.

Contact Bee Lay, Kareena or Anne @ 03-22842176/

Hoon @ 04-6426799 to reserve seats for the events.

To register online, please send this link http://www.

vistage.com.my/vistage-awareness-event-2-0/ to your

contacts.


EVENTS

SETTING YOUR GROUPS ON ‘FIRE’

Group photo of Vistage Chairs and staff at the Chair Development Workshop

Dwight Frindt in action

Vistage Chairs attended the Chair Development

Workshopon 21-22March 2014 conductedbyDwight

Frindt, Co-Founder and Principal, 2130 Partners, Best

Practice and Group Chair, Vistage International. The

workshopcarriedthetheme“SettingYourGroupsonFire”.

Based on the book authored by Suzanne and

DwightFrindt, theworkshop touchedon the insightful

approach toconsistentlyproduceextraordinary results.

The emphasis was on the Yonder Star - moving from

complaintstopossibilitiesandcreatingthethoughtsof

“HowdoI…?”.

RichardWongsharedhis‘PurposeinLife’lessonsand

DwightFrindtremindedalltheChairstouse“I”statement

always.ThemeetingendedonahighnoteandallChairs

were presented with a Certificate of Participation –

“AccelerateHighLeverageChairing”.


FIRST AWARENESS EVENT IN MANDARIN ThefirstVistageAwarenessEventinPenangconducted

inMandarinbyChairsChengPingKeat, LokEngHock

andDr Khor ChaiTianwas held in EastinHotel on 7-8

March2014. Itattractedmorethan40CEOs,Managing

Directors,entrepreneursandbusinessowners.

Lok shared his success story and experiences on

his journey asManagingDirector of EuYan Sang, how

hehadtransformedEuYanSangtillheretiredfromthe

companyin2013.

Cheng Ping Keat and Dr Khor Chai Tian took the

participants through the Vistage process and how

Vistage helps CEOs to become better leaders, make

betterdecisionsandachievebetterresults.

EVENTS

Lok sharing his success story

Guests at the first Vistage Awareness Event in Mandarin in Penang

PK Cheng talking about the VISTAGE process

VISTAGE GOLF TOURNAMENT• 6November2014• GlenmarieGolf&CountryClub.• Doblockthedatetojoininthefun!• Formoreinformation,contactLiLeng

([email protected])

C E O S U M M I TDate: 7November2014Venue: SunwayResortHotel&Spa

●● KeynoteAddressbyYBDatukPaulLow,Ministerinthe

PM’sDept,“Governance&Integrity”●● CEOPanelSessionon“RetainingTalenttoStayAheadof

theCompetition”●● VistageAwardsPresentation●● forSponsorshipopportunities,pleasecontact:

-TewBeeLay([email protected])

-FooLiLeng([email protected])

“TRANSFORMING”

EVENTS


THEME:


NEWSROOM

BACK TO NATURE FOR VCE-1 On 24 February 2014, the VCE-1 Group meeting

moved from the usual office environment to natural

surroundings. Host LenMeng Fui, chose the venue at

Bukit Tinggi, in an airy bungalow tucked away in the

jungle at Bukit Tinggi, at the foothills of Genting

Highlands.

The events at themeeting included a ‘FishMarket

Exercise’ thatsimulatesmanaginganenterpriseandan

arrow/throat piercing demonstration (with Peter Wee

andKCLimaswillingvolunteers)thatdefiesself-limiting

beliefs.Lunchandsnacksservedthereweremadefrom

organicvegetables.

VCE-1 Group members enjoying the fresh mountain air

Arrow/Throat piercing demo on two volunteer members

Healthy organic food for lunch


VEE-15 RETREATS DOWN UNDERTheVEE-15Retreat inAdelaide,Australia from3-5April

was hosted bymember Penny Pang. It startedwith a

welcomedinnerformembersandtheirfamilies,together

withamemberfromTECAustralia.

Thenextday,membersvisitedPennyPang’sofficeand

thenproceededtoherfriend'svineyardinClare,136km

northofAdelaide.KoonowlaWinery,sittingon250acres,

isoneof theClareValley's largestandhistoricvineyard

properties. Estate owner, Andrew Michael treated the

members to Clare Valley’s best Cabernet, Shiraz and

Rieslingwines. On 5 April, they had a GroupMeeting

at the Koonowla Winery, while the wives and family

members went touring and shopping. All members

enjoyed seeing the beautiful country side, vineyards,

cattleandkangaroos.

VEE-15 members and families at the welcome dinner

Enjoying the great Adelaide countryside

NEWSROOM


SPOTLIGHT

Nazrin Bin Hassan, CEO, Cradle Fund Sdn Bhd(VCE-23 Member since 2012)


SPOTLIGHT

Bradley Mulroney, CEO, Lafarge Malayan Cement Bhd (VCE-19 Member since 2013)


SPOTLIGHT

Lau Bik Soon, CEO, Redtone Telecommunications Sdn Bhd(VCE-16 Member since 2008)


Pn Sri Datin Seri Susan Cheah, Executive Director, Sunway Management Sdn Bhd (VTA-1 Member since 1995)

SPOTLIGHT


SPOTLIGHT

VISTAGE CHAIR LIM ENG WENG BECOMES HON FELLOW OF MAPSAThe Malaysian Association of Professional

Secretaries & Administrators (MAPSA) inducted

Vistage Chair Lim Eng Weng as an Honorary

Fellowmemberata luncheonevent. Thiswas in

recognitionofhislongservicetotheassociation.



DIP IN CONFIDENCE CONTINUES

cEOswere increasinglymorewaryof theMalaysianeconomyandprospectsof

their firms in the firstquarterof2014. Afterplummeting toa two-year low in

fourth quarter of 2013, the Vistage-MIER CEO Confidence Index dipped even

further threemonthson. At85.6points, the Index lost1.7pointsquarter-on-quarter

and14.1pointsyear-on-year.

Morethanhalfofthe384respondentswereoftheviewthateconomicconditions

have worsened in recent times, the highest proportion tabulated since the second

quarter of 2009. Amajority (52%) of the respondents are bracing for an economic

downtrendinthecomingmonths,thelargestpolledsincefirstquarter2009.Thelatest

expectedprofitabilitycomponentindex(124points)alsoscoredlowerthantheprevious

quarter,with45%oftheCEOshopingtoseeanimprovementintheirfirms’profitability

soon.

RISING COSTGiventhecurrentrisingcosttrend,95%oftheCEOssurveyedforeseeaparallelincrease

intheircosts,while71%expecttheirsalestopickupinthefirsthalfof2014.Against

thisbackdrop, respondentswereaskedof theirplans tomitigate theadverseeffects,

IMPACT OF CHINA’S REFORMSAlthough China recently embarked on some market-friendly reforms (more transparency, less red tape), majority (61%) of the respondents did not think it has any impact on their businesses, while 36% replied favourably and only 3% negatively.

TO REMAIN COMPETITIVE Amidst the external developments in major economies such as the US which recently reduced its purchase of financial assets, Japan’s economy given a boost by policies of Prime Minister Shinzo Abe, and China’s economic slowdown, Malaysian businesses can expect a weakening of the Ringgit and rising costs. Going forward, 69% of the respondents plan on cutting down costs to remain competitive, while 48% will be exploring alternate sourcing and 21% will likely undertake forward forex contracts through banks.

STATE OF PREPAREDNESS FOR GST IMPLEMENTATIONGiven that the Goods and Services Tax (GST) will be effective 1 April 2015, 51% of the CEOs stated that they are in the process of getting ready for its implementation, while 36% have not even started getting prepared yet. Only 8% are ready and 4% said that the GST is not applicable to their companies.

IMPACT OF MEASURES ON LOCAL PROPERTY MARKETRecently the government implemented several cooling-off measures to curb speculative activities in the local real property market. While the real property gains tax (RPGT) was increased, a ban was imposed on the developers’ interest bearing scheme (DIBS) and all mortgage financing are now based on the net selling price instead of gross. These measures, however, have no impact on 49% of the CEOs surveyed as they are not applicable to them. 27% considered the impact of these measures on them as “moderate”, while 18% and 7% rated it as “low” and “high”, respectively.

THE HIES SURVEYThe Household Income, Expenditure and Basic Amenities (HIES) Survey will be carried out in 2014. 91% of the respondents revealed that they have never participated in the survey before. To increase the survey participation rate so that the results would be more representative of the country’s population, 46% opined that the current practice of face-to-face survey should be maintained, while 66% are in favour of a face-to-face interview, including allowing voluntary online surveys.

FURTHER DENT IN CONFIDENCECEOs are increasingly becoming more wary of the Malaysian economy and prospects of their firms as 2014 unfolds. After plummeting to a two-year low in 4Q2013, the Vistage-MIER CEO Confidence Index dipped even further three months on. At 85.6 points, the Index lost 1.7 points quarter-on-quarter and 14.1 points year-on-year.

53% of the 384 respondents were of the view that economic conditions have worsened in recent times, the highest proportion tabulated since 2Q2009. 9%, however, thought otherwise, up from 7% in 4Q2013. Economic anticipations are equally cool. While 11% are forward looking in their outlook, a majority (52%) of the respondents are bracing for an economic downtrend in the coming months, the largest polled since 1Q2009. The latest expected profitability component index (124 points) also scored lower than 4Q2013, with 45% of the CEOs hoping to see an improvement in their firms’ profitability soon, although 61% are expecting their sales revenue to beef up in the near term.

Other component indexes comprising this Index that performed better this time are planned fixed investment and the employment outlook with scores of 127 and 130 points, up from 121 and 127 a quarter ago, respectively. 43% of the CEOs are contemplating injecting additional capital investment, while 42% are planning to expand their employee headcount within a year.

IMPORT AND EXPORT TO MAJOR ECONOMIES Given the current development in the major economies of Japan, China, the EU and the US, a total of 23, 35, 42 and 29 of the respondents indicated that their imports from Japan, China, the EU and the US, respectively, constitute less than 10% of their total revenue. Not only are 34 of the respondents importing more than 50% of their total revenue from China, most of those whose imports are 20-30%, 30-40% and 40-50% of their total revenue have such imports also sourced from China.

Respondents whose exports to Japan, China, the EU and the US that are less than 10% of their total revenue numbered 24, 23, 23 and 21, respectively. Those who engage in exports comprising 10-20% of their total revenue are mainly to the EU (11), followed by China (8), Japan (6) and the US (6). Firms with exports more than 50% of their total revenue are primarily to the US, with 8 of the respondents affirming this.

IMPACT OF RISING COSTS Given the current rising cost trend, 95% of the CEOs surveyed foresee a parallel increase in their costs, while 71% expect their sales to pick up in the first half of 2014. Against this backdrop, respondents were asked of their plans to mitigate the adverse effects, if any.

The most prominent of the many plans put forth are the following: increase sales to raise revenue and trim operating costs, raise consumer prices and increase productivity and efficiency of existing manpower. Other plans such as automation, increasing expenditure on promotional activities and advertising, expanding markets and products range, sizing down inventory, venturing in high-margin niche market and high-technological products, expanding/relocating overseas, outsourcing and sourcing for alternative and additional suppliers were the more popular plans listed.

The World’s Leading Chief Executive Organization

1Q2014 VISTAGE-MIER CEO CONFIDENCE INDEX

Note: All component questions are scored as the percent giving favorable replies minus the percent for unfavorable plus 100. The VISTAGE-MIER CEO Confidence Index is the sum of the components calculated as a percentage of the level recorded in 2nd quarter 2003 survey.


COMPONENTS

Current Economic Conditions

Expected Economic Conditions

Expected Change in Employment

Planned Fixed Investment

Expected Revenue Growth

Expected Profit Growth

Q32013

100.9

90

101

144

134

153

141

Q42013

87.3

63

79

127

121

144

126

Q42012

91.7

71

83

134

126

149

130

Q22013

104.4

94

119

143

138

158

137

Q12013

99.7

91

102

136

133

155

137

Q12014

85.6

56

59

130

127

151

124


ifany. Themostprominentplansput forthwere: increasesales to raise revenueand

trimoperatingcosts,raiseconsumerpricesandincreaseproductivityandefficiencyof

existingmanpower.

WEAKENING RINGGITAmidsttheexternaldevelopmentsinmajoreconomiessuchastheUSwhichrecently

reduceditspurchaseoffinancialassets,Japan’seconomygivenaboostbypoliciesof

PrimeMinister

Shinzo Abe, and China’s economic slowdown, Malaysian businesses expect a

weakeningoftheRinggitandrisingcosts.Goingforward,69%oftherespondentsplan

on cuttingdown costs to remain competitive,while 48%will be exploring alternate

sourcingand21%willlikelyundertakeforwardforexcontractsthroughbanks.

RATHER HAPPY TheIPSOSHappiness Index-APAC2013polledHongKong,Singapore,China,Malaysia

andSouthKoreaontheirpersonalhappiness.Theresultsshowedpersonalhappiness

ofMalaysiaat90%,Chinaat87%,Singaporeat81%andbothHongKongandSouth

Koreaat79%.Whenaskedthesameofrespondentsinthissurvey,only24%claimedto

be“veryhappy”,while68%saidtheyare“ratherhappy”and8%are“notveryhappy”.No

oneis“nothappyatall”.



business “angels” – risks and rewards · 2015-01-20 · 2nd quarter 2003 survey. vistage-mier...

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