Posts in category: Insights

Malaysia’s Budget 2019 scheduled announcement on 2 November 2018 is widely anticipated, as it will be the country’s first budget to be tabled by the new government.

Much has been and will be debated on the contents of the budget, as the Pakatan Harapan government has made it clear that its priority is on improving its fiscal position. Its mid-term review of the 11^th Malaysia Plan on 18 October 2018 already provided some hints on the government’s fiscal direction, with expectations high for spending cuts and the introduction of new taxes to optimise public finances.

With a period of belt-tightening seemingly on the cards, Transformation Today talked to Malaysian individuals and small business owners* who make up the pulse of the country’s economy, to reveal their wish list for the budget and direction they hope will be set for Malaysia Baharu.

The issue of taxation appeared foremost on the mind of every day Malaysians, with the recent return to the Sales and Services Tax (SST) from the Goods and Services Tax (GST) creating a divided opinion from consumers. While the GST shouldered much of public blame for the cost of living in recent years, the rakyat seems to have found its abolishment has not had the desired impact.

Anne, who works in the legal department of an oil and gas firm and is a mother of twin 9-year old boys, says she did not observe a reduction in prices during the interim ‘tax holiday’ which saw the GST zero rated prior to the re-introduction of the SST.

“The rule of thumb is that once prices in Malaysia go up, they will almost never go back down,” she opines, sharing that both types of taxes made her more prudent with her family’s expenditure. She adds that while she understands austerity measures may be necessary to reduce the country’s debt level, it should instead take the form of prudent government spending as opposed to increasing the tax burden for Malaysians.

The higher consumer prices were also felt by Adib and Imran, both young executives in the private sector who believe businesses are profiteering from the reversion to SST. To this, Imran advises the public to galvanise their mandate by reporting such cases to the Ministry of Domestic Trade and Consumer Affairs.

It is in fact the government’s mandate that Malaysians are eager to remind the ruling administration of as it unveils its maiden annual budget. “I feel that the goverment should refocus its expenditure on the essentials, namely healthcare, education, agriculture and economic infrastructure. For the time being, the government should refrain from undertaking duplicative and non-essential initiatives.

“The primary focus of the government should be to reinvigorate the Malaysian economy, make it a business-friendly climate and encourage foreign direct investments. But more importantly, the government needs to open up new economic sectors and stimulate the creation of new jobs from these new sectors. A new Malaysia should mean a new economy and new jobs,” says Anne.

Luqman, a sales administrator and developer who works for a Malaysian telecommunications company in the US is also concerned on the impact of the economic environment on the job market. As a fresh graduate, he worries that more taxes will affect corporate spending, which may in turn influence their hiring decisions. However, he is cognisant that this may be a short-term pain aimed at improving the country’s prospects in the long-run. “My generation has to figure out a way that is less dependent on government incentives,” he opines.

Luqman’s long-term view provides a peek into the vibrant patriotism witnessed in Malaysia since the 14^th General Elections in May this year. The public has voiced their support for the government to trim its debt level, to the extent of creating the publicly-funded ‘Tabung Harapan’, which will cease collections on 31 December 2018, to contribute to the repayment of government debt.

However, the public appears to have adopted a ‘wait and see’ approach on the government’s performance before committing to further support. Imran notes that while he sees himself as patriotic, he is not prepared to contribute more than required to government coffers until the government reveals more details on its plans for economic development.

Nonetheless, despite the caution on spending displayed by the government thus far, the public remains hopeful that Budget 2019 will still provide some cheer. For Aida, a home baker based in Putrajaya, tax cuts on essential grocery and bakery items are on her budget wish list, as well as more incentives, grants and easier access to financing for small/micro businesses, targeted at youth in particular.

Another small business owner, Fong, who operates an independent bookshop in Petaling Jaya, points out that the government should recognise other priority areas in commerce beyond typical sectors such as property development and investment, such as bookselling, which play a vital role in community development. He also suggests the budget include incentives for booksellers, especially in line with UNESCO’s recent naming of Kuala Lumpur as the World Book Capital for 2020.

As the budget announcement looms, the government can seemingly be assured of the public’s awareness and understanding of the need to reform public finance and stimulate the economy. However, Malaysians have made it clear that above all, they will favour a wise and prudent government to steer the country on its new path.

*Full names have been withheld at the individuals’ request for privacy

Farawahidah Yusof is an Associate at PEMANDU Associates. She’s also a serial marathon runner. Find out how her job as a management consultant has pushed her to pursue Big Fast Results in the running world.

By Dato’ Dr Amin Khan and Farah Intan Burhanudin

Collaboration between emergency service providers has been increasing in the past few years, especially in the form of co-responses and shared emergency centres.

In the UK, Buckinghamshire and Milton Keynes Fire & Rescue personnel have been co-responding to emergency medical calls with South Central Ambulance Service since 2011. Similarly, the Hungerford Community Fire Station was built to serve as a new emergency tri-service hub for Royal Berkshire Fire and Rescue Service, Thames Valley Police (TVP), and as a Dynamic Activation Point for crews from South Central Ambulance Service (SCAS). Most recently in 2017, the UK Government introduced a new statutory duty on the three emergency services (police, fire and ambulance) to collaborate with one another to improve efficiency and effectiveness.

In Hong Kong, ambulance services are provided by the Hong Kong Fire Service, in collaboration with the Auxiliary Medical Service and the Hong Kong St. John Ambulance. The service provides emergency transport to 17 publicly operated Hong Kong Hospital Authority facilities which operate Accident and Emergency departments.

Closer to home, in January 2018, the University Malaya Medical Centre (UMMC) mooted the idea to conduct a pilot study by collaborating with the Fire & Rescue Department Kuala Lumpur branch to co-respond to medical emergencies within their area of jurisdiction. With our past experience working with hospitals in Malaysia for process improvements and operational efficiency, PEMANDU Associates was approached to provide advice and assist in mobilising the initiative.

UMMC currently provides emergency response services in the Klang Valley within a radius of 25km as the main responder and acts as secondary responders in the surrounding area outside of coverage. Dr Salleh, the Head of Accident and Emergency Department in UMMC, was spurred to propose the collaboration due to the urgent need to reach the emergency scene as fast as possible.

Case for Change

In the past 10 years, UMMC has seen an increase of 312% in emergency calls, from 2,651 to 8,271. On average, it can take up to 50 minutes from the moment the call is received, to the time of arrival to location, to returning to UMMC. The international standard for emergency response is 20 minutes, which many countries have set its benchmark to. UMMC’s target for their emergency response is to achieve the ‘Golden Hour’ state as much as possible.

Motorcycle Emergency Response Pilot

On 2 January 2018, UMMC in partnership with the Kuala Lumpur fire department, BOMBA KL, commenced a pilot Motorcycle Emergency Response initiative (MER.

This initiative involves the sharing of skills and resources between two public service providers aimed at improving excellence in responding to medical emergencies, where BOMBA personnel act as the first responder to assess, treat and stabilise patients while the UMMC ambulance is on its way. The ability of the motorcycle responder to arrive faster and earlier has the potential to save a life and prevent more serious injuries.

This partnership further aimed to equip BOMBA KL personnel with basic first aid and medical training with formal certification while UMMC can leverage on additional resources to respond faster to medical emergencies.

A series of sessions were held involving UMMC, BOMBA KL and PEMANDU Associates to design the process flow, finalise the response schedule, stock take the BOMBA motorcycles and discuss the medical training certification.

By leveraging on the BOMBA personnel and its motorcycles, UMMC’s total response time to medical emergencies is expected to reduce significantly with the following benefits:

• Reduction of Dispatch Time – Currently, mobilisation takes time before the ambulance can leave. Valuable time is spent between receiving emergency calls at 999, Malaysia’s emergency services phone number, notifying UMMC of the call, mobilising paramedics and available ambulances and reaching the scene, often with traffic and road construction. With motorcycles, the trained BOMBA personnel on duty can leave immediately once notified.
• Reduction of Time to the Scene – As motorcycles are smaller than ambulances, they are able to spend less time in traffic reach the scene faster.
• Faster Medical Care – The BOMBA emergency despatchers are able to arrive to the scene early and administer immediate basic medical attention.
• Reduction in Mobility, Mortality and Emotional Trauma – Early arrival may prevent initial injuries from progressing to a serious stage and in some instances reduce the chances of death and increase in patient’s confidence level while reducing stress and emotional trauma.

The Results

During the pilot, BOMBA KL personnel underwent intensive training at UMMC and responded to emergencies with the following results:

For the pilot, BOMBA personnel were dispatched together with the ambulance for familiarisation and to gain experience. Moving forward, BOMBA personnel will be dispatched out first once they have fully immersed themselves in the experience.

The game changer in this initiative is the ability of the motorcycle to arrive faster and earlier which has the potential to save lives and prevent more serious injuries.

Key Learnings

• BOMBA KL are unfamiliar with locations in Selangor. Action Point: To approach BOMBA Selangor to partner with BOMBA KL moving forward (after syndication with BOMBA HQ) and to look into the possibility of GPS installation.
• Due to the rotational nature of BOMBA’s work, attendance of BOMBA personnel on certain days was low. Action Point: UMMC will work together with BOMBA Selangor and BOMBA KL to design a sharing roster based on rotation and personnel availability.
• Some of the BOMBA motorcycles are damaged/not outfitted to carry medical supplies. Action Point: To explore the options of fixing the motorcycle units/outfit working units according to medical requirements i.e. 2 pocket boxes (Emergency Kit + Auto External Defibrillator)/purchase of new, lower cc units
• Personnel assigned are not permanent, presenting a challenge to ensuring continuity. Action Point: BOMBA HQ to issue a formal directive on the collaboration with UMMC, continuous engagement with BOMBA personnel on the benefits of participating in this programme i.e. upskilling opportunities through medical training

Moving Forward

Given the budgetary constraint faced by the government, UMMC and BOMBA KL have proven that innovation and creativity can still thrive to improve public service performance by maximising opportunities to drive efficiency and effectiveness, in the interest of public safety.

As seen internationally, collaboration between service providers to overcome limited resources and leverage on shared skills is well established especially in the emergency response sector.

The pilot had provided valuable insights and both parties are committed to moving forward with the initiative. A formal partnership will be entered between UMMC, BOMBA KL and BOMBA Selangor in 2019 for full roll-out in Klang Valley.

By Yong Yoon Kit and Jade Swan E

In 2010, the global cruise tourism industry was looking to Asia as a major growth engine, with cruise passenger arrivals growing 7% per annum, more than double the annual international tourist arrivals of 3% from 1990 to 2008. However, Malaysia was not capitalising on this opportunity.

Many global cruise itineraries bypassed Malaysia’s ports, mainly due to the lack of terminal infrastructure and quality shore excursion tourism products and services that met the requirements of the cruise operators. This, in turn, was a result of stakeholders working in silos, causing inefficiencies and wastage of time to tourists, as they are unable to provide a seamless experience to tourists. Ultimately, Malaysia was deemed unattractive as a cruise destination. In contrast, neighbouring Singapore had invested heavily in developing cruise tourism, thus successfully securing its position as a home port, where vessels choose to base their operations, in the Southeast Asian region.

In an effort to improve the sector’s prospects in Malaysia and harness the potential of the global cruise tourism industry, the development of the Straits Riviera cruise playground was proposed as part of the Tourism National Key Economic Area (NKEA) under Malaysia’s National Transformation Programme implemented from 2009 to 2017. Anchored on five main ports; Penang, Sepang, Melaka, Tanjung Pelepas and Kota Kinabalu, the project also aimed to revitalise port cities with a focus on waterfront areas and identified supporting tourism sites. To ensure the success of the project, Malaysia needed to improve its terminal infrastructure, cruise tourism experience and governance & coordination.

Enhancing the Cruise Tourism Ecosystem

The Cruise and Ferry Integrated Seaport Infrastructure Blueprint for Malaysia was commissioned by the Economic Planning Unit in 2011 in collaboration with the Ministry of Transport and the Ministry of Tourism, Arts and Culture (MOTAC), detailing the vision and policy for cruise industry development in Malaysia until 2020. This blueprint considered the infrastructure development and improvement plans for each key cruise terminal and port, making recommendations to reinforce theme-based cruise circuits as well as community-based infrastructure, perimeter attractions and connectivity.

The blueprint identified six ports as having potential to contribute significantly to the Malaysian cruise industry. These six ports were Penang, Port Klang, Kota Kinabalu, Langkawi, Malacca and Kuching. These ports had existing cruise infrastructure, a network of cruise arrivals and/or access to immediate tourism products. In 2013, Kuantan port joined the line-up of primary ports due to its growing strategic importance for international cruise lines developing their East Asia sectors. Kuantan’s emergence as a core port supported a projected traffic increase of cruises to the countries along the eastern coast of Southeast Asia, Hong Kong and Taiwan.

All these 7 ports were suitable as call ports, as identified in a white paper by the Asian Cruise Association (ACA) in 2013. Call ports need not necessarily be infrastructure heavy and only require an adequate wharf facility such as enough coaches to bring passengers to shore tour destinations, access for buses as close as possible to the wharf or jetty and a variety of sights, attractions and shopping areas within driving distance of the port. With regard to becoming home ports, Kota Kinabalu, Port Klang and Penang had the highest potential as these ports had capability for berthing alongside the wharf with adequate length and draft, road access and a secure perimeter.

With some expansions, these ports would have efficient terminals to process passengers and baggage and to provision vessels. These ports were also well-positioned with adequate air connectivity between turnaround city and source markets and were reasonably close to local airports, with sufficient access to ground transportation to handle the potentially large volume of passenger movements. Hotels were available for pre- and post-cruise overnights for guests coming from afar. The ports could also potentially capitalise on income from their terminal buildings through mixed-use developments combining cruise terminals, function and conference centres, restaurants and/or shopping complexes, thus allowing infrastructure investments to provide recurring earnings throughout the year.

In April 2011, the Ministry of Transport and MOTAC formed the Malaysia Cruise Council, a public-private stakeholders’ advisory committee, to address the lack of coordinated focus on cruise industry development. Co-chaired by the Secretaries General of both ministries, this council gave a coordinated voice to provide the direction for policies, developments and framework required by the cruise industry in Malaysia.

Sub-task forces were also formed for each of the seven primary cruise ports in Malaysia with representatives from local port authorities, agencies and private sector cruise industry players to address port specific issues and develop focused initiatives which also covered land-side attractions.

The setting up of these sub-task forces saw that operational matters were streamlined, and ports were also better positioned with international cruise terminal operators. One such success was the coordination of business owners to be located near cruise berthing areas, thus increasing tourist access and boosting spend.

To encourage foreign cruise vessels to provide services between Malaysian shores, the Cabotage Policy was gazetted in March 2012 to exempt all cruise vessels.  This Policy previously only allowed for vessels that were registered in Malaysia to load and unload passengers in the ports of Malaysia. With this exemption, international cruise ships were able to disembark and re-embark passengers at more than one Malaysian port in any of its stopover destinations.

Breaking Down Silos

While these policy and governance issues were being addressed, MOTAC and the various State Tourism Boards continued to work with cruise terminal operators to promote their surrounding attractions and work with local tour operators to better develop targeted cruise tourism products.  With the support of PEMANDU Associates (then known as PEMANDU, a delivery unit within the Prime Minister’s Office), Tourism Malaysia also worked closely with the lead agencies of each sub-task force to market their respective destinations at notable international cruise conventions such as Cruise Shipping Miami and Sea Trade Asia, and to engage regional cruise liners at these conventions.

Despite the facilitation provided, there were still many challenges as many ports were catered towards commercial activities with cruise handling still relatively new. Therefore, a Cruise Berth Allocation Workshop was conducted in 2015 to provide clarity in terms of general timelines, processes and persons responsible for berth arrangements at both dedicated passenger terminals and commercial ports.

From the workshop, different process flows were developed to address the needs of the different types of terminals, i.e. passenger terminals, cargo terminals and destinations with no port infrastructure. With the standardisation of SOPs across the board, both the authorities and the private sector cruise industry players had a clear understanding of the processes in place and were able to plan based on arrivals up to a year in advance.

The breaking down of silos between the multiple stakeholders involved marked one of the key achievements of this concerted effort to develop the cruise tourism industry. In May 2013, the inaugural Malaysia Cruise Industry Workshop was held in Penang in collaboration with the Cruise Liners International Association (CLIA) Asia.

The workshop marked a milestone as it was the first-time key decision-makers from international cruise lines and local industry players were able to directly engage with one another. It was attended by key representatives from five international cruise liners who were present to engage with representatives from the six sub-task forces to provide constructive feedback on the respective ports’ infrastructure, operations and future.

Results of these engagements were positive and remedial actions were taken by the respective sub-task forces to address the issues raised. During Cruise Shipping Asia-Pacific 2013, the largest cruise-focused convention in Asia-Pacific, which was held in Singapore in October 2013, Malaysia was singled out amongst other Asian countries by key international cruise industry representatives with high commendations on its ongoing efforts to facilitate the industry in a coordinated manner.

Smooth Sailing Ahead

The growth of international cruise tourism in Malaysia serves as a testament to the efforts put into developing the sector since 2009. As at 2017, Malaysian ports recorded 471 international cruise calls, bringing in 924,885 passengers at primary ports in the country, an increase of 78% from 523,272 in 2013. This brought the total calls made to Malaysian ports in 2017, including local cruise ships, to 599, a 68% growth from 359 cruise calls in 2013.

These were further supported by new developments which enhanced Malaysia as a cruise destination, including the deployment of Star Cruises’ Superstar Gemini vessel East Asia and Vietnam in 2014, averaging two calls a month. In June 2016, the 4,905-passenger Royal Caribbean vessel Ovation of the Seas made its maiden calls to Penang and Port Klang. The Royal Caribbean fleet is estimated to bring to shore more than 190,000 cruise passengers to Penang, Port Klang and Langkawi for the cruise season between October 2016 and May 2017.

Moving forward, one of the industry’s key players, the TUI Group, a Germany-based travel and tourism company, is designating Langkawi as a homeport in 2018. The “TUI Discovery” will be home-porting in Langkawi starting December 2018 to cater for the winter season market.

The route will cover Langkawi, Port Klang, Melaka, Singapore, Koh Samui and Laem Chabang in Thailand, Sihanoukville in Cambodia and Phi My in Vietnam. Based on the cruise schedule, there will be eight sailings with a capacity of 1,800 passengers for each sailing.

Star Cruises has also expanded its offering with multiple homeports and fly-cruise options to cater for demand from Southeast Asian tourists as well as those outside the region. This provides greater flexibility to tailor cruise routes and itineraries to suit the needs of various consumers.

To cater to the increasing demand in Langkawi, Star Cruise is expanding the berth at the Langkawi Cruise Jetty. This expansion, which is targeted for completion in early 2019, will include a wharf extension to accommodate larger cruise ships as well as a full customs, immigration and quarantine (CIQ) facility.

Additionally, now that Port Klang has been established as a Star Cruise homeport, tourists have greater ease to fly in and out of Kuala Lumpur. Furthermore, Royal Caribbean Cruises has formed a joint venture with Swettenham Port Cruise Terminal to extend its berths to accommodate larger cruise ships. The planned extension covers the lengthening of the pier from the present 400 metres to 688 metres and will cost RM151.9 million. The extension will enable the docking of two mega cruise liners simultaneously – with each carrying 4,900 passengers, an increase over the pier’s present capacity of simultaneous dockings of cruise ships carrying a maximum of 3,000 passengers.

These developments bode well for Malaysia’s cruise tourism sector and are expected to build on the regulatory and policy frameworks put in place to drive the sector’s growth, strengthening the country’s attractiveness as an international cruise destination.

The son of a pisang goreng and cakoi seller who went on to establish his own website management startup, which now manages over 35,000 domains. A former chief operating officer of a chemical company who left a 20-year corporate career upon realising he had virtually sold his soul at the expense of his family life. A couple in an old folks’ home longing to reunite with the son who abandoned them.

These are just some of the real, relatable and sometimes heart-wrenching stories of the Humans of Kuala Lumpur, a digital platform which documents the transformation and diversity of Malaysians through photo stories and videos. Inspired by the Humans of New York photo project on the inhabitants of New York City which has gained a global following, the Kuala Lumpur iteration was initiated by Mushamir Mustafa, a freelance photographer/photojournalist.

Born in Bangladesh to parents working in the foreign service, Mushamir counts Kosovo, Brazil and Namibia as places he called home when growing up, creating a void on his knowledge of his native Malaysia. “I was only around 10 or 11 years old when I first saw KLCC!” Mushamir says of his first recollection of Malaysia during a visit in 2005. The Humans of Kuala Lumpur project became his way of connecting to his home country, which he only returned to settle in as a secondary student in 2009.

In an interview with Transformation Today, Mushamir shares how he started the photo-story project in 2012 during his university days. It was driven firstly by his interest to get to know Malaysia and Malaysians as well as his penchant for striking up conversations with strangers.

It then grew into a passion for Mushamir as he continued to meet interesting people with compelling and inspirational stories.

He also realised that at the time, there was an absence of the recording and preservation of the stories of everyday Malaysians as no media locally covered such stories of people on the ground. As he immersed himself in the project, he found that beyond documenting Malaysian lives, Humans of Kuala Lumpur had the potential to become a platform for social advocacy.

He began to choose causes to advocate, such as homelessness, and sought out relevant people to tell their authentic stories on those subjects. “I realised that we had the power to educate society on particular causes while giving a voice to those who don’t have one,” says Mushamir.

Six years into his venture, Humans of Kuala Lumpur has amassed close to 700 published and unpublished stories. Published stories are shared on its website and social media platforms which have counted 20 million organic/unpaid views. Starting with just Mushamir armed with his camera, the Humans of Kuala Lumpur is now made up of 15 contributing photographers and videographers who actively seek unique Malaysians to profile. Members of the public are also invited to submit their stories to the platform. The project, which remains independently funded by Mushamir himself, reached a milestone this year with the showing of its inaugural exhibition running throughout September 2018 at Carcosa Seri Negara.

In undertaking Humans of Kuala Lumpur, Mushamir has found that the stories told on the platform resonate with audiences due to its relatability. “You could be rich or poor and be of any colour or creed, but when you read the stories, you feel like you’ve been through the same experiences or you can learn something from it,” he says. He has also observed that the platform’s power to educate the public on the issues facing their fellow Malaysians also serves to inspire audiences.

On what’s next for the venture, Mushamir hopes that Humans of Kuala Lumpur, which is also the first ‘Humans of’ instalment in Malaysia and has the largest social media following of over 100,000, will become self-sustaining.

Additionally, while the platform does currently include stories of Malaysians outside of Kuala Lumpur, he aims to increase its coverage further and promote greater inclusiveness.

While Humans of Kuala Lumpur was born simply out of one young man’s curiosity and desire to find the untold stories of a homeland he did not know much of, Mushamir has also discovered the transformative force of his work.“Stories, either those you read, hear from others or even tell yourself, can transform people. I hope that when we write and tell stories, people will see the common humanity in everyone else and be inspired to transform into a better person. We are all stories in the end, so make it a good one.”

Cheska Tatiana Ridzuan, Arlene Teo and Meor Muhammad are just some of the millennials that work at PEMANDU Associates. Watch our latest instalment of BFR Untold as they share their thoughts on being a millenial in a consulting firm.

By Yong Yoon Kit and Khairunnisa Ghazali

Business tourism is defined by the International Congress and Convention Association (ICCA) as “the provision of facilities and services to the millions of delegates who annually attend meetings, congresses, exhibitions, business events, incentive travel and corporate hospitality”.

It is an expansion of the traditional Meetings, Incentives, Conferences and Exhibitions (MICE) sector by interconnecting with activities within the tourism sector of the host country. Attracting business tourists to attend events at a host country is crucial as over 25% of international delegates are likely to bring their spouses along with approximately 65% of these delegates returning with family and friends in the future (Economic Transformation Programme [ETP] Lab Report, 2010).

Business tourism itself had a larger multiplier effect to the economy. Furthermore, it was less affected by seasonal price fluctuations and was typically used to reduce the ‘peak-trough’ differences in the year.

However, Malaysia was trailing behind Singapore, Indonesia and Thailand in the business tourism sector as events in Malaysia were mainly fuelled by small to mid-sized local and regional conference events. This presented a strong case for Malaysia to develop and be positioned as a leading business tourism destination to attract high-quality international events with large numbers of delegates. This, in turn, was targeted at translating into higher receipts quantitatively as well as generate qualitative benefits in terms of enhanced trade and know-how. It was estimated that for every RM1 spent by the government of Malaysia, there was a return-on-investment of RM111 in revenue obtained by the business tourism industry (ETP Lab Report, 2010).

The Malaysian Convention & Exhibition Bureau (MyCEB) that was set up in 2009 was specifically formed to drive the growth of the business tourism ecosystem in Malaysia. To help formalise its operations and funding from 2010 onwards, business tourism became one of the Entry Point Projects (EPP) under the Tourism National Key Economic Area (NKEA), one of the sectors identified under the National Transformation Programme. The Tourism NKEA had an ambitious goal of growing the business tourism sector to reach an 8% share of total tourist and international delegate arrivals by 2020 from a baseline of 5% in 2009.

Detailed Action Steps and Solutions Undertaken

Three main approaches were taken by the government to develop the sector:

Strengthening core operations to drive the industry

Provision of adequate funding to develop the sector

The Performance Management and Delivery Unit (PEMANDU, now a private entity known as PEMANDU Associates), then part of the Prime Minister’s Department of Malaysia, played a pivotal role in securing adequate funding from the government for MyCEB’s operations and development of the industry. The subvention funds issued by MyCEB to the private sector were allocated via a stringent mechanism and careful monitoring to ensure these funds were utilised to support achievement of the number of tourist arrivals and yield.

Implementation of a robust monitoring mechanism

This EPP’s progress was tracked via a stringent monitoring mechanism put in place by PEMANDU. Robust Key Performance Indicators (KPI) were crafted to drive achievement of the desired outcomes for this project. The indicators measured were primarily focused on the number of international delegates secured for each event and the estimated economic impact from the events hosted. The progress in achieving the KPIs were reported monthly while implementation issues were reviewed and resolved on a weekly basis.

Change of event management to maximise tourist yield

Taking a step further from event organisation, additional activities were conducted by MyCEB to tie the business events with other tourism activities. Cross-selling opportunities were taken where each event was provided pre and post-event tour options and delegates were clearly informed of the tourist activities available in order to maximise yield.

Coordination of players

Leveraging on industry experts

Getting the private sector to take ownership in developing the industry together was crucial. Thus, the Malaysia Conference Ambassador ‘Kesatria’ Programme made up of key opinion leaders and industry experts was launched in 2012. The programme’s objective was to encourage potential local hosts to bid for and stage international conventions. 47 ‘Kesatria’ ambassadors have been appointed, generating 135 leads with the potential to bring in 200,000 delegates and an estimated economic impact of RM2.1 billion.

Improving government’s facilitation of the industry

In addition to the focused attention by MyCEB, the government played a strong role in facilitating the growth of the industry. A Steering Committee comprising representatives from then-Ministry of Tourism and Culture (MOTAC), Ministry of Finance, Ministry of Home Affairs, Ministry of International Trade and Industry, MyCEB, events-related associations and other relevant private sector stakeholders met monthly to review and problem-solve implementation issues on business tourism related activities. Notable issues resolved included immigration requirements for exhibition delegates and international speakers to improve Malaysia’s attractiveness. An inter-ministerial committee with representatives from all ministries was also set up in 2016 to coordinate the involvement of the government for the events to be hosted in Malaysia and minimise overlap of resources provided.

Providing an enabling environment

Capacity-building of the industry

In order to support the development of professional standards and skills training for event organisers, the Industry Partner Programme was established under MyCEB in 2011. This programme’s objectives were to provide access to market insights, encourage industry training and certification as well as facilitate co-operative marketing and promotions efforts. This activity was instrumental in ensuring a pipeline of capable event organisers who will be able to continue spearheading the industry.

Development of shell sites

Shell sites are required to host events such as gala dinners. Iconic shell sites can differentiate Malaysia from its competitors in other countries and provide a draw for organisers to host their events here. In Malaysia, no dedicated site existed as at 2010. Under this initiative, four shell sites were formally recognised comprising Central Market, Thean Hou Temple, Forest Research Institute of Malaysia (FRIM) and Maritime Centre Putrajaya.

Impact and Results

As a result of the concerted efforts spearheaded by MyCEB and supported by key stakeholders, business tourist expenditure grew at a CAGR of 16.3% from RM386 million since the launch of project in 2011 to RM954 million in 2017. The number of events secured annually also grew from only 49 in 2011 to reach 149 in 2017 with significant return of investment growth from 14.4 times in 2011 to a high of 47.7 times in 2017 (MyCEB, 2017).

In total, this EPP supported 2,013 events between 2010-2017 and attracted more than 943,146 international delegates to Malaysia, which translated to an estimated RM11.5 billion in economic impact to Malaysia. The share total arrivals from business tourism grew from 5% in 2009 to 7% in 2017 (ICCA, 2017).

Malaysia successfully secured and hosted various prestigious international events as exemplified below (list is non-exhaustive):

Hosting these international events increased Malaysia’s global recognition as a leading business tourism destination. In addition, this positively impacted various ancillary components such as accommodation, catering, logistics, events management as well as increasing the spillover effect for leisure tourism. In 2016, Malaysia was ranked 10th for business travel contribution in the World Travel and Tourism Council (WTTC)’s ranking. WTTC also reported that an analysis from Oxford Economics had shown that business travel spending in Malaysia was significantly higher than leisure travel and the average in the ASEAN region (WTTC, 2016).

As there was no dedicated body or initiative overseeing the development of this sector previously, the growth can be attributed to the success of this EPP under the Tourism NKEA.

Lessons Learnt and Recommendations

A key lesson learnt from this initiative is that it is highly imperative to have a dedicated body to spearhead the development of this sector and coordinate the various players from both the public and private sectors. Without a dedicated body to push the business tourism agenda forward, the initiative would not have been able to grow as rapidly. In addition, adequate funding support was critical to ensure continuous development as any reduction would directly impact the amount of subvention funds that could be provided, thus reducing the number and size of events that could be secured.

The involvement of private sector associations was also important to bridge the last mile in securing international organisers as well as provide the relevant expertise to ensure the success of the events. For example, the Malaysian Association of Convention and Exhibition Organisers and Suppliers (MACEOS) contributes to the development of this industry with its network and understanding of the industry, including the operations and execution of hosting international events. MyCEB plays a role to assist the association in market intelligence, bidding package and proposals to secure Malaysia as the host destination.

Another lesson learnt was that it was crucial to secure the support of other ministries and agencies. This is important as the involvement of the relevant ministry in charge, with the attendance of senior civil servants or the minister, serves as a draw for international event organisers. One of the ways to address this during the implementation phase was to create an inter-ministry coordination committee to coordinate the planning, securing, and organising of the business events hosted in Malaysia. This proved an important step in ensuring wider reach of MyCEB from only being under the purview Ministry of Tourism & Culture, to also work with various ministries which oversee policies such as industry development, the economy, immigration and trade.

Moving forward, PEMANDU Associates continues to have the view that a strong dedicated body to drive this sector is necessary, equipped with adequate funding and emphasising on recognised ROI, to support the growth of this industry. In addition, strong coordination and cooperation between the public and the private sectors is crucial to ensure the success of this industry.

By Adlina Atikah Amran

The public sector, traditionally seen as inefficient and bureaucratic, has embraced the importance of transformation in its operations.

In recent years, this has seen governments around the world adopting the ‘lab’ methodology as a problem-solving tool to catalyse transformation. In essence, labs are a facilitated environment that encourages robust discussions between various stakeholders to develop solutions for specific issues. This setting allows for innovative ideas to take shape which can yield positive outcomes. These ideas will then lead the team to pursue a process, agenda or programme to implement the idea with accountability, clear determinants of roles, budget and milestones to achieve success.

In Malaysia, thousands of people from various backgrounds came together in a series of labs to develop a socioeconomic agenda to transform Malaysia’s economy and uplift the lives of Malaysians. Utilised to plan, initiate and execute the National Transformation Programme (NTP), the labs were recognised as a ground-breaking approach for the country’s public sector to problem-solve, identify opportunities and implement socioeconomic reform. The labs created a collaborative environment for stakeholders to identify problems, craft solutions, recommend initiatives and create a framework for transformation for its robust implementation. It helped break down silos between agencies and bring input from subject matter experts to critically argue and resolve issues.

Through the labs, initiatives were developed to enable private sector participation in the economy, ensure sustainable public finance and increase the country’s GNI per capita. The programme’s initiatives, co-created by the public and private sector, positively impacted social development in the country, creating over 2.26 million new jobs and contributing to lifting 2.9 million individuals out of poverty as at the end of 2017.

The role of labs as a progressive and proven tool for public sector innovation has been demonstrated its adoption by governments around the world.

In Denmark, the government established Mindlab in 2002 to initially carry out the task of breaking down silos between ministries and engage in service design projects, and later on manage more complex projects such as policy-making, reform and capacity-building. One of the pioneers of labs, Mindlab has inspired the set-up of many similar labs and methodologies.

In the view of Mindlab, the public sector has more indicators for success compared with the private sector: productivity, service, changes in behaviour and democracy. Therefore, Mindlab’s methodology is based on the use of ethnography and design methods such as prototyping and testing to create solutions in collaboration with citizens, businesses and government agencies. The co-creation process leads to the invention of designs which enables problems and opportunities to be reimagined.

Mindlab was initially intended to operate for a few years, but it succeeded in remaining relevant by focusing on current issues and always planning ahead of trends. Its reach across the government is unprecedented and has resulted in a major shift in how organisations think and work in Denmark.

In 2018, Mindlab was evolved and replaced by the Disruption Task Force, a unit set up by the Prime Minister of Denmark, to move Denmark’s public sector transformation to a new phase. This involved digitally reforming Denmark’s civil service, building on Mindlab’s legacy of enabling and encouraging recursive intervention to resolve issues and embedding the culture of innovation within the government.

In South Korea, Seoul’s Mayor Park Won-soon established the Seoul Innovation Bureau (SIB) in 2013 with the objective to transform Seoul into a city of innovation. The idea was brought about to bring radical changes across the government by getting ideas from citizens and working with departments to implement them. This is done with the aim to eliminate excessive bureaucracy. Thus, its key tool has been to engage citizens in getting ideas and sharing resources for city policies through its “Sharing City” initiative.

One of the most significant and popular citizen-led transformation facilitated by SIB is Seoul’s night bus. The idea was sparked by a citizen on Twitter, which was supported by many others. The SIB then used data from people’s phones in the planning of late-night bus routes, guided by the locations of 3 billion phone calls. Currently, the buses run on eight routes between midnight and 5am.

In 2018, the SIB will be launching a living lab to try out solutions for some of the most complex forces shaping the city – rising property prices, youth unemployment, healthcare, the sharing economy and technology. It plans to employ a combination of diverse methods to gather and test ideas via pilot projects, workshops and conferences.

The adoption of the lab methodology globally has shown how labs help governments deep dive into specific subject areas and get their implementation programme right at the start to ensure the success of their transformation agenda. However, whilst the labs are an innovative tool and environment to chart out a true north for any transformation agenda, it is only an initial step of a transformation.

The real work comes after a roadmap with clear deliverables, accountability and deployment of resource has been laid out, and discipline of action is practiced in executing the carefully designed programmes to achieve tangible and measurable outcomes. As demonstrated by global experiences, the implementation of public sector agendas can only succeed with the presence of clear accountability, rigorous monitoring and problem-solving in a recursive manner.

PEMANDU Associates coordinates and facilitates labs and provides assistance in monitoring implementation of public sector transformation and business turnaround. Our lab methodology, part of PEMANDU Associates’ BFR 8-Step Methodology, enables the delivery of solutions through robust analytics and discussions from a myriad of individuals involving the public and private sector, as well as subject matter experts. If you’d like to find out how a lab can be constructed and adapted to your needs, do not hesitate to contact our team of consultants at [email protected].

Our BFR Untold series sets out to uncover what really goes on behind the transformational projects delivered by PEMANDU Associates. This month, we feature Woody Ang, Senior Vice President at PEMANDU Associates, about his experience working on Oman’s Tanfeedh programme.