Sugar Tax - Malaysia

Over half of Malaysians surveyed in a poll say they would consume less soft drinks once the sugar tax takes effect tomorrow. 59 per cent out of the 1,022 respondents said they would cut back on soft drinks while 13 per cent said they would stop drinking sugary beverages altogether.

Another 25 per cent said they would continue to drink the same amount while 3 per cent said they would, in fact, consume more soft drinks.

On soda drinking habits, 6 per cent said they currently consume soft drinks several times a day, 8 per cent said they consume soft drinks once a day while 20 per cent drink soda several times per week.

Only 3 per cent said they don’t consume soft drinks.

The survey also highlighted that 64 per cent of participants were aware of the government’s announcement last year to introduce an excise tax of 40 sen per litre on sweetened beverages, which was initially scheduled to take effect on April 1, 2019. This was later postponed to July 1, 2019.

Finance Minister Lim Guan Eng announced in his Budget 2019 speech last year that the sugar tax would be on beverages that contained sugar exceeding five grams per 100 millilitres, and juices that contained more than 12 grams per 100 millilitres.

In a January 13 report this year, Deputy Health Minister Dr Lee Boon Chye said the ministry hoped the tax on soft drinks would change people’s consumption of sweet beverages.

“High sugar content contributes to the problem of obesity, diabetes and other chronic non-communicable diseases which is a big problem in Malaysia. Malaysian tops the obesity scale in South-east Asia. We are the gold medallist. We also rank high for diabetes and hypertension. The ministry hopes the people will understand the rationale of introducing this measure (soda tax),” Dr Lee had said.

AIA Singapore Fined Data Breached

AIA Singapore has received a penalty of SG$10,000 by the Personal Data Protection Commission (PDPC) for failure to take “reasonable” security arrangements in its letter generation process. This comes after 245 letters meant for various customers that the insurance company generated on 22 and 27 December 2017 were sent to two customers. 

These letters comprised four integrated shield plan premium notice reminder letters, 237 integrated shield plan premium notice letters, three change of payor letters and one modified terms of coverage letter. These letters were sent to the two customers between 28 December 2017 and 2 January 2018, the first customer receiving 179 letters while the latter received 66.

AIA Singapore was informed of this error on 30 December 2017 from a social media post by the first customer and took remedial actions to mitigate the damage caused and to prevent the recurrence of similar incidents. According to a case document seen by Marketing, the insurance company had implemented a software fix to resolve the error in the system, validated and matched the despatch addresses printed on the automatically generated letters, and also retrieved 243 unopened letters which was then printed and re-sent to the customers concerned.

In a statement to Marketing, an AIA spokesperson said it takes full responsibility for the technical error in 2017 and admits to taking immediate steps to retrieve all the wrongly addressed letters, with the exception of one letter which was determined to have been lost in transit. Taking this incident as a learning, the spokesperson added that the company has strengthened its internal processes to avoid such incidents from happening again.

“At AIA Singapore, we are serious about safeguarding confidential information entrusted to us, and will continually strive to better serve our customers,” she said.

According to PDPC, AIA Singapore had potentially compromised policyholders’ personal data due to wrong mailing and thus is in breach of section 24 of Personal Data Protection Act 2012 (PDPA). The law requires an organisation to protect personal data in its possession or under its control by taking reasonable security steps or arrangements to prevent unauthorised access, collection, use, disclosure, copying, modification, disposal or similar risks. After an investigation, PDPC concluded that AIA Singapore did not conduct sufficient testing before rolling out the fix for the initial system error and did not institute sufficient controls or checks to ensure the accuracy of the letters that the system automatically generated.

In March this year - approximately 200 current agents, former agents and their family members’ personal information on AIA Singapore’s web portals were publicly accessible. The insurance company was notified of the system issue on 27 February and had page taken down. An AIA spokesperson told Marketing then that it was an isolated incident and that the company is committed to taking actions to ensure that it does not happen again.

FWD Buying MetLife Hong Kong

FWD Group, a Hong Kong-based diversified conglomerate, is reportedly is in advanced negotiations to acquire the MetLife insurance business in Hong Kong. Sources familiar with the development claimed the companies could reach an agreement in the next few weeks.

The proposed transaction, if materialised, is expected to value MetLife Hong Kong at less than $400m. The deal will strengthen FWD’s footprint in the region, the sources told the publication. At this value, MetLife would offload the asset for less than its $400m embedded value, a measure of the value of its insurance contracts.

Talks are currently under progress; however, there is no certainty that the deal could be announced. It could still fall apart, the people told the publication.

FWD has been gradually expanding its presence in Asia Pacific region. In October last year, the company agreed to acquire control of Commonwealth Bank of Australia’s life insurance arm in Indonesia.

In 2017, FWD snapped up American International Group’s life insurance operations in Japan. Earlier, it also acquired insurance companies in Singapore and Vietnam.

MetLife’s business in Asia witnessed adjusted earnings increase of 9% during the first quarter backed by growth in South Korean and Chinese markets. MetLife also has presence in India, Malaysia, Nepal, Australia, Bangladesh and Vietnam.

IMF - Malaysia Need To Increase Productivity

Malaysia needs to increase its productivity if it is to achieve its goal to become a high-income nation in the next decade, said International Monetary Fund (IMF) managing director Christine Lagarde.  

She said despite the economic success over the past 20 years, Malaysia’s productivity did not grow as much as the country had hoped.

“Malaysia can meet this challenge with creativity and enhance its recipe for success. To get there, you will need the right mix of ingredients to create an inclusive and sustainable long-term growth,” she said during a special engagement session entitled ‘Ingredients for Good Governance and Economic Prosperity at Universiti Malaya, today.

She outlined three key ingredients that Malaysia should pay attention to in order to improve productivity, namely Improving Governance and Tackling Corruption; Investing in High-Quality Education and Boosting Labour Force Participation of Women.

Lauding the efforts that had been taken by the Malaysian government in combating corruption to date, Lagarde said when corruption became institutionalized, it poisoned the ability of a nation to attract investors and create jobs.

“Corruption is the root cause of so much of the injustice people feel in their daily lives. That is why the IMF is focusing on this issue and will be including improving governance in more of our work with members going forward. I know it is a focus for the Malaysian government as laid out in their election manifesto.

“This is excellent progress. As always, the key will be following through by enshrining these changes in law and implementing each step of the reform agenda,” she said, adding that the IMF was eager to work with Malaysia to fight corruption.

On the second ingredient. she said while the resources invested in education have dramatically improved over the past twenty years in the country, the results had not yet been fully realised.

Regional and socio-economic disparities persisted across the country and for certain groups, especially lower-skilled adults, automation was threatening their jobs, she said.

“Investments in a high-quality education can reduce skill mismatches, raise wages, and help all Malaysians harness the potential of new technologies,” she said.

The last ingredient would be empowering women and currently, Malaysian women tend to have less access to the labour market and fewer career opportunities compared with their peers in neighboring countries, she said adding that Malaysia women earned about one-third less than men on average and the data suggested this gap was largely due to discrimination in the workplace.

“Progress is being made. The share of women opening bank accounts in Malaysia now outpaces the gains in other Asean countries. Since the global financial crisis, female employment has grown at a faster pace than male employment,” said Lagarde.

She pointed out that the new government had paved the right path to empower women by appointed five female ministers, four female deputy ministers, and the first female deputy prime minister in the country’s history.

Lagarde said a recent survey showed that 80 per cent of women were interested in flexible work arrangements, but only 20 per cent had ever used them.

“Another survey showed nearly 60 per cent of working mothers are unable to perform their jobs from home.

“(However) The government is listening. New laws have been implemented to protect women’s jobs while they are on maternity leave and remove gender discrimination in the workplace.

“The government’s recent budget includes measures to increase paid family leave and mandate that any government-linked company have at least 30 per cent female representation on its board. Frankly, I think it should be 50 per cent, but this is a good start,” she said.

The IMF, she said believed that taken together, these efforts could raise female labour force participation rates to over 56 per cent by 2020. 

Tough Boss Or Plain Bully

What’s the difference between a tough boss and a bully?

One you can work for, the other you can’t.

A tough boss sets high standards, demands excellence, and pushes for results. Along the way, he or she may bruise feelings. A bully boss, by contrast, uses power to denigrate others as a means of putting people down to remain in charge..

A tough boss welcomes challenges and invites dissent over issues. A bully boss avoids challenges and brooks no dissent. Tough bosses are confident in their abilities. Bully bosses live in constant fear of being discovered as incompetent. Most importantly, tough bosses hold themselves accountable and shine the spotlight on the team. Bully bosses avoid accountability blaming others when things go wrong.

A tough boss sets forth challenges. A bully views you and others as challenges.

Tough bosses are by and large leaders because they seek to raise others up. Bully bosses fail to grasp lead because they put themselves and their interests first.

Any reports of abusive behavior by a boss are troubling. According to the Workplace Bullying Institute, bully bosses cause social and psychological harm to employees. Most of the perpetrators are male, and the victims are female. Bullies are bad for people as well as for productivity.

What role does gender play? Even today, in the wake the Me Too movement, women in authority are scrutinized more carefully than men. A hard-charging man is considered bold and aggressive. A tough woman is labeled the “b-word.” Often the perception of a woman’s ability to lead occurs when she says no! People may accept no from a man but resent it coming from a woman, who is then labeled as petty and mean.

Another question arises? Who wants to work with a tough boss in the first place? Who wants the aggravation of dealing with the demands of one who never seems satisfied with what you do? Not many, frankly. On the other hand, some like the idea of being challenged, and often they look back and say working for such a boss made them what they are today.

That said, talented people have options. They say yes to a boss who challenges them but also supports them with resources as well as advice, develops their career, and generally is easy to get along with. They will find other opportunities when such conditions are not met.

From my work with tough bosses, the challenge is always to get them to look at themselves in the proverbial mirror. And that’s especially hard when you conflate what you have accomplished with how you have accomplished it. If you have left a trail of broken people in your wake, then your ability to continue to achieve is hindered.

“Effective leadership,” wrote Peter Drucker, “is not about making speeches or being liked; leadership is defined by results not attributes.” To be effective, you must expect more from yourself than you expect from others. At the same time, you want to put people into a position where they can outdo you. Why? Because you support them.

Bullies achieve results in spite of people; leaders achieve because they value their people.

Indonesia Startups

For most, Indonesia does not immediately spring to mind as a hub for startup innovation, not least because nearby Singapore has been traditionally known as the “Silicon Valley of Southeast Asia”.

However, Indonesia is fast emerging as a diverse economy that’s causing excitement for investors: It’s no wonder that it takes the ‘I’ in the CIVETS group (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa).

Despite the challenges posed by being home to Southeast Asia’s largest population at 269 million strewn across the 15,000 islands that make up the archipelago, the country has seen impressive growth and shown economic resilience over the past 20 years. Indonesia experiences an average GDP growth of 5% per year, is now the largest economy in Southeast Asia, and is a member of the G20 where it is the third fastest growing country after India and China.

Indonesia clearly has a huge market with great potential for entrepreneurs. Over a trip last year we were able to get a glimpse into the country’s startup scene.

Developing local ecosystem - Indonesia is home to a growing number of startups, which is set to rise by an astounding 20-30% in the upcoming year, according to the Creative Economy Agency. It also boasts several unicorns, including ride-hailing startup GO-Jek which was recently valued at $9.5 billion, along with travel booking company Traveloka, valued at more than $2 bilion, and online marketplace Tokopedia, valued at %7 billion. 

In fact, the Indonesian internet economy is forecast to grow to $100 billion by 2025 - according to a report by Google - Temasek.

It might not be the easiest place to do business thanks to its red tape and chronic traffic jams, however the country’s capital, Jakarta, has become one of Southeast Asia’s most exciting startup hubs. The bustling metropolis represents Indonesia in the top 500 cities list - for startups, and is home to an increasing amount of innovation and entrepreneurial activity. Other cities like Bandung, Surabaya, Denpasar are also showing promise, as well as cities in the digital nomad hub Bali.

Like many other developing economies, much of this startup activity has arisen in order to solve local problems, such as that of the largely unbanked population of Indonesia. A number of fintech startups have emerged to help Indonesians combat this challenge, including KinerjaPay, a mobile wallet and e-commerce platform, and digital lending platform Kredivo.

Other startup solutions are helping people across the country too. Tanigroup, an agritech startup that helps farmers get fairer rates for their crops, raised $10 million in funding earlier this year, while Kedai Sayur allows street vendors to get better prices for their produce by helping them group together orders and negotiate rates.

And advancing hand-in-hand with fintech in Indonesia is blockchain. Last year, the Indonesia Blockchain Hub was launched in South Jakarta as a platform for local and international blockchain industry players to network and share knowledge. The hub promises to address existing challenges in blockchain implementation in the country while educating society on blockchain technology.

So, unsurprisingly, Indonesia is the second-largest recipient of venture capital in Southeast Asia, behind Singapore. East Ventures is the most active VC fund in Indonesia, along with other funds such as NSI Venture, Gree Ventures and Sequoia, that all invested in the first generation of the country’s unicorns.

Data from EMPEA showed that VC investments in Indonesia rose from $2.3 million in 2014 to a staggering $136 million in 2017 — an average compound annual growth rate of 290%.   

A top-down focus on innovation - The Indonesian government has also played a decisive role in the push for the country to become the biggest digital economy in the region: President Joko Widodo, who won his second term in May of this year, has launched a number of projects to support local innovation and entrepreneurship.

Jokowi, as he is commonly known, is backing an initiative to foster 1,000 startups by 2020 with a total valuation of $10 billion. His administration also issued orders to relevant ministries to support startups and provide grants to incubators, making it much easier for startups to thrive in the country’s tech hubs.

The head of state has also prioritized technology in his vision of "Making Indonesia 4.0" : a project to boost the competitiveness of the manufacturing industry in the country.

Jokowi is clearly on board with a nation that uses tech and startups to solve its problems: he was recently quoted as stating that all the impossible can be pursued with science, technology, and innovation.

Network of startup support and events - Indonesia is not only home to a chapter of The Founder Institute, the Silicon Valley accelerator founded by Adeo Ressi and Jonathan Greechen, but also startup accelerators GnB Accelerator and SKALA, which boast a number of successful investments and offer mentorships and partnerships as well as seed capital.

It’s also no secret that Bali is one of the biggest digital nomad hotspots in Southeast Asia. The island province, which is home to 4.2 million people, has in recent years become a hub of startup activity.

Bali records a growing number of great coworking spaces and regular events that focus on entrepreneurship, tech and innovation, led by industry leaders. The island is also host to the world’s largest remote work conference, Running Remote - which provides education and tools for professionals to succeed in the future of remote work.

Looking to the future - While technology and innovation are clearly playing a key role in driving the growth of Indonesia‘s economy and offering a wealth of opportunities for young people across the country, there is still a lot of progress to be made.

Indonesia is marking its position as a powerhouse in Asia, however it still lags far behind neighboring countries such as Singapore and Malaysia, both of which are ahead of Indonesia in not only their economies but also their startup infrastructures.

Yet while it’s important to note that startup culture is still comparatively new in Indonesia compared to other parts of the world, the country has shown it is prepared to back innovation.

Thanks to the increased attention from foreign investors and emerging flurry of startup organizations, along with an ever-expanding talent pool of young, tech-savvy potential founders and employees, the nation has the opportunity to be a key spot on the global startup map for many years to come.

Source: This article was Co-Authored by Alex Torrenegra, CEO of Torre, and Magdalena Tanev