DECENTRALIZED (OFF-GRID) ELECTRIFICATION IN MALAYSIA

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1 malaysia.ahk.de September/October 2016 Vol 22, No.5 KDN PP 8818/3/2013 The Business Magazine of the Malaysian-German Chamber of Commerce and Industry DECENTRALIZED (OFF-GRID) ELECTRIFICATION IN MALAYSIA Renewable Energy in Germany at a Glance MDEC to Forge Ahead Digital Malaysia Halal Traveling: Malaysia Takes Off as a Trendsetter

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4 MGCC PERSPECTIVES is published six times p. a. by the Malaysian-German Chamber of Commerce and Industry. PUBLISHER Datuk Muhammad Feisol bin Haji Hassan. It is distributed free of charge to members and qualified non-members in Malaysia and abroad FOCUS DECENTRALIZED (OFF-GRID) ELECTRIFICATION IN MALAYSIA RENEWABLE ENERGY IN GERMANY AT A GLANCE FEATURE MDEC TO FORGE AHEAD DIGITAL MALAYSIA GRUNDFOS LIVING LAB HALAL TRAVELING: MALAYSIA TAKES OFF AS A TRENDSETTER HOW WELL IS YOUR COMPANY PROTECTED AGAINST CYBER ATTACKS? PT.2 CONTENTS MALAYSIAN-GERMAN CHAMBER OF COMMERCE AND INDUSTRY ( U) Supported by the Federal Ministry of Economic Affairs and Energy based on a resolution of the German Bundestag. Suite 47.1, Level 47, Menara Ambank No. 8, Jalan Yap Kwan Seng Kuala Lumpur, Malaysia Tel: Fax: homepage: malaysia.ahk.de info@malaysia.ahk.de *All opinions expressed in articles do not necessarily reflect the views of MGCC. EDITORIAL TEAM Sabine Franze Cheryl Sim LEGAL & INVESTMENT UPDATE ON IMMIGRATION MATTERS ECONOMICS EDUCATION AND TRAINING EVENTS GERMAN INSTITUTIONS MEMBERS TRADE FAIRS DESIGNED BY ETC CREATIVE Sdn Bhd A-11-07, Tower A, Menara Prima Jalan PJU 1/39, Dataran Prima Petaling Jaya Selangor, Malaysia PRINTED BY Percetakan Zanders Sdn Bhd No. 16, Jalan BK 1/11, Bandar Kinrara Puchong, Selangor

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6 4 EDITORIAL Dear Members and Readers, The Malaysian-German Chamber of Commerce and Industry is looking to exciting months ahead: bilateral highlights, anniversary celebrations and major projects in most relevant industry sectors are approaching. BOARD OF DIRECTORS When this magazine print runs probably through a German printing machine a bilateral highlight will be taking place: The Malaysian Prime Minister is visiting Germany, and with him is a high class economic delegation led by the Minister of Industry and Trade Dato Sri Mustapa, conducting events in Berlin and Munich. Further, we are looking to an exciting Renewable Energy event ahead. At the end of November, we are welcoming a German delegation comprising technology experts and company representatives in the fields of Solar PV-Hybrid, Storage and Mini-Hydro to Malaysia for a Symposium and Business Matching event under the Programme Energy Solutions Made in Germany. About 150 participants will be expected to attend the Symposium, at which the experts will speak on German technology solutions to Malaysian stakeholders from both the private and public sectors in related fields. This event focuses on providing electricity solutions for rural areas by means of renewable energy through hybrid solutions and isolated applications. A share of the population in Sabah and Sarawak, especially those living in rural regions, do not have access to electricity and rely on diesel generators as well as other forms of alternative and renewable energy. Due to the high cost of grid extensions, the goal of 100 percent electricity access for all, especially for those in deep rural areas, is challenging to fulfil. Therefore the production of electricity through renewable sources, such as through decentralized (off-grid) hybrid- or isolated applications so-called island solutions is necessary to close the gap between urban and rural disparities. Since 2002, the German Government over the Federal Ministry Economic Affairs and Energy has been closely involved in supporting the global dissemination and transfer of technologies for renewable energies, thus making an active contribution to the global fight against climate change. Well over 1.5 Million PV-installations providing over 32 GW of solar energy, over 8000 Biogas/Biomass plants and not to forget the leader in wind energy by installed capacity, wind energy, are energizing German s electricity with a share of clean energy of above 30% today. DATO ROBERT TEO KENG TUAN President THOMAS ZIMMERLE Vice President P. KANDIAH Treasurer DANIEL BERNBECK Executive Director DATUK MUHAMMAD FEISOL HJ. HASSAN FRANCIS LEE IR. LEE SWEE ENG HARTMUT MUELLER HENNING FELIX NIESMANN LIM KHIANG HUA MARTIN METZGER PETER LENHARDT PHILIPP KERSTING WENDY LAU WOLFGANG LAABS YBHG TAN SRI DATO G.S. GILL The Chamber has always taken the stand that Green is the way to go and that Renewable Energy is perhaps the most important area for a sustainable future. From the early 2000 s when oil and gas provided clearly above 40% of the Malaysian government s budget, the share today is down to just about 20%. Hence, in times of further depleting fossil fuel resources, renewable energy technology solutions become more relevant day by day, as well in Malaysia. It is therefore our wish to encourage smart partnerships and technological collaborations between German and Malaysian companies in pursuit of maintaining a green and sustainable environment. MGCC itself stands as an example for great sustainability: over more than two decades we have doubled our member base, as well as our staff employed. Next to it many new service areas provide a wide range of services. A further sustainable wrap up will contribute soon: our move into a new office in KL s city center will reduce CO 2 emissions with its double-glass windows and latest green building standards. And after hard work it s time to celebrate: In November MGCC looks forward to celebrate its 25 years anniversary. Long-time members and friends will celebrate with our dedicated team. Thomas Brandt General Manager, Malaysian-German Chamber of Commerce and Industry

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8 6 FOCUS Decentralized (off-grid) Electrification in Malaysia Almost 100 percent of the population in Peninsular Malaysia has access to the national electricity grid, whereas about 7 percent of the population in Sabah and Sarawak, especially those living in rural regions, do not have access to sustained electricity and rely on diesel generators as well as other forms of alternative and renewable energy. Due to the high cost of grid extensions, the goal of 100 percent electricity access for all, especially for those in deep rural areas, is challenging to fulfill. Therefore the production of electricity through renewable sources, such as through decentralized (off-grid) hybrid-, or island solutions, is necessary to close the gap between urban and rural disparities.

9 FOCUS 7 In Malaysia, the Ministry of Rural and Regional Development (KKLW) plays a very important part in the improvement of infrastructure in rural regions in Malaysia, particularly with regard to the electrical supply for populations that live outside of urban regions. Their task comprises the financing of construction and maintenance as well as the coordination of small decentralized plants for electricity generation through renewable energies. The national energy suppliers on the other hand, take responsibility for the operation of the plants. The projects of decentralized electrification under KKLW have to-date concentrated mostly on Solar-Hybrid solutions, with PV, batteries and diesel generators as main energy sources, as well as Mini-/Micro-Hydro solutions. Hybrid systems that generate electricity out of two or more energy sources are adequate technologies to use in the tropical climate with the long monsoon seasons and high sun irradiation. In 2001 KKLW launched the Rural Electrification Programme (BELB Bekalan Elektrik Luar Bandar). The primary function of the programme is the electrification of households and public buildings, such as schools, in rural regions. This programme is based on two methods: the connection of villages to the national electricity grid and, where the grid extension is too costly, the supply of electricity through renewable energies. Since the start of the programme, around a hundred solar hybrid-solutions have been installed. Especially in Sabah and Sarawak, where the electrification rate is still lower than in Peninsular Malaysia, there is a high potential for further solarhybrid solutions. Main challenges involve logistical issues, particularly the transport of sensitive equipment and machinery parts, e.g. inverters and batteries, to rural areas. Cooperation between German and Malaysian companies and transfer of German know-how to achieve more efficient project management in general are welcome and would provide market entry potential for German SMEs. Apart from solar-hybrid solutions, there are also decentralized Mini/ Micro-Hydro-solutions across the country. There are numerous plants that provide electricity for rural villages, as well as those that feed electricity into the national electricity grid. German know-how and technologies can contribute greatly to future electrical supply through renewable sources, especially in rural regions. German technology already has a high market share in the solar sector, particularly for inverters and batteries. The Malaysian-German Chamber of Commerce and Industry will be organizing a German Delegation comprising experts from the Solar PV and Mini-Hydro Solutions sector to Malaysia from 29 November 1 December This article is an extract from the study on the topic Decentralized (off-grid) Electrification in Malaysia. This is in conjunction with the Programme Energy Solutions Made in Germany supported by the German Ministry of Economics and Energy.

10 8 FOCUS Mit dem von der Regierung in der Vision 2020 festgesetzten Ziel, den Status einer Industrienation zu erreichen, strebt Malaysia eine bestens ausgebaute Infrastruktur an, auch in der Energiebereitstellung. Im westlichen viel weiter entwickelten Teil Malaysias (malaysische Halbinsel, auch als Peninsular Malaysia bekannt) verfügt die Bevölkerung über einen nahezu 100%-igen Anschluss an das staatliche Energienetz. Dagegen sind es in den beiden östlichen Bundesländern Sabah und Sarawak nur ca. 93% (Stand 2014). Da auch in naher Zukunft nicht 100% der Haushalte in den entlegenen Dörfern und Wohngebieten aufgrund der zu hohen Kosten an das Elektrizitätsnetz angeschlossen werden können, ist die Stromerzeugung mittels erneuerbarer Energien relevant. Entsprechend sind hier Hybrid-, Insel- und Kleinstlösungen, also die autarke Energieselbstversorgung vor allem aus Solarenergie und Wasserkraft, bereits heute stark von Interesse. Eine sehr wichtige Rolle beim Ausbau der Infrastruktur in den abgelegenen Gebieten von Malaysia, insbesondere von Ostmalaysia, speziell zur Stromversorgung von Orten außerhalb der Ballungszentren, spielt das in Kuala Lumpur angesiedelte Ministry of Rural and Regional Development (KKLW Ministerium für ländliche und regionale Entwicklung). Dessen Aufgabe umfasst die Finanzierung des Aufbaus und der Instandhaltung sowie auch die Koordinierung kleiner, lokaler Anlagen zur Stromerzeugung aus erneuerbaren Energien, auch in Ostmalaysia. Der Betrieb der Anlagen liegt hingegen im Aufgabenbereich der jeweiligen Energieversorger. Trotz der vielen Ölpalmplantagen in den ländlichen Regionen Sarawaks und Sabahs, die großes Potential im Bereich Biomasse und Biogas bieten, beschränken sich die Projekte des KKLW bislang eher auf Kleinwasserkraftwerke sowie Photovoltaik (PV)-Hybridanlagen, mit PV-Anlagenkomponenten, Batterien und Dieselgeneratoren als Energiequelle. Energiemarkt in Malaysia Malaysia kennzeichnet eine Vielzahl natürlicher Ressourcen. Das Land ist geprägt von einer ausgeprägten Flora sowie großen Waldflächen bis hin zu einer großen Menge fossiler Brennstoffe wie Erdgas und Erdöl. Vor dem Hintergrund eines moderaten Bevölkerungswachstums auf der einen Seite und dem dynamischen Wirtschaftswachstum auf der anderen Seite hat der Energiebedarf Malaysias in den letzten Jahren stark zugenommen. Zwischen 1993 und 2013 ist der Primärenergieverbrauch laut Angaben der malaysischen Energiekommission (Surahanjaya Tenaga) von ktoe auf ktoe gestiegen. Die Hauptenergieträger beim Primärenergieverbrauch waren hierbei überwiegend fossile Brennstoffe wie Erdöl (56,6%), Erdgas (19,5%), Kohle (3,0%) und Biodiesel (0,4%). Der Stromanteil am Primärenergieverbrauch lag bei 20,5%. Das Primärenergieangebot lag bei ktoe, wovon 35,7% durch Öl, 44,1% durch Erdgas, 16,6% durch Kohle, ca. 3,0% durch Großwasserkraft und nur ca. 0,6% durch andere erneuerbare Energien produziert wurden. Von diesen 0,6% machten Biomasse 0,3%, Biodiesel 0,2% sowie Biogas und PV zusammen 0,1% aus. 1 Wasserkraftwerke mit einer Anlagenleistung von mehr als 30 MW fallen in Malaysia unter die Kategorie Großwasserkraft. Gründe für den Anstieg beim Primärenergieverbrauch sind unter anderem der Anschluss von immer mehr Dörfern an das nationale Stromnetz sowie die erhöhte Ausstattung mit elektrischen Geräten. Der Anteil des Wohnsektors und kommerziellen Sektors am Primärenergieverbrauch wuchs von 11,7% im Jahr 1993 auf 14,4% im Jahr Einen noch höheren Anteil am Nachfragewachstum während des genannten Zeitraums hatte der Transportsektor (Zuwachs von 37,0% auf 43,4%). Der Anteil des Industriesektors nahm über diese Zeit von 39,6% auf 26,2% ab. 2 Da fossile Brennstoffe wie Erdöl, Erdgas oder Kohle allerdings nur limitiert zur Verfügung stehen und zum Klimawandel beitragen, ist die Entwicklung von alternativen Ressourcen unvermeidlich. Dies gilt auch für Malaysia. Obwohl das Land reich an fossilen und regenerativen Energiequellen ist, wurde es bereits im Jahr 2010 Ölnettoimporteur, allerdings freiwillig zum eigenen Nutzen. Obwohl die Bedeutung von erneuerbaren Energien durchaus erkannt wurde, betrug ihr Anteil an der gesamten Stromerzeugung von 141,266 GWh im Jahr 2013 knapp 1%. 3 Zu beachten ist dabei, dass Großwasserkraft in Malaysia nicht als erneuerbare Energie gezählt wird. Ein großes Potential besteht insbesondere für die Nutzung von Photovoltaik und Biomasse aber auch für Kleinwasserkraft. Der Anteil von knapp 1% der erneuerbaren Energien an der gesamten Stromerzeugung 2013 setzt sich wie folgt zusammen: Mit einem Anteil von ca. 66% Photovoltaik und 23% Biomasse tragen diese beiden Ressourcen größtenteils zur Stromerzeugung aus erneuerbaren Energien bei. Ergänzt werden diese beiden Energiequellen durch kleine Wasserkraftwerke ( Small-Scale Hydro ) (6%) und Biogas (5%). 4 Ländliche Elektrifizierung Obwohl Malaysia in den letzten Jahren ein konstantes Wirtschaftswachstum im mittleren einstelligen Bereich aufweisen konnte, sind etliche malaysische Regionen noch unterentwickelt, die überwiegend in den ländlichen Gegenden Sarawaks und Sabahs in Ostmalaysia liegen. Die durchschnittliche Stromabdeckung in diesen Bundesstaaten lag im Jahr 2015 bei 93% im Vergleich zu 99,9% auf Peninsular Malaysia, weshalb die Nutzung von Ressourcen aus erneuerbaren Energien als beste Alternative betrachtet wird, da eine Stromnetzerweiterung meist aufgrund von unebenem Terrain und dichtem Dschungel nicht durchführbar ist. Zu hohe Kosten bei der Stromversorgung und die damit verbundenen Übertragungsverluste machen ein Elektrizitätsangebot in diesen ländlichen Regionen ökonomisch nicht durchführbar. Mit Hilfe von Fünfjahresplänen (Malaysia Plans) werden die Programme zur ländlichen Elektrifizierung unterstützt. Das Ziel ist die Verbesserung der Lebensqualität, besonders in Sabah und Sarawak. Zusätzlich wurden in Peninsular Malaysia und Sabah Programme durchgeführt, die durch den im Jahr 1997 gegründeten Electricity Supply Industry Trust Account (AAIBE) finanziert wurden. Zuständig für diesen Fonds ist KeTTHa, das Ministerium für Energie, Grüne Technologie und Wasser. Die Beitragsleister für die Fördergelder sind die malaysischen Stromerzeuger, d. h. TNB und die IPPs Westmalaysias. Aus dem Fonds werden beispielsweise Entwicklungsprogramme für die Industrie, Energieeffizienzprojekte, die Entwicklung und Förderung der Stromwirtschaft, Insellösungen oder Gebiete, in denen Elektrizitätsversorgungsnetze noch ausgebaut werden müssen, unterstützt. 5 Insgesamt wurden ca Haushalte, hauptsächlich in Sabah und Sarawak, im Zeitraum von durch den AAIBE-Fonds elektrifiziert. 6 Neben den genannten Malaysia Plans hat KKLW im Jahr 2001 das Rural Electrification Programme (Programm zur ländlichen Elektrifizierung, BELB Bekalan Elektrik Luar Bandar) eingeführt. Die hohen Ölpreise an den Märkten waren damals Anreiz gewesen,

11 FOCUS 9 über alternative Systeme nachzudenken. Das Programm dient hauptsächlich der Elektrifizierung von Wohnhäusern und Gebäuden in ländlichen Regionen. Dazu zählen sowohl sogenannte Longhouses (Langhäuser) in Sabah und Sarawak, in denen teilweise bis zu 40 Personen leben, als auch Ortschaften mit Orang Asli (Eingeborene Malaysias) auf der malaysischen Halbinsel oder a uch Resorts auf Touristeninseln, die keinen Zugang zu 24 Stunden Strom haben. Das BELB-Programm basiert auf zwei Methoden: Zum einen ist das die Anknüpfung der Ortschaften an die Versorgungsnetze der staatlichen Elektrizitätsbehörden, wie TNB in Peninsular Malaysia, SESB in Sabah und SEB in Sarawak. Zum anderen sollen Gebiete, wo ein Netzausbau ökonomisch nicht durchführbar ist, die Stromversorgung durch alternative Methoden wie Hybrid-, Kleinst- und Insellösungen erhalten. Aufgrund der klimatischen Gegebenheiten in Malaysia sind reine PV-Anlagen keine passenden Lösungen zur ländlichen Elektrifizierung. Durch die Nutzung von weiteren Energiequellen wie Dieselgeneratoren und Batterien steht auch in ertragsschwachen Zeiten Strom zur Verfügung. Netzunabhängige PV-Lösungen in Malaysia aktuelle Herausforderungen und Markteinsteigsmöglichkeiten Netzunabhängige Stromerzeugung beabsichtigt eine autarke Versorgung mit Elektrizität für ländliche Regionen, unabhängig von der Verfügbarkeit eines nationalen Versorgungsnetzes. Mit Hilfe von netzunabhängigen Photovoltaikanlagen, die im Rahmen von Hybridlösungen oder als Kleinst- und Insellösungen betrieben werden, können sowohl ganze Ortschaften als auch einzelne Häuser oder Geräte mit Elektrizität versorgt werden. Da die Stromerzeugung abhängig von der Sonneneinstrahlung und -leistung ist, kann für eine durchgehende Elektrizitätsversorgung eine Kombination mit anderen Arten der Stromerzeugung notwendig sein. Photovoltaik-Hybridanlagen in Malaysia bestehen meist aus einer PV-Anlage, einem Dieselgenerator und einer intelligenten Steuerung, die dafür sorgt, dass die Nutzung der Sonnenenergie immer in Zeiten der Stromnachfrage erfolgt. 7 Durch die zusätzliche Verfügbarkeit von Dieselgeneratoren, können diese Hybridanlagen auch in ertragsschwachen Phasen unterbrechungsfrei Elektrizität bereitstellen. Hybridanlagen bieten somit sauberere Energie und sind in vielen Fällen kosteneffizienter als alleinstehende Dieselgeneratoren. Seit 2004 wurden in Malaysia ca. 100 Photovoltaik-Hybridanlagen mit einer Gesamtkapazität von mehr als 90 MW gebaut. Trotz des hohen Potentials, sind die Elektrifizierungsraten durch Photovoltaik-Hybridanlagen verhältnismäßig gering, denn einige Barrieren verhindern eine reibungslose Leistung von Photovoltaik- Hybridsystemen in ländlichen Regionen. Dreck, Staub, kleine Äste, Moos und ähnliches haben einen signifikanten Einfluss auf die Leistung der PV-Module und somit auf das komplette Hybridsystem. Um die Sonnenstrahlen bestmöglich einzufangen, werden die PV- Module oft sehr hoch konstruiert, was jedoch die Erreichbarkeit der PV-Module zur Reinigung erschwert. Weiterhin fällt oft ein Bewuchs mit Moos und Gras in diesen tropischen Regionen an, was regelmäßige Reinigungen verlangt und weitere Kosten verursacht. Darüber hinaus werfen die umliegenden Bäume Schatten auf die PV-Module, wenn sie nicht regelmäßig gekürzt werden. Solarmodule, die weit in die Luft ragen, erweisen sich als leichte Ziele für Blitzeinschläge, was oft zur Zerstörung der elektrischen Komponenten führt. Eins der größten Probleme stellt jedoch das heiße Klima und die hohe Luftfeuchtigkeit im tropischen Malaysia dar. Während sehr heißen Tagen können sich die Solarmodule überheizen, wodurch die Stromerzeugung beeinträchtigt werden kann. Generell bietet das Klima in tropischen Regionen einige Beschränkungen bei der Nutzung von PV-Systemen. Die Regentage bzw. Tage mit starker Bewölkung belaufen sich auf insgesamt ca. zwei Monate im Jahr in Tropengebieten. Batterien müssen deshalb eine ausreichend große Kapazität aufweisen, um die Bewohner längerfristig mit erneuerbarem Strom zu versorgen, um auf den Einsatz von Dieselgeneratoren so lang wie möglich zu verzichten. Ein mangelhafter Umgang oder eine schlechte Systemkonstruktion verringern die Ladezyklen von Batterien. Die klimatischen Verhältnisse in Malaysia, geprägt von tropischer Hitze, können zur Überhitzung führen und somit die Leistung von Batterien negativ beeinflussen. Dies und die Bedienung der Systeme erfordert jedoch technisches Wissen, damit die Hybridsysteme effektiv arbeiten. So besteht großes Potential in der Ausweitung des Exports deutscher Solarprodukte, da deutsche Lösungen ausgereift sind, qualitativ hochwertige Produkte darstellen und in Malaysia hoch angesehen sind. Batterietechnologien sind eine der wichtigsten Komponenten bei Photovoltaik-Hybridanlagen. In den bisher gebauten Photovoltaik- Hybridanlagen in Malaysia wurden zu ca. 80% Batterien aus Deutschland und zu ca. 20% Batterien aus Italien verbaut. Nichtsdestotrotz stellen die Batterien bei Photovoltaik- Hybridanlagen laut Marktakteuren die größten Herausforderungen dar. Ohne funktionsfähige Batterien arbeitet die komplette Anlage ineffizient und es muss während ertragsarmen Zeiten auf Dieselgeneratoren zurückgegriffen werden. Eine falsche Bedienung bzw. falsches Laden und Entladen der Batterie führt zur Beeinträchtigung ihrer Lebensdauer. Allgemein sind Fortschritte bei Batterietechnologien in Bezug auf Lebensdauer, Größe und Gewicht von Marktakteuren gewünscht. Häufig wird von Projektentwicklern nach alternativen Batterietechnologien wie Lithium-Ionen oder weiteren Chemie-Speichern wie Redox-Flow-Batterien gefragt. Laut Informationen eines Unternehmen werden Blei-Säure-Batterien trotz ihrer niedrigeren Speicherkapazität bevorzugt, da sie meist kleiner und somit leichter zu transportieren sind. Da manche Ortschaften km entfernt von befahrbaren Straßen liegen, werden handliche Batterien bevorzugt. Generell ist man jedoch mit dem technologischen Fortschritt zufrieden, wohingegen die hohen Kosten für Batterien die größte Herausforderung darstellen. Wechselrichter werden aus Thailand und aus Deutschland genutzt, wobei Thailand einen höheren Marktanteil besitzt. Oft werden Wechselrichter aus Thailand denen aus Deutschland aufgrund der geringeren Kosten vorgezogen.

12 10 FOCUS Technologische Herausforderungen und Bedarf nach Fachwissen bieten wiederum Markteinstiegsmöglichkeiten in Malaysia. In Malaysia herrscht trotz wirtschaftlicher Entwicklung oft noch Mangel an Forschung und Entwicklung, besonders in der Weiterentwicklung von Produkten und Technologien. Malaysische Unternehmen aus dem Bereich der Anlageninstallation äußern häufig den Wunsch nach einer Kooperation mit deutschen Unternehmen. Erhofft wird sich der Transfer und Austausch von Know-how, Erfahrungen und Technologien, die kleineren Unternehmen aber auch der gesamten Solarbranche in Malaysia zum Wachstum verhelfen kann. Weiterhin zeigt besonders der Bereich Anlageninstallation, Instandhaltung, Steuerung und Kontrolle der Hybridanlagen großes Verbesserungspotential. Einige installierte Systeme sind aufgrund von Herausforderungen im Bereich Instandhaltung, Betrieb und unzureichenden Fachwissens nach wenigen Jahren nicht mehr funktionsfähig. Der Austausch von Know-how sowie eine Weiterbildung von Fachpersonal bietet Marktpotential für deutsche Unternehmen. Kleinwasserkraft Herausforderungen und Markteinstiegsmöglichkeiten Im März 2014 meldete die Sustainable Energy Development Authority (SEDA), dass sich im Sektor Small Hydro (Kleinwasserkraftwerke bis 10 MW) 100 MW im Baustudium befinden und sich für FiT qualifiziert haben. 8 Der Einsatzbereich von Kleinwasserkraftwerken ist relativ breit. Kleinwasserkraftwerke können an das öffentliche Netz angeschlossen werden oder aber auch als Insellösung genutzt werden. Sie können für alleinstehende Gebäude wie Berghütten oder Ferienhäuser sowie für größere netzungebundene Gebiete genutzt werden. Voraussetzung hierfür ist die Lage an einem Fluss oder zumindest die Nähe zu einem Fluss. Die Technik ist ausgereift und Betriebs- sowie Instandhaltungskosten sind gering, jedoch stellen die Kapitalkosten ein großes Problem bei der Wirtschaftlichkeit von Kleinwasserkraftwerken dar. Häufig entwickeln sich Projekte sehr langsam und benötigen eine Realisierungszeit von bis zu zwei Jahren. Das liegt meist an einer langwierigen Planungsphase mit Standortbesichtigungen und Messungen in abgelegenen Regionen. Zusätzlich ist der Bau im Gegensatz zu anderen Erneuerbare-Energien-Anlagen wesentlich aufwendiger, da die Anlagen nicht zentral im Dorf oder in unmittelbarer Nähe gebaut werden können. Viele Ortschaften liegen bis zu 15 km vom nächstgrößeren Fluss entfernt, der für eine Kleinwasserkraftanlage in Frage kommt. Somit müssen teilweise komplette infrastrukturelle Voraussetzungen geschaffen werden, bevor mit dem Bau der Anlage begonnen werden kann. Oft scheitert die Durchführung einer Anlage an diesen Herausforderungen. Die Kosten für den Bau von Übertragungsleitungen von der Anlage zum Dorf lassen die Projektkosten in die Höhe schnellen. Für den Bau einer Kleinwasserkraftanlage sind ca. 15 Richtlinien/Genehmigungen zu beachten, die es mit lokalen Behörden zu klären gibt. Darunter fallen beispielsweise Wasserrechte, Waldrechte und Landnutzungsrechte. Da neben der Leistung die Wirtschaftlichkeit und daher die Kosten von Kleinwasserkraftwerken ausschlaggebend sind, sind genaue Analysen diesbezüglich und die Auswahlkriterien bei der Konstruktion sehr entscheidend. Neben der reinen Anschaffung der Komponenten sind diverse Nebenkosten für den Transport, die Befestigung im Fluss, die generelle Montage, die Sicherung der Anlage, der Betrieb, die Instandhaltung und Standortbesichtigungen zu berücksichtigen. Obwohl die Technik im Bereich der Wasserkraft als ausgreift angesehen wird, ist es schwierig, Kleinwasserkraftwerke wirtschaftlich anzubieten. Für die Finanzierung von Insellösungen sind dementsprechend oft Förderprogramme oder Fonds der Regierung sowie private Investoren nötig. Die eigentlichen Probleme treten jedoch durch natürlich Einflüsse auf. Damit eine Anlage effizient Strom produzieren kann, werden Flüsse mit mittleren bis hohen Fließgeschwindigkeiten sowie einem Höhenunterschied von ca. 40 m benötigt. Die Effizienz einer Anlage in den Monaten der Trockenheit kann sich um 30% verringern oder im schlimmsten Falle sogar komplett aussetzen. Das Gegenteil ist in Monsunzeiten der Fall, wenn der Niederschlag zu hoch ausfällt und aus den Flüssen reißende Ströme werden. Mitgerissener Schutt, Äste oder Dreck können die Turbinen verstopfen oder gar zerstören. Eine regelmäßige Reinigung sowie Wartung der Turbinen ist notwendig, um effizient Strom zu produzieren. Weiterhin werden Kleinwasserkraftanlagen, die nicht an das öffentliche Netz angeschlossen werden, meist ohne Staudamm gebaut, weshalb eine 24-stündige Elektrifizierung während niederschlagsarmen Zeiten schwer fällt. Marktchancen bieten die bereits genehmigten Kleinwasserkraftprojekte von SEDA, die noch unter dem FiT-Mechanismus durchgeführt werden. Oft fehlt den durchführenden Unternehmen, die meist Erfahrungen aus dem Baugewerbe mit sich bringen, die richtige Technologie, um die Installation von Kleinwasserkraftwerken zu bewerkstelligen. Deutsche Unternehmen können ihr Fachwissen sowie ihre Lösungen liefern, indem sie in Zusammenarbeit mit lokalen Anlagenbetreibern ein gemeinsames Joint-Venture eingehen. For the full study, please contact Ms Patricia Chin at fuiyean.chin@ malaysia.ahk.de. 1 Suruhanjaya Tenaga (Energy Commission), 2015a. 2 Suruhanjaya Tenaga (Energy Commission), 2015a. 3 Suruhanjaya Tenaga (Energy Commission), 2015a. 4 Suruhanjaya Tenaga (Energy Commission), 2015a. 5 KeTTHA, Economic Planning Unit, 2016c (Stand der Daten: ). 7 SMA Solar Technology AG, GTAI, 2015.

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14 12 FOCUS Renewable Energy in Germany at a Glance The expansion of renewable energy is one of the central pillars in Germany s energy transition. We want to make our electricity supply more climate-friendly and, in light of an increasing scarcity of resources, become less dependent on fossil fuels. Germany s energy supply is becoming greener from year to year, and the contribution made by renewable sources is constantly growing. In 2015, renewable energy covered roughly 30% of gross electricity generation (cf. diagram). The 2014 figure had been approximately 26%. Gross electricity generation in Germany in 2015* Nuclear Energy 14.2% Hard coal 18.3% Natural gas 9.4% Oil 0.9% Other 4.2% Hydropower 2.9% Biomass 6.0% 155 Wind power % Household waste** 0.9% Lignite 24.0% Renewables 29.0% Photovoltaics 6.0% * Preliminary figures, some estimated, ** Regenerative part; source: Working Group on Energy Balances, status: August The growing significance of renewable energy sources in the power sector is largely due to the Renewable Energy Sources Act (EEG). Since the adoption of the Renewable Energy Sources Act, the proportion of power generation accounted for by renewable energy has risen from roughly 6% in 2000 to 31.6% in 2015 according to preliminary data. By 2025, 40 45% of electricity consumed in Germany is to derive from renewables; the figure for 2035 is to be 55 60%. Energy sources that drive forward the energy transition Wind and solar energy are the most important renewables in Germany s energy transition. Additionally, biomass and hydropower, as well as geothermal energy, make valuable contributions to the sustainable energy supply. Wind energy plays a key role in the expansion of renewable energy sources towards an economically sustainable and environmentally friendly energy supply at reasonable prices and with a high level of prosperity. The use of wind energy now accounts for almost 15 percent of the German power supply. Alongside the increased expansion of suitable rural locations and the replacement of older, smaller turbines with modern and more powerful turbines known as repowering the expansion of offshore wind energy is playing a growing role. At the end of 2015, Germany s offshore wind power capacity in the grid reached around 3,280 megawatts (MW). The Federal Government is aiming to bring this figure up to 15,000 MW by Solar power can be used directly in many ways. In photovoltaic installations, solar cells transform the radiation energy directly into electricity; solar-thermal power stations generate solar power; and solar collectors transform solar radiation into useful heat. More than

15 FOCUS million photovoltaic installations with a total capacity of nearly 40 gigawatts accounted for the second largest amount of electricity generation capacity in Germany, behind approx. 26,000 wind energy installations (45 GW). Biomass in solid, liquid and gaseous form is being used for electricity and heat generation and for the production of biofuels. Almost 60 percent of the total final energy from renewable sources was generated by the different types of biomass used to this end in Promotion of renewable energy Until the Renewable Energy Sources Act was revised with effect from 1 August 2014, operators of plants that generate electricity from renewable energy sources were entitled to receive fixed remuneration from the transmission system operators for each fed-in kilowatt-hour for a period of usually 20 years. Now, the operators of new wind and solar power, biomass and other facilities will need to sell their electricity themselves on the market. For this they will obtain a sliding market premium from the grid operators. The market premium compensates for the difference between the fixed feed-in tariff and the average trading price for electricity. The market premium is optional for older power facilities and small new facilities. They can continue to claim a fixed remuneration instead. In future, the level of funding for renewable energy in the electricity sector will largely be determined by competition. The introduction of the 2017 Renewable Energy Sources Act brings to an end the phase of technology funding in which prices were set by the government. The level of the fees paid for electricity generated from renewable energy will be determined by auction. This ensures that future expansion will take place at competitive prices. Auctions will be held for funding for onshore and offshore wind energy, PV energy, and biomass. Small installations are exempted from this system. The EEG surcharge was introduced to cover the costs connected to the funding of renewable energy plants in Germany. The total annual amount is calculated from the difference between the spending on remuneration and premium payments and the income from sales by the grid operators - known as the differential costs. The cost difference has to be paid by the consumers and is passed on automatically to their electricity bill. The revision of the Renewable Energy Sources Act in 2014 succeeded in stabilising the EEG surcharge. It will amount to cents/kwh in Since the reform of the Renewable Energy Sources Act in 2014, procurement costs (electricity market price plus EEG surcharge) have been decreasing. Cent/kWh EEG surcharge stock market electricity price* Renewable energy in the heat and transport sectors Renewable sources of energy are to be increasingly used not only to generate electricity. Renewable energy is to be increasingly used also to generate heat and in the transport sector. Within the heat market, the use of renewable energies is regulated by the Renewable Energies Heat Act (in German): under this law, builders of new buildings are required to generate a percentage of their heating requirements from renewable sources of energy, to undertake certain compensatory measures such as installing additional insulation, or to use combined heat and power systems or district heating. In addition to the Renewable Energies Heat Act, the Federal Government uses the Market Incentive Programme (MAP) to increase the proportion of heat generated from renewable sources. Under this programme, assistance is provided primarily for existing buildings to promote the use of renewable energy technology in the heat market, such as solar thermal installations, wood pellet heating systems and efficient heat pumps. In the transport sector, biofuels like bioethanol, biodiesel and biogas have been helping to cover the energy supply and to mitigate climate change for several years now. Renewables accounted for 5.3% of the fuel used in the German transport sector in In this context, renewables is almost synonymous with biofuels, which are used to power cars, trucks, trains, ships, and aeroplanes. But renewables are also becoming ever more important when it comes to powering more electric vehicles. Electric mobility is low-carbon mobility and helps to bring electricity from renewable sources, such as solar and wind energy, into the transport sector. Further information can be found (in German) at the BMWi s website on renewable energy: Source: Federal Ministry for Economic Affairs and Energy (accessed via Energy/Renewable-Energy/renewable-energy-at-a-glance.html)

16 14 FEATURE MDEC to Forge Ahead Digital Malaysia by Dato Yasmin Mahmood, MDEC Datuk Yasmin Mahmood, CEO of MDEC. Dato Yasmin Mahmood started her involvement in the IT industry when she was studying. With a doublemajor in Computer Science and Mathematics, she started her career as an analyst programmer with a local bank. She moved on to become the General Manager of Hewlett-Packard Malaysia s Commercial Channels Organisation and then the General Manager and Regional Corporate Director of Dell Malaysia. Before she was offered the role as the CEO of MDEC: Malaysia Digital Economy Corporation, she was the Managing Director of Microsoft Malaysia. Dato Yasmin shared her views on the topic of MDEC s role to flourish Malaysia s IT Industry in a recent interview with MGCC. Q: 2020 is just about three years away, and MSC Malaysia plays an important role as the information and communications technology (ICT) catalyst to help Malaysia in attaining the developed nation status by The Malaysia Digital Economy Corporation (MDEC) was incorporated in 1996 to oversee the development of MSC Malaysia. How far away are we from realizing this very major milestone? What are MDEC s areas of focus/interest at the moment? For a start, the digital economy is not simply an aspect of the real economy. It is one of the key underlying aspects of the real economy that acts as both driver and catalyst. This it achieves through the leverage of technology which cuts across all industries, products and services. When MSC Malaysia was first established in 1996, the primary focus was to spur the development of Malaysia s ICT (information, communications and technology) sector. Back then in 1996, the Internet had yet to fully take off and mobile phones were considered a luxury. Fast forward to today and the world has evolved to embrace the digital economy whereby the rules have changed and continue to do so, at lightning speed. With such changing circumstances, the Digital Malaysia national agenda was conceived to draw upon the huge opportunities created by the digital world to harness the country s ICT capabilities. Q: According to an article of yours published in The Star on 5 March 2016, you mentioned that in 2011, beyond attracting investments and growing local MSC companies, MDEC was given the mandate to drive Malaysia s digital economy in a more holistic manner. What are the challenges faced by MDEC in transforming Malaysia into a knowledge economy country? In a world where innovation is so fast paced and where change is the only constant, Malaysia needs to be continuously focused so that we continue to be leading in key areas of enabling fundamentals. We ve made significant strides in access over the years with HSBB (high speed broadband). Currently, internet penetration stands at 68.6% of population. However, Malaysia still needs to catch up on speed and affordability. According to a report circulated at the WEF, the average global download speed is 23Mbps, with developed countries at 100Mbps upwards. Malaysia s average DL speed is at 7.3Mbps. Optimising the regulatory framework to optimise both access and speed is where you have to strike the right balance. It s very important that we get this execution right. Just as important is investing in our young talent. The opportunities from the 4IR is about creating value for social economic impact. It s been said that this would require those who dream the important dreams. Hence, it s about creating a Society of Dreamers and Do-ers. The third thing we have to do apart from the fundamentals human capital, investments concerns the ecosystem. One of the most critical ecosystems that we are putting our focus on is the dance floor. The BDA dance floor is one of the most important and is really anchored around talent development: data scientists, data modellers and analysts.

17 FEATURE 15 What we are projecting is that Malaysia needs to have 1,500 data scientists, the real top-tier end of the whole ecosystem by the year 2020, and supported by 16,000 data professionals. Yes, we are doing that, building data science curriculum, in universities, not only within the computing and engineering tracks but to also embed Data & Analytics as a skill throughout the other disciplines such as business, finance, actuarial science and so on. The other components of the dance floor include developing initiatives to embrace the richness of open data sharing and shared enterprise data. At the end of the day, though, whatever transformation needs to happen needs to be driven by the private sector. We as government can only create the dancing floor but the actual dancing is still with the private sector. Q: According to MSC Malaysia s website, to date, there are more than 3,600 MSCstatus companies from more than 40 countries operating in Malaysia. What are the issues frequently faced by these companies? How does MDEC deal with these issues? To your question, I cannot stress enough the importance of scaling up local companies into global icons. We do have them in our fold the likes of Silverlake, a renowned solutions provider for the global fintech industry, Fusionex, a multi-award winning Analytics and Big Data company that is based in Malaysia and listed in the London Stock Exchange. Even Jobstreet had its humble beginnings as an MSC company before being acquired. In this light, the MDEC GAIN (Global Acceleration Innovation Network) initiative aims to identify companies that have the potential to be accelerated into major global icons, such as Sedania Innovator and ipay88. Through our newly set-up Silicon Valley office, we have successfully connected 21 of such companies to the SV ecosystem of mentors, accelerators and venture capitalists (VCs). Hence, there is a critical need to fast track local MSC companies to enter and compete in the global marketplace. That said, it s also important that we help smaller local companies with technologies at the heart of today s digital disruption to scale up. Companies like Speedminer, that delivers sentiment analysis technology and Neuramatix, a pioneering machine learning company, are amongst those that MDEC has successfully nurtured. Q: You were the first woman appointed as the managing director of Microsoft Malaysia and in 2014, you were appointed as the CEO of MDEC. Would you say more women are participating in the IT industry now? What is your advice to women looking to succeed in the IT industry? I have always been a firm believer in diversity and that includes gender. Female empowerment is a topic very close to my heart. And ICT provides opportunities for women to contribute economically not only on an individual level but also towards national development. As I see it, right now a key issue in female empowerment is not in terms of skills, but in terms of a better channel to work-life balance. The internet serves as a market access enabler, and there is no reason corporates should not leverage on this in order to tap into the female work force, when traditional methods may instead isolate them. My hope is for MDEC to be known as an agency that catalyses and opens the eyes of the industry in the country, spurring them to consider flexible and agile solutions, instead of sticking with tried and true. As they say, if there is no change, there is an illusion of safety, when in reality the whole world is sprinting past you. My hope is also all segments and communities of the country will be participants of the digital economy to fulfil their aspirations. To quote Johan Mahmood of TalentCorp Our nation deserves great ambitions. I fully subscribe to it, and intend to contribute towards those ambitions. God Willing. Datuk Yasmin Mahmood is the CEO of MDeC.

18 16 FEATURE Intelligent Energy Monitoring with Microsoft Azure IoT Suite and TwinCAT IoT Grundfos Living Lab by Beckhoff Automation Sdn Bhd As part of a project to explore energy monitoring and smart metering technologies, Grundfos, Microsoft and Beckhoff have equipped the Grundfos Kollegiet student dormitory in the Danish town of Århus with intelligent PLC systems that transmit data to an energy monitoring system in Microsoft s Azure cloud computing platform. The dormitory is near the town s port district and was built in accordance with the most advanced energy efficiency standards and equipped with the latest building and automation technology. The energy monitoring system creates a database for optimizing building operations. By including the residents of the Living Lab in the project itself, the building owners can increase efficiency without reducing the residents comfort. The first version of the Grundfos project was implemented as early as 2012 by installing a special server infrastructure and database in the building. As the monitoring cycles grew shorter and the amount of data needed for the seamless analysis of current and historical conditions larger, administering this IT infrastructure became increasingly expensive in terms of both money and personnel. Protecting access to all this data by various groups of users also required increasingly complex systems. In order to meet these requirements in the future, the parties involved in the project Grundfos Living Lab. decided in 2015 to redesign the project and migrate the server infrastructures to a cloud-based system. As part of this change, Beckhoff s highly scalable control technology demonstrated its flexibility, providing a seamless retrofit of the local building automation platform with a link to the cloud. The PLCs and I/O subsystems now transmit the energy data to the cloudbased system via TwinCAT IoT software, which is easy to configure and does not require programming. Microsoft s Azure cloud platform provides everything necessary to create a fast, scalable infrastructure for processing and storing the data. Access to the energy monitoring data from the Living Lab can be defined and enabled for a wide range of user groups. The information is made available to the building s residents and management, as well as to the research and technology department of Grundfos. By conducting various studies in connection with the residents and the building management system, Grundfos hopes to use the data to identify new usage options for its current products, as well as for new product offerings and business models. Also involved is the University of Århus, which analyzes the connection between resident behavior and energy usage. The energy monitoring system is used to store and analyze all energy consumption data, as well as for managing alarms. The 12 floors of the building house 156 residential units, with 3,000 sensors that collect energy data every three seconds and transmit them to the higher-level system. The sensors are linked to Beckhoff BC9191 Bus Couplers and CX9020 Embedded PCs. A central Beckhoff Industrial PC runs the TwinCAT IoT Data Agent software to collect sensor data via OPC-UA and functions as the gateway to Microsoft s Azure cloud, in particular the Azure IoT Hub. The TwinCAT IoT Data Agent effectively separates the PLC systems from the cloud environment. Thanks to the publisher/subscriber mechanisms and communication via the Azure IoT Hub as a central message broker, there is no need for the devices and services involved in the communication process to divulge their addresses to each other. They communicate exclusively via the central broker, which

19 FEATURE 17 The energy-efficient Grundfos Kollegiet building offers students an attractive living environment in the new harbor district of Århus. State-of-the-art energy automation linked to Microsoft s Azure cloud makes it possible to identify even the smallest energy savings potential. handles all message addressing functions. From the perspective of the firewall placed in front of the gateway PC, the data communication provides an encrypted link for both transmitted and received messages, and the firewall makes it possible to completely block all incoming communications, thus preventing any unwanted access from the outside. This protects the residents personal data, the companies intellectual property and building operations from accidental or intentional manipulation. The Data Agent s graphical user interface (GUI) makes it easy to configure the sensor data for transmission to the Azure IoT Hub. Through various parameters, the administrator can also define when the transmission will be initiated: cyclically, when certain values change or when certain actions are executed. Internal buffering mechanisms also ensure that any missing sensor data will be transmitted after a power failure. If the connection fails, the TwinCAT IoT Data Agent records a timestamp. As soon as the connection has been restored, the Data Agent retrieves the missing data from its internal memory and sends it to the Azure IoT Hub. As a central and secure message-based connectivity service, the Azure IoT Hub is responsible for receiving and forwarding the energy data to all participating cloud services within Microsoft Azure. Further analysis of the energy data is possible with the help of the Microsoft IoT Suite, which administers the devices and collects raw data for processing via the Azure SQL Data Warehouse and PowerBI. Azure Stream Analytics and Azure Machine Learning are used to detect anomalies. Special algorithms in these services recognize whether the values detected by the sensors over a specific period fall outside the normal range or could possibly not be recorded. If such an event occurs, the system issues an alarm via . In addition, the various user groups such as the student residents can access the energy data via a special programming interface to develop their own apps or algorithms, as part of a project or to meet college course requirements, for example. The programming interface, which includes a function for retrieving historical energy data, is based on the Azure Service Fabric. The data is protected via Azure s Active Directory and Application Insights services, which authenticate the various user groups. As this project demonstrates in impressive detail, the Data Agent can be used to easily retrofit older, existing control systems with new technologies and connect them to the cloud. This is all possible without having to modify the actual TwinCAT automation project, protecting the investments made in existing systems. Using cloud-based services also makes it possible to flexibly adapt systems to changing needs without having to invest in your own hardware or software, which also significantly reduces operator costs. System Topology.

20 18 FEATURE Halal Traveling: Malaysia Takes Off as a Trendsetter by Philipp Nüßlein, MGCC Summer time comes to an end and with it the holidays, in which many of us tried to satisfy the wanderlust. The early birds have even started planning their next holiday destination and activities. So, let s have a look at trends in the travel industry. One of the fastest growing segments in this market continues to be Muslim traveling. In 2015, it was estimated that there were 117 million Muslim international travellers. The Global Islamic Economy Report 2015 forecasts a growth to 168 million by 2020, where the travel expenditure by Muslim travellers is expected to exceed USD 200 billion. This trend is also illustrated by the increasing number of Halal travel conferences and events, among others in South East Asia, Japan and Spain. But can we really consider more than a billion Muslims as one target group, especially in politically tensioned and culturally sensitive times, where we learned not to tar all with the same brush? Indeed, the Muslim population is heterogenous, since Muslims are spread over the whole world and hence subject to different external influences, especially when they are living as sizeable minorities. However, Islam does not differentiate between humans based on colour, wealth, or any attribute, but only on how righteous they are. Therefore, the definition of a nation from a religious perspective clearly distinguishes Muslims as a community (Ummah) that distinguishes itself by its deep spiritual similarities beyond national borders. The Ummah is not only rapidly growing and will make up to 25% of the world s population by 2030, but shows also an increasing disposable income. Hence, marketing has only recently discovered the Muslim consumers as the forth billion consumer segment (Alserhan, 2011) besides Indians (about 1.2 billion), Chinese (about 1.4 billion) and Women that make 50% of the total world adult population. Well-known examples, where the special needs of Muslims have been already recognized are Islamic Financing and the Halal Food Industry. When Muslims travel, however, they need also to observe their religious obligations such as the daily prayers, modest clothes, avoiding cross-gender interactions and Halal Food. In order to enhance the understanding of the Halal traveling in detail for the stakeholders in the travel and hospitality sector, the companies MasterCard and Crescent Rating developed the Global Muslim Travel Index (GMTI). The index analyses in-depth data on covering 100 destinations since 2015 and increased to 130 destinations in In order to adjust services to the implied needs, GMTI recommends service providers to understand Muslim requirements in three different levels, as Need to have, Good to have and Nice to have. These are also considered in a different weighing within the criteria catalogue of the GMTI.

21 FEATURE 19 Need to have Good to have Nice to have Halal food services Salaath (prayer) facilities Water-usage friendly washroom Ramadhan (fasting) services & facilities No non-halal activities Recreational facilities and services The 130 destinations in the study cover 48 destinations in Muslim dominated countries, being members of the Organisation of Islamic Cooperation (OIC) and 82 non-oic destinations. Together, all destinations represent about 95% of Muslim visitor arrivals in Hence, GMTI has been considered as the most comprehensive benchmark to understand the Muslim travel sector. cruises for Muslims. Furthermore, Kuala Lumpur International Airport (KLIA) shows how Malaysia goes beyond the norm: there are three dedicated Muslim prayer rooms with ablution facilities and a separate silent room leading KLIA to the Top Halal Airport worldwide. Moreover, Malaysia also tops the destinations for Muslim travellers in Ramadan 2016 and the Muslim Travel Shopping Index Far behind Malaysia, United Arab Emirates has caught up Turkey to take the 2nd place in GMTI, while Indonesia has improved its ranking to 4th place. Among the non-oic countries, Singapore maintained its pole position while Taiwan (2015: rank 36th, GMTI of 46.2) and Japan (2015: rank 37th, GMTI of 45.3) have improved their overall ranking by three places each. This trend is confirmed by the average of the Top 20 non-oic destinations that are moving up the ranking at a faster pace. As in the year before, Malaysia continues to top the GMTI. Amongst the main three themes of (1) family-friendly holiday and safe travel destination as well as (2) Muslim-friendly services and facilities at the destination, and (3) Halal awareness and destination marketing. The country has again been able to maintain its outstanding position. This is driven by Malaysia s large inbound Muslim traveller base relative to its size, the trustworthy Halal food standards as well as its high awareness and promotion of tourism towards Muslim travellers. An outstanding example is Star Cruise, a Malaysian cruise company, that offers family-friendly and Halal Top 20 non-oic 2016 Score 2015 Score Top 20 non-oic Average GMTI This tendency also applies to Germany ranking in 2016 at 43rd (GMTI 46,8) making up one place in comparison with 2015 (GMTI 43,5). Although OIC destinations have a clear advantage due to having Muslim friendly facilities and services, more and more non- OIC destinations recognize the potential of the niche market of Halal traveling and are adapting their services to attract Muslim tourists. The following table gives an overview of the Top 15 OIC and non-oic destinations: OIC Non-OIC Rank Destination Score Rank Destination Score 1 Malaysia Singapore United Arab Emirates Thailand Turkey United Kingdom Indonesia South Africa Qatar Hong Kong Saudi Arabia France Oman Taiwan Morocco Japan Jordan Sri Lanka Bahrain United States Brunei Spain Kuwait India Tunisia Belgium Iran Germany Kazakhstan Australia 46.6 References: MasterCard-Crescent Rating (2015): Global Muslim Travel Index MasterCard-Crescent Rating (2016): Global Muslim Travel Index Thomson Reuters (2015): State of the GLOBAL ISLAMIC ECONOMY Report. Alserhan (2011): Researching Muslim Consumers: Do They Represent the Fourth-Billion Consumer Segment? UAEU-FBE-Working Paper Series. Philipp Nüßlein studied Economics and Islamic Science at the University of Nuremberg and Damascus, Syria, as well as at the University of Kassel and Cairo, Egypt. Before he started to work for DIHK, he supported among others the German Development Bank in Damascus and the United Nations Development Programme (UNDP) in Amman, Jordan.

22 20 FEATURE How Well is Your Company Protected Against Cyber Attacks? Managing Cybersecurity risk using IEC/ISO (Information Security Management System) by Raj Kumar, Cyber Intelligence Sdn Bhd Pt. 2 Cyber threats continue to be widely reported in the media, putting organisations and businesses at risk. It is more important than ever that organisations protect their information and clients, by considering the security measures to be implemented. Cybersecurity risks can only be clearly understood by evaluating the nature and severity threats and vulnerabilities to information and critical assets, and also taking into account the cost to reduce or mitigate the risk to those assets. Without understanding the risks, it will be challenging to implement the right and effective controls to reduce or mitigate the risk and more importantly to convince the top management to invest in such. In order to understand the security posture of any organisations, a risk management process including policies and procedures, must be defined and communicated to all staff including the senior management. Every security-related implementation should be comprehensive, effective and straightforward from gaining management support, identifying assets, understanding the risk to those assets, deciding to accept or treat the risk, getting approvals for treating the risk, examining residual risk and reporting. Also, no organisation or business will consider investing time and money on security if they have no risk or any conditions that can have adverse effect to their operations. Web application vulnerabilities, malware infections, data breaches, information theft, social engineering, unauthorised access are some of the common threats today, and it all boils down to studying likelihood and the severity of a threat happening and to the organisation or business. How these affect the organisation or business must be justified to the senior management for their support. The International Standards Organisation (ISO) s standard for information security, ISO/IEC 27001, has become a de facto standard for managing information security and defines security requirements based on international best practices, covering from gaining management support to monitoring the implemented security controls. By complying to this standard, organisations and businesses will be able to establish and demonstrate using a common understanding that their information assets are well

23 FEATURE 21 managed and protected, and the same time meeting expectations of stakeholders, partners interested parties, suppliers, industry laws and regulations and related requirements. Achieving ISO/IEC compliance can give organisations and businesses tangible and intangible benefits as follows: a) ISO controls improve the information systems availability and reduce the risk of vulnerabilities being exploited, while increasing the reliability and security of systems. b) Periodic audits and re-certification process helps to keep the security controls up to date with while taking into account the latest vulnerabilities and best practices. c) The ISO compliance ensures the organisation that they can be trusted to secure customer s data as well as their own. This increases customer confidence which in return gives more business, more revenues and profits. d) Cost effective and consistent information security policies, procedures and practices helps organisations to meet and exceed industry standards. e) Information systems can be prioritised to meet business requirements. f ) Compliance with legislations. g) ISO defines the responsibilities and duties in line with operational processes, and therefore strengthens internal organization. h) Attaining ISO certification demonstrates the preservation of confidentiality, integrity and availability of the critical business information systems. i) Improved management control and security leadership. j) Improved risk management and contingency planning. The ISO compliance provides a more structured approach to risk management. This risk assessment identifies the assets which are critical to business. This enables to have a better business continuity plan which prioritises the assets and reduces the potential exposure to financial loss or negative publicity. In summary, by complying to ISO/IEC27001, an organisation can improve their security posture and demonstrate that their information assets are well protected and maintained. This raises confidence among all interested parties and enable a safer and resilient business and operational environment. Cyber Intelligence Sdn Bhd has developed an industry leading ISO/IEC27001 compliance and implementation solution named CompSuite. CompSuite aims to help organisations to go through a simplified, structured and well informed way of implementing and managing ISO 27001, which includes project management, document management, learning management system, security awareness, risk assessment tool and more. Raj Kumar (MSc, ISO27001 LA, ABCP, CISAM) is Principal Security Consultant at Cyber Intelligence Sdn Bhd. For more information please to contactus@cyberintelligence.my.

24 Vibrant Eco-System and Great Career Opportunities Make Malaysia the Destination of Choice for Top Global Talent Christopher Kelly, General Manager, Intel Malaysia. A manager with 17 years of experience working at Intel in the United States, Chris Kelly has an impressive résumé. His wealth of knowledge and experience makes him a valuable asset to the company. Having worked his way up the ranks, Chris knows what makes a good leader and what a good leader needs to provide for his team to advance. In October 2011, Chris jumped at the opportunity to come to Malaysia to help manage and guide the company s worldclass design centre in Malaysia. When he moved to Malaysia, he was impressed by Talent Corporation Malaysia (TalentCorp) and the Residence Pass-Talent (RP-T) programme, and felt it showed Malaysia s understanding of the global market by making substantial changes in policy to attract and retain talented expatriates to continue working in Malaysia, especially in areas of critical skills. (It is) a wonderful way for longer term expatriates to have additional certainty of employment and residence status in the country. So many multi-national companies have their bases here and a host of Malaysian companies are starting to reach out to the world themselves. Now heading teams in Malaysia, Chris has much praise for his Malaysian employees, putting them on a par with any other workforce in the world, especially in the area of Research & Development. Today, he is responsible for nearly 2,000 engineers conducting research and development for various Intel products. With Intel as part of TalentCorp s FasTrack programme since its inception and a regular participant of the GRADUAN career fairs, Chris has been delighted by the talent that comes through from these initiatives. He believes the Upskilling programmes help Intel get the most out of college graduates as quickly as possible in their career as it helps bridge the gaps between academia and the industry, making fresh graduates industry-ready. We hire over 200 fresh college graduates every year in the Design Center and we can put our Malaysia talent toe-to-toe with other geographies in terms of productivity, knowledge and innovation. Increasingly we see Intel Malaysia as a destination employer for Malaysians studying abroad and wishing to return home. While chasing new talents, Chris often engages Malaysians working abroad and his message is simple: Malaysia is in the heart of the fastest growing market for electronics product in the world and is a prominent player in emerging markets. Its multi-cultural environment means that it has the ability to make its mark in Asians countries. Returning home is definitely advantageous to many Malaysians taking the next step in their careers. Chris has now been in Malaysia for over five years. Extremely pleased with his move to Malaysia, Chris strongly recommends for Malaysians abroad to return home and for foreign talent to consider a career move to Malaysia, especially for engineers as the industry is booming. Malaysia is a destination for engineering professionals, offering a vibrant eco-system, great career opportunities, and a chance to participate in the growing electronics sector. Other benefits include an attainable standard of living coupled with a welcoming, multicultural environment suitable for raising a family.

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26 24 LEGAL & INVESTMENT Update on Immigration Matters by Jörg Schmidt & Philipp Kersting, Luther Only recently Malaysia s Expatriate Services Division (ESD) tightened the requirements for the application of employment passes in Malaysia. More or less at the same time it introduced new restrictions to the employment pass category III which allows companies to hire skilled foreign employees under less stringent conditions. OVERVIEW Companies that intend to hire foreign employees have to apply for an employment pass before the employee enters the country. In order to submit an employment pass application, the company must be registered with ESD. The company registration process takes around 21 days from the submission of the documents to ESD and is subject to the following paid-up capital requirements: 2. Category II for foreigners with a basic salary of a minimum RM5,000 per month and an employment contract valid for less than 24 months. 3. Category III for foreigner with a basic salary between RM2,500 to RM4,999 per month and an employment contract of not more than 12 months. TIGHTENING THE RULES With its announcement from 20 July 2016 ESD made it clear that it will not tolerate the current practice of entering the country for employment purposes before obtaining an approval letter anymore: Effective 1 August 2016, please be informed that all Employment Pass Category I, II & III applications must obtain an Approval Letter before entering Malaysia for the purpose of employment. Shareholding Structure 100% local owned Joint venture 100% foreign owned Foreign owned companies (foreign equity of more than 51%) operating in the wholesale, retail, trade (WRT) sector Paid-up Capital RM250,000 RM350,000 RM500,000 RM1,000,000 From 1 August 2016 onwards foreigners now have to produce the letter of approval at Malaysia s entry point for verification purposes. Not being able to do so will most likely prevent foreigners who want to work in Malaysia from entering the country. For foreigners who have entered Malaysia with a tourist visa prior to their employment, the new administrative practice means that they have to leave the country for at least 72 hours before entering with the letter of approval again. Since ESD introduced a new category of employment passes on 15 July 2016, there are three different categories now: 1. Category I for foreigners with a basic salary of a minimum RM5,000 per month and an employment contract valid for a minimum of 24 months. Irrespective to which extent the new guidelines are enforced, it is highly advisable to plan the immigration process in advance to avoid problems at the entry point. This involves amongst others also the application for licenses required during the ESD account opening.

27 LEGAL & INVESTMENT 25 EMPLOYMENT PASS CATEGORY III According to the Ministry of Human Resources there are currently more than two million foreign workers legally employed in Malaysia. Probably in line with the government s decision to issue a freeze on the intake of new foreign workers from all source countries, such as Myanmar, India or Thailand, the new employment pass category III was introduced to attract a better skilled work force, while lowering the requirements for the employment pass application. The employment pass category III is available for all foreign employees with an employment contract of not more than 12 months and a monthly basic salary between RM2,500 and RM4,999. Other than the employment pass category I and employment pass category II, the employment pass category III does not allow the holder to apply for a dependent pass for his relatives. The employment pass category III is valid for one year and can be renewed for two times, subject to review by ESD. After the employment pass has been renewed for two times, there is a cooling-off period. As such the employee has to leave the country and to serve a three months cooling-off period before being able to apply for a new employment pass category III and enter the country again. According to ESD an exemption will however be given, if the employee is converting his employment pass category III into an employment pass category I or II. Employment pass category III holders who are changing their employers must leave the country and serve a three months cooling period as well. Companies who intend to apply for employment passes category III, have to obtain the approval from the Ministry of Home Affairs to be exempted from the minimum salary requirement of RM5,000. SUMMARY Overall, the alterations of the immigration policy are beneficial for all companies that intent to hire high skilled foreign workers in Malaysia. Tightening the administrative practice at the point of entry, does not impair the overall benefits, but only call for a better planning of all employment and immigration matters. Jörg Schmidt joined Luther in Malaysia after being admitted to the bar in During his studies he specialized in international commercial law. He worked for law firms in Tokyo and Singapore and the German Chamber of Commerce in Guangzhou. He advises European and American SMEs and MNCs in Malaysia with regard to corporate matters and transactions. Philipp Kersting is the Director of Luther in Malaysia. Before joining Luther in 2014, he was partner of a specialised law firm consulting clients in the music and entertainment industries across Europe. He advises European SMEs and MNCs in Indonesia, Malaysia and Southeast Asia regarding corporate, tax, investment and JV strategies. Further areas of expertise include IP, copyright, media and technology.

28 26 ECONOMICS Malaysische Häfen gehen auf Expansionskurs von Rainer Jaensch Kuala Lumpur (GTAI) Malaysia s biggest container terminal, the Port of Tanjung Pelepas, wants to expand its capacity and to modernise. For this purpose it plans investment in billions. The port of Kuantan will not only double its capacity but also deepen the port. The harbours of Melaka and Penang have also written modernisation on its flags. The latter aims at increasing the productivity by IT. (Internet addresses) Tanjung Pelepas und Kuantan investieren Milliarden in Erweiterung/ Melaka und Penang streben Modernisierung an Kuala Lumpur (GTAI) - Malaysias größter Containerhafen, der Port Tanjung Pelepas, will seine Umschlagkapazitäten vergrößern und modernisieren. Hierzu plant er Investitionen in Milliardenhöhe. Der Hafen Kuantan plant, nicht nur seine Kapazitäten zu verdoppeln, sondern auch den Tiefgang zu erhöhen. Die Häfen in Melaka und Penang haben sich ebenfalls eine Modernisierung auf ihre Fahnen geschrieben. Letzterer strebt eine Produktivitätserhöhung durch neue Informationstechnologien an. (Internetadressen) Malaysias Tiefseehafen Tanjung Pelepas, bereits heute der größte und modernste Containerumschlagplatz des Landes, steuert auf eine weitere Expansion zu. Über 8,6 Mrd. Malaysische Ringgit (RM; nahezu 2 Mrd. Euro; 1 RM = 0,224 Euro) will der Hafenbetreiber Port of Tanjung Pelepas (PTP) in den kommenden fünf bis 15 Jahren investieren. Damit werde die Umschlagkapazität erhöht und verbessert, erklärte Che Khalib Mohamad Noh, Geschäftsführer der MMC, dem Mutterhaus des PTP. Als erstes steht die umfassende Überholung der Kaikräne und der gummibereiften Brückenkräne an. Dabei gehe es auch um den Ersatz von Ausrüstungen, so der Geschäftsführer. Dadurch werde die gegenwärtige Umschlagkapazität von jährlich 10,5 Mio. TEU (twenty-foot equivalent units) auf 13,2 Mio. TEU gehievt. Danach folgt 2018 die Entwicklungsphase 3, die sechs neue Ankerplätze auf 3 km Länge ans Wasser bringen wird. Bis 2030 steige die Kapazität damit auf jährlich 22,2 Mio. TEU. Bislang verfügt der PTP über 14 Ankerplätze auf einer Kailänge von 5 km. Nachdem der Hafen im Jahr 2000 lediglich 0,42 Mio. TEU umschlug, hat er das Volumen bis 2015 auf 9,10 Mio. TEU gesteigert. Er ist damit einer der am schnellsten wachsenden Häfen der Welt. Auch liegt er in einer ausgesprochenen Wachstumsregion: im Industriegürtel Iskandar am Südzipfel der malaysischen Halbinsel und gegenüber von Singapur. Hafen Kuantan soll größer und tiefer werden Der Hafen Kuantan punktet damit, dass er an der Ostküste der malaysischen Halbinsel und damit näher an der VR China liegt. Aus diesem Grund haben wohl auch chinesische Investoren das Gebiet um Kuantan zur Errichtung eines chinesisch-malaysischen Industrieparks auserwählt. Unter anderem wollen sie dort ein integriertes Stahlwerk bauen. Nun geht es darum, die Kapazitäten in Kuantan zu erweitern und den Hafen auch zu vertiefen. So sollen dort Schiffe mit einer Tonnage bis zu DWT (deadweight tonnage) andocken können.

29 ECONOMICS 27 Dieses Projekt lässt sich die IJM, eines der größten Bauunternehmen Malaysias, einen Milliardenbetrag kosten. Auf dem Kostenvoranschlag für die Hafenerweiterung stehen 4 Mrd. RM. Diese Ausgaben tragen größtenteils die IJM und die chinesische Guangxi Beibu International Port Group. Erstere hält 60% und letztere 40% der Anteile an der Hafengesellschaft Kuantan Port Consortium (KPC). Nachdem die KPC am einen neuen Konzessionsvertrag für das zu bauende Tiefwasser-Terminal bis 2045 unterzeichnet hat, kann sie nun mit den Investitionen beginnen. Das neue Terminal wird die Kapazität des Mehrzweckhafens von gegenwärtig 26 Mio. FWT (freight weight tonnes) auf 52 Mio. FWT verdoppeln, heißt es in Pressemitteilungen. Hierfür wird die KPC über 3 Mrd. RM ausgeben. Der Staat steuert den Bau eines 4,7 km langen Hafendamms und die Verbesserung der umliegenden Infrastruktur im Wert von rund 1 Mrd. RM bei. Hafen Penang setzt auf IT Malaysias ältester Hafen auf der Industrieinsel Penang ist nun der modernste im Land, wenn es um den Einsatz von IT geht. Als erster Hafen in Malaysia hat der Penang Port für seine Antriebsmaschinen ( Prime Mover ) und Intra-Terminal-Fahrzeuge darauf aufgebaute, WiFi-basierte Terminals installiert. Gegenwärtig arbeiten im Hafen 135 Antriebsmaschinen. In den kommenden Jahren wird der Hafenbetreiber Penang Port RM aus seinem IT-Fonds für die Effizienz- und Produktivitätserhöhung ausgeben. In moderne Ausrüstungen will auch das Unternehmen KMB Seaport im Hafen Melaka investieren. Dort hat es Ende Mai 2016 mit der Zentralregierung und der Malacca Port Authority einen 30-jährigen Konzessionsvertrag zum Betrieb des Tanjung Bruas Port unterschrieben. Diesen bislang eher verschlafenen Hafen will der Investor in einen effizienten Umschlagplatz für die Güter der wachsenden Industrie in Melaka und Umgebung verwandeln. LOGISTICS IS OUR LIFE. WE FOCUS COMPLETELY ON CUSTOMERS. As an owner-managed company, we at Rhenus believe it is essential to remain close to our customers. We focus on our customers needs and requests in our daily business. And because each customer, each item and each requirement are different, we not only offer standardised solutions, but combine individual logistics products, if required, so that they are tailored to our customers individual needs. SERVICES: Airfreight Ocean Freight Road Freight Customs brokerage Warehousing In-Plant-Services Projects High-Tech Chemicals KEY FIGURES Year founded: 1912 Sales: 4.6 billion Employees: 26,000 Locations: 500 CONTACT US: Sten Germundsson Managing Director Rhenus Logistics Sdn Bhd, Malaysia sten.germundsson@my.rhenus.com Phone Gopala Krishnan General Manager Sales Rhenus Logistics Sdn Bhd, Malaysia Gopala.krishnan@my.rhenus.com Phone:

30 28 ECONOMICS 1st Half of 2016: German Government Achieves Surplus of 18.5 Billion Euros Net lending of general government amounted to 18.5 billion euros in the first half of 2016 according to provisional results of the Federal Statistical Office (Destatis). When measured as a percentage of the gross domestic product at current prices (1,543.5 billion euros), this results in a ratio of +1.2%. These figures are based on the definitions of the European System of Accounts (ESA) The budgets of central government, state government, local government and social security funds continued to benefit from both a positive development of employment and economy and moderate spending policies. However, the results for the first six months allow only limited conclusions to be drawn regarding the annual result as, due to structural factors, net lending/net borrowing of general government is normally lower in the second half of a year. Just under half of the general government surplus was achieved by central government, which recorded a surplus of 9.7 billion euros in the first half of State government recorded a surplus of 0.4 billion euros. The surplus of local government amounted to 2.5 billion euros. Social security funds achieved a surplus of 5.9 billion euros in the first half of income is taxes, which amounted to billion euros, thus accounting for a good half of total revenue. The increase in tax revenue continued to be high (+4.8%) in the first half of 2016, with the rise in current taxes on income, wealth, etc. (+6.1%) being just under twice as high as the increase recorded for taxes on production and imports (+3.3%). The rise in taxes on production and imports was largely due to increasing VAT receipts. The latter rose by 3.7 billion euros (+3.6%) to stand at billion euros. Also, social contributions paid to general government were markedly up by 4.2% to billion euros. A decline was however recorded in government revenue from interest and dividends received ( 10.9%), one of the reasons being that the Bundesbank profit recorded in national accounts was markedly down. Government expenditure in the first half of 2016 was up by 3.6%, or 23.5 billion euros, to stand at billion euros. Large increases in expenditure were recorded for intermediate consumption (+9.2%) and for social benefits in kind (+6.7%). The increase in intermediate consumption was mainly due to higher expenditure on persons seeking refuge, while the rise in social benefits in kind is a result of higher expenditure on public assistance/public youth welfare and on benefits for asylum-seekers. The increase in government investment expenditure (+7.7%) was markedly higher than in the previous year. Due to the continuing very low interest rates and lower debt, interest payments decreased considerably again ( 13.8%). The revenue of general government in the first half of 2016 rose to billion euros, which was an increase of 27.9 billion euros (+4.2%) year on year. The most important source of government Source: Deutsche Bundesbank (accessed via

31 ECONOMICS 29 Economic and Financial Developments in Malaysia in the Second Quarter of 2016 In the second quarter of 2016, the global economy expanded at a more moderate pace, with uneven growth momentum across economies. Growth remained modest in the advanced economies amid continued cyclical and structural weaknesses. In Asia, economic expansion was supported by domestic demand, but was weighed down by persistent weakness in export performance. While initial impact from the result of the UK s EU referendum created uncertainty and heightened risk aversion, financial market volatility has since subsided. Amid continued growth concerns and low inflation, several major and regional central banks conducted further easing to support economic activity. The Malaysian economy expanded by 4.0% in the second quarter of 2016 The Malaysian economy registered a growth of 4.0% in the second quarter of 2016 (1Q 2016: 4.2%). Despite the stronger expansion in domestic demand, growth was weighed down by the continued decline in net exports and a significant drawdown in stocks. On the supply side, growth continued to be driven by the major economic sectors. On a quarter-on-quarter seasonally adjusted basis, the economy recorded a growth of 0.7% (1Q 2016: 1.0%). Private sector activity remained the key driver of growth, expanding at a faster pace of 6.1% in the second quarter (1Q 2016: 4.5%). Private consumption grew by 6.3% (1Q 2016: 5.3%), supported by continued wage and employment growth as well as the additional disposable income from Government measures. Private investment grew at a faster pace of 5.6% (1Q 2016: 2.2%), driven mainly by continued capital spending in the services and manufacturing sectors. Public investment growth turned around to register a positive growth of 7.5% (1Q 2016: -4.5%), on account of higher spending on fixed assets by both the Federal Government and public corporations. Growth of public consumption also improved in the second quarter to 6.5% (1Q 2016: 3.8%), due mainly to higher spending on supplies and services. The economy expanded by 4.0% in the second quarter (at constant 2010 prices) RM billion Annual change (%) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q On the supply side, all economic sectors continued to expand, with the exception of the agriculture sector. The higher growth in the services sector was underpinned primarily by stronger household spending while the manufacturing sector was supported by the electronics and electrical cluster. Growth in the construction sector was stronger, dominated by the civil engineering sub-sector. The performance of the mining sector improved, due mainly to higher crude oil and natural gas production during the quarter. Growth in the agriculture sector declined, due to the lagged impact of El Niño on crude palm oil production. Inflation, as measured by the annual change in the Consumer Price Index (CPI), declined to 1.9% in the second quarter of 2016 (1Q 2016: 3.4%), due mainly to the lapse of the impact of the Goods and Services Tax (GST), which was implemented in April The decline in inflation was observed in all twelve CPI categories. The trade surplus amounted to RM17.9 billion in the second quarter of 2016 (1Q 2016: RM23.9 billion). Gross export recorded a higher growth of 1.4%, (1Q 2016: 1.0%), driven mainly by a smaller contraction in the growth of commodity exports which offset the slower manufactured export growth. Gross imports registered a positive growth of 3.1% (1Q 2016: -0.4%), reflecting mainly higher imports of capital goods and continued growth in imports of consumption goods In 2Q 2016, the current account surplus narrowed to RM1.9 billion, equivalent to 0.6% of GNI (1Q 2016: RM5.0 billion or 1.8% of GNI). The smaller current account surplus was due mainly to lower trade surplus, higher investment income received by foreign investors in Malaysia and continued outward remittances by foreign workers in Malaysia. The international reserves of BNM rose to RM390.4 billion (equivalent to USD97.2 billion) as at 30 June 2016 (end-march: RM381.5 billion; USD97.0 billion). This reserves level has taken into account the quarterly adjustment for foreign exchange revaluation changes. As at 29 July 2016, the reserves position amounted to RM391.1 billion (equivalent to USD97.3 billion). The international reserves remain ample to facilitate international transactions. They are sufficient to finance 8.1 months of retained imports, significantly higher than the 3-month international threshold. The reserves level is also adequate to meet external obligations given the reserves to short-term external debt coverage of 1.2 times. It is important to note that not all short term external debt creates claim on reserves given the external assets and export earnings of borrowers. Source: Bank Negara Malaysia (accessed via

32 30 EDUCATION & TRAINING Train the Trainer AdA International Basic AHK Qualification Workshop according to German Quality Standards A crucial quality element for the success of the German Dual Vocational Training (GDVT) is the trainer qualification, for the heart of first-class vocational training are always the trainers. They have to be on solid footing professionally and be pedagogically skilled in order to inspire enthusiasm about a profession in young people and communicate its content professionally. In Germany, this is guaranteed by the Ordinance on Trainer Aptitude (AEVO) and the 80 Chambers of Commerce and Industry. MGCC s Train-the-Trainer (in German Ausbildung der Ausbilder AdA ) is based on the AEVO and is therefore tailor-made for Dual Vocational Training. Coaches following the trainer s visualization. Coaches practicing visualization during group activity. AdA Trainer Edwin Lemke with 32 years of training and coaching experience. The first AdA workshop was held at MGCC s venue from July GDVT Trainers from HAUNI, Muehlbauer, IKA, Bosch Power Tools and Logwin attended the 5-days-training and completed the workshop with a written and oral examination on the 6th day. Mr Edwin Lemke from Germany conducted the training for the trainers. He is an experienced coach who has been training the trainers in the field of IT and Communication, Engineering and Construction, Training and Consulting, Food, Transport and Logistics, Politics, Automotive, and other industries. The participants acquired the basic knowledge of the core areas of GDVT and the skills to design, prepare and conduct effective training sessions for their companies trainees. Among others, they gathered practical knowledge on instruction techniques and for handling difficult situations in the training place. All successful candidates received an AHK Certificate from MGCC. Group photo of coaches from Hauni, Mühlbauer, IKA, Robert Bosch Power Tools, Logwin, Examination Board Member from GMI, MGCC s GDVT team and Edwin Lemke. Quotes on AdA Trainer by coaches A very productive and knowledgeable workshop I can incorporate those useful techniques in my daily work and also in my role as a DVT coach June, from Hauni This is one of the best weeks of my life as I have enjoyed the training sessions and at the same time I have learnt a lot of useful techniques on how to be a coach. Ashraf, from Muehlbauer Worth joining, Edwin was really good and I thoroughly enjoyed his training. I learnt valuable tips about training the learner in effective and positive way. I practice immediately after I back to office. Excellent! Ho, from IKA

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34 32 EVENTS Sundowner 26 August 2016, Eastern & Oriental Hotel, Penang From l. to r. David Ang (General Manager, Thong Guan Plastic & Paper Inds Sdn Bhd), Jack Ang (Board of Directors, MDBC), Loh Woei Neng (Branch Manager Northern & Southern, Endress + Hauser (M) Sdn Bhd), A. Dharmin (Branch Manager, Duromac (M) Sdn Bhd), Shahrin Said (General Manager, HUBNER Malaysia Sdn Bhd). From l. to r. Dr Doris Hafner (Director, Malaysian- German Society), Daniel Bernbeck (Executive Director, MGCC). From l. to r. Shubasinie (Admin & Project Executive, Klose Industrial Service Sdn Bhd), Yee Li Lien (Accounts Executive, Klose Industrial Service Sdn Bhd). From l. to r. Joerg Andraschek (Director, P.M. Chemical Resist Sdn Bhd), Dirk Koegel (Managing Director, P.M. Chemical Resist Sdn Bhd), Johan Karlsson (Managing Director, Robert Bosch (Malaysia) Sdn Bhd). From l. to r. Dr. Archim Lauermann (President, Malaysian-German Society), Dr. Juergen Schloesser (Senior Vice President Operations & Head of CoE Intravenous Access, B. Braun Medical Industries Sdn Bhd), Dato Hans Brenner (Director, BMC Consulting Sdn Bhd, Honorary Consul of Penang). Jessy Chan (Manager, Search & Selection Group, Agensi Pekerjaan EPS Consultants Sdn Bhd), David Ng (General Manager, International SOS (M) Sdn Bhd), Chin Chun Hoong (Key Account Manager, Nolato EMC Production Center Sdn Bhd), Kam Yew Ee (Consultant, Agensi Pekerjaan EPS Consultants Sdn Bhd), Li Li (Sales Manager, Nolato EMC Production Center Sdn Bhd). Willem Hagedoorn (Director of Operations, Hotel Equatorial Penang), Albert Jan Van Beusekom (Director of Food & Beverage, Hotel Equatorial Penang), Jurriaan Middelhoff (Head of Economic & Trade Department, Embassy of the Kingdom of the Netherlands). Hartmut Mueller (Managing Director, MAN Truck & Bus (M) Sdn Bhd, MGCC Board of Director), Lee Chew (Sales Manager, Hap Seng Bank), Sascha Kuhn (DVT Programme Coordinator, MGCC).

35 EVENTS 33 Intellectual Property: How Patents, Trademarks and Copyright Could Affect Your Business Mr Kandiah speaks on IP Asset Management. The discussion of Why are IP Rights business tools? is going on. On 17 August 2016, MGCC together with KASS International Sdn. Bhd. organized a business dialogue on intellectual property to explore how patents, trademarks and copyright could affect businesses. Mr P. Kandiah, the Founder and Director of KASS International was the speaker for the session. Several interesting topics were discussed during the session, such as the value of a business name, trademark of product or services, strategic value of manufacturing process, product configuration & service industry processes, creation & management of IP assets and growth of business using IP assets. The speaker also showed examples about the combinations of Rights on a product which comprises of trademark, patents, copyright and industrial design. Business Matching for EU SMEs- Security, Fire and Safety Industry On 7 September, MGCC together with the EU-Malaysia Chamber of Commerce and Industry (EUMCCI) organised a Business Matching event at the Kuala Lumpur Convention Centre (KLCC) in conjunction with the IFSEC SEA, the region s leading Security, Fire and Safety exhibition and conference. With the aim to support European SMEs in accessing the ASEAN market, MGCC organized the incoming representatives of 12 European companies from the Security, Fire and Safety Industry to Kuala Lumpur. The companies, with headquarters across Europe including Germany, Portugal, Greece, Poland, and Sweden gained insights about the current technology in the Malaysian Security, Fire and Safety market and got in touch with local companies during the Business Matching meetings, which were conducted by MGCC. A full schedule with 53 face-to-face meetings enabled the European companies to talk with local companies about export and import opportunities in Malaysia, to find local distribution partners, and to explore potential for business cooperation and joint ventures. Furthermore, two of the companies hold presentations in the IFSEC seminar where they shared their technological expertise and discussed with the participants about efficient firefighting and IT security in smart cities. The European company at a business-matching session with local company.

36 34 EVENTS Information Day in Munich on Upcoming Renewable Energy Event in Kuala Lumpur Speaking at the Information Day in Munich were Mr. Thomas Brandt, General Manager of MGCC (9th from r.), Dr. Chen Shiun, General Manager R&D, Sarawak Energy Berhad (2nd from r.) and Mr. Lionel Yap, Secretary of Malaysian Photovoltaic Industry Association (4th from r.) On 13 September, the Chamber, in cooperation with project partner eclareon GmbH, co-organized an Information Day in Munich on the upcoming Renewable Energy Symposium & B2B in Kuala Lumpur planned for 29 November 2 December The Renewable Energy event under the Programme Energy Solutions Made in Germany which is supported by the German Federal Ministry of Economics and Energy shall focus on Solar-Hybrid as well as Mini-Hydro technology solutions for decentralised electrification. At the Symposium, a German delegation comprising experts and solution providers from these fields are expected to present their expertise to and share their experiences with Malaysian renewable energy players. At the B2B event, German and Malaysian companies shall explore the potential of collaboration. For more information on this event, please contact Ms Patricia Chin: fuiyean.chin@malaysia.ahk.de 3PM _ 10PM

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38 36 GERMAN INSTITUTIONS DAAD Scholarships PhD Scholarships Research Grants - Doctoral Programmes in Germany Research Grants - Bi-nationally Supervised Doctoral Degrees (sandwich programme) These research grants enable young scientists to carry out a doctoral programme at a German higher education institution or research institute. For more information on application, requirements and deadlines please visit University of Rostock. The German Academic Exchange Service (DAAD) offers the following long-term scholarships for postgraduate studies for the academic year 2016/2017: Master s Scholarships for Development-Related Postgraduate Courses (EPOS) Young university graduates and professionals from developing countries will be given the opportunity to attend selected Master s degree courses at German universities. Master s Scholarships for Public Policy and Good Governance (PPGG) The programme is designed to further qualify future leaders in politics, law, economics and administration according to the principles of Good Governance and to prepare them in practise-oriented courses for their professional life. Students from all over the world participated in the scholarship programme offered by DAAD.

39 GERMAN INSTITUTIONS 37 Welcoming the new Principal of the German School Kuala Lumpur Dr. Ulrich Mayer is the new Principal of the German School Kuala Lumpur (DSKL) since 1 August Dr. Mayer is married with two adult children and a three year old grandson. The 52 year-old mathematician with a doctoral degree first held a teaching position as a mathematics and physics teacher in the public school system, after completing his studies and teaching practice. Subsequently, he served as a senior consultant in a management consultancy for occupational pension schemes for several years until In the summer of 2007, Dr. Mayer, who through his honorary executive board office in a private primary school never really burnt the bridges to the school sector, assumed the overall educational and business management of the Schloss-Schule Kirchberg, a private boarding high school. Transferring from the Schloss-Schule Kirchberg to DSKL after nine years, Dr. Mayer fulfilled his initial ambition of his career as a teacher to be working at a German school abroad. Particularly close to his heart besides educational and business management issues of a modern school are cross-cultural encounters with the host country. Dr. Ulrich Mayer, Principal of the German School Kuala Lumpur (DSKL). New Counsellor for Economic, Commercial & Environmental Affairs at the German Embassy on Duty On 1 August 2016 Mr Jens Brinckmann (50) started work as the Counsellor for Economic, Commercial and Environmental Affairs at the German Embassy in Kuala Lumpur. He is on secondment from the German Federal Ministry for Economic Affairs and Energy in Berlin. During an earlier posting at the Embassy of the Federal Republic of Germany in Jakarta, Indonesia, as Economic Officer from , he already gained experiences within the South-East Asian region. Mr Brinckmann is accompanied by his Indonesian wife, Ms Fransiska Britasari, and his two children, aged 15 and 3. Mr Jens Brinckmann, Counsellor for Economic Commercial and Environmental Affairs at the German Embassy in Kuala Lumpur. His very first working visit in Kuala Lumpur was to the MGCC, where he met with Executive Director Mr Bernbeck and General Manager Mr Brandt to learn about the MGCC and its departments functions and tasks. Mr Brinckmann and the MGCC representatives expressed their intentions to continue the good and close cooperation of MGCC and the Economic Affairs Department of the German Embassy.

40 38 GERMAN INSTITUTIONS GMI Intents Earmarked for Precision Machining and Tool Manufacturing at HPMT internship programme and HPMT staff enrolment, but also comprises GMI staff industrial attachment at HPMT which provides GMI staff to get updates on the latest development and the opportunity to acquire new skills. The staff attachment will place GMI staff together with HPMT s experts in precision tool manufacturing. The experience and skills shared at HPMT is hope to benefit GMI staff and students when it is applied in the classrooms and labs to better prepare students for the precision metal industry later on. The signing of Memorandum of Understanding (MoU) between Mr Yusoff Md Sahir Managing Director German-Malaysian Institute, together with the Director of Operations HPMT Industries Sdn Bhd (HPMT), Mr Khoo Seng Giap. GMI Interns Earmarked for Precision Machining and Tool Manufacturing at HPMT Shah Alam German-Malaysian Institute (GMI) interns will be given a new option for their industrial training placement when the institute signs a Memorandum of Understanding with HPMT Industries Sdn Bhd, whereby the collaboration will be prevalent for three years. The ceremony will be attended by signatories Mr Yusoff Md Sahir, GMI Managing Director, and Mr Khoo Seng Giap, HPMT Director of Operations, and the respective company representatives Mr Ngan Cheng Hwa, GMI DMD Education & Training, and Mr Khoo Yee Her, Director of HPMT Industries Sdn. Bhd., and other company personnel. In addition, both parties will be jointly conducting research and development (R&D) activities to explore industrial applications from both practical and academic perspectives. The R&D activities will focus on precision machining solutions and cutting tools manufacturing processes. With so much to look forward to, HPMT staff will also be involved in production technology up skilling programmes run by GMI to enhance their knowledge on specific industry trends. Through this initiative, we hope to help our staff to continuously upgrade their skills. Through these projects we will combine theoretical and practical approach to have more in-depth understanding of a case project and comprehensive development of tooling solution for multiple industries. Ultimately we hope to further enhance our innovation capabilities to deliver greater value for our customers, added Mr Khoo. At the end of the three years, we hope to have achieved our objectives and perhaps continue with the collaboration, if needed, Mr Khoo said. A leading solid carbide-cutting tools manufacturer, HPMT has more than 200 skilled specialists and staff who are willing to take the interns under their wings through the internship programme. HPMT Director of Operations, Mr Khoo Seng Giap said the internship programme will be conducted twice a year and will mostly involve final year students. The number of students may vary every semester. We will also participate in GMI Career and Education Fair to source for suitable candidates. HPMT will also provide financial support for shortlisted candidates with high potentials to enroll in any diploma or German A-Level Preparatory Programme (GAPP) offered by GMI. These candidates will be handpicked by HPMT prior to the sponsorship offer. We believe that it is pivotal to have well-trained and competent specialists to support our plans for 100 percent capacity expansion by Growth is a survival mechanism and is our way towards achieving high skill high income status for HPMT employees, said Mr Khoo. With the signing of the MoU, HPMT and GMI officially widen their scope of collaboration which not only includes GMI student The future holds a lot more for HPMT and GMI as HPMT plans to participate in the Dual Vocational Training (DVT) Programme coordinated by GMI once the necessary requirements have been established. HPMT manufactures solid carbide cutting tools for drilling and milling industries, with distribution to more than 35 countries in Europe, Asia, South America and Australia. The company also manufactures specialized tools for other applications. A joint venture between the governments of Malaysia and Germany, GMI is now one of the leading technical and vocational education hubs in the country. The institution offers a wide range of programmes including diploma programmes, pre-university programme, skills upgrading and technical courses and train-thetrainer programmes. Financial assistance can be obtained from MARA and PTPN. For sponsored students application is to be made to sponsoring bodies, usually advertisement by sponsors in main newspapers/ websites. Please contact GMI at /9344 for further details or alternatively you may log on

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42 40 MEMBERS #AllianzDare2bHealthy Set to Fulfil Three Resolutions Three Malaysians see their resolutions fulfilled after winning Allianz Malaysia s #AllianzDare2bHealthy challenge. The winning trio are now halfway through their six-month training to fulfil their resolution by this year-end. Jordan Lo Jo Zheng, 27, who aims to become a certified diver, will perform his first deep-sea dive in Redang Island, Terengganu in October; Umadevi Vengdesh, 36, will trek through Annapurna, Nepal in November; and Zurina Omar, 33, who targets to run 8km in 60 minutes, will complete her resolution at the Allianz Pacer Run 2016 in Putrajaya in November. From left: Jordan Lo Jo Zheng, Zurina Omar and Umadevi Vengdesh. The campaign was launched with an on-ground activation event from 6 8 May 2016 at Nu Sentral in Kuala Lumpur. The campaign then continued online until 29 May Out of the 200 entries submitted, three of the most life-changing resolutions were chosen where each of them will be assisted in fulfilling their be-healthy resolutions. Beyond Pipe EEW Malaysia has delivered yet another challenging project in mid-august 2016 proficiently for the Woodside Energy Limited Greater Western Flank Phase 2. A total of 30 mooring piles complete with several pile accessories like padeyes, grout tubers, lifting trunnions, stabbing guides and others is manufactured and fabricated in-house in EEW s mill in Tanjung Langsat, Johor. With an extensive supply records and experience of manufacturing piles, EEW Malaysia has efficiently executed the given scope of work and completed all the mooring piles ahead of the project schedule despite the constant change in the design. Behind this remarkable achievement is a group of dedicated workforce working round the clock, 24/7 for 2 months and continuous support from our Client. Once again, EEW Malaysia has proven its capability to provide unique and complete solution to its Client. Dedicated to expand its manufacturing competency in perfection has made this possible. EEW Malaysia provides total solution mooring piles for Woodside Energy Limited Greater Western Flank Phase 2 Project. World Leader in Liquid Analysis After extensive market and competitor research, US consulting firm Frost & Sullivan concluded that Endress+Hauser supports its customers better than any other provider in the area of liquid analysis. With 9.25 points out of a possible 10, Endress+Hauser clearly set itself apart from the competition, which scored 8.5 and 7.5 points. A robust product portfolio, coupled with strong acumen for innovation and focused customer centricity, has been instrumental in strongly positioning Endress+Hauser amidst competition in the global water analysis instrumentation market, said Frost & Sullivan Industry Analyst Krishnan Ramanath. Endress+Hauser received Frost & Sullivan s global Company of the Year Award for water analysis instrumentation. A prime example for the innovative strive is the Memosens technology, which converts the measured analysis value to a digital signal and transfers it to a transmitter without involving a contacting connection thereby eliminating all issues related to moisture and corrosion.

43 MEMBERS 41 IKA Mixing Technology for Cosmetic Industry: Presentation & MPOB Cosmetic Course 2016 Malaysian Palm Oil Board (MPOB) organized a cosmetic course in Kajang on 8 August The main objective of the course was to educate and expose the basics of cosmetic formulations, mixing process and production requirement in align with Malaysia s cosmetic regulation. MPOB invited IKA Works Asia Sdn Bhd to present and demonstrate its innovative process technology to the delegates from cosmetic industries. As IKA representative Dr. Senthivel presented about salient features of IKA Process Technology and its benefits for cosmetic industry. Participants were also shown the performance superiority of high shear mixing technology against conventional mixing technology through the demonstration of emulsification of oil in water as well as wetting and dispersion of powder in liquid using IKA equipment. On top of that, actual preparation of Cream Product that involves wetting of powder, emulsification, homogenization, etc. was also demonstrated using IKA Magic PLANT inline. Dr. Senthivel Q&A session with the participants. JLL Named World s Most Ethical Company for the Ninth Year Jones Lang LaSalle Incorporated (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet and completed $138 billion in sales, acquisitions and finance transactions in YY Lau (Country Head), JLL Property Services Sdn Bhd (FKA YY Property Solutions Sdn Bhd). JLL has won 15 awards at the International Property Awards Asia Pacific in 2016, recognized by Ethisphere Institute on the list of World s Most Ethical Companies for the ninth year and was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards. For more information about JLL Malaysia, please visit IP Stars Title Goes to Mr Kandiah and Ms Geetha K. P. Kandiah (Founder & Managing Director) and Geetha K. (Director of Trademarks & Designs Division) have been awarded the IP Stars by the renowned magazine Managing Intellectual Property (MIP). The award is given to individuals who are recognised for their outstanding contribution to and success in intellectual property law, as recommended by clients and peers. P. Kandiah has vast experience in obtaining patents, trademarks and industrial design rights on a global scale, and also specializes in identifying patentable inventions, designing around patented technology, and advising on the commercialization of IP Rights, franchising and licensing strategies. P. Kandiah (Founder & Managing Director) and Geetha K. (Director of Trademarks & Designs Division), KASS International. Geetha K. has extensive experience in handling all aspects of trademarks, copyright and designs in various industries, and manages local, regional and international portfolios. She also provides franchising advice and assists with franchise agreements and the registration of franchises. For more information, visit or drop an to kass@kass.com.my.

44 42 MEMBERS MEMBERS 42 We ve Moved Exciting things are happening at KSB Malaysia Pumps & Valves Sdn Bhd, and we wanted to share some important news with you. On 1st March, 2016, we are relocating to a more comfortable and spacious area. Our new location is Lot 2A, Jalan Sungai Kayu Ara 32/36, Taman Perusahaan Berjaya Seksyen 32, Shah Alam. New phone number is / 0175 / Our primary address is also still the same salesmy@ksb.com Mühlbauer Technology Days Since we first opened our doors on 1995, loyal business and support is one of the main reasons why we ve grown so much over the years. At the former location, the limited parking, limited warehouse space and tight working spaces were no longer acceptable. With this new location, we provide a better and spacious storage and a service centre to ensure timely and fast responses to our customers. A big event in Muehlbauer Group s calendar took place in Malaysia MÜHLBAUER TECHNOLOGY DAY from September We welcomed 150 visitors from all over the world to our plant. The leaders of the semiconductor industry were gathered in Melaka for the event. It was a great opportunity for us to show the visitors our plant capability, latest technologies, internal system, working culture and what can be offered by Mühlbauer s team. KSB Malaysia in Shah Alam. The first 2 days of the programme (22 23 September 2016) scheduled for customers and visitors while the 3rd day was extended to the local universities and education institutes. With this, students and lectures are exposed to our latest technologies, what we can offer to the students (internship placement & career opportunity) and types of collaboration that can be done. PROGRESS GROUP Expands Its Asia Market Leadership in Malaysia PROGRESS GROUP, a leading technology supplier for the precast concrete industry, has been acting successfully in the Asian market over the last years, at the forefront in Thailand, Singapore, the Philippines, and China. The Group s recent conclusion of a cooperation with Gamuda, Malaysia s biggest construction company, strengthens its market leadership even more. Together with Gamuda, PROGRESS GROUP developed a concept for a highly automated carrousel plant for the production of precast concrete elements. With 17 individual high-tech machines for precast concrete production and one comprehensive software solution the new plant has a production capacity of 4,000 accommodation units per year. The PROGRESS GROUP companies develop machines and plants for the production of precast walls and floors, hollow core slabs, constructive and pre-stressed precast elements as well as wire reinforcement. Thanks to the complementary product portfolios and the valuable synergies the Group acts as a full-range supplier, providing all from one source.

45 MEMBERS 43 The Refreshed Club Marriott at Renaissance Kuala Lumpur Hotel Brings More to the Table Renaissance Kuala Lumpur Hotel launched a refreshed and enhanced Club Marriott membership programme for members to discover a world of exclusive benefits and indulgences at not one but over 100 participating hotels across Asia Pacific recently. The evening kicked off with a cocktail at TEMPTationS where guests were treated to a fine selection of Latin American inspired tapas and cocktails followed by Hotel General Manager Robert Frager introducing the newly appointed Renaissance Kuala Lumpur Hotel Club Marriott brand ambassador Ms June Yap. June was crowned Mrs Borneo World 2015/2016 and represented Malaysia in the Mrs World 2016 pageant. Afterwards, Latino live music and a dance act took place to seamlessly and simultaneously launch the Latino Fiesta at TEMPTationS. A group shot with the evening s VIPs. 4% of all Transported Goods are Damaged upon Arrival Imagine your freight when it s being transported without a seat belt. It would be a disaster if there was a collision. With Newton, we help you compete by making it safe and stable. Mr PK Ang, Newton Group Executive Director at Newton Lab comments: Traffic accidents and transport damages can be prevented with appropriate packaging. Newton s three main objectives are to reduce accidents in warehouse and goods in transit; to reduce damaged goods which lead to unsaleability; and last but not least, to reduce the total packing cost per pallet. Imagine your Freight without a Seat Belt? Let us assist you to analyze, optimize and ensure that all your goods transported are secured. Our centre has state-of-the-art laboratory facilities to test and provide world-class standards and expertise to help your freight arrive stable, safe and cost effective.

46 44 members MGCC Welcomes New Members DSC Software AG Fascination with Integration This is precisely the driving force behind DSC, and you can get a taste of it: with solutions that make using SAP software in the technical environment as simple and profitable as possible particularly with an eye to Industry 4.0. For example, SAP Engineering Control Center, the intuitive collaboration platform for development teams and systems engineering. Or the SAP Engineering Control Center interface to NX for a direct CAD link. Or how about Factory Control Center FCTR for integrated production planning and seamless CAD-CAM-DNC processes. For more than 30 years, product manufacturers have been relying on the know-how of the Karlsruhe integration experts. Not without reason are DSC solutions at home worldwide right across all branches of industry: from machinery and plant engineering to the automotive industry to aerospace to electrical and process engineering. Contact persons: Mr Cheng Yaw Goh Vice President, Asia Contact No: ChengYaw.Goh@dscsag.com Dipl. Wirtsch.-Ing. Prof. Dr.-Ing. Edwin Hettesheimer Strategic Planning Advisor Contact No: Edwin.Hettesheimer@t-online.de Suite 25.03A, Level 25 Johor Bahru City Square Office Tower , Jalan Wong Ah Fook Johor Bahru Johor ELANTAS Malaysia Sdn Bhd ELANTAS produces insulating materials for the electrical and electronics industry. It consists of three business lines. The business line Primary Insulation (PI) manufactures enamels to insulate electrical wires. The business line Secondary Insulation (SI) produces insulating varnishes and resins for the impregnation of motors, transformers, and generators. Finally, the business line Electric & Electronic Materials is specialized on potting and casting resins as well as conformal coatings for printed circuit boards (PCB). Owing to consistent research and development, continual development of insulating materials, and process improvement, ELANTAS has established a leading international position for itself and is the world s leading manufacturer of wire enamels and impregnating resins. This makes ELANTAS the preferred manufacturer for the electrical insulation industry and the main supplier to large international customers. ELANTAS GmbH is the holding company headquartered in Wesel, Germany. The group consists of eight independent companies that operate a total of 11 manufacturing sites in all major regions of the world. In 2015, ELANTAS employed a total workforce of 977 people and achieved sales of EUR 463 million. Contact person: Mr Steven Huang Managing Director Lot 15 Jalan Pengacara U1/48 Temasya Glenmarie Industrial Park Shah Alam Selangor Tel : Fax : Web : Tel : Fax : info@dscsag.com Web :

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48 46 TRADE FAIRS ACREX INDIA February 2017: Bombay, India South Asia s largest exhibition on Air Conditioning, Ventilation, Refrigerating and Building services The 2017 chapter of ACREX India, the biggest, widest and a most dynamic global platform on this side of the continent on all that is cool is going to be held in Delhi. The focus will not be limited only to HVAC&R; the exhibition will feature diverse Building Engineering Services that include Electrical & Plumbing Services, Building Automation and the ever growing Cold Chain Industry. ACREX India 2017 is meant to not only be the launch-pad for potential business-enabling collaborations, but also be a living resource pool and a seamless amalgamation of Integrated Building Solutions that you can access right there and then. Powerful international participation from 25 countries including Belgium, China, Czech Republic, Egypt, France, Germany, Italy, Japan, Korea, Malaysia, Saudi Arabia, Singapore, Spain, Switzerland, Taiwan, the Netherlands, UAE, UK, Ukraine and USA. Experts & stalwarts of Industry from International organizations like ASHRAE & AMCHAM USA, UNEP, CIBSE UK, REHVA & EBTC France, VDMA & IGCC Germany, CAR China, FTI Thailand, ABOK Russia, Turkish HVAC-R Exporters (İSİB) Turkey, meet to Connect, Share and Create Knowledge Forums & strategic alliances. ACREX India 2017 is being organised by the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE) and will be produced by NuernbergMesse India Pvt. Ltd. It will be held at the India Exposition Mart (IEML), Greater Noida, Delhi. Strategically situated near the JP Golf Course and within easy reach of Central Delhi and the international airport on the new 8-lane Greater Noida Expressway, the venue is the largest in India occupying over square meters of state-of-the-art indoor exhibition space and 1,70,500 square meters of constructed area for conducting exhibitions. To make the most of market opportunities The Indian HVAC market is expected to grow by 30% to over INR 200 Billion from the current turnover of INR 150 Billion, over the next two years, mainly due to accelerated growth expected in the infrastructure and the real estate sectors. The Refrigeration & Cold Chain Industry is expected to register a record CAGR of around 25.8% which will take the value of the industry to around INR 640 billion by It is now seen as a Sunrise sector in India. Along with this, the Building Automation and Control Systems have seen significant growth in the last few years. Initially concentrated in the areas of HVAC and Security Systems, these Systems have now evolved into newer areas like Lighting Control, Fire Detection and Energy Management. The potential demand from the construction sector (both conventional and green buildings), coupled with the potential to save energy from air-conditioning (especially through efficient technologies) will usher a boom period for the HVAC market by 2035, with complete support from the Government to promote energy-efficient standards, practices, and technologies. India s home automation market is growing at a compound annual growth rate (CAGR) of 30%. The trade show expected to attract more than 400 exhibitors with more than 25 countries participation and 50,000 visitors. For more information, please contact: Ms Michelle Lim MGCC Senior Marketing Officer Tel: Fax: michelle.lim@malaysia.ahk.de

49 TRADE FAIRS 47 BAUMA CHINA November 2016: Shanghai, China 8th International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles Despite and especially due to the difficult state of the overall economy, the People s Republic of China is bolstering its construction industry by investing heavily in infrastructure. Exhibitors will present the machines and vehicles that are needed to realize these projects at bauma China The eighth edition of the International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment takes place at the Shanghai New International Expo Centre (SNIEC) from November 22 to 25. Statistics compiled by the economic forecast and market research company OffHighway Research send a clear message: Sales volume of construction machinery in China declined steadily from its peak of some 435,000 units in 2011 to a good 131,000 units in 2015 a 70-percent decrease within four years. For 2016, analysts only expect a slight increase of about four percent, with sales probably stabilizing at just less than 138,000 machines. By and large, this hope is based on the fact that the Middle Kingdom continues to massively expand its infrastructure. For example, according to the American Association of Equipment Manufacturers (AEM), China invested the equivalent of 130 billion US dollars in railway construction both in 2014 and According to China s Prime Minister Li Keqiang, the country will invest more than 122 billion US dollars in this infrastructure sector this year, as well. All in all, observers expect that the 13th Five Year Plan, which begins this year, will make a total of some 650 billion US dollars available for railway construction between now and the year The People s Republic hopes that investing in the transportation infrastructure will not only give its economy a new boost, but also eliminate deficits that, among other things, have resulted from urbanization of the country, which continues to increase. For instance, according to Germany Trade & Invest (GTAI), 65 percent of all Chinese people will probably live in cities by the year 2020 (2014: 54.8%). So it is quite fitting that Beijing wants to expand its subway network, which is currently 527 kilometers long, to 1,000 kilometers, for example. Expansion of the country s highway network, which has also been intensified, is resulting in higher demand for road-construction machines. For example, according to GTAI s statistics, Chinese production of compaction rollers increased by 17 percent during the first eight months of 2015 compared to the same period in the previous year. New emission regulations are an additional incentive to purchase new construction machines: As of 1 April 2016, all diesel engines used in off-road machines in China must comply at least with China s minimum Emission Standard III. According to the Chinese business magazine Economy & Nation Weekly, this more stringent requirement means that some 2.5 million old construction machines may no longer be used in China. As a consequence, demand for machines that are more environmentally friendly is expected to increase sharply. For more information, please contact: Ms Sherena Wong MGCC Trade Fair Officer Tel: Fax: sherena.wong@malaysia.ahk.de

50 48 TRADE FAIRS fairs&more Go Global with US September October 2016 For further information on Trade Fairs, please contact MGCC Tel: (+60) Fax: (+60) International Exhibition Refrigeration, AC & Ventilation, Heat Pumps October 2016 (Nürnberg, Germany) International Exhibition & Conference Window, Door and Façade Technologies, Components, Prefabricated Units February 2017 (Delhi, India) International Trade Fair for the Beverage Industry 28 February 2 March 2017 (Russia, Moscow) The premier event and the essential platform in India for the liquid food and beverage industry December 2016 (Mumbai, India) Leading Trade Fair for Architecture, Materials and Systems January 2017 (Munich, Germany) SPIELWARENMESSE FAIR 2017 The international toy fair in Nuremberg, Germany 1 6 February 2017 (Nuremberg, Germany) International Powder & Bulk Solids Processing Conference and Exhibition October 2016 (Shanghai, China) International Exhibition & Conference Law Enforcement, Security and Tactical Solutions 1 2 March 2017 (Nürnberg, Germany) China Congress & China Automotive Engineering & Exhibition Expo October 2016 (Shanghai, China) High performance in target sports, nature activities, protecting people 3 6 March 2017 (Nürnberg, Germany) The International Main Exhibition for Sport Business 5 8 February 2017 (Munich, Germany) International sales fair for handicrafts, design, natural products and Fair Trade goods November 2016 (Berlin, Germany) Raw Materials Technologies Logistics Marketing 8 10 November 2016 (Nürnberg, Germany) The International Main Exhibition for Sport Business February 2017 (Beijing, China) Internationally leading public exhibition for the food, agriculture, and gardening industry January 2017 (Berlin, Germany) Trade Fair for Environmental Technologies February 2017 (Istanbul, Turkey) Exhibition & Conference Aluminium Die Casting November 2016 (Bangalore, India) World s Leading Trade Fair for Organic Food February 2017 (Nürnberg, Germany) World s Leading Trade Fair for Electronic Components, Systems and Applications 8 11 November 2016 (Munich, Germany) Trade Fair for Electric Components, Systems and Applications March 2017 (Shanghai, China) World s Leading Travel Trade Show 8 12 March 2017 (Berlin, Germany) International Trade Fair for Natural Personal Care February 2017 (Nürnberg, Germany) International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles December 2016 (Delhi, India) The international trade fair for electronics development and production March 2017 (Shanghai, China) International Trade Fair and Congress Water and Wastewater March 2017 (Berlin, Germany)

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