Tag: Malaysia

  • Innisfree Vietnam, Malaysia to go bigger

    Innisfree Vietnam, Malaysia to go bigger

    Amorepacific-owned Innisfree Vietnam has opened its first store in Hanoi, the brand’s fifth in the country.

    Located at 290 Ba Trieu Street, Innisfree Hanoi ranges skincare and makeup products for men and women.

    Opening day saw long queues of the brand’s fans who had been looking forward to the brand having a Hanoi presence for two years.

    In Malaysia, Innisfree has teamed with travel retailer Dimensi Eksklusif to make its debut at Kuala Lumpur International Airport.

    KLIA is Innisfree’s latest airport store outside Korea after Singapore’s Changi and Hong Kong International Airport.

    Sales of perfumes and cosmetics at KLIA in the first quarter of this year grew by 29 per cent and are expected to continue to grow, attracting more world-renowned brands to open there.

    Innisfree has nine stores in Malaysia.

  • Texas Chicken Malaysia to open new stores

    Texas Chicken Malaysia to open new stores

    Fast-food chain Texas Chicken Malaysia has opened its first outlet on the Southern Peninsular with its new store in Johor Bahru’s City Square Shopping Mall.

    The new outlet, Texas Chicken’s 48th restaurant nationwide, is managed by local franchisee Envictus International Holdings Limited (Envictus Group), which plans to open further locations within the region shortly. It already operates outlets in Klang Valley, Selangor, Penang, and Negeri Sembilan.

    According to Envictus chairman Dato’ Jaya Tan, “The Johor Bahru City Square is the kind of location every restaurant dreams of. The new Texas Chicken will be right in the heart of the city, close to corporate offices, local and international colleges, and just minutes from the customs and immigration checkpoint between Malaysia and Singapore”.

    Executive VP of international business for Texas Chicken Tony Moralejo said this was an opportunity that was “identified and cultivated by a veteran franchisee”.

    The new restaurant should seat 111 guests with a retail space of 1123sqft.

  • Air Asia introduces two new international routes from Hanoi and Phuket to Penang

    Air Asia introduces two new international routes from Hanoi and Phuket to Penang

    Expanding its wings even further, AirAsia marked another milestone by celebrating its new international inaugural flights from Hanoi in Vietnam and Phuket in Thailand, into its Penang hub at the Penang International Airport (PIA) here today.

    Its three-hour flight from Hanoi touched down at PIA at 12.50pm, carrying passengers up to 80 per cent load, while the Phuket flight will land later tonight at 11.05pm.

    The inaugural flight from Hanoi was received by state Tourism Development, Heritage, Culture and Arts committee chairman Yeoh Soon Hin, AirAsia Malaysia Head of Commercial Spencer Lee and Penang Global Tourism chief executive officer Ooi Chok Yan.

    Lee said AirAsia was pleased to strengthen its Penang hub further with the two new routes. He said the AirAsia Group had flown over 11 million guests in and out of Penang since 2015.

    “In 2017 alone, we had 3.5 million passengers, and for this year until June, we already have two million guests.

    “We are happy to share that we are leading the market in Penang with 68 per cent of direct routes as of this April.

    “We look forward to further boosting tourist arrivals, while at the same time, connecting Penangites and the northern community to more destinations internationally with the AirAsia network,” he said in his speech.

    Yeoh said that the two new direct routes from Hanoi and Phuket would further boost the number of tourists arriving from these two cities.

    “This upward trend in Penang tourism is a good indicator for a robust economy in the immediate foreseeable future,” he added.

    The four-times weekly direct flight from Hanoi and daily direct flights from Phuket are the seventh and eighth new routes launched by the airline into Penang as a group, thus further strengthening the Asean footprint through connectivity aside from the Kuala Lumpur hub.

    The flights heading to Hanoi will take off at 6.15am every Monday, Wednesday, Friday and Sunday. The return flights from Hanoi will take off at 8.50am Vietnam time on the same four days every week.

    The one-hour flight to Phuket will depart at 8.25pm daily while the return flight will take off at 11pm Thailand time.

    In conjunction with the momentous occasion, AirAsia is offering celebratory promotional all-in-fares from RM119 flight to Hanoi and RM79 flight to Phuket, both flights from Penang.

    The special promotion is available for booking from July 2 to July 8 for the travel period between July 2, 2018, to Jan 31 next year.

    Guests can visit airasia.com or use the AirAsia mobile app on the iPhone or Android devices to enjoy the special promotional fares.

  • Innisfree & Dimensi build Asia airport beauty presence at KLIA

    Innisfree & Dimensi build Asia airport beauty presence at KLIA

    The opening at the Malaysian gateway, in association with travel retailer Dimensi Eksklusif, consolidates the Amore Pacific-owned beauty firm’s airport influence in Asia, having already established a footprint at Hong Kong International and Singapore Changi.

    Earlier this month, Dimensi revealed that it had secured a one-year contract extension at the airport, as operator Malaysia Airports Holding Berhad concludes plans for an overhaul of its passenger facilities.

    TRENDING BRANDS

    Speaking at the official opening of the store, Amorepacific Global Travel Retail Senior Vice President David Park said: “Innisfree is one of the fastest-growing brands in the Amorepacific Group and Korea’s number one natural beauty brand.

    “Apart from Singapore Changi International Airport and Hong Kong International Airport, KLIA is our latest Innisfree airport store outside of Korea. We look forward to great success of the brand at this wonderful airport.

    Dimensi Managing Director Tan Sri Zainul Azman says the travel retailer is constantly searching for ‘trending brands’ and is delighted to partner with Amorepacific to showcase leading Korean names at KLIA.

    P&C SALES GROWTH

    Meanwhile, Malaysia Airports Senior General Manager for Commercial Services Nazli Aziz predicts an increases in sales of perfumes & cosmetics linked to wider product choice and rising Chinese passenger arrivals.

    “In the first quarter of this year, sales of products under the perfumes and cosmetics category grew by 29% against the figures recorded in the corresponding period of last year,” he stated.

    “Our strategy of collaborating with famous brands like Innisfree is part of an ongoing initiative to enhance the total airport experience of travellers at our airports.”

    Innisfree and several other global brands are expected to provide entertainment for travellers in the coming weeks when the annual Malaysia Airports Shopping Campaign begins in July.

    “We hope all the activities and campaigns which we have undertaken and those we are planning to implement will eventually lead to the infusion of a sense of place among travellers, making KLIA an ideal and joyful place to shop,” added Nazli.

  • Why fast-fashion brands like H&M are losing millennial customers in Malaysia and Singapore

    Why fast-fashion brands like H&M are losing millennial customers in Malaysia and Singapore

    Melissa Chi, 30, remembers when her wardrobe was full of H&M clothing and accessories. After discovering the Swedish brand during an internship in Washington, the Singaporean, who runs an online healthy lifestyle store, quickly became a fan of its smart design, decent quality and affordable prices.

    Today, however, Chi rarely wears fast-fashion items, H&M or otherwise. Since she became a convert to sustainable living two years ago, she has learned just how damaging the fast-fashion industry is for the environment.

    “The whole mentality that we should buy more because it’s cheap just didn’t seem right any more,” she says.

    It was a 180-degree sartorial turn for Chi, one that many other young Singaporeans and Malaysians are going through.

    More than 1,000 shoppers queued outside H&M’s Singapore flagship store when it opened in 2011, excited to become its first customers. The following year, about 1,500 people did the same at its Kuala Lumpur flagship on its first day of business. And when H&M collaborated with luxury brands Balmain and Kenzo, launching the collections in 2015 and 2016 respectively, similar frenzies occurred.

    Fast forward and H&M’s quarterly report ending February 28 indicates Asian millennials’ appetite for the brand’s trendy apparel may be on the wane. Malaysia recorded a 1 per cent drop in sales over the quarter, while the Singapore operation saw sales fall by 10 per cent.

    A similar downward trend is being seen in other parts of Asia, including China. That’s after two decades of strong growth globally during which the company regularly reported double-digit sales increases.

    In the three months to February 28, H&M’s operating profit fell by 62 per cent, causing its shares to hit a 13-year low on Stockholm’s bourse. A US$4.3 billion stockpile of clothing and accessories had accumulated in thousands of warehouses and stores around the world, the company reported.

    What had happened? Business analysts say the company failed to adapt to fierce competition from the boom in online retail and lower prices offered by a growing number of similar fast-fashion outlets. Chi agrees that these have been factors in Singapore and Malaysia.

    “I definitely think the demand [for fast fashion] is cooling off and not just because of the growing awareness that fast fashion is bad,” she says, referring to allegations of abuses against workers and environmental concerns. “It is also because of intense competition from all sorts of brands online, globally.”

    Abby Wee, communications manager for H&M Singapore and Malaysia, said that 2018 is a “transitional year” for the brand, adding that the fashion retail landscape is changing rapidly.

    “While there is a decline in sales in Singapore and Malaysia, we don’t see that as an indication that we are not one of the top fashion destinations for our customers,” she says in an email.

    Wee points to last year’s launch of the online store hm.com, and the positive reviews that it has been getting in both Singapore and Malaysia, as proof that its “omnichannel presence” is expanding.

    However, hm.com is competing in a crowded online market of brands that have had a web presence for years. Singapore government data shows that as early as 2011, 50 per cent of the country’s internet users aged 15 years and older were already shopping online. In 2012, regional e-retailer Zalora set up operations in both Malaysia and Singapore. Other e-retailers, such as Asos and American Apparel, had been targeting Singaporean shoppers by offering free shipping long before hm.com came along.

    Sarah Kok, a 22-year-old broadcast journalism student in Malaysia, says she no longer shops at H&M for several reasons. Since Uniqlo, the Japanese mass-market clothing brand, expanded in Malaysian malls several years ago, Kok now does most of her shopping for daily work outfits there. She says it offers more comfort, better quality and greater diversity than H&M.

    Environmental sustainability and a fair supply chain matter, too. These are Kok’s main reasons for shunning H&M today, she says.

    H&M has been accused of using prison labour in China, employing children in Myanmar, firing Cambodian women who got pregnant, suppressing unions, and causing environmental damage, among other issues.

    “If you can sell things at such a cheap price overseas, that means you’re getting it cheap as well,” Kok says. “So, that equals cheap labour.”

    Uniqlo may not be entirely innocent, either. A report by anti-poverty charity War on Want asserted in 2016 that Chinese factories making clothes for Uniqlo were abusing workers’ rights. Despite the brand’s commitment to “corporate social responsibility” and “making the world a better place”, undercover investigations by Students and Scholars against Corporate Misbehaviour said it found excessive overtime, low pay, dangerous working conditions and oppressive management practices in Uniqlo’s supplier factories in China.

    In an emailed statement, Wong Xinyi, sustainability manager for H&M Southeast Asia, points out that the company has signed a “global framework agreement” with workers’ organisations based in Sweden aimed at improving workers’ rights in the supply chain.

    It is also one of a number of global brands that have initiated the ACT (action, collaboration and transformation) agreement, which aims to ensure fair wages and better working conditions in the supply chain.

    Wee claims that the supplier factories H&M works with the most through long-term partnerships – representing 50 per cent of its product volume – have democratically elected representatives who can speak on behalf of the workers, achieving one of the company’s 2018 goals.

    To address the issue of environmental pollution, Wee points to the brand’s collaboration with the Zero Discharge of Hazardous Chemicals Programme to raise awareness and industry standards, and its partnership with the organisation Changing Markets to implement the “road map towards responsible viscose and modal fibre manufacturing” within its existing sourcing policy.

    H&M has also set 2030 as a target date to have all products made from recycled or otherwise sustainably sourced materials. By 2040, it aims to become “climate-positive” throughout its value chain.

    “Our customers in Malaysia and Singapore trust our brand and they have also responded positively towards our sustainability initiatives,” Wee says. “Therefore, it is clear to us that our customers expect us to operate our business responsibly and we are determined to exceed their expectations in this area.”

    However, whether all this means we are seeing a new dawn for fashion in Southeast Asia, with fast-fashion companies complying with a more sustainable and ethical framework in their production lines, is questionable. So, too, is whether there is really enough demand for more conscionable clothing among Malaysian and Singaporean millennials – known for being materialistic – to encourage companies to follow more sustainable practices.

    Both are highly unlikely, according to Nicholas Harrigan, a senior lecturer in sociology at Sydney’s Macquarie University.

    “Unfortunately, not enough young people in Singapore and Malaysia are conscious enough about ethical fashion for it likely to make much of an impact on sales,” says Harrigan, who previously lectured at Singapore Management University.

    Google “sustainable fashion in Malaysia and Singapore” and a few brands with limited offerings will pop up. Biji-Biji Design, arguably Malaysia’s most prominent eco- and labour-friendly company, sells bags and accessories made using discarded advertising banners, car seat belts and even old kimonos, with some products at prices comparable to H&M. Such companies, however, are few and far between.

    Harrigan believes other factors could be at play, such as the growing influence of blogshops – retailers operating on blogging platforms – on Singaporean youth, which provide more variety and are more convenient than going out shopping.

    Price could be another issue. Harrigan posits that despite H&M’s products being cheaper than brands such as Zara, they are still expensive given the quality.

    Still, sceptics note that the relatively low prices of fast-fashion brands will continue to be attractive to young people.

    Norashahera Hakem, head of fashion at Biji-Biji, remains optimistic. Although it is difficult for a brand like hers to survive in Malaysia, there are signs of a shift in mindset. People are starting to care more about quality and the effect of their unused piles of clothes on the environment, she says. Price is no longer the sole factor, as millennials are looking at the stories behind a product.

    “It is possible to survive with a lot of hard work and determination, as the concept is still quite new in this region,” she says. “People need to realise that quality and sustainability have an extra cost and [be] willing to pay for it.”

  • Tealive to apply for stay of execution after injunction threatens to close 161 outlets

    Tealive to apply for stay of execution after injunction threatens to close 161 outlets

    Tealive owner Loob Holding Sdn Bhd will file an application for a stay and for leave to appeal to the Federal Court after the Court of Appeal granted an injunction by Chatime franchisor La Kaffa International Co Ltd against Tealive from continuing its operations.

    La Kaffa had filed the appeal after the High Court dismissed its injunction bid in May 2017 against former franchise holder Loob from carrying a similar business as Chatime.

    “This matter is being handled by our lawyers and we will let the due process of law take its course. We have instructed them to make the necessary application to the courts to allow us to maintain status quo until final settlement of the entire legal process,” Loob said in a statement today.

    Loob is now at risk of closing 161 of its Tealive outlets, which will affect 800 staff, if the injunction stays.

    Tealive was created following a dispute between Loob and La Kaffa last year that saw the Taiwanese franchisor terminate its Chatime master franchisee contract with Loob.

    Loob has since expanded Tealive overseas, including in China, Australia, India and Vietnam.

  • Chanel opens Kuala Lumpur pop-up

    Chanel opens Kuala Lumpur pop-up

    French luxury label Chanel has opened a pop-up store in Kuala Lumpur this month, as its KL flagship location undergoes renovations for relaunch in late 2018.

    Located in Suria KLCC, the 400 square-metre temporary store stocks Chanel’s range of product, including its spring/summer 2018 collection featuring opulent fashion, accessories and shoes.

    The pop-up is also home to the recently launched Métiers d’art Paris-Hamburg 2017/18 collection that showcases the exquisite craftsmanship of the fashion house’s Maisons d’art.

    The store has been designed in the je ne sais quoi elegance known to the Parisian house, found in the minimalist colour palette of beige, cream and tan, spotted with more graphic décor like dark gold fixtures and concrete modules.

    Key retail fixtures include a vast handbag wall, with the grid-ish shelves girded by neon tubes of light, and licked by champagne gold trim. A modular outlay showcases the latest shoes and then, in a separate area, there’s a place for customers to find the costume jewellery.

    Finally, concrete displays hoist Chanel’s ready-to-wear, including textural tailoring and more flowing pieces.

    A VIP dressing room and bespoke furniture are designed to make the customers shop in comfort and at their leisure.

    In April this year, Chanel successfully bowed an arcade-inspired beauty pop-up store in Kuala Lumpur. Dubbed “Coco Game Center”, the event encouraged shoppers to experiment with endless makeup and beauty products. Now closed, it ran from 8 April  to 13 May.

    More recently, Chanel released full year earnings for the first time. The label posted revenues of $9.62 billion for 2017, an 11 percent rise from a year earlier at constant currencies, helped like its peers by a strong performance in Asia Pacific especially, where sales grew 16.5 percent.

    Profit rose 18.5 percent from a year earlier to $1.79 billion.

  • Citaglobal Airports’ proposal for new LCCT was supported by AirAsia

    Citaglobal Airports’ proposal for new LCCT was supported by AirAsia

    A proposal for a new low-cost carrier terminal (LCCT) to be developed at Kuala Lumpur International Airport (KLIA) was made last year by a company called Citaglobal Airports Sdn Bhd, a move which looks to have had the backing of the AirAsia group, the largest user of klia2, the current LCCT.

    Documents revealed that the company’s director, Datuk Seri Mohamad Norza Zakaria, had proposed to then prime minister Datuk Seri Najib Abdul Razak, via a letter dated Nov 24, 2017, the building of a new LCCT that will be able to accommodate higher passenger numbers, especially with the establishment of the Digital Free Trade Zone.

    Citaglobal Airports said it will be able to generate the required funds for the project from the private sector which will benefit the government in terms of savings on infrastructure and operation costs.

    In addition to that, it said UK-based airport operator Manchester Airports Group Plc indicated interest to manage and operate the new LCCT.

    The project was said to require 450 acres, for which Citaglobal Airports suggested the government transfer land rights from the Director General of Land and Mines to the Transport Ministry, which will then be leased out for the project for a period of 99 years.

    “The necessity for a new LCCT in KLIA will make Malaysia a leading hub in Asia with a ‘dual hub’, whereby the main KLIA terminal will house the OneWorld Alliance, klia2 will house other premium airlines and the new LCCT will accommodate the low-cost carriers,” the proposal read.

    Companies Commission of Malaysia records show that Citaglobal Airports was incorporated on Nov 2, 2017 and is involved in wholesale of goods without particular specialisation and management and business consultancy activities.

    AirAsia Bhd issued a letter of support for the plan via a letter dated Nov 2, 2017 which coincides with Citaglobal Airport’s incorporation date. The letter carried AirAsia’s letterhead and bore the signature of its executive chairman Datuk Kamarudin Meranun and copies were sent to AirAsia group CEO Tan Sri Tony Fernandes and AirAsia Bhd CEO Aireen Omar.

    The low-cost airline expressed its interest in shifting its operations to the new LCCT.

    “We understand that Citaglobal Airports Sdn Bhd plans to develop a LCCT at KLIA. We are in full support of this proposal as the aviation sector is a major contributor to the country’s economic growth and accords significant contributions to other sectors of the economy,” it said, citing a study by Bain & Co.

    Kamarudin said it would support Citaglobal by making the new LCCT the base for AirAsia Bhd and AirAsia X Bhd operations, have all flights operated by AirAsia group operate at the new LCCT and participate with Citaglobal to generate non-aeronautical revenue.

    Citing the recent increase in Passenger Service Charge (PSC) introduced by the Malaysian Aviation Commission (Mavcom) and the proposed equalisation of PSC at both airports, on top of other cost increases proposed by the commission and the Department of Civil Aviation, the airline said an LCCT with a much reduced PSC and cost for travellers is required to accommodate the low-fare travel segment while KLIA and klia2 could be used to accommodate premium airlines.

    AirAsia declined to comment in response to the matter.

    According to Malaysia Airports Holdings Bhd, AirAsia accounts for 95% of traffic at klia2 and they are the largest occupant.

    “Any new airport terminal construction will be under the purview of the Ministry of Transport and will need to get the government’s approval. We are currently guided by the existing National Airport Master Plan,” its spokesperson said, who added that it has not received anything official on the matter.

    The Transport Ministry was yet to respond to request for comments as at press time.

  • Items worth $273m seized from premises linked to Malaysia ex-PM

    Items worth $273m seized from premises linked to Malaysia ex-PM

    Items seized from six premises linked to ousted Malaysian leader Najib Razak, including cash, a vast stash of jewelry and luxury handbags, are worth up to $273 million, police said Wednesday.

    “The total cost of all the items, the retail price, will be touching 910 (million) to 1.1 billion ringgit,” Amar Singh, the police’s head of commercial crime said. That is equivalent to $225 million to $273 million.

    The items included 116 million ringgit ($28.8 million) in cash in 26 different currencies, about 12,000 pieces of jewellery and hundreds of handbags as well as a large number of watches.

    Allegations of massive corruption were a major factor behind the shock election loss of ex-premier Najib’s long-ruling coalition in elections last month to a reformist alliance headed by Mahathir Mohamad.

    Najib and his cronies were accused of plundering billions of dollars from sovereign wealth fund 1MDB and using it to buy everything from US real estate to artworks. Najib and the fund deny any wrongdoing.

    His luxury-loving wife Rosmah Mansor became a lighting rod for public anger due to her vast collection of handbags and jewels, and her reported love of overseas shopping trips.

  • Palm falls on weak export demand

    Palm falls on weak export demand

    Malaysian palm oil futures fell at the midday break today, as weak export demand and losses in US soyoil weighed.

    The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.8% at RM2,266 per tonne, its sharpest intraday loss since June 19.

    Palm gained in the previous session, snapping four consecutive days of losses. It is down nearly 7% so far this month.

    Trading volumes stood at 19,531 lots of 25 tonnes each at noon.

    “The market is lacking demand, this is the primary cause of price declines,” said a Kuala Lumpur based trader.

    “Exports have been bad since the export tax was reinstated, and Indonesian prices are more competitive than ours,” added the trader, referring to Malaysia’s tax on crude palm oil exports.

    Malaysia resumed export taxes on crude palm oil in May, after suspending it for four months at the start of the year to increase demand and boost prices. It announced a 5% rate for the month of July.

    Exports of palm oil and related products from the world’s second largest producer declined 12.5% from June 1-25, reported inspection company AmSpec Agri Malaysia today, versus the corresponding period in May.

    Palm’s decline could also be due to weakness in US soyoil on the Chicago Board Of Trade, another trader said. The Chicago July soybean oil contract was last down 0.2% today.

  • Analyst cuts core earnings growth forecast for banking sector

    Analyst cuts core earnings growth forecast for banking sector

    AmInvestment Bank has cut the banking sector’s core earnings growth forecast to 7.6% from 9.2% after lowering expectations for banks’ non-interest income.

    The earnings growth will be contributed by an increase in revenue and improvement in operating expenses. Last year, banks’ core earnings grew 10.6%.

    Non-interest income is now expected to be more challenging than earlier expected, due to softer capital market activities, with IPOs and capital raising in the equity market likely to remain slow.

    AmInvestment Bank, which has reiterated its “overweight” call on the banking sector, is maintaining the loan growth expectation of 5% for the Malaysian banking industry supported by a gross domestic product growth of 5.5%. Domestic demand and improvement in external trade remain the drivers of economic growth.

    Banks registered slower loan growth in Q1’18, dampened by the slower pace of overseas loans even though domestic loan growth was above the industry rate.

    AmInvestment Bank expects loan growth of banks to improve in H2’18 underpinned by a pickup in consumer loans.

    “A stronger consumer spending is anticipated in the short-term period between the implementation of zero-rated GST and reintroduction of SST. We expect business loan growth to also improve, supported by the absence of large corporate loan repayments and a non-repeat of the forex translation impact seen in Q1’18.”

    The research house also noted that loans to the manufacturing, wholesale and retail sectors, benefiting from the improvement in consumer spending, are anticipated to be stronger compared with loans to the construction and construction-related sectors. This is in view of the fact that several major infrastructure projects have been terminated while some are under review.

    Net interest margin-wise (NIM), AmInvestment Bank anticipates it to taper off in H1’18 from Q1’18, which was boosted by an Overnight Policy Rate (OPR) hike of 25 basis points last January. NIM is projected to only expand two basis points (bps) this year against a projection of a three bps increase previously.

    “The lagged repricing of banks’ deposit rates adjusting to the increase in OPR coupled with keener competition for deposits compared to H1’18 as the sector moves closer towards the implementation of net stable funding ratio (NSFR) will be the contributing factors.”

    “Also, the tapering of margin is also expected to be partly attributed to pressures on the asset yield of banks’ subsidiaries in Indonesia (Maybank Indonesia and CIMB Niaga).”

    AmInvestment Bank believes the OPR will be maintained at 3.25% in H2’18, based on the headline inflation, which is still expected to be low, thus sustaining a positive real interest rate.

  • Malaysian freelancer now can get jobs at a swipe with DuitDo-it

    Malaysian freelancer now can get jobs at a swipe with DuitDo-it

    Looking to earn extra income for Malaysians has just become easier with the launch of DuitDo-it.

    Working like the dating app Tinder, job seekers can apply for part-time and contract or freelance work with just one swipe.

    DuitDo-it is developed and owned by recruitment agency AP Symphony Search, as part of their CSR efforts to help Malaysians earn more while meeting the needs of employers nationwide who need part-time, contract or freelance staff desperately.

    The agency said in a statement here today that with the big pool of Malaysians like unemployed youths, school leavers, students, retirees and stay-at-home mothers available, companies can now fill their temporary manpower gap easily. This should help reduce the country’s high reliance on foreign labour which is causing a huge outflow of funds, it said.

    DutiDo-it is free for job seekers. It may be downloaded from Google Play. Individuals can also post jobs such as looking after their cats or plants, or doing sewing.

    Symphony said DuitDo-it also meets the workforce trend of freelancing. “More and more people are looking for non-nine-to-five jobs that allow them to have more flexibility and control over their time,” the agency added.

    Work such as website design, accounts preparation and make-up artist can be found on DuitDo-it.

    One of the unique features of DuitDo-it is the use of video resumes to allow for quick hiring.

    Every job seeker will have his own individual rating to help employers make fast hiring decisions. If selected by the employer, the job seeker has three hours to accept, according to the statement.

  • Aeon Wallet to be launched in August

    Aeon Wallet to be launched in August

    Aeon Credit Service (M) Bhd is targeting to launch its cashless payment service Aeon Wallet in August, which will become another core business segment for the group.

    Aeon Credit, a subsidiary of Aeon Financial Service Co Ltd Japan, is principally engaged in consumer finance operations through provision of easy payment and hire purchase schemes for purchase of consumer durables and motor vehicles, personal financing schemes and issuance of credit cards.

    Aeon Credit will be launching two new products in the current financial year ending Feb 28, 2019 (FY19), in line with the company’s digital initiatives, namely the Aeon Wallet and Aeon Member Plus Card that will provide customers with payment, privileges and benefit to complement the evolving customer lifestyle, attracting customers from all segments to go cashless.

    Chief financial officer (CFO) Lee Kit Seong said the e-wallet will be another payment settlement tool for consumers in the market as it looks to first tap into its 6 million member base in the group and to have 1 million users for the e-wallet in a year.

    “We’re also introducing the Aeon Member Plus Card to consolidate the loyalty programme of the Aeon group of companies in Malaysia. The e-wallet is one of the settlements like Touch ‘n Go, Alipay, and WeChat Pay. Our e-money will ultimately become mobile payment and Aeon Pay (a settlement medium like iPay88),” Lee said.

    “After we expand internally, we will go externally. From e-money, we’re going to put it into a mobile wallet. We want to integrate the Aeon companies (such as Aeon, Aeon Big, Aeon Credit) in Malaysia to have one member (system). Once comfortable, we will go to the region,” added Lee.

    Aeon Credit has doubled its capital expenditure (capex) to RM120 million for FY19, from RM60 million in FY18, to invest in its operations and business expansion. The capex will be utilised for its branch transformation and digital marketing initiatives, the upgrading of its system infrastructure and for the introduction of its e-money business.

    Lee expects the company to maintain its momentum for FY19, with strong domestic demand being the key driver for growth, along with its transformation business model and continuous improvement in asset quality under the new MFRS9 environment.

    Meanwhile, chairman Ng Eng Kiat has maintained that “it is not wrong” in relation to the additional assessments and penalties by the Inland Revenue Board totaling RM96.82 million.

    “It’s an issue not just in relation to having to pay the tax. We’re taking the grounds that we’re not liable for those tax. We’re now appealing to the Special Commissioners of Income Tax,” said Ng, adding that it is also in consultation with tax agents, auditors and solicitors.

    He said although IRB has raised an assessment and failure to pay by a certain time will result in penalties, winding up of the company or action against the board of directors, it has applied to the Court of Appeal against the High Court’s May decision to get a stay. The hearing has been deferred to July.

  • Malaysia retailers see higher sales growth in 2018

    Malaysia retailers see higher sales growth in 2018

    The Malaysia Retailers Association (MRA) forecasts retail sales to be 5.3% for 2018, an improvement from the 4.7% growth in its March survey, boosted temporarily by the zero Goods and Sales Tax in June.

    The MRA said for the first quarter of 2018, the Malaysia retail industry recorded a below-than-expected growth rate of 2.6% in retail sales versus the 3.1% in October to December last year and 1.2% growth a year ago.

    “Despite poor performance recorded a year ago (-1.2% in Q12017), the Malaysia retail market remained subdued early this year. Shoppers were still careful in their spending on festive goods during the Chinese New Year period”.

    The MRA said except the supermarket and hypermarket sub-sector, all retail sub-sectors recorded improvement in their retail businesses during the first quarter of 2018.

    It said its members are hopeful that their businesses will recover by the second quarter of 2018. They projected an average growth rate of 6.0%. The change in ruling party after the general election on May 9, 2018 is expected to boost consumers’ confidence level and increase their willingness to spend.

    At the same time, the largest festival in Malaysia, Hari Raya, will be celebrated in June this year.

    “The department store cum supermarket operators are expecting a better performance with a growth of 4.6% for the second quarter of this year.

    “The department store operators are expecting to sustain their businesses with a growth rate of 4.7% for the second three-month period of this year,” it said.

    On the other hand, supermarket and hypermarket operators will not see improvement in their business in the coming months. They expect to remain in the red zone with a -4.4% growth rate for the second quarter of 2018.

    The Retail Group Malaysia adjusted the Q2 retail growth rate from 3.7% (estimated in March 2018) to 6.3%.

    This revision is also higher than the latest projection made by MRA members. This new estimate took into consideration the tax holiday during the last month (June) of second quarter as well as Hari Raya celebration at the middle of June 2018.

    The retail sale growth rate for third quarter has also been revised from 5.2% (estimated in March 2018) to 6.8%. This revision took into consideration the remaining two months of tax break before Sales and Services Tax (SST) is to be re-introduced from 1 September 2018.

    “For the last quarter of this year, the retail growth rate has been revised downwards from 5.0% (estimated in March 2018) to 3.5%.

    “This lower adjustment is needed to reflect higher consumers’ spending during the three-month period with zero-rated GST. Major purchases are expected to have been made from June to August of this year,” it said.

  • Petronas committed to help Sarawak become major oil industry player

    Petronas committed to help Sarawak become major oil industry player

    Petroliam Nasional Bhd (Petronas) is committed to supporting Sarawak’s aspiration to become a major player in the petroleum industry and has so far invested RM183 billion in the upstream sector in the state alone via production sharing contracts (PSCs).

    According to infographics released to Bernama, the national oil company, since 1976 and up to last year, made cash payments worth RM33 billion to Sarawak.

    In addition, through the state government’s equity in Petronas’ liquefied natural gas (LNG) complex in Bintulu, the state also received RM18 billion in dividends.

    Through the Sarawak Joint Working Committee, Petronas also works closely with the state government to ensure Sarawakians and local companies get priority in career and business opportunities in both upstream and downstream activities in the region.

    Petronas also spent RM411 million on scholarships and aid programmes for over 6,000 Sarawakian students while 5,000 Sarawakian professionals are working in Petronas operations, worldwide.

    The Sarawak government, in March this year, launched state-owned Petroleum Sarawak Bhd (Petros) to boost its own participation in the industry.

    The infographics also explained in detail the Petroleum Development Act 1974 , a Federal law enacted by Parliament, having the legislative competence under the Federal Constitution to promulgate laws relating to petroleum.

    The PDA 1974 gives Petronas exclusive ownership to oil and and resources in Malaysia and makes it the sole regulatory body for upstream oil and gas activities through PSCs.

    The PSC system addresses the need for a greater centralised management of the petroleum industry for the benefit of the nation and the states.

    This has allowed Petronas to create significant value for the nation, hence contributing to the well-being and development of the nation and the respective states.

    “The PDA 1974 serves to protect the interest of all Malaysians, ensuring that the nation will benefit the most from its petroleum resources,” Petronas said in the infographics.

    Under the Act, profit share is split between Petronas, contractors and income tax payment to the government with the states and Federal government getting five per cent royalty each from the Profit Oil, Petronas and the contractors sharing 12.5% each from the 1985-type PSC and 15% for income tax.

    From two other types of PSC, Profit Oil is only 10% with 3% each for both parties and 4% for income tax (under Deepwater/Ultra Water PSC) and for Revenue/Cost PSC, Profit Oil is at 20% of which 6% each is for Petronas and contractors and 8% for income tax.

    The infographics also highlighted the fact that PSCs are risky, highly capital intensive and take a long time to provide returns while exploration took between three and five years with no income and the probability to discover oil rated at only between 20% and 25%.

    The risks is extended to the development period of between four and six years’ spending to monetise the discovery, a period when still no income is made.

    Once production commences, the 10% cash payment to the federal government and the states starts while both Petronas and the contractors pay 38% income tax from the profits made.

    The national oil company also pays annual dividends to the federal government.

    Contrary to general perception, these cash payments are paid, twice a year, irrespective of whether the production from the field is profitable or not.

    According to the infographics, an increase of the royalty payment from 5% to 20% as demanded by producing states will have an adverse impact on the industry.

    Such an increase in cash payment would also reduce the attractiveness of Malaysia as an oil and gas investment destination for many players.

    There are currently over 40 investors in PSCs of which about 80% are foreign companies which view the Malaysian petroleum sector as stable and favourable based on current PSC arrangements.