Professional Documents
Culture Documents
Issue 9
PP18996/04/2016(034470)
COVER STORY
Expectations for
Budget 2017
PERSPECTIVE:
What to Watch Out For in Budget 2017
Page 2-3
by Dr Ghaz
ANALYSIS:
Forecast for Budget 2017 Page 4
PRODUK:
Kemudahan Pembiayaan Eksport untuk PKS
Page 5
BUSINESS ALERT Page 6-7
FOOD FOR THOUGHT:
Internal Factors That May Affect Business
Organisation Page 8
POINT-OF-SALE:
How to Have An Indomitable Spirit During
Sales Recession Page 9
HUMAN RESOURCE MANAGEMENT:
Creating an Effective Job Description
Page 10
SEMBANG USAHAWAN:
En. Ismail bin Asha'ari of
Systematic Aviation Services Sdn Bhd
Page 11
KNOWLEDGE SPA:
The Lean Startup: Continuous Innovation to
Create Radically Successful Business
Page 12
ENTREPRENEURS EVENT CALENDAR
Page 12
2
Adviser
Datuk Mohd. Radzif Mohd. Yunus
Group Managing Director
PERSPECTIVE
Editor-In-Chief
Sheikh Ghazali Abod, Ph.D
Chief Operating Officer, CEDAR
Editor
Norhisham Hamzah
Contributors
Raja Shahriman Raja Harun Al Rashid
Shahrir Amran
Hayati Abu Seman
Hamdan Mohd Habibollah
Irman Hussain
Nur Amiza Aman
Ahmad Azuar Zainuddin
Muhammad Zafri Ismail Khan
Rusydan Hamedy Rusli
Hanzo Ng
ENVIRONMENTAL SCANNING
The baseline global growth forecast has been
revised down modestly relative to the April
2016 World Economic Outlook (downward by
0.1% for 2016 and 2017, as compared to a 0.1%
upward revision for 2017 envisaged pre-Brexit).
As for Malaysia, being the only net exporter
of oil among Asias major economies and
the second-largest liquefied natural gas
exporter in the world, Malaysia's economy and
financial markets are suffering as a result of
close reliance on energy markets. The energy
industry contributes to one-fifth of Malaysias
gross domestic product.
As at Q2 2016, Malaysian economic growth
slows to 4.0% (Q1 2016: 4.2%; Q2 2015: 4.9%),
which is the slowest rate of expansion since Q3
2009 during the global financial crisis of -1.1%.
The economy had also expanded at its slowest
pace of quarterly expansion since 2013 at 0.7%.
In terms of export and import, the marginal
growth of 1% and 2%, respectively, leading
to the lowest net exports in three years by
RM19.7b.This led to the GDP growth to be
lower by 0.6% (YoY), confirming worries that
the slow global trade activity will eventually
DISCLAIMER
The views and opinions expressed
throughout this newsletter are those of the
authors and do not necessarily reflect the
official position and views of the SME Bank.
Copyright Small Medium Enterprise
Development Bank Malaysia Berhad.
All rights reserved. This publication is not to
be reproduced in part or whole without the
express permission of the copyright holders.
Materials on this publication are protected by
copyrights law. Unauthorised reproduction
or distribution of copyright materials, or any
portion of it, may result in severe civil and
criminial penalties and will be prosecuted to
the maximum extent possible under the law.
Perspective
opportunities
in
Information
and
Communication
Technology
(ICT),
leverage the transformative power
of science and technology, and instil
the spirit of innovation and creativity
among
entrepreneurs
to
further
energise the domestic economy. Digital
economy currently contributes 16.3%
to Malaysias gross domestic product.
Given that Malaysia is transforming
its economy based on innovation-led
growth, a thriving digital economy has
the ability to contribute some 20% to
the GDP by 2020. Hence, Budget 2017 is
expected to accelerate Malaysias digital
transformation in line with the 11th
Malaysia Plan.
Further cut in Corporate Income Tax
rate is also expected in order to stimulate
foreign direct investments. Additionally,
there is a possibility of financial
assistance to be given out to SMEs to
undertake export in order to promote the
businesses to penetrate new markets
in line with the recently signed TransPacific Partnership Agreement (TPPA)
opportunities.
"Ensuring Fiscal Prudence would
showcase the Governments measures
in ensuring its fiscal position remains
strong.
Despite the fiscal deficit had rising
sharply in 1H16, the Government is
confident that revenue collection will
likely to improve in tandem with the
economic recovery in 2H16 hence
improving its fiscal deficit to meet its
target of 3.1% (lower than 2015s of 3.2%).
Malaysia also registered strong net inflow
of foreign direct investments of RM15
billion in the first quarter of this year from
RM9.9 billion in the same period last year.
Given the above, for Budget 2017, the
Government is expected to show strong
commitment and continue to optimise
their spending. Among the expected
measures are optimising the expenses on
Raja Shahriman Raja Harun Al Rashid is the Director of Group Compliance and Risk Management, SME Bank
Malaysia. He can be reached at shahriman@smebank.com.my.
ANALYSIS
Forecast for
Budget 2017
by Hayati Abu Seman
1. Budget 2017 is likely to be modestly 1. Fiscal stimulus efforts would continue 1. The budget will focus on addressing the
rising cost of living faced by the bottom
to be reinforces by off-balance-sheet
expansionary at best as the government
40% household income group (B40) and
mega infrastructure projects and fiscal
keeps fiscal discipline amid a slow
middle 40% household income group
spending by the government-linked
economic growth and low crude oil
(M40) so that they will not be affected
companies (GLC).
price.
by the economic downturn.
2.
The
government
may
consider
reducing
2. Budget 2017 should highlight services
personal tax rates after rationalizing 2. The future development expenditure of
on new economic engines of growth
the government will focus on projects
the subsidy and implementation of the
including
Iskandar
Development
that will be beneficial to the people and
GST. The government is also keen to
Region, services sector with emphasis
provide significant multiplier effects to
further refine the subsidy program so
focus on the telecommunication sector.
the economy.
that it is more targeted at deserving
3. Emphasis on high infrastructure
3. Selected relaxation in the property
groups.
spending (rails, roads, maritime and 3. There are also plans to relook all the
sector, particularly on re-allowing DIBS
aviation) and selective relaxation for
(interest cost absorption scheme) for
45 companies under the Ministry of
first-time house buyers and promoting
Finance (MOF) to see if theyre any
property purchases
affordable housing.
duplication of roles.
4. Opportunities:
Grow the companies that make
Information and Communication
money and consistently declare
technology
dividends to the government
Leverage the transformative power of
Try and revive of close companies
science and technology, innovation.
that are loss-making with growing
Value-added exports
debts
Transportation and logistics
Keep companies that loss-making
Digital economy
but involved in providing services to
Tourism
the general public
Hayati Abu Seman is the Head of Business Intelligence section of the SME Banks Corporate Planning. She can be reached at hayati.seman@smebank.com.my.
PRODUCT
Kemudahan Pembiayaan
Eksport untuk PKS
oleh Hamdan Mohd Habibollah
yarikat
bersaiz
kecil
dan
sederhana (PKS) mengimpikan
untuk ke peringkat antarabangsa,
tetapi ramai mengambil langkah
ke belakang kerana kekangan kewangan
dan
sumber
manusia,
termasuk
kekurangan pengetahuan. Walaupun
membentuk 98.5% daripada keseluruhan
perniagaan di negara ini, majoriti PKS
hanya memenuhi pasaran tempatan.
Walau
bagaimanapun,
dengan
kuasa membeli yang semakin lemah
sejak kebelakangan ini, PKS disaran
supaya lebih serius memandang ke arah
pasaran eksport untuk mengembangkan
perniagaan mereka. PKS Malaysia
kini
menyumbang
19.9%
kepada
jumlah eksport dan kerajaan mahu
meningkatkannya kepada 23% pada
tahun 2020. Komuniti Ekonomi Asean
(AEC) adalah platform yang amat sesuai
pada masa ini untuk PKS Malaysia
mengembangkan perniagaan mereka
memandangkan populasi AEC berjumlah
625 juta dan akan menjadi ekonomi
SME-GO
BUSINESS ALERT
BUSINESS ALERT
by Corporate Planning , SME Bank Malaysia
OUTLOOK: NEGATIVE
returns on investment.
Goldman Sachs: The Organization of
Petroleum Exporting Countries' (OPEC)
decision to cut oil production may provide a
short-term support for prices, but chances
are that it is not expecting to change the
supply outlook much. The bank is keeping
its forecast for Brent at USD50 a barrel in
the fourth quarter of this year and USD60 a
barrel in 2017, with WTI expected to trade
at a discount of USD1.50 to Brent prices.
As reported, OPEC members would limit
production to a range of 32.5 million to 33
million barrels per day, down slightly on
Augusts output of 33.2 million barrels a day.
HEALTHCARE
RECENT DEVELOPMENT
OUTLOOK: NEUTRAL
TOURISM
RECENT DEVELOPMENT
OUTLOOK: NEUTRAL
A new set of passenger service
charges (PSC) or airport tax is set to
be implemented by January 1, 2017
on air travelers. Apart from domestic and
international categories, the new PSC rate
structure will feature a new category for inter-
Business Alert
BUSINESS SERVICES
RECENT DEVELOPMENT
OUTLOOK: NEUTRAL
OUTLOOK: POSITIVE
OUTLOOK: NEUTRAL
Business
Monitor
International
(BMI): Despite the current economic
headwinds and lower consumer
sentiments, household spending in the
retail sector is anticipated to pick up from
2017 onwards. Rapidly rising incomes and
accommodative monetary policy will support
STRATEGIC RISKS
These affect your firms ability to
reach the goals in the business plan.
They could be due to the impacts of
changes in technological evolutions
or customer demand. These factors
could pose as threats as they can
alter how customers perceive your
product. Based on these, customers
might think a product is overpriced,
dull and outdated.
INNOVATION
Your business needs innovation in
order to keep up with competitors.
It is essential to get one step ahead.
Innovation could come in the form
of marketing. It could also be
through promotional initiatives in the
marketing plan, staff training, and
welfare. Embracing new technology
is the best way to keep up with
technological advancements.
A lack of innovation can pose a
serious risk to a growing business.
No innovation will cause a company
to remain boring. The company will
become dull, stagnant and irrelevant.
FINANCIAL
The financial risks depend on the
financial structure of your business.
It is also dependent on your business
transactions and the financial
systems. For example, changes in
interest rates or being overly reliant on
one customer could affect business.
EMPLOYEE RISKS
Employees are vital to business
success. But, there are risks
associated with them. For an industry,
strike action could lead to a lot
of problems.
POINT-OF-SALE
AIM:
BELIEF:
CHALLENGE:
Hanzo is currently the Group CEO of The Sales Ninja Group, a regional sales solutions company. For more
information on Sales Ninjas programme or training, visit www.SalesNinja.asia.
10
Creating an Effective
Job Description
by Shahrir Amran
AVOID GENERALIZATIONS
Be as specific as possible when you
describe the duties and responsibilities
you will need this employee to
perform. Think in terms of the benefits
this employee will provide to your
organisation or to your customers/
clients. For example, don't describe
BizPulse | Issue 9 : October-November 2016
PRIORITIZE
Once you have created a list of
responsibilities and duties, put them in
order of importance. Start with skills that
are integral to the job to be performed.
This way you will know what is necessary
for the successful execution of the job,
what simply is desired, and what may
actually be irrelevant. Hiring is often a
matter of trade-offs, so by prioritising,
you're helping yourself determine what
you can or cannot live with.
SEMBANG USAHAWAN
ANALYSIS
Nama Syarikat
Systematic Aviation Services Sdn Bhd
Bidang Perniagaan
Penyelenggaraan, Pembaikan dan Baik
Pulih (MRO) pesawat, penerbangan
sewa khas (charter) dan latihan
penyelenggaraan pesawat
Alamat Perniagaan
SAS Hangar, Sultan Abdul Aziz Shah
Airport, 47200 Subang, Selangor.
Telefon
+603 7846 9015
Website
www.sassb.com.my
11
11
12
KNOWLEDGE SPA
Reviewed by Ahmad Azuar Zainuddin
Oct
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Business With SOP
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