Cover Stories

https://www.youtube.com/watch?v=JvZKisubbuM&list=PLXNUnD-w9bUm9YmvkhNEnRGeat3fkPI73&index=4 KUALA LUMPUR: HABIB, a name synonymous with heritage and luxury, is on a mission to strengthen Malaysia’s position in the global market to ensure that each of its jewellery creation is worthy of international standards. The homegrown jeweller, established 66 years ago in Malaysia, aims to instil a sense of national pride among Malaysians while appealing to a universal audience. Habib Group Executive Chairman Dato’ Sri Meer Sadik Habib said the company is also shifting the stereotype of homegrown products and promoting Malaysian identity globally. “We have a strong Malaysian element in everything we do because we are proud to be a Malaysian brand. We want to be a brand that Malaysians will be proud of first, and then we want to put Malaysia on the map of the world with our culture and tradition weaved into our products. We are working on this,” Meer Sadik told The Exchange Asia in an exclusive interview. In diversifying its approach, HABIB prioritises several key elements, namely quality and creativity, ensuring that every aspect of its products and designs reflects the pinnacle of global standards. “One of our milestones was initiating the production of designs unique to the world. In terms of differentiation, our focus on diamonds as an investment stands out, particularly with certified diamonds that retain substantial value, providing customers with a viable asset,” Meer Sadik said. Touching on the local perception of Malaysian-made products, Meer Sadik said the challenge is to change people’s mindsets about local products. “People think Malaysian brands are not good enough. That is the current mindset. They believe international brands are better and local brands are below average. What we are doing now is changing that mindset. We want to be a brand that Malaysians can be proud of and globally accepted,” he said. HABIB has achieved international acclaim, earning the trust of esteemed names that have selected the brand as their exclusive distributor or collaborator. These notable partnerships encompass Pandora, recognised for its customisable charm jewellery from Denmark; Stephen Webster, a prominent London-based jewellery brand, and Ice-Watch, an affordable luxury watch brand from Belgium. In addition to the jewellery business, HABIB is involved with various other businesses such as Ar-Rahnu Express and Chantique, as well as international brands like Hearts on Fire and Korloff. The group has also invested in real estate, hospitality, as well as food and beverage businesses. Moving on, Meer Sadik expects the gold price to be strong throughout this year. “For the last few years, most countries have created a lot of debt, which has created inflation. And the best hedge against inflation is gold, so people buy gold. The gold price has not increased significantly in the past few years due to high interest rates in the United States; however, there are talks of impending interest rate reductions, which may prompt an increase in gold prices,” Meer Sadik said. He said HABIB anticipates a potential increase in gold prices as rates decrease, depending primarily on the movement of interest rates in the US. “Additionally, fluctuations in the ringgit’s value, which may strengthen if US interest rates decline, could further influence the balance of gold pricing,” he said. Meer Sadik also calls on the government not to impose a luxury tax on jewellery, as many Malaysians, including those in the B40 and M40 income brackets, opt to purchase gold as a means of savings. He said a significant portion of the population also does not have bank accounts, and they buy gold or gold jewellery as a form of investment when they have surplus funds. “I sincerely hope there won’t be any tax implementations on jewellery,” Meer Sadik said. He said that a few years ago, when the option to withdraw funds from Employees Provident Fund was announced, there was a noticeable surge in gold purchases, particularly among the B40 and M40 groups. “While I fully endorse the government’s consideration of imposing taxes for the T20 group, ensuring minimal impact on the B40, our observations reveal a substantial number of B40 individuals, including those in the M40 category, engaging in jewellery purchases, notably gold. “So, the implementation of taxes will determine what happens next. Without taxes, people will probably buy jewellery, especially gold,” Meer Sadik said. HABIB will continue to be present at strategic places and are looking to open a few branches this year. Meer Sadik said an outlet in Tun Razak Exchange (TRX) was recently opened, and the company plans to open another outlet in Menara 118. “We are also assessing our expansion plans, focusing on broader international growth this year. We are venturing beyond Malaysia into various regional destinations within Southeast Asia. We already have a presence in Singapore, the Philippines, Hong Kong and Taiwan,” Meer Sadik said, adding that HABIB is not just about profit and loss. “That is the last thing that we look at. We want to make a significant difference in the lives of people. We are in this business started by my late father. It is because of what he wanted – to be in the business of ‘happiness’. So that is something that we strive for,” Meer Sadik said.

In light of various social issues that arose from volatile geopolitical, social enterprises and the entrepreneurs responsible for such organisations behind the scenes have faced challenging conditions in their mission to make the world a better place. This has not only brought more awareness to the public on the impact that one could make with a little bit of effort, but it also inspired more social entrepreneurs to take a bold step forward in coming up with initiatives that would contribute to improving the lives of the underprivileged community. A good example of this would be Rebekah Yeoh, granddaughter of late billionaire Yeoh Tiong Lay, who is the founder of Malaysia’s largest conglomerate, YTL Corporation. In an exclusive interview with The Exchange Asia, Rebekah shared how her parents – including her father and Executive Chairman of YTL Group, Tan Sri Francis Yeoh Sock Ping – had always exposed her and her siblings to the reality of financial illiteracy among the underprivileged communities in rural areas. According to Rebekah, her parents believed that it was necessary to reveal the hardship of living conditions of other people outside of the ‘cosy lives’ of the privileged few. “This effectually had a long-term impact on my interests and life direction. I did my economic bachelor’s thesis on microfinancing for neglected communities and I had always dreamed of pioneering a sustainable charity engine,” she said, elaborating on how her grandfather and father had built the empire of YTL Group from humble beginnings, which encouraged her to fuse the aspect of business and charity together. “With that, Recyclothes was born, which was also influenced by my ‘passion for fashion’ and my sister, Ruth’s fight against environmental wastage,” added Rebekah, who is also the Corporate Finance Director of YTL. For her current role in YTL, she oversees cash management responsibilities while also supporting mergers and acquisitions (M&As), accounting and project financing activities. She has also assisted in undertaking several corporate exercises for over 10 years as the group seeks ways to expand, grow its global footprint, and sprawl into evolving industries relevant to the shifting norms of today. When asked about her decision to join YTL Corporation, Rebekah answered with, “I believe it was the natural progression of realising one’s potential through the support of family members which was the main appeal. Education played a very integral role in my family’s upbringing, considering my grandmother was a teacher most of her life, and our family invested a lot into the importance of education. With such efforts, Rebekah said that the best way to put all that education to good use is by channelling it all back to the people, which completes the circle of life by honouring the people who had given so much to mould her to become the person she is today. However, the professional responsibilities she has with YTL Corporation never distracted her from her mission to bring about positive change, especially for those who could not afford to do so for themselves. Reaching Out With Nimble Fingers In 2015, 18-year-old Rebekah founded a sustainable empowerment programme to help children develop talent and entrepreneurial skills in Cambodia, dubbed Nimble Fingers Cambodia. “The programme adopts a three-pronged methodology constituting micro-finance, enterprising and sustainable giving that ultimately aims to instil an early culture in children to accumulate disposable income and savings instead of squander it away. “Through the programme, they could use profits to be reinvested into their own ‘mini enterprises’ so that they learn about capital spending, savings and value-add. The children can be trained from a young age to monitor their finances and cultivate conservative financial etiquette,” Rebekah explained. She said that Nimble Fingers Cambodia is an initiative that she holds close to her heart because of the children that are involved in the programme. “I fell in love with the children the minute I met them. They have such pure hearts, so willing to share despite having so little, and they treat each other like family. The childcare centre raised them to heal others through love. “I felt they deserved a chance to build their lives through practising sound financial etiquette, and this program empowers them from a young to reach beyond minimum wage by giving them the confidence to pursue work encompassed around their genuine interests,” Rebekah said, adding that the programme is also able to provide the initial ‘push’ for the children to explore their future career paths and discover their talents. Moreover, Rebekah said that the programme teaches them about team coordination and shared stakeholding within a business. “They were beholden to the poor education system in Cambodia which lacks the basic practical skills of finance and book-keeping. Business knowledge combined with a good heart is unformidable!” she continued. Making a Difference With Global Shapers Apart from being an active philanthropist, Rebekah is also an alumnus of the Global Shapers Community Kuala Lumpur – an initiative that allows anyone and everyone to give back through a series of projects with causes revolving around the homeless, children, women and/or education. “I am a strong admirer of Jeffrey Sach’s research in economic scarcity. I agree with him wholeheartedly that ‘perpetual charity is not a sustainable option to eliminating poverty’, and I am convinced that enterprise is a more effective way of unlocking the potential of these individuals to create wealth for the long term, and this is what Global Shapers has pioneered over the years,” Rebekah explained. She said that Global Shapers became an outlet for her to let her inner economic creativity run wild when it comes to community projects. According to her, there were infinite planes that people could achieve, and the best way to do it than with other shapers who contributed a diverse range of manpower, knowledge, experience, and support. “I was submerged into a pool of professionals who had ventured into their own social projects taking various natures and forms. I was the weak link as I had the most to learn. “The best part about

KUALA LUMPUR: Malaysia’s cybersecurity threats are expected to rise in 2024 based on the country’s ongoing significant cybersecurity concern for individuals and businesses. Taiwan-based network attached storage (NAS) company Synology Inc noted that Malaysia reported 494,699 leaked accounts, reflecting a troubling trend in digital security breaches. While predicting exact numbers is challenging, the figures are almost guaranteed to rise in 2024 unless immediate and decisive action is taken. “I think the message is clear. The time to act is now. Raising cybersecurity awareness, strengthening the resilience of your business infrastructure, and implementing advanced data protection protocols with drills are essential,” Synology sales account manager Jason Sin told The Exchange Asia. Sin said that while Synology does not have specific statistics on the percentage of data breaches, it is crucial to recognise the profound impact such breaches can have on the overall cybersecurity landscape. He said the compromise of government data poses significant risks, jeopardising the safety and privacy of citizens and potentially leading to national security threats. “Again, it is essential to prioritise data protection in the public sector. Implementing measures such as centralising data, utilising on-premise storage solutions, and adhering to high-standard security methods, including WORM (Write-Once-Read-Many) encryption and backup protocols. “These proactive steps are vital for upholding the security and trust of the public in an era where safeguarding sensitive information is paramount,” he said. “In the Malaysian business landscape, growing concerns about data scattering, loss, and cybersecurity threats demand vigilance. “Synology addresses these challenges with a reliable and centralised hybrid storage solution,” Sin noted. For financial institutions in Malaysia, adopting robust cryptographic controls is imperative to ensure the thorough protection of sensitive data and information. “While cryptographic controls are not within our primary expertise, Synology has a proven track record of supporting financial institutions globally through our comprehensive data protection solutions. “In various countries worldwide, including notable banks, Synology has demonstrated its ability to support financial institutions,” Sin said. He pointed out IdeaBank that entrusted Synology’s Active Backup Suite to safeguard the data of over 2500 users, encompassing Microsoft M365 accounts, including Drive, Mail, SharePoint Sites, Contracts, and Calendar. Sin said this showcases the versatility and effectiveness of Synology’s solutions in meeting financial institutions’ complex data protection needs on a global scale. Further, Sin noted that Synology continues collaborating with Malaysian businesses by understanding their unique data protection needs and challenges. He said that through customised solutions, including NAS systems with scalable security features and comprehensive support, Synology tailors its offerings to meet the specific requirements of the local market, ensuring businesses can protect their data effectively against cyber threats. “We have a retail customer who recently experienced a cyber attack on their domain, resulting in ransomware encrypting files within their shared folders. “Fortunately, they had previously created an Immutable Snapshot on their Synology NAS. This allowed them to quickly restore their files, isolating the NAS from their network during the process. Despite the attack, the Synology DSM operating system remained operational, thanks to the customer’s stringent security policies to prevent unauthorised access. This incident underscores the importance of timely data snapshots as a preventive measure against such unfortunate events,” Sin said further. “We recommend businesses prioritising regular data backups and leveraging snapshot technology for quick data recovery in the face of cyber threats. “Additionally, we advocate for the importance of conducting regular recovery drills to test and enhance cybersecurity response capabilities,” said Sin. He said Synology also emphasises user education on cybersecurity best practices and collaborates with industry experts to stay ahead of emerging threats. “This comprehensive strategy ensures that businesses using Synology solutions are well-equipped to face the evolving cybersecurity landscape in Malaysia,” Sin said.

KUALA LUMPUR: National postal operator Pos Malaysia Bhd will remain a significant player in the mail and parcel business segment despite stiff challenges coming from competitors. Chief executive officer Charles Brewer said that despite the challenges, including foreign exchange fluctuations and regional geo-political concerns, Pos Malaysia will continue to upscale its operations across all business segments. He said that over the last decade, traditional mail, which has long been Pos Malaysia’s core business, has experienced a decline ranging from -2 per cent to -38 per cent. “This downward trend was exacerbated globally during the Covid-19 pandemic, with mail volumes experiencing low double-digit declines due to various disruptions,” he told The Exchange Asia in a recent interview. Pos Malaysia handles around one to one and a half million letters daily, and the decline in the business segment was due to COVID-19, which significantly contributed to the decrease in the already diminishing business sector. While the company continues navigating the challenges, Pos Malaysia expects another year of continued decline in mail volumes, a downtrend the company has faced over the past ten years. Charles said that the situation has somewhat stabilised post-Covid and is returning to pre-pandemic decline rates of 6 per cent to 8 per cent. The company’s core business is divided into two significant segments – traditional mail and parcel – presenting distinct challenges. The mail and parcel segment is Pos Malaysia’s primary business. Charles emphasised that, as the nation’s postal operator, Pos Malaysia has a vital duty to keep Malaysians connected, ensuring the timely delivery of mail. He said that in adapting to current and new challenges, Charles emphasised innovation and resilience as Pos Malaysia explored strategies for diversifying its services and reimagining its business model to remain relevant in an era where traditional mail is steadily declining. “In addressing new challenges, Pos Malaysia looks towards a future marked by innovation and strategic transformation,” Charles noted. Despite continued growth in parcel volume, which is contributed by the booming e-commerce industry, the segment has attracted many new players who are establishing their own logistics solutions, squeezing further Pos Malaysia’s tight margin. “What was initially seven, eight, or nine years ago, a significant upside opportunity is still an opportunity, but it is harder and more competitive to make a decent return in that space,” Charles said. Explaining further operations, Charles said the logistics services sector in Malaysia operates within a relatively open market, with limited regulatory constraints on new entrants. He said there are approximately 120 courier operator licenses in Malaysia, serving a population of 30 million. “To provide a perspective, the contrast with Indonesia is stark, where only about 30 licenses serve a population of 350 million. With a population of 70 million, Thailand has a similar number of licenses. “The competitive nature of Malaysia’s logistics market is one of its distinctive features, offering opportunities and challenges. The abundance of licenses contributes to a vibrant but relatively deregulated environment, becoming the first challenge in the parcel sector,” he said. Charles said the government and relevant agencies must look into creating a conducive playing field for the domestic courier industry, particularly limiting the number of foreign players to give local players a more significant market share. “We have more than 15,000 employees, and Pos Malaysia is one of the oldest companies operating in Southeast Asia and certainly one of the oldest companies in Malaysia. “We have a fantastic history, a fantastic brand, and much to be proud of. “So a big part of our transformation is transforming our culture, making sure that all of our 15,000 employees are very clear about how we need to operate and behave to keep the customers we have—more customer centricity and employee centricity, which sits right at the heart of that cultural transformation,” Charles said.

KUALA LUMPUR: With a strong presence in Malaysia, Singapore, and Taiwan, Xamble Group Ltd is now eyeing expanding its influencer marketing services to other regions or markets. The Australian Securities Exchange (ASX)-listed Malaysian company is focusing on expanding across the ASEAN and New Zealand markets to attract more investors into its investor community. Xamble Group worked with more than 300 brands, including KFC, Unilever, P&G, and Hasbro and has access to over 20,000 influencers that reach over 20 million consumers in Malaysia, Singapore, and Taiwan through influencer marketing arm Nuffnang. Just recently, Nuffnang added The Body Shop, Taiwan Tourism, Standard Chartered and Mr DIY to its current portfolio. Xamble Group executive chairman Ganesh Kumar Bangah said more prominent brands are typically subject to more criticism from the public, especially during critical seasons involving important global events. “We work tirelessly so that our clients and brands care for us even more than usual,” he told The Exchange Asia. When asked how Xamble strengthens its relationships with existing clients and attracts new brands, Ganesh said that by strengthening relationships, the company attends to the client’s pain points to understand what they want to achieve. In addition, Xamble Group also hosts beneficial events like Nuffnang’s TMRW/TDY (Tomorrow/Today) to help clients better understand upcoming topics in the digital and influencer marketing industries. Ganesh said that in attracting new brands, Xamble Group innovates new products to supplement existing offerings, such as the Influencer Scorecard, a dedicated strategy team in place that focuses on bringing more creativity and innovation to campaigns, and the Talent Squad, an in-house talent management team that directly manages social media campaigns for influencers. “The primary objective of the investment initiative is to fortify and expand the outreach to the small and medium-sized enterprise (SME) segment through the Xamble Creators platform. “This entails strategic technological investments aimed at augmenting the platform’s functionality facilitates a seamless and direct interaction between influencers and SME brands. “The integration of an influencer solution tailored for SME brands holds the potential to amplify the scale of our business operations substantially,” said Ganesh. Xamble Creators is an innovative platform to enhance collaboration between micro and nano influencers and brands. The platform allows influencers to monetise their content by connecting them with brand campaigns that align with their interests. The platform, integrated with OpenAI’s ChatGPT, also empowers users with suggested social media posts based on campaign briefs and influencers’ preferred tones. Xamble also features a virtual robot, Xb, for tutorials and post suggestions. It is available on iOS, Android, and Huawei AppGallery and operates on SaaS (software-as-a-service) and fintech models. Targeting Asia’s prominent influencer segment, Xamble Creators focuses on authenticity and frequent audience engagement. It also includes a verified list of influencers, ensuring brand fit and addressing common concerns. This innovation aims to diversify revenue streams, enter new markets, and target the SME sector for long-term growth. Ganesh said Xamble Creators, introduced last year, continues to empower creators and influencers. “Via the app, we can access even more influencers looking for a way to connect, collaborate, and create content to earn. “Currently, we have more than 1,000 active influencers on the app, Ganesh noted. In October last year, Xamble Group signed a subscription agreement to receive an A$400,000 (RM1.2 million) investment from Georg Chmiel, a leading tech entrepreneur and public markets expert. Chmiel’s investment came in via the subscription of new chess depositary interest (CDI) at 3.5 cents per CDI. He also received 2 million options at 4.5 cents per CDI, vesting equally over five years, contingent on his directorship at each vesting date. Chmiel joined the Xamble Group board in November as an independent non-executive director. “In light of our consistently positive cash flow, as evidenced in prior ASX market announcements, Xamble Group is strategically allocating surplus funds towards future growth initiatives. “This proactive approach involves significant investments in enhancing our technology platform, primarily focusing on developing new features. “Notably, we are constructing a self-service influencer platform tailored for SMEs within our targeted markets,” Chmiel said. Chmiel and Ganesh have reviewed the strategic direction of the business and agreed on the growth path forward. Xamble Group noted that there will be continued investment in the platform, influencer community, and operations. The board is also assessing additional organic and inorganic mergers and acquisition growth opportunities as they emerge. Chmiel brings over three decades of expertise in disruptive online businesses, significantly influencing decision-making at Xamble Group. He excels at reassessing strategies, optimising team dynamics, and securing support for investment decisions through a robust network in the financial investor community. With a proven track record overseeing 40 successful mergers and acquisitions, Chmiel demonstrates a keen understanding of effective governance and the importance of technology platforms for rapid business scaling. In summary, his extensive experience and strategic vision have been instrumental in shaping Xamble Group’s direction, fostering innovation, and ensuring sustained success.

KUALA LUMPUR: The Kuala Lumpur Convention Centre (KLCC) anticipates 2024 to be a strong year for international conventions and exhibitions based on current industry trends and confirmed bookings. The country’s premier purpose-built venue also emphasises attracting more meetings, conventions, exhibitions, and corporate events segment (MICE), including banquets and functions, this year due to their contribution to the local economy. “The target or expectation for our corporate segment this year remains the same as last year with a slightly modified strategy. “We will be placing a higher emphasis on these segments whilst for the corporate segment, we will be focused on growing our recurrent client base through continued service quality,” KLCC general manager John Burke told The Exchange Asia. In 2023, KLCC generated over RM656 million in economic impact from local expenditure benefitting layers of the business events supply chain ecosystem, such as thevenue, hotels and hospitality, retail, event contractors, as well as associate industries like media, advertising and marketing, transportation, food and beverage and so forth. Research also shows that business event visitors spend over three times more than the average tourist and have a significant multiplier effect, with 60 per cent returning later as tourists. According to John, Malaysia also benefits significantly from these events’ knowledge transfers, learning, and trade activities. “Malaysian businesses, through business events can learn about international best practices and solutions they can apply in their organisations,” he said. John also pointed out that Malaysian businesses, through participation in international conventions or exhibitions, they can learn about global best practices, new technologies, trends relevant to their industry, and upcoming products and solutions, which they can apply in their organisations. “These events not only present new business opportunities but also provide great platforms for businesses and individuals to network with industry colleagues and potential new clients or employers from all over the world,” he said. When asked about the outlook in terms of the number of events secured and the target KLCC aims to achieve by the end of 2024, John said the centre opened the year with 37 convention bookings and 50 confirmed exhibitions. These numbers, he said, are expected to go up as more national conferences and exhibitions, short lead meetings and events are confirmed for the year. “Our focus for the year and moving forward is not so much focused on the number of events, but rather the opportunity that those events provide. “This could be in revenue, exposure, or economic impact. It is about selecting the right events for Malaysia, Kuala Lumpur and KLCC,” John pointed out. KLCC currently has 32 confirmed conventions for 2024, with 26 being international. When asked how KLCC plans to attract and secure more international events, John said the centre has a research team that studies the opportunity to bring suitable events to Malaysia. “We look at conventions and exhibitions that are especially relevant to existing and new industry sectors contributing to Malaysia’s economic, infrastructure and social growth. “We build relationships with local associations, assist them in putting together a compelling bid and presenting it to the association committee or council. “And, when bidding, we first sell Malaysia as the destination, followed by the host city, Kuala Lumpur,” he said. He said that as the premier purpose-built venue in Malaysia, KLCC also works very closely with its national bureau, the Malaysia Convention and Exhibition Bureau (MyCEB), to position Malaysia as the preferred destination for business events in the region. “We participate in all the global industry trade shows, representing Malaysia, showcasing our compelling offerings for international event organisers,” John noted. Some of the events lined up at KLCC for this year are the Ancaro Imparo Dental Conference, February 22-26, the International Café & Beverage Show, May 23-25, the 21st AILA World Congress, August 11–16, European Society for Radiotherapy and Oncology (ESTRO) meets Asia, August 23-25, the International Surgical Week, August 26-29, the Aesthetic Medicine & Surgery Conference & Exhibition (AMSC), AestheticMedicine & Surgery Conference & Exhibition (AMSC), September 20-21 and the International Union of Architects (UIA) Forum from November 15-17.