Posts in category: Insights

By Adlina Atikah Amran

“Be on standby to fly out to Nigeria at any time,” read the text sent by my boss, the Managing Director of COMMUNICATE.

We had been tasked with organising an Open Day for the Government of Nigeria following the end of the Nigeria Economic Growth and Recovery Plan labs, providing end-to-end services from content creation for the event’s communication materials to event management.

The moment I received that text message is when the weight of the project pressed on my shoulders. Up until that point, I had already successfully fielded the curveballs from the project and I always knew there was a possibility I would have to participate in some engagement on the ground. Yet I still felt that I was not prepared to fly to Africa. My tummy did a few somersaults and I started having sleepless nights up until the day of my flight.

Amidst all that panic I took a step back and thought to myself – what was I so afraid of? What was it that made me so worried? I doubted that it was the work itself, as it was something I was used to doing and I have a fantastic team to support me.

After much introspection, I admitted to myself that my biggest worry was change. I admitted that I was not ready to adapt to an unfamiliar environment and manage communications for the first foreign clients I had worked with. Ironically, I serve an organisation which champions change and transformation, but there I was, afraid of change.

Try. Do not be afraid to try.

Following my self-diagnosis, I decided that my anxiety-ridden days should not prolong, and I needed to break out of that cocoon and face my reality. I fully embodied the transformation ideology and took this as an opportunity for career and personal elevation. I put my game face on and prepared myself to make that 20-hour journey to Abuja, where the Open Day was being held.

The next few days before my departure were a challenge for the COMMUNICATE team as we worked with stakeholders in two time zones. We would be perched in front of our laptops from 9am to 6pm Malaysia time, and then 9am to 6pm Nigeria time, which is 7 hours behind our local time. Working double the work hours, our days literally never ended.

It was also a race against time as the work involved the production of physical deliverables which require special printing. Our days revolved around cycles of writing, designing, editing and reviewing, up until final approvals.

Finally, the time had come for me to board that flight. My team and I flew in 10 days prior to the event and received a warm welcome from our Nigerian counterparts, which eliminated 70% of the worries I had. Frankly, I felt foolish for worrying so much before my departure. The work was the same…but different in many ways. It required adaptation on our end and clear and concise communications from both parties to make the work, work.

The experience was an eye opener and it taught me to be exceedingly detailed and clear in my instructions and explanations, to never assume and to trust the people I work with. There were, of course, hiccups along the way, some so complex I felt like we would never find a solution. Most of the issues we encountered were expected but there were some which I was absolutely not prepared for. The smallest of them being…the inconvenience of not having access to an A3 printer and a car at 11pm on the night before the event.

Nonetheless, with the combined effort of all parties and despite the complexities we encountered, COMMUNICATE was able to help the Nigerian Government pull off its first Open Day.

So, who followed me back to my country?

I returned from my 10-day trip to Africa, my first foreign work assignment, with a wealth of experience, wisdom and courage to transform. That is what followed me back to my country.

The biggest lesson I learned was that no matter what comes your way, never be afraid and trust your capabilities because if you do not believe in yourself, who would? If you ever need help, do not be afraid to ask and learn from others who are more experienced. Mistakes are inevitable, but that should not hinder you from doing your best. You should always own up to your mistakes and make them right.

Fast forward several months later, and my experience in Nigeria has proven to be invaluable to my career and personal development, plus it makes a great conversation starter!

If you ask me, I would do it all over again.

(True story: I was running around the event venue making sure everything was going to plan when out of the blue, I heard someone speak as I zoomed past him at the main entrance. In a deep and low voice just loud enough for me to hear, he said, “I will follow you back to your country”. What he said gave me chills, but I just laughed it off and for my safety, hung around my team for the rest of the event!)

By Woody Ang & Alaudden Mostafa

The potential remains limitless

Mining and quarrying have been age-old practices in Oman dating back more than 2000 years. The Sultanate is endowed with a variety of mineral deposits such as chromite, gypsum, limestone, building materials and marble. These minerals remain an important asset to Oman’s economy, with the country still possessing approximately 97% unexploited mineral potential from its industrial and metalliferous deposits.

While the mining sector acts as a catalyst for the growth of core industries like steel and cement, its contribution to GDP is still very modest at 0.5% as of 2017. One reason for this is because the sector is led primarily by small-to-medium sized companies, dealing mostly in traditional mining industries such as building aggregates. Given the low-value, high-volume nature of these industrial minerals, there is limited potential for increasing contribution to the overall Omani economy in its current form. The past 5 years have seen production value drop by 3.4%, even though production volumes have grown by 4%. The complex nature of regulating the mining industry has further compounded this scenario. Impediments to investment and growth include the lack of an attractive investment environment and inconsistent enforcement of regulations, particularly in the collection of royalties, and tedious licensing processes. This highly capital-intensive industry also demands a consistently updated geological data at national level, which Oman does not yet possess.

Given the combination of these factors, existing investors and mining operators are limited in number and the country has seen a noticeable reduction in exploration and developmental projects. This impacts the sector’s growth and sustainability prospects and its potential contribution to GDP.

Against this backdrop, Oman recognised that significant steps are required to remove the obstacles to sector growth. To lead the sector’s transformation effort, the Public Authority for Mining adopted a collaborative, result-driven approach for Oman with the introduction of the Mining Lab via PEMANDU Associates’ Big Fast Results Lab Methodology. The lab focused on three key pillars: optimising industrial minerals value contribution, reviving significant value contribution from metalliferous minerals and improving the sector’s business environment and governance.

Investors and Private Sector lead the way

When attempting to identify the real economic potential of these industrial minerals, many conclude that a simple extract-and-sell strategy is sufficient to generate growth. The Lab provided a platform of discourse and rigorous analysis which revealed that this widely held view was untrue. Despite the availability of these natural resources, Oman struggled to deliver a competitively priced product to market. The final cost of industrial minerals such as limestone are highly dependent on the geographical distance and logistical requirements between both the source mines and the destinations seeking the commodity. It was therefore important for Oman to find ways to capitalise on its geographic location to reduce the cost-to-market.

Following careful consideration and selection, the Lab recommended the formation of a Centralised Trading Company (CTC) led by a consortium of private industry players to optimise the handling of outgoing production to better fit market demand. The CTC will look to maximise value extraction by also optimising available logistics and exhibiting strict cost discipline to derive maximum value for the country’s producers.

To complement the CTC, focus will also need to be shifted beyond upstream activities towards higher value downstream manufacturing. The Lab identified and prioritised nine private sector-led integrated downstream industrial minerals projects aimed at delivering tangible results leading up to 2023. Amongst the pathfinder projects include the extraction of basalt to produce continuous basalt fibre, the extraction of dolomite to produce magnesium metal and the extraction of potash to produce premium grade potassium.

Despite metalliferous minerals being the high value contributor amongst the existing commodities, new exploration activities have dwindled over the past decade with almost no new development projects to replace ageing mines. This is particularly evident in the copper sector where there are currently no active mines despite strong proven resources available in the country.

The Lab nevertheless enabled the identification of private sector-led upstream and downstream projects for copper and chromite, along with potential downstream development opportunities in magnesium and silicon. These projects include 14 copper project sites and three new concentrator plants to reinitiate copper production and enable feed to downstream by import substitution of concentrates.

Aside from copper, 28 private investment -led chromite project sites and one beneficiation plant were identified to increase chromite production and optimise utilisation of local chrome resources in Oman, which can be fed to downstream ferrochrome plants.

After six weeks of robust deliberations, the Lab successfully unlocked the Washihi Integrated Copper Mining Project, Oman’s first copper mining project in 14 years. The project marks a resumption of copper mining activity, which truly is an example of Big Fast Results in action.

It’s all about the right Business Environment

With investors ready to commit, it is imperative that the business environment is made as conducive as possible to realise these investments. The existing licensing process requires dealings with eight different government entities whilst there is little transparency on the tax and royalty regime – these will now need to change.

Firstly, it was decided that the licensing process will be simplified via a single entity adhering to a clearly stipulated approval timeline and implementing a pre-approval clearance mechanism. With the introduction of this new process, previously lengthy license processing timelines that could take months and sometimes years will now be a thing of the past. This will also eliminate the prior lack of standard operating procedures that necessitated investors to follow-up with the Public Authority on the status of the requested approvals regularly on their own.

Secondly, the Lab also recommended a dynamic royalty rate to replace the previous flat royalty rate of 10% across commodities; a rate which is relatively higher than in other mining countries. The proposed dynamic royalty initiative will apply commodity-based formulas where different minerals will be subjected to different valuation methods or rates. In addition to this, the Lab also proposed a royalty discount mechanism upon fulfilment of certain set criteria which include downstream production promotions, amongst others. Such incentives should ensure higher in-country value and will incentivise industry growth.

Exciting times now lie ahead for Oman’s Mining sector and there is great optimism on the newly-formed winning coalition between the public and private sector. Oman has taken bold decisions and significant steps towards improving the outlook for the sector. In total, the Labs unlocked more than 10 new exploration licenses and documented another 50 applications to be further reviewed for potential approval. This injection of urgency is a far cry from the original state of having minimal to no new exploration projects.

With committed private investments amounting to more than OMR50 million for shovel-ready projects, the Public Authority of Mining is committed and fully aware of the need to lead the way in breaking down the silo mentality that often permeates within Government. All that remains is for the key industry and Government stakeholders to maintain the discipline of action and stay the course that they have plotted together. The mining engine of Oman has gotten a much-needed restart and the country hopes it will begin to truly fulfill its untapped potential.

By Ku Kok Peng

The word ‘govern’ comes from the Latin term ‘gubernare’, which means ‘to steer’. However, the success of any government has less to do with the act or omission of steering, but more to do with ‘what’ and ‘how’ it has steered.

Our experience around the world has shown that many governments inherently have several challenges in discharging their responsibilities. Chief among them is the lack of clear focus on their strategic priorities, as most governments are unable to resist the temptation to do more in every area. Even when they get their priorities right, governments are large entities and tend to work rigidly and in silos, without detailed, implementable programmes.

Successful governments invariably exhibit both ruthless focus in areas where they can or work to be competitive, as well as having a practical execution plan that they facilitate, with recursive iterations in implementation.

Ruthless prioritisation

Ruthless prioritisation is totally necessary given that resources such as time, man-power and funds are always finite. Governments must prioritise sectors and industries that would create the most beneficial impact for its economy. This would enable the government to dedicate the right amount of resources to ensure that these prioritised areas can be facilitated for increased growth. It also acts as a signpost for investors to know what areas their investment will be given the whole of government support and facilitation.

Singapore, with no natural resources, set its mind very early on to focus on services supported by evolving manufacturing activities. Today, it is one of the world’s leading financial and logistic hubs as well as high-value R&D and industrial centres. In a similar vein, South Korea prioritised on export-led industrialisation as their main strategic plank, focusing on heavy industries and ICT activities.

Following the global financial crisis in 2009 and with an economy stuck in the middle-income trap, Malaysia too decided to embark on a more pronounced productive sector prioritisation. Blessed with natural resources to produce agriculture and fossil commodities, rapid downstream value-addition to these sectors was pursued to secure markedly higher income.

For instance, the oil and gas sector developed its erstwhile neglected mid and downstream value chain more concertedly, investing in storage and integrated petrochemical complexes that also allow it to tap higher value market segments but also paved the path into trading activities. Meanwhile, palm oil diversified very rigorously from edible oils and fats and basic oleochemicals to much richer segments of oleo derivatives, nutraceuticals and pharmaceuticals.

With a solid base in the electrical and electronics industry, steps were also taken to move up the value chain while closing the gaps in components, devices and services value chains along the way. Efforts were focused on three catalytic sub-sectors namely, electrical and electronics, chemicals, and machinery and equipment (M&E), with aerospace and medical devices identified as adjacent sub-sectors with high-growth potential as part of a 3+2 strategy. (Note: 3+2 refers to segments in E&E, chemicals and M&E plus aerospace and medical devices.)

Malaysia is fortunate that its earlier industrialisation path, driven primarily by FDIs in assembly of E&E & M&E products, created a complex economy that made later industrial prioritisation under the National Transformation Programme, including expansion into areas such as Internet of Things (IoT), aerospace, advanced materials and medical devices, an easier task.

It literally took a leaf from Ricardo Hausman’s theory of monkeys and trees[1]. The renowned economist uses the metaphor of a forest, where products are trees and firms and talent are monkeys. The closer the trees are to each other, the easier it is for monkeys to swing from tree to tree. “Economic development,” he said, “is the process of the monkeys colonising the forest.” In the Malaysian context, sub-segments such as E&E are the trees. They are heavily populated and primarily located in the northern corridor. They also produced highly skilled talents that have been able to spread into adjacent sub-sectors such as aerospace and medical devices due to common skills such as precision engineering and robotics.

Active Facilitation

Strategic direction for economic development alone is not sufficient. It needs to be complemented by active facilitation during the delivery and implementation of strategic economic plans and projects. This entails building the collaboration between the public and private sectors to improve cohesion and obtain results from these projects. Once key economic areas have been identified, the implementation of priority sector projects identified need to be closely monitored and where necessary, intervention and problem-solving needs to be carried out to resolve any implementation issues.

Having a multi-layered governance structure that operates both intra-ministry as well as inter-ministry is crucial. A multi-layered governance would improve communications between and within ministries to ensure programmes are implemented and problem-solved with the support of all relevant stakeholders. Governance will be even more effective if it has the commitment of the highest leadership, who can act as the ultimate arbitrator, especially on cross-ministry issues that hold back project implementation.

Invest KL, a special purpose unit set up in 2011 with the sole objective of attracting 100 MNCs to set up regional hubs in Greater Kuala Lumpur, is a good example of successful active facilitation. It proactively scouts and handholds the investors’ entire investment process, in collaboration with other counterparts in the government such as the Malaysian Investment Development Authority (MIDA), the Kuala Lumpur City Hall and Ministry of International Trade and Industry (MITI). As at end-2017, Invest KL has attracted 73 MNCs with investment commitment of over RM11 billion and almost 11,000 jobs created[2].

Similar successes were recorded across the prioritised sectors, from resource-based industries to services sector, thanks to the robust and effective governance structure that was put in place.

Delivery Units Deliver

First established in the UK as the Prime Minister’s Delivery Unit (PMDU) in 2001, the delivery unit model was emulated in Malaysia (PEMANDU – Performance Management and Delivery Unit) as well as Chile, Albania, Romania and Indonesia under different monikers at the national level. Conceptually, it is a discrete unit at the centre of government with a mandate to improve citizen and economic outcomes and improve oversight on government effectiveness and efficiency[3].

In engaging key stakeholders to establish priorities, delivery units provide clarity to investors, both foreign and domestic, on sectors that will receive support in terms of resources and attention. This greatly helps them in making their final investment decisions. In addition, by proactively facilitating the implementation process, the investment hits the ground much faster, which also translates into earlier return on their investment.

The delivery unit model shares many features of the Problem-Driven Iterative Adaptation (PDIA) approach which hinges on trying, learning, iterating and adapting[4]. It promotes active experiential and experimental learning with evidence-driven feedback built into regular management that allows for real-time adaptation.

In the case of Malaysia, the economy flourished and investment gushed in with the introduction of the National Transformation Programme that was launched in 2010 and overseen by PEMANDU. The growth rate of realised investments almost doubled following the establishment of the delivery unit. Additionally, the share of private investment increased to 68% in 2017 compared to 52% in 2009 prior to the formation of the delivery unit.

The investment levels achieved contributed to Malaysia’s growth with GDP consistently in the range of 4% to 6% since 2009, and the gap towards the World Bank’s high income threshold in terms of GNI narrowed from 33% in 2010 to 20% in 2017. Malaysia ranked 24th in World Bank’s Doing Business Report (2018), retaining its spot among the world’s top 25 economies on the Doing Business measures.

While the outcomes of the delivery unit model vary from country to country, and even from area to area, it undoubtedly assists governments in prioritising the ‘whats’ and further improving the effectiveness  of processes to get things done.

From the case of Malaysia, the answer to the rhetorical headline question is firmly in the affirmative.

[1] http://www.investkl.gov.my/assets/multimediaMS/file/InvestKL-Performance-Report-2017.pdf

[2] https://harvardmagazine.com/2010/03/complexity-and-wealth-of-nations

[3] http://documents.worldbank.org/curated/en/318041492513503891/Driving-performance-from-the-center-Malaysia-s-experience-with-PEMANDU

[4] https://www.oecd.org/dac/accountable-effective-institutions/Governance%20Notebook%202.3%20Andrews%20et%20al.pdf

Nestled in an idyllic suburb of Kuala Lumpur bustles an entrepreneur with an amazing zest for life, hope and personal dreams. An ex-banker by profession, Joe Zainul had a desire he knew his 9-to-5 job would never fulfil. Despite working for five years with a global banking group, he continued to feel a pull towards a thought he once had when travelling in Australia – to headline at the Sydney Opera House.

“I knew when I was all suited up for my banking job upon my return to Malaysia, my desire was distilled from my time in Australia. After spending the early part of my working life in public relations and advertising, I set off for Australia to help my sister with her food truck business in Darwin,” says Joe.

There, he took the opportunity to visit the Sydney Opera House, spurred by a childhood interest in opera. Even though he never got the chance to take music lessons, he was always drawn to operatic singing and admired Luciano Pavarotti. Being at the world-famous performing arts centre awakened a new desire in himself – to sing at the Sydney Opera House.

In the meantime, it was back to reality for him after his stint in Australia. Upon his homecoming, he settled into his life as a banker. However, in time he could no longer deny his longing to pursue a career in opera. Determined to turn his dream into a reality, he set off to the Malaysian Institute of Arts (MIA) to enquire about their classical music programmes.

He found that the art school offered a two-and-a-half-year diploma programme in music, and that he could major in classical voice and minor in classical piano. Realising that he could equip himself with the tools needed to become a singer on one of the world’s biggest stages further fanned the flames of his dream.

However, there was a catch. The MIA required prospective students to have a minimum Grade 5 qualification from ABRSM, the internationally-recognised musical education body from the UK. Yet, Joe was determined not to let his lack of music training deter him. He succeeded in winning over the MIA’s Head of Department and voice teacher with his vocal audition alone, earning a place in its diploma programme.

Thus, he left his banking career behind and spent his days playing catch-up to his new MIA classmates, who were also 10 years younger than him. As he had no foundation in music theory, he would spend hours at a time receiving personal coaching from his instructors to shore up his musical knowledge. Within one year and while pursuing his diploma from MIA, he was able to sit for and pass the Grade 5 ABRSM exam, a qualification which usually takes five years to achieve.

As he was completing his diploma programme, Joe then auditioned for the Royal Birmingham Conservatoire, one of the UK’s prestigious music and drama schools and concert venues. Starting off with a one-year post-graduate certificate, Joe continued to apply himself to his craft and finished with a Master’s in Music (Vocal Performance) on a scholarship from the Conservatoire.

With his music qualifications under his belt, he found himself frustrated upon his return to Malaysia, however. This was as the classical music scene remains undeveloped and limited to a select group of singers. This inspired him to take matters into his own hands and create his own platform to perform and put his musical training into practice. In early 2017, he opened the doors of biJÖEx, a semi-fine dining restaurant in Kuala Lumpur. In addition to running the restaurant, on weekends Joe can be found belting out popular tunes for his patrons.

With biJÖEx gaining a strong following with the lunch and weekend crowd, 18 months into this venture Joe is already expanding. In August 2018, he launched biJÖEx Café, which will also have a musical spin. He plans to invite buskers to perform at the outlet and help them earn a living, which he also sees as his way of giving back to his community.

But don’t be fooled. Joe remains dedicated to realising his dream of taking the stage at the Sydney Opera House. In fact, he already has plans to audition for as many performances as he can on the regional circuit where he believes there is greater opportunity for opera singers to gain exposure.

“When I took that trip to the Sydney Opera House and told myself I would return to sing there, I was dreaming big. I feel that if your dream does not scare you, it is not big enough. That dream frightens me to this day, but it’s something I’ve told myself I want to do, so I’m keeping my fingers crossed.”

To Joe, his transformation journey probably awaits on the mammoth stage of the Sydney Opera House. Little does he know, however, that his undying passion has already resulted not only in his personal transformation, but more profoundly, that of the aspiring musicians who have found a voice through him. Joe is an example of how a burning desire to transform can overflow to transform the lives of others if we pursue it relentlessly. And looking at his persistence thus far, it doesn’t seem like he plans to quit anytime soon.

In conjunction with the musical theme of this article, we at PEMANDU Associates pay tribute to Aretha Franklin who passed away on 16 August 2018. She was an icon for music and women empowerment who inspired us with her talent and passion.

Reminding us that we could all use a little respect, we leave you with a quote from the Queen of Soul:  “I was asked what recording of mine I’d put in a time capsule, and it was ‘Respect.’ Because people want respect — even small children, even babies. As people, we deserve respect from one another.”

By Dr. Sarinder Kumari & Dhanendra Sivarajah

Agriculture quality standards have become imperative not only to ensure safe and quality products but also for farmers to access international markets.

A highlighted by the World Trade Organisation (WTO) and academicians, tariff barriers have been replaced by sustainable requirements for market access as a means of protecting domestic  producers. Understanding the requirements of the importing country and ensuring these elements are incorporated and harmonised with the standards of the importing countries is key as defined by the WTO Technical Barriers to Trade, an agreement which strongly encourages members to base their measures on international standards as a means to facilitate trade. Hence, it is essential for Malaysian farmers to practice Good Agriculture Practices that are aligned with international standards to access these markets.

These standards were introduced in accordance with Malaysian Standards that define processes in resource management for good and sustainable agriculture production which improve farm productivity and ensure produce is safe and of quality, with the welfare and safety of workers taken into account.

Spearheading a new approach to standards adoption

However, the introduction of the local standards brought on a different set of challenges.  Among those highlighted by the farmers were limited market access, insufficient capacity building programmes to assist in compliance to standards, as well as questions from the importing countries on the standards applied.  The value of certification was also questioned by farmers who saw the exercise as adding more work to an already laborious industry. Consequently, farmers were selling to middle-men, often at a minimal price, who were able to stretch their own profit margins through with their ability to penetrate the hypermarkets and as well as the export market.

To overcome these challenges, a mini-lab facilitated by PEMANDU Associates (during its time as a Delivery Unit in the Prime Minister’s Department) in collaboration with the Ministry of Agriculture was held, involving farmers associations and other relevant agencies.  It was decided in the mini-lab that a rebranding of all three schemes under a single brand name was to be introduced to create a brand name that is easily recognised in the foreign market – this standard would also be harmonised with all other good agricultural practices used by other countries for the export market.

Thus, a series of focus group meetings chaired by the Undersecretary of the MOA as well sessions with the then-Minister of Agriculture, led to the birth of the Malaysian Good Agricultural Practices (myGAP) in 28 August 2013. Since then, myGAP has become known internationally and is synonymous with other standards such as GlobalGAP, JGAP (Japanese certification) and China GAP (China certification), to name a few. 

Further to this, the MOA and its respective agencies also stepped up efforts in educating the public on the importance of certification to ensure sustainability, quality and lastly to also allow for market access, with the respective departments aggressively involved in promoting myGAP in their bilateral talks for market access.  All main initiatives and sub-initiatives had individuals accountable for its implementation who were able to provide regular and comprehensive progress reporting.

Breathing new life into Malaysian produce

After the launch of the myGAP Certification and its brand promise of “Producing More, Improving Lives”, the MOA continued to work with various stakeholders to not only educate the farmers about the need and benefits of myGAP, but also encourage them to look beyond just farming but towards creating a safe and sustainable community.  In an effort to further enhance the standards usage among farmers, MOA also allocated funds to assist farmers in upgrading their storage, sewage, collection, and other facilities that are requirements under the myGAP certification programme. Besides funding assistance, farmers also benefited from capacity-building programmes, awareness and promotion programmes.

The capacity-building programmes involved educating the farmers on the requirements of myGAP and its importance, which was then followed by assistance in completing the checklist in preparation for compliance and audit. This effort encouraged strong participation from farmers who were keen to understand the certification process.

Mr. M. Kaliyannan, who puts his customers at the top of his priority, has adopted myGAP in his 39-hectare watermelon farm to ensure higher standards of quality and safety for his crops. With myGAP, he has been able to widen his market for Grade A watermelons to foreign markets such as Dubai and Hong Kong. His revenue has increased more than 20% when compared to before myGAP.

“Under myGAP, there are many practical steps to follow including staff training, usage of pesticides, safety, and best practices for planters. I’ve seen many positive results since the adoption of myGAP.

“My ambition is to be the king of watermelon in Malaysia by exporting my entire Grade A products to the rest of the world. The myGAP programme is a good initiative, especially to assist us in the agriculture sector shared. I would definitely continue to encourage other farmers to follow my steps so that they can be successful as well,” he says.

Beyond addressing the supply side, the MOA also worked with hypermarkets in running awareness campaigns and promoting certified produce to encourage consumers to demand for produce that are certified. This has resulted in benefits for farmers by leveraging hypermarkets as a means of directly accessing the customer and avoiding the middle-man, and MOA’s efforts in increasing the number of certified farms in Malaysia.

Giving farmers a leg up into foreign markets

In 2017, with the introduction of myGAP, the cumulative number of farms certified with myGAP increased by 451% from 1,378 farms in 2011 to 6,226 farms in 2017, as more countries require the certification for the export of fruits and vegetables. Brunei become the most recent adopter of the certification, starting in January 2018. There was also an increase in the number of livestock farms were certified by the Department of Veterinary Services, as China, a major market for edible birds’ nest, started making it mandatory for bird’s nest imports from swiftlet farms to be myGAP certified, further proving that adopting international standards does help secure local exporters’ market penetration.

To further strengthen the transition to a globally accepted standard, the Ministry included routinely monitored KPIs that trigger problem-solving sessions which allow for effective intervention. The result of the effort is felt by the operators, as demonstrated by the following feedback received in a survey commissioned by Standards Malaysia back in 2014:

Farmers acknowledged that myGAP propagates prudent and economical administration of chemical fertilisers, which in turn helps check/control pest infestation, contributing to increased yield and reducing cost.

The feedback obtained from the farming community shows that while the process of converting from a local to a global standard does come with a learning curve and temporary pain points, the benefit of securing market access and improving profits is well worth the investment. The transformation to the global standard was made possible by bringing the public and the private sector together to problem-solve anticipated issues for the conversion, and relentlessly monitoring the work toward a common purpose.

“Before I adopted myGAP, I had to spend about RM16,000 on chemical fertilizers, but after the adoption, I was able to save money because I only spent RM2.000 by using the Sri Product via the Natural Farming concept. Now, I am using 70% of Sri Products and 30% chemical fertilisers. With myGAP, I am able to sell my rice for RM6.00/kg compared to before when it was only RM2.00. I have also sold rice seeds to Sendi Enterprise for RM1,350/tonne and sold rice at RM1,200/tonne to Bernas.” – Abdul Razak Chik, better known as ‘Pak Lang Sri’, who owns a paddy farm in Sekinchan, Selangor.

Our BFR Untold series sets out to uncover what really goes on behind the transformational projects delivered by PEMANDU Associates. This month, we chat to Johanna Ho, Vice President at PEMANDU Associates, about her experience working on Tanzania’s BIG RESULTS Now! programme.

https://www.youtube.com/watch?v=qsjAlQCBg4c

By Woody Ang & Khoo Woon Hann

Gas is a finite asset

The gas industry is a substantial component of Oman’s economy, contributing significantly to export earnings and serving as an important enabler to local industries. In 2017, Oman produced 41 billion cubic feet of gas, of which 32% was exported by Oman LNG while the remaining 68% was consumed locally, with consumption growing at an average of 2.3% per annum for the past eight years. Its proven total gas reserves stood at 25 trillion cubic feet as of end-2017.

As a GCC country rich in natural resources, Oman’s gas reserves are however a finite asset. Its current supplies remain healthy in the short-to-medium-term, but with pressure now to diversify the economy and reduce its over-reliance on oil and gas, its gas assets will need be utilised to directly spur other economic sectors. Gas requirements for economic generation, particularly in the manufacturing sector, will need a long-term supply commitment, and the country will need to balance this with its existing industrial and residential commitments, the latter of which continues to grow as the nation’s population increases.

Against this backdrop, and as part of a wider programme of economic diversification, the Omani Government saw a need to carefully manage supply and demand in the gas industry to mitigate any probability of a gas deficit situation in the medium-term. The supply-demand dynamics were further impacted by the fact that 97% of its power was generated from gas-fired plants. From an energy security perspective, Oman needed to consider diversifying its sources and avoid over-reliance on gas. Preserving this precious finite resource and allocating it to industries that generate the highest economic returns then became a priority for long-term sustainable development.

Complementing the effort to manage its gas resource was the need for effective governance that provided a conducive planning and regulatory environment for Oman’s industry players. The Ministry of Oil and Gas serves as an able custodian for the Oil & Gas industry, while the Electricity sector is managed by separate Authorities who do their best within their respective mandates. Moving forward, consolidation of the strategy and planning of these two closely related sectors would allow for harmonised development, taking into consideration a rapidly changing economic landscape.

Delivering tangible transformative outcomes

Through the PEMANDU Associates’ BFR Methodology Labs, Oman devised and adopted a 3-pronged strategy specifically for the Gas sector: (i) Ensuring long-term gas supply security, (ii) Optimising growth-driven gas demand and (iii) improving infrastructure capacity and efficiency.

Firstly, thorough investigation was conducted on all existing gas producing assets and development plans for greenfield projects. Specific supply-based projects were identified with the potential to increase Oman’s gas production substantially by 2042, and as a result, extend Oman’s available gas supplies. These projects include immediately implementable initiatives such as flare gas reduction, replacement of gas usage in existing operations to generate thermal energy, increasing asset productivity through modern technology; and longer-term greenfield and brownfield gas development projects.

Secondly, to complement the effort to increase gas production, the Lab deliberated on ways to optimise demand. After careful selection, a set of robust and stringent gas allocation criteria was developed and proposed. The ultimate objective was for Oman to allocate gas to industries that generate the most economic returns. Future applications for gas usage will be assessed and then prioritised using these new criteria. This represents a paradigm shift to a more objective, measurable and impactful allocation practice. In addition, a standardised gas application process was designed and communicated to all impacted stakeholders from both the public and private sector.

The third strategy for the Gas sector is to improve gas infrastructure capacity and efficiency. The Lab assessed high industrial growth areas against the availability of pipelines to meet future demand. This culminated in new pipeline projects that will transmit extra gas transmission capacity to critical regions like Sohar, Duqm, Sur and Salalah by 2019.

One of the key components in Oman’s Energy sector is the Electricity sub-sector. A comprehensive transformation of gas consumption would not be complete without assessing this sub-sector, where gas contributes 97% to all power generation capacity. There is thus a critical need for energy diversification for electricity generation to include renewable energy sources.

Two major outcomes were achieved in the Lab. First, 17 non-gas power generation projects were identified and prioritized for implementation. These projects will cumulatively provide up to 11% non-gas source generation by 2023. This is a substantial achievement considering Oman is still a developing nation with overall projected electricity demand expected to increase further in the next five years. The projects encompass utility-scale solar PV plants, wind farms and waste-to-energy plants. The Ibri 500MW solar power plant is an example of Oman’s government drive to diversify its energy source mix. This project is expected to be completed by 2021 and will be the first large scale solar project in the Sultanate.

Lastly, the Lab recommended that harmonised planning and development of Oman’s Energy Policy be institutionalised. Currently there is no one single entity, nor there exists a process that will enable the holistic development of an Energy Policy that considers interest of all sectors. The solution adopted will involve expanding the jurisdiction of a single existing entity to include policy-making for both the electricity and gas sub-sectors holistically.

Momentum for the future

The key lessons revealed through Oman’s Energy Lab is the need for a coordinated and structured approach for planning in this critical sector. Since the sub-sectors are all intricately linked, changes in policy and executive decisions must be done taking into consideration ramifications to all stakeholders. The Lab discovered that one of the biggest hindrances that industry players faced was due to the lack of central coordination of policy decisions and follow-up actions. If possible, policy-making should be centralised to encourage greater efficiency.

In addition, for a country facing diminishing reserves of a finite resource, demand planning such as consumption optimisation and subsidy rationalisation should take precedence. The political will to shift from a way of potentially wasteful cheap resource consumption to a more conservative approach of utilisation needs to be present. The BFR Methodology Labs have certainly provided the platform for a collective realisation that continued reliance on gas as Oman’s sole energy source will not be sustainable for the long-term, and has generated the momentum for the country to aggressively diversify into renewable energy. The future of energy diversification and security looks to be on the right track.

By Leon Jala

In an industry filled with polarising buzzwords, 2018 welcomed a new contender – the ‘cagency’.

The slightly cringe-worthy term describes a new wave of consultancies venturing into the creative space. In an increasingly data-driven landscape, this seems like a natural trajectory for consultancies and agencies. But is it, really?

A glimpse of the industry’s future

A look at Cannes Lion 2018, the festival and awards event for the creative and marketing communications industry, already points to the increasing presence of consultancies actively desiring a share of the proverbial agency pie. Accenture Interactive set the tone in a big way bagging a Gold Lion for its interactive campaign, JFK Unsilenced.

As all good things should be, the idea was simple: give the world the speech that John F. Kennedy was supposed to give before he was assassinated. Illustrate the possible social impact. Its success at Cannes has sent a strong message on the boundless possibilities when creativity and data enabled by technology find synergy.

A creative and a consultant walk into a bar…

If it was really that simple, everyone would be playing the same game. But the reality is that creative and management consulting are often two different creatures – while the currency of the creative is emotion, consulting banks on data. Finding real synergy is not easy. But easy never made for much fun anyway.

And that’s exactly the challenge that PEMANDU Associates has gone head-first into, by setting up its communications subsidiary, COMMUNICATE. Helmed by its Managing Director, Alex Iskandar Liew, the company’s approach to this conundrum has been to build a team of creative-consultant hybrids passionate about storytelling and communicating the right messages to the right target audience through focused platforms.

But the main point here isn’t about hybrids. For Alex, it’s about “breaking down silos or the perception that communication is a last mile of a strategy or an implementation programme.” When we stop putting each other in the traditional boxes where planners only do strategy, suits only manage accounts and creatives only tell everyone else they’re wrong (I know, I was a copywriter), individuals within a creative agency will begin developing a collective sense of ownership for the work.

Thus, just as the ad people of yesteryear realised the magic in bringing an art director and writer into the same room, so too should we be looking to get more people into the bigger rooms of today. And that includes our clients.

Collaboration over order-taking

More creative agencies can benefit from working closer with their clients by involving them more heavily in the process. Not just by taking a brief. Much like their parent company, COMMUNICATE advocates ‘labs’ in their methodology. A lab is an extended workshop involving the client’s stakeholders for a given area of focus, facilitated by the consultancy.

For COMMUNICATE, being able to accurately identify and verify the case for change and opportunities together sets a clear path for the creative work to begin. More importantly, it establishes a clear narrative and illustrates an outcome that the work should deliver.

Many creative agencies pride themselves as branding experts, but ultimately, the brands will know their challenges more intimately. Brands are not just driven by perception or awareness; their performance is also anchored on profit and loss. And brand diagnostics are multi-layered with solutions influenced by all facets of the corporation.

You wouldn’t trust a doctor’s diagnosis without first revealing your own symptoms. It is similar with the clients – they have a need; they need to know that we are listening; they must be assured that we understand before they can take our proposals seriously.

Over-fascination with creative. Under-fascination with outcomes.

More importantly, we need to facilitate the essence of a brief against the desired outcome so that the work actually works. After all, what good is an award-wining creative campaign if it’s homogenous?  What good is a warm and fuzzy piece of piece of advertising, if the brand logo is interchangeable? Brands are unique. Therefore, the messaging too must be unique.

On the topic of awards, it’s great to see the annual Kancil Awards exploring a festival format. This is a step in the right direction to being more inclusive to those outside of the ad world. Agencies were always meant to be partners. Not vendors.

Ultimately, the cagency model is still a model – it isn’t the answer in and of itself. To truly transform the industry landscape, we must begin engaging in ‘business unusual’ – to embrace the ever-transforming process on how a good piece of creative work is delivered. Perhaps, then, as teams find themselves on award show stages amidst roaring applause, it will truly be a collective award for both clients and agencies, regardless of budget.

By Reinier Starink and Zehan Teoh

“The ERGP had determined US$195.98 billion in private investments required to achieve its target of unlocking sustained inclusive diversified growth for the maximum welfare of Nigerians”

The second largest economy in Africa after South Africa, Nigeria is a uniquely diverse country comprising 371 ethnic groups with over 520 spoken languages. Its economy, however, was dependent on revenues from oil exports and thus had been adversely impacted by the decline in global oil prices in 2014 to 2016.

This resulted in the country experiencing a recession in 2016, leading the government to formulate the Economic Recovery and Growth Programme (ERGP) 2017-2020 to transform the economy. The ERGP requires US$245.13 billion to implement and had determined US$195.98 billion in private investments required to achieve its target of unlocking sustained inclusive diversified growth for the maximum welfare of Nigerians.

With this agenda in hand, the Nigeria’s Ministry of Budget and National Planning, tasked with overseeing the ERGP, appointed PEMANDU Associates to synthesise its plan into realistic implementable initiatives, looking to our experience in deploying our proprietary BFR methodology in effecting economic transformation in countries such as Malaysia, Oman, South Africa and India.

Specifically, they sought help in mobilising private sector investments in six sectors identified as the economy’s most productive. The sectors were then clustered into three workstreams based on their relevance to each other: Manufacturing & Minerals Processing, Agriculture & Transport and Power & Gas.

“The initial interactions with the CEO and leadership of PEMANDU Associates was reassuring and gave a lot for the team to anticipate as to how the Labs would be run, and how this would constitute a key developmental experience for the country, the team members and the Lab participants. The CEO’s inspirational approach was therefore commendable. 

The Labs provide extensive involvement of most stakeholders to co-create solutions rather than have the solutions developed by a small team of consultants or just involving the stakeholders for consultation only over a few hours.

Towards the end of the project, the PEMANDU Associates project team and PEMANDU Communications, that assisted with preparing for the Open Day, appeared very outcome-oriented and this was positive. The communications team indeed appeared very positive in their approach and this was commendable.”

– Folarin Alayande, Co-ordinator, ERGP Implementation Unit/Senior Special Assistant to the President (SSAP, Economic Recovery and Growth Plan (ERGP)

Overcoming challenges, bridging gaps

Challenges in crafting a three-feet plan for these clusters for Nigeria, as with most countries in the world, were multi-faceted, stemming from the polarity in expectations between the public and private sectors. Governments typically have a record of amending policies and plans, while the private sector are generally motivated by the bottom line, hence may be cautious in participating in grand government plans.

This was a specific challenge tasked by the Nigerian government to PEMANDU Associates to decrypt. Drawing from PEMANDU’s previous experiences in mobilising private investment, such as the US$444 billion in investments facilitated and identified under Malaysia’s Economic Transformation Programme and the 775 projects valued at US$96 billion identified in the Urban Development Lab in Andhra Pradesh, we found that most economies in the world are dependent on the public sector to spur investments and expenditure.

Our role in Nigeria was to develop and enable a programme that would ensure the government continuously works with the private sector to own, initiate and implement transformational projects that would yield positive multiplier outcomes for the economy.

Thus, for much of the first half of 2018, the PEMANDU Associates project team was stationed in Abuja to conduct the necessary groundwork and undertake Wave 1 of the ERGP Focus Labs.

Under this project, PEMANDU Associates helped the Nigerian government identify US$22.5 billion in private investments which could be unlocked from the implementation of 164 projects, paving the way for the creation of 513,981 jobs.

This was done by encouraging the private sector to take a proactive participation in the ERGP Focus Labs.  This proved to be a unique value proposition to the industry captains and with the support of the government who sent key decision-makers to the labs, it generated positive interest amongst the private sectors.

A total of 500 participants from both the public and private sectors, comprising the relevant stakeholders from the three workstreams, were brought together under one roof for six weeks.

Given the existing polarities, the exercise was expectedly met with its fair share of scepticism, with some private sector stakeholders turning up with their products with sales in mind, while some expected to garner public investments. Some, were taken by surprise at the level of involvement required of them, having been used to government-led economic initiatives. So, the challenge was to shift expectations and mindsets from ‘What is in it for me’ to ‘How can I contribute in terms of planning for my sector’.

Nonetheless, the presence of public sector decision-makers in the Labs, and the participants’ determination to achieve tangible results allowed them to put aside their cynicism and work towards to common goal. The private sector became the engine of the labs and the shift in conversation was a remarkable breakthrough.

“We would like to especially commend the management and project team of PEMANDU Associates for organising and facilitating the smooth conduct of the ERGP Focus Labs of the Federal Government of Nigeria, particularly the Agriculture/Transportation Projects.

Our company, Trucks Transit Parks Ltd, benefitted immensely from the programme in the following ways:

– highlighting to the government the social necessity that the project seeks to address;

– bringing to the notice of the government challenges faced by our company in progressing the project;

– assisting us to more properly package our project for fast-tracking by the government;

– enabling us identify certain inherent challenges to attracting investments into the project; and

– putting us in direct liaison with key regulators.

This would not have been possible if not for the professional approach of PEMANDU Associates’ hard-working team.”

– Jama Onwubuariri, Director, Trucks Transit Parks Limited, ERGP Focus Lab member

Getting to work

Once participants were on board, the next challenge was identifying and prioritising initiatives. Projects were categorised to their level of readiness and conversations were created to discuss their business model; from how to grow, plan and finance, with each project put under scrutiny.

These buckets of conversation separated projects ready for implementation and acceleration from projects under incubation. Creating relevant conversations which engaged participants successfully retained participants throughout the whole six weeks of the Labs, producing frank, transparent conversations.

The outcome of the Labs and its in-depth, implementable programmes were presented during an Open Day in Abuja in May 2018.

The Open Day, which was attended by the public and private stakeholders as well as the media, served to communicate the ERGP Focus Labs initiatives to the public.

Together with the Labs, the exercise served to inject greater transparency into the government’s initiatives, representing a good start for the Nigerian government to win over the hearts and minds of the country’s people in its bid to transform the economy.

In applying our 8-step Big Fast Results (BFR) Methodology, the approach in its start will always be met with a degree of cynicism. As experienced in previous projects, however, these sceptics are very quickly won over when they witness how the methodology works, our flexibility to adapt to client needs, all the while staying focused on meeting a clear set of deliverables.

Key to success in any of our BFR consulting projects has always been the team’s commitment to understand the country’s dynamics, the unique relationship between the private and public sectors, its tipping point, diversity and issues. The BFR Methodology has always allowed PEMANDU Associates to take a collaborative approach with participants to steer the conversation towards a true outcome guided by an objective. Leadership commitment and participation is always a mainstay in allowing incredible sharing of knowledge resulting in implementable outcomes.

Nigeria has today completed Steps 2 (Lab) and 3 (Open Day) of 8 and now has a clear plan for the first phase of its ERGP. The Government will now need to set these action plans into a detailed programme by way of a Roadmap for implementation. Coupled with the discipline of action and rigorous monitoring, the Nigerian Government has set itself on the path of transformation. And while the public and private sectors have painstakingly converged to realise this programme of change, the ultimate stakeholders who stand to benefit from this work are the people of Nigeria.

Reinier Starink and Teoh Ze Han share their experiences from the lab with Nigeria’s Ministry of Budget and National Planning to unlock US$ 22.5 billion under their Economic Recovery & Growth Plan.

Pt. 1 // Why Did The Nigerian Government Need A Rescue Plan?

Pt. 2 // Getting Nigerians To Believe Their Government

Pt. 3 // The Lab Process Reimagined