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Erasmus Consultancy Project
    Malaysia 2015

Content                                  Preface
Preface                                  Malaysia is the third fastest growing economy in Asia and
                                         with its rapidly growing middle income class, the country is
The Malaysian market                     on its path to become a high-income nation by 2020. When
      Quick facts about Malaysia         it comes to ease of doing business, Malaysia belongs to the
      Explore the Malaysian market       top 10 percent worldwide and is right behind the already
                                         developed economies of Singapore, Hong Kong and South
The Erasmus Consultancy Project          Korea. These factors make the emerging economy of Ma-
       The project
       Our services
                                         laysia the ideal base to enter Southeast Asia.
                                                                                                             Quick facts about Malaysia
       Why academic research by ECP?     During the past months, a group of 25 carefully selected
                                         bachelor and master students has put all its effort into        Capital:			Kuala Lumpur
ECP through the eyes of the professors   gaining insights in promising sectors within the Malaysian      Population:			30,073,353
                                         economy. During this research stage, we have enjoyed the        Language:			Malay, English
Testimonials                             support of several major institutions and received trainings    Currency:			          Malaysian Ringgit (0.24 Euro)
                                         from training institutions and consultancy firms. Together      GDP (PPP):			         249.49 billion Euro
Meet the ECP team                        with the support of two professors of the Rotterdam School     					1.80 % growth
                                         of Management, these institutions have helped us develop       					6.40 % annual growth
Board of recommendation                  ourselves in order to become the strong and professional       					18024.44 Euro per capita
                                         team we aspire to be.                                           Unemployment rate:    2.7 %
Contact                                                                                                  Inflation rate (CPI): 3.2 % (Oct ‘13 - Oct ‘14)
                                         Like our predecessors have done for over 25 years, the          FDI inflow:           9.31 billion Euro
                                         team of Erasmus Consultancy Project 2015 Malaysia is
                                         ready to offer you its services. We are looking forward to          Tradingeconomics, 2014
                                         serving you Malaysia’s best and unrevealed opportunities
                                         with professional, tailor-made research on a non-profit ba-
                                         sis. We are convinced that we can help you in exploring
                                         these opportunities and exploiting the booming economy
                                         of Malaysia.

                                         Yours sincerely,

                                         Eline van den Brink
                                         Chairman Erasmus Consultancy Project Malaysia 2015

          Erasmus Consultancy Project
          Malaysia 2015
Explore the Malaysian market                                                                                        Explore the Malaysian market
The political stability in Malaysia is an important factor attracting foreign investors to the country. Moreover,   Ease of Doing Business
the governmental support and investment have large impacts on various sectors. For example, the progress            Malaysia has been ranked highly on the Doing Business Index of the World Bank for the last couple of years.
in education and the standard of living suggests strong potential for human resources development and in-           The estimation for 2015 ranked Malaysia on the 18th place, moving two places up in the ranking. Thus, Ma-
tegration. However, for Dutch companies one of the most interesting factors in the Malaysian market is the          laysia belongs to the global top 10 percent in ease of doing business. Furthermore, Malaysia will be ahead of
increasing size of the economy which affects the increase in the purchasing power of population, leading to         Taiwan (19th), Switzerland (20th), Thailand (26th), Netherlands (27th) and Japan (29th). Zooming into Asia,
greater business value. Aside from the almost 30 million Malaysians that can be reached, exporting to Ma-           Malaysia ranked number four after Singapore, Hong Kong and South Korea. However, Malaysia is ranked
laysia means exporting to a country central in the ASEAN where 615,6 million people live. Furthermore, the          one among emerging East Asian economies and second in the ASEAN, following Singapore.
Free Trade Agreement (FTA) between the EU and Malaysia creates economic benefits in all kinds of sectors.

Additionally, Malaysia is one of the best English-performers in Asia. This means almost everyone in Malaysia
                                                                                                                    Stable GDP growth
                                                                                                                    In 2013 and 2014, the GDP growth in Malaysia was 4.7 percent and forecasted at 4.9 percent. For the com-
is fluent in speaking English. For doing business with Malaysians this is ideal, because the language barrier
                                                                                                                    ing two years (2015 and 2016), the GDP growth is forecasted at 5.0 percent in both years. This shows a
will be minimal, which makes the country relatively easy accessible.
                                                                                                                    stable growth for the country, which can partly be explained by the steady political situation in the country.
                                                                                                                    In comparison to other developing countries in East Asia & Pacific, the Current Account Balance in Malay-
Geographical location                                                                                               sia is about 3.0 percentage points higher than the neighboring developing countries. This shows that the
Malaysia is one of the best strategic locations in Asia. Situated next to Singapore, one of the largest ports       sum of net exports of goods and services, net primary income, and net secondary income in Malaysia is
in the world, and close to booming China could have a positive influence on for example the transporta-             significantly higher.
tion in/to Malaysia. According to A.T. Kearney’s Global Services Location index (2014), Malaysia is ranked
3th. This means that Malaysia competes against India and China and stays ahead of countries as Thailand,
Indonesia, The Philippines and Brazil.

“Malaysia competes against nearby India and the Philippines with a politically stable, multilingual environ-
ment at reasonable rates.” (A.T. Kearney, 2014)                                                                                        Doing business, 2014                                    Worldbank, 2014

         Erasmus Consultancy Project
         Malaysia 2015
“Develop yourself, explore opportunities and exploit new markets”

Explore the Malaysian market                                                                                                                                       Vision of the Erasmus Consultancy Project 2015

Foreign Direct investment
Malaysia’s efforts to position itself as an attractive investment destination has once again been reaffirmed,
with the United Nations Conference on Trade and Development (UNCTAD) raising the country’s rank to
16th from 13th as a Top Prospective Host Economy for 2013-2015 in its World Investment Report 2013. The
country was also among the top five host economies for FDI inflows in 2014, receiving around US$10 billion
worth of FDI inflows during that year.

UNCTAD also noted that Malaysia’s manufacturing sector is undergoing a period of transformation and
restructuring. At this stage, industry players are expected to reduce their investments in low-value sectors
and increase activities in research and development, high-knowledge, high value-added and high-technology

It also noted the Malaysian Government has recognized a number of areas which need to be strengthened
to attract FDI:

“Through this strategy, Malaysia aims to build further on its existing competitive position as an outsourcing
destination for transnational companies in the electronics, automotive, machinery manufacturing, and oil
and gas industries, as well as leverage these strengths to also become a key player in the aerospace, medi-
cal, defence and photovoltaic industries,” it said.” (UNCTAD, 2014)

Interesting sectors
During our preliminary research phase many interesting sectors stood out in the Malaysian market. Among
these sectors are the water supply management, sustainable energy, luxury goods, waste management,
logistics, IT, electronics and more. Detailed information on various sectors can be found on the following      “It was my pleasure to work with the consultants of the Study Association Rotterdam (STAR) of the
website; www.ecpresearch.nl.                                                                                    Erasmus University Rotterdam on a reserach project aimed at the identification of a business partner for
								                                                                                                        Zeelandis on the S. Korean Market. In the short term of three months the students have been able to rank
                                                                                                                potential partners and present a shortlist of seven companies interested in a cooperation with Zeelandia
                                                                                                                while at the same time providing valuable information about the S. Korean market for bakery products. We
                                                                                                                are impressed by the good communication and by the speedy reporting and the quality of the research
                                                                                                                results. The study has proved to be valuable for our company.”

                                                                                                                       Jef Sneijders - Director Asia Pacific of Koninklijke Zeelandia B.V. (South Korea, 2012)

        Erasmus Consultancy Project
        Malaysia 2015
What is the Erasmus Consultancy Project?                                                                       What do we offer?
The Erasmus Consultancy Project (ECP) is a project of the Study Association of the Rotterdam School            The ECP can provide your company with unique business solutions, whether your company is considering
of Management (STAR), which is part of the Erasmus University. Every year, the ECP offers tailor-              expanding their business activities to Malaysia or is already established there. Our versatile research ser-
made research to companies and non-profit organizations that are interested in expanding their busi-           vices and market insights, tailored to your specific needs, will help you put the business opportunities in
ness to an emerging market. The ECP has 27 years of experience in performing research companies                Malaysia into perspective and will consult you in what actions need to be taken to exploit them.
in emerging markets all over the world. This 28th year, the ECP will conduct research in Malaysia, an
emerging market with a lot of opportunities for Dutch companies.                                               Our services
                                                                                                               The ECP offers various kinds of consultancy services concerning different kind of opportunities in Malaysia.
Project profile                                                                                                In cooperation with you and your company, we compose tailor-made research based on your desires and
The research will be conducted by a select group of, mainly (international) business administration, stu-      needs. We are able to serve all your wishes, from a competitor analysis to commercial activities. The pos-
dents. The group of 25 persons consists of both bachelor and master students, as well as Dutch and in-         sibilities are unlimited.
ternational students, making it well-diversified. The project is supervised by two RSM professors, and the
consultants participate in multiple trainings from established consultancy firms. The project has a timeline   These are some examples of the services we offer:
from October 2014 till October 2015 and can be divided into three stages: General Research, Tailor-made
Research and Reporting Stage. These stages will be explained in detail below.                                         Market research
                                                                                                                      Entering strategy analysis
General research                                                                                                      Value chain analysis
In October 2014, we started with conducting general research on the Malaysian economy. The aim of this                Feasibility analysis
stage is to gain insights into the market by analyzing promising sectors. The outcomes of this research will          Supplier analysis
be our base knowledge and will be used in the next stages.                                                            Competitor analysis

Tailor-made research
In this stage, starting in January, companies are offered a personalized contract. We will provide your com-

pany with a research proposal. Once this proposal has been accepted, we will start with the desk research,
                                                                                                               For more specified information about what we could
which will take place until the end of June. In July 2015, the desk research will be followed by three weeks
                                                                                                               offer your company, please contact us. Accordingly
of field research in Malaysia.
                                                                                                               we can discuss the suitable options for your com-
Reporting stage
By the end of September 2015, the research report will be finalized and the findings and recommendations
will be presented to our clients.                                                                              									Previous ECP destinations

        Erasmus Consultancy Project
        Malaysia 2015
Why you should select ECP as your partner?                                                                       ECP through the eyes of our professors
We provide you with high quality research at both the practical and the academic level. The Erasmus              “It is with great pleasure that we introduce to you the Erasmus Consultancy Project (ECP), one of RSM’s
Consultancy Project gives you access to valuable and unique information on which successful busi-                flagship educative projects in which students are provided with the opportunity to bridge the gap between
ness decisions can be made.                                                                                      theory and practice. Thriving on its longstanding success, ECP successfully advised dozens of corporations
                                                                                                                 over the last years through which it established itself as a high quality research project. ECP therefore man-
Objective view                                                                                                   aged to translate our school’s academic excellence into well received strategic advice. Furthermore, with
Since we are students, our consultants have no personal interest in any particular business or political area.   many alumni of the project working for top consultancy firms, ECP has proven to be a breeding ground for
Therefore we can guarantee independent research. This encourages an open-minded view and honest re-              talent as it attracts our brightest students. It is therefore with great confidence that we recommend the
search, including creative solutions and opportunities.                                                          ECP without any hesitation.”

Accessible price                                                                                                 Yours faithfully,
Because the ECP is a university-based project, our price is on a non-profit base. This makes it possible to
offer an excellent price-quality ratio, especially compared to for-profit consultancy firms. Furthermore, the    Thijs Geradts
price is dependent on the number of consultants required by a specific type of research.                         Assistant Professor in Strategic Management & Entrepreneurship

                                                                                                                 Marja Flory
Highly motivated students                                                                                        Assistant Professor in Organizational Change and Consultancy
Our consultants are among the most motivated students of the Erasmus University Rotterdam. The ECP is
a learning opportunity for our students and they are intrinsically motivated to deliver the best research to
your company and write a report of contributing value.

Access to information
The ECP has access to a vast number of resources, including business experts, databases and information
provided from our ECP network. We are also in contact with different organizations that help Dutch com-
panies expanding or investing in Malaysia. With these information sources and students studying at a top
10 business school in Europe, we guarantee research based on the highest quality of information available.
In addition, we will obtain unique information and local knowledge during the field research in July.

Professional support
The quality of the research is guaranteed by academic feedback and expertise provided by two professors
of the Rotterdam School of Management. The members of the teaching staff provide input of knowledge,
network and experience in the process. They will guide the team and will accompany the group during the
field research in Malaysia. The project is also supported by an advisory board and an extensive board of

        Erasmus Consultancy Project
        Malaysia 2015
“We have experienced a successful and nice collaboration with the consultants of the Erasmus Consultancy
                                                                                                                Project. The consultants who came to the first meeting came across as professional. Thereafter, they made
                                                                                                                a well-researched research proposal and processed our feedback very well. In our opinion the students of
                                                                                                                the ECP have delivered work of good quality. At the end we got interesting contact persons from the pro-
                                                                                                                ject and we really appreciate this.”

                                                                                                                       Marlena Holdermans - Executive Manager of Transport & Offshore Services BV (Chile, 2014)

“My experience with the ECP was very good. The students who conducted research for me were very in-
volved, accurate and delivered excellent work. When such a research in a region is desired, the ECP is a
very good possibility to do a first market exploration. It is possible to get a total image of the opportuni-
ties a region offers, especially trough the presence on location for a couple of weeks. Therefore it is easy
to get in contact with local contacts and doing research to potential buyers and suppliers, but also official
authorities like the customs office.”

                         Hein Willekens - Director of Kappersfood (Thailand, 2013)

                                                                                                                “Each year I got approached by different universities with similar requests. For DSM Innovation Center, it is
                                                                                                                not always easy to connect us to a specific country and therefore I was restrained towards those projects.
                                                                                                                It is hard for both, the company and the students to find a direct match during the first contact. The ECP
                                                                                                                came with a relevant proposal, which showed knowledge about our company. Therefore, Chile, bio mining
                                                                                                                and DSM were specific and a perfect fit. The ECP even visited a mine in Chile to see a part of the value
                                                                                                                chain in action. In the end the report met our expectations perfectly. ”

                                                                                                                     Ubald Kragten - Manager Business & Market Intelligence of DSM Innovation Center (Chile, 2014)

        Erasmus Consultancy Project
        Malaysia 2015
Meet the Erasmus Consultancy Project team                                         Board of recommendation
                                                                                  Spencer Dale                             Marlena Holdermans
                                                                                  Chief Economist                          Executive Manager
                                                                                  BP plc.                                  Transport & Offshore Services BV

                                                                                  Ubald Kragten                            Harry J.M. Brouwer
                                                                                  Manager Business & Market Intelligence   Chief Executive Officer
                                                                                  DSM Innovation Center                    Unilever Food Solutions

                                                                                  Marcel A. van Loo
                                                                                  Chief Executive Officer                  High Counselors
                                                                                  EY The Netherlands LLP
                                                                                                                           Ahmed Aboutaleb
                                                                                  Harald van der Heijden                   Mayor
                                                                                  Director Sales                           Rotterdam
                                                                                  GEA Refrigeration Netherlands NV
                                                                                                                           Prof. dr. Huibert A.P. Pols
                                                                                  Erik Varwijk                             Rector Magnificus
                                                                                  Managing Director                        Erasmus University Rotterdam
                                                                                                                           Prof. dr. Steef van de Velde
The Committee				                       The Consultants                           Peter Berdowski                          Dean
                                                                                  Chairman of the Board of Management      RSM Erasmus University Rotterdam
Eline van den Brink 					              Sirak Abraha			      Péter Pálmai          Royal Boskalis Westminster NV
Chairman						Julia Berhard			                              Jan-Willem Roeloffs                                            Mariëlle van Eesteren-van de Erve, LL.M
Yvonne Slagter					Felix Doorenbos		Stanislav Rybachuk                            Feike Sijbesma                           Honorary Secretary
Treasurer						Margaux Drijdijk		                           Tim Schüller          Chief Executive Officer                  Trustfonds Erasmus University Rotterdam
Bernice Hiltrop					Dániel Fehér			Nicole Schutte                                 Royal DSM NV
Commissioner of Research				           Cyrille Fleskens		   Rexin Singotani
Ken French						Theo Fromentin		Maxime Smeekes                                    Frans van Houten
Commissioner of Commercial Relations		 Zoey Hasselo			      Tim Smeets            Chief Executive Officer
Youri Volkman						                    Nicole Hoogelander		 Kay van der Vleuten   Royal Phillips NV
Commissioner of Marketing and Travel		 Toni Ortega			       Sjoerd Witjes

      Erasmus Consultancy Project
      Malaysia 2015
Contact information
Visiting address
Room T04-53, T-building (Mandeville)
Erasmus University Campus
Burgemeester Oudlaan 50
3062 PA Rotterdam

Mailing address
Study Association of the Rotterdam School of Management (STAR)
T.a.v. Erasmus Consultancy Project 2015
PO Box 1738, 3000 DR Rotterdam
Telephone:     +31(0)10 408 2428
Email: 		ecp.commercial@rsmstar.nl
Website:       www.ecpresearch.nl
Linkedin:      www.linkedin.nl/company/erasmus-consultancy-project
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