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MALAYSIA MARKET OPPORTUNITIES 2019 I N V E S T O R O P P O R T U N I T Y MY CURRICULUM VIT ITAE NAME : FRANKIE RIDZAL CURRENT POSITION : - INDADI UTAMA (M) SDN.BHD. - DIRECTOR ( 1999 PRESENT) - INTEGRA LOGISTIC SDN.BHD. - DIRECTOR (

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MALAYSIA MARKET OPPORTUNITIES 2019

I N V E S T O R O P P O R T U N I T Y

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2 Your Coffee Shop

MY CURRICULUM VIT ITAE

NAME : FRANKIE RIDZAL CURRENT POSITION :

  • INDADI UTAMA (M) SDN.BHD. - DIRECTOR ( 1999 – PRESENT)
  • INTEGRA LOGISTIC SDN.BHD. - DIRECTOR ( 2010 – PRESENT)

CURRENT EXTERNAL ACTIVITIES :

  • VICE PRESIDENT & FOUNDER OF INDONESIA TRADE ASSOCIATION (ITA) - MALAYSIA.
  • PROFESSIONAL CERTIFIED PHOTOGRAPHER FROM BEYOND PHOTOGRAPHY ACADEMY - MALAYSIA.
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IN INDADI UTAMA (M (M) SDN.BHD.

  • IUM

was established as Marketing & Distribution company in Malaysia since September 15,1998.

  • IUM split with Integra Logistic S/B since May

2010.

  • IUM split with Aspire Goldhill S/B since Dec

2015.

  • IUM implement KPI since 2012.
  • IUM apply ISO 9001:2008 since July 2013
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IN INDADI UTAMA (M (M) SDN.BHD.

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MALAYSIA POPULATION PROFILE

Populations : 32.6 Mil Citizen : 29.4% Non Citizen : 3.2 Mil Male : 16.8 Mil Female : 15.8 Mil

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MALAYSIA POPULATION PROFILE

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POPULATION BY STATE & ETHNICITY

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ABOUT MALAYSIA - POPULATION

✓ According to data http://www.bnp2tki.go.id, the total number of Indonesia migrant workers in Malaysia is around 1.6 million people, of which half are illegal. ✓ The average Indonesia migrant worker works in the field of Construction, Palm Oil & Rubber and Household Assistant (Maid).

Statistik Pekerja asing Terkini mengikut negara sehingga Jun 2018 NO NEGARA JUMLAH % 1 INDONESIA 728.870 41% 2 NEPAL 405.898 23% 3 BANGLADESH 221.089 12% 4 MYANMAR 127.705 7% 5 INDIA 114.455 6% 6 PAKISTAN 59.281 3% 7 FILIPINA 56.153 3% 8 VIETNAM 29.039 2% 9 CHINA 15.399 1% 10 THAILAND 12.603 1% 11 SRILANKA 5.964 0% 12 KEMBOJA 5.103 0% 13 LAOS 39 0% 1.781.598

Statistik Jumlah penduduk Terkini mengikut negeri sehingga Jun 2018 No. Negeri Bilangan penduduk Peratus 1 SELANGOR 6.518.025 19,9% 2 SABAH 3.930.467 12,0% 3 JOHOR 3.766.698 11,5% 4 SARAWAK 2.849.589 8,7% 5 PERAK 2.554.804 7,8% 6 KEDAH 2.194.511 6,7% 7 KELANTAN 1.866.972 5,7% 8 WP KUALA LUMPUR 1.834.218 5,6% 9 PULAU PINANG 1.768.710 5,4% 10 PAHANG 1.703.202 5,2% 11 TERENGGANU 1.244.648 3,8% 12 NEGERI SEMBILAN 1.146.386 3,5% 13 MELAKA 917.109 2,8% 14 PERLIS 262.031 0,8% 15 WP PUTRAJAYA 98.262 0,3% 16 WP LABUAN 98.262 0,3% 32.753.892

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WHY MALAYSIA ?

Malaysia is neighbour of Indonesia. Indonesia & Malaysia have almost the same culture. Indonesia & Malaysia have almost the same language. Majority religion both Indonesian and Malaysian are Moslem. Both Indonesian food and Malaysian food have almost the same taste. Indonesian worker can become your based customer to start in Malaysia..

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ENTRY STRATEGIES TO MALAYSIA MARKET

  • Strong Product

Differentiation.

  • HALAL

$10B

Lower Price Strategy

85%

Direct to the right Target Market

$50,000

Focus in GT and available in MT.

10%

Perseption is reality.

10%

People is the Key of success.

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11 Your Coffee Shop

`

ENTRY STRATEGIES TO MALAYSIA MARKET

“PRODUCT”

  • 1. STRONG PRODUCT DIFFERENTIATIONS.

New Product with Strong Product Differentiations will make your products different from others.

  • 2. HALAL.

Halal MUI is accepted by JAKIM in Malaysia.

  • 3. UNIQUE.

Unique product (not me too product) will attract Malaysian consumers to try.

  • 4. ADJUST TO MALAYSIAN TASTE.

Malaysian taste preferences might be different with Indonesian taste.

  • 5. FOLLOW MALAYSIA LAW.

5.a. Malaysia Labelling Regulations. 5.b. No Claim such as “Pure”, “Original”, “Special”, etc. 5.c. Import product must use Malay or English in packaging .

  • 6. TRADEMARK.

Make sure nobody trademark your brand in Malaysia market.

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ENTRY STRATEGIES TO MALAYSIA MARKET

“PRICE”

Malaysian consumers are very sensitive to “Price”.

  • 1. LOWER PRICE STRATEGIES.

Malaysian consumer is very price sensitive. Let’s the consumer try your products by giving lower price for trial.

  • 2. REGULAR PRICE WITH PREMIUM.

Meaningfull premium will attract consumer to buy and try your products. Malaysian consumer like to get something “Free” as premium.

  • 3. FAMILY PACK MUST BE CHEAPER PRICE.

Malaysian consumer buy bigger pack / family pack because it’s cheaper.

  • 4. BE AWARE OF PRICE TRAP.

It’s not easy for you to increase price in Malaysia market, especially in Modern Market. Too low price will make you difficult to increase your price.

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ENTRY STRATEGIES TO MALAYSIA MARKET

“PRICE”

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ENTRY STRATEGIES TO MALAYSIA MARKET

“PROMOTION”

There are some differences in doing promotion in Malaysia.

  • 1. FOLLOW MALAYSIAN CULTURES & HABITS.

Malaysian consumer have their own culture in shopping or purchase. Example : House wife mostly choose shopping mall with “Free Parking”. Consumer drink coffee because of the “functionality ” of coffee.

  • 2. FOLLOW TARGET MARKET

Target market make a lot of difference in promotion based on their race. You should be clear who is your “Primary Target Market” ? Are They Malay, Chinese, Indian or Indonesian ? Example : Target Market Malay can use Radio Aikim.

  • 3. DIRECT TO YOUR TARGET AUDIENCE.

Do activities/promo/sampling direct to your target market. Example : Joint promo Kapal Api & Maxis to get Indonesian Consumers. Mosque sampling, Moreh.

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ENTRY STRATEGIES TO MALAYSIA MARKET

“PROMOTION”

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ENTRY STRATEGIES TO MALAYSIA MARKET “PLACEMENT”

  • 1. DEPEND ON BUDGET.

It’s all depend on your budget. You can choose :

  • Modern Trade (MT) : Key Account & HTO (High Traffic Outlet).
  • General Trade (GT) : Wholesale & Retailers.
  • Horeca / Food Court : Hotel, Restaurant, Canteen & Food Court.
  • 2. FOLLOW TARGET MARKET

Target market play important role for your “Placement”. Example : Target market Indonesian must be available in ‘Kongsi – kongsi”, Plantation area (Felda, Felcra, etc). Kedai Runcit especially in Kedai Aceh & wholesale.

  • 3. GT MARKET IS PREFEREABLE, MT MARKET IS OUR SHOWROOM.

GT payment mostly around 14 days – 60 days while MT payment mostly around 60 days – 120 days.

  • 4. MANY DISTRIBUTOR IN MALAYSIA STRONG IN MODERN MARKET.

Most of distributor in Malaysia strong in Modern Market, It’s very seldom strong in General Trade because distribution in General Trades are much more expensive (Many outlets & small drop size).

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ENTRY STRATEGIES TO MALAYSIA MARKET “PERCEPTION”

  • 1. RESEARCH TO KNOW CONSUMER “WANTS” AND “NEEDS”.

Do Qualitative & Quantitative Research before you enter the Malaysia market to know more about the Consumer, the Market, the Competitors.

  • 2. PERSEPTION IS REALITY.

How do you want the consumers to think about your brand ? How do you positioning your brand (Brand Positioning) among your consumers ? Example : Kapal Api is positioning as “Kaw” (Strong) Coffee.

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ENTRY STRATEGIES TO MALAYSIA MARKET “PERCEPTION”

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ENTRY STRATEGIES TO MALAYSIA MARKET “PEOPLE”

PEOPLE IS THE KEY OF SUCEESS.. To enter Malaysia market or overseas market, you need talented people who are :

  • 1. Good Attitute.
  • 2. Trustable.
  • 3. Knowledgeable.
  • 4. Responsible.
  • 5. Strong in mental, not easy to surrender.
  • 6. Experience and understand about you products.
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ENTRY BARRIER & COMMON PROBLEMS

  • 1. REGULATIONS.& REGISTRATIONS.
  • Product Registrations (Jamu, Pharmaceutical, Cosmetics, Milk products, etc).
  • Labelling regulations (Especially if the product is fast moving).
  • Inggredients regulations. Etc.
  • 2. .HOW TO MAKE PRICING STRUCTURE ?
  • Import Duty & Sales Tax.
  • Handling & haulage
  • Competitor Selling Price.
  • 3. DIFFERENT TASTE STANDARD.

You should do Panel Test to know consumer preferences.

  • 4. PACKAGING

Indonesian packaging size usually smaller than Malaysian packaging size.Indonesia packaging also full

  • f wording.
  • 5. QUALITY AND HALAL CERTIFICATE.

UKM products sometimes having problem with sustainable quality and also Halal Certificate.

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ENTRY BARRIER & COMMON PROBLEMS

  • 6. PARAREL IMPORT.

Export products usually higher quality (mostly due to regulation) so selling price is also higher, while many local Indonesia quality pararel import enter Malaysia market with cheaper price..

  • 7. FAKE PRODUCTS.

Fast moving products usually have many fake products in the market. It needs special treatment to handle fake product case. Fake products are very serious problem.

  • 8. COMPETITIVE PRICE

In certain product category, Indonesian products can’t compete in price compare to local products.

  • 9. WORK PERMIT.

Many Indonesian company’s representative are facing difficulties to get work permit in Malaysia.

  • 10. HUMAN RESOURCES DIFFICULTIES

Labour Law is supporting more to employee in Malaysia. It’s not easy to find employee and can’t simply fired employee.

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A professional networking organization for Indonesia entrepreneurs in Malaysia

INTRODUCING

INDONESIA TRADE ASSOCIATION

A professional net working organization for Indonesia Entrepreneurs in Malaysia Founded

  • n August

18 2005

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THANK YOU!

CONTACT US AT: