theSun | MONDAY FEBRUARY 23 2009 9

news without borders

Falling demand impacts

on business growth
by Karen Arukesamy “Emphasis in the Second
REDUCED DEMAND AS
newsdesk@thesundaily.com
SURVEYED IN LATE 2008 Budget Stimulus should be
sustaining employment, with a
PETALING JAYA: The Country Reduction in particular focus on re-employ-
impact of falling demand as demand (%) ing people who are laid off by
consumers become increas- the electronic, manufacturing
ingly concerned about job 1 Japan 78 and export sectors.”
security, is now the number 2 Italy 70 The measures should be
one constraint in business 3 Vietnam 64 aimed at bringing about per-
expansion the world over. 4 Philippines 60 manent benefits to the nation
In Malaysia, business 5 Malaysia 58 and the people, he said.
growth is suffering from 5 France 58 Jasani suggested that the
reduced demand, with 58% 5 Spain 58 government adopt a two-
of businesses reporting it as a 6 Chile 56 pronged thrust of stimulating
major constraint. the weakened economy while Tan and Sara Lee Asia
7 Mainland Pacific senior vice-
According to the Grant China 55 creating permanent infrastruc-
Thornton International Busi- ture facilities for the nation. president Gary Brown
8 New Zealand 53 flag off the Ambi Pur
ness Report (IBR), about 8 Taiwan 53 He said this should include
49% of medium and large the urban train system, or Car taxis at Jaya 33.
9 Ireland 52
enterprises (MLEs) globally 10 Germany 51 LRT, fast track expansion and
rank reduced demand as a 11 Sweden 49 improvements to the Klang
constraint in expansion – up 12 Denmark 48 Valley, with similar systems
from 31% in 2008. implemented in other urban

Free cab rides for five days

Twenty five of 36 econo-
mies worldwide surveyed
in the report placed reduced
demand at the top of the league
of business constraints, with
red tape at 30%, outranking
shortage of finance (27%), in
second and third place.
Last year’s biggest cons-
traint – availability of a skilled
workforce – has predictably
dropped out of the top three.
“The countries most con-
cerned about reduced demand
were Japan (78%), Italy (70%)
and Vietnam (64%),” SJ Grant
Thornton managing partner
Datuk N. K. Jasani said.
Malaysia with 58% shared
fifth position with France and
Spain, he said.
“This survey was con-
ducted in December 2008.
The results may be even
grimmer if it was conducted
now with sentiments drasti-
cally affected by the realities
of reduced demand and low
levels of production and em-
ployment.
“Every MLE in every
market has been affected
differently by the economic
downturn, often by circum-
stances completely beyond
the control of the manage-
ment team.
“MLEs must remain confi-
dent. That means being proac-
12 United
States 48
13 Greece 47
13 Hongkong 47
14 United
Kingdom 44
15 Brazil 43
tive, taking time to understand
the specific issues affecting
their business, and developing
strategies that allow them to
respond quickly to changes in
the marketplace.”
Jasani said governments
worldwide have implemented
stimulus budgets to spur eco-
nomic activity, with most of
these initiatives taken by the
United States, China, Japan
and Britain.
“There has been increased
concern over the time lag
before the effects materialise,
and the ballooning use of tax
payers’ funds to bail out cash
strapped banks,” he said.
On the Malaysian govern-
ment’s first stimulus package
of RM7 billion and its second,
or “mini-budget”, to be tabled
on March 10, Jasani said:
“We must ensure a match of
activity in business sectors
and regions most affected.
There must also be value
for money expenditure with
minimum bureaucracy and
wastage.
centres like Penang, Ipoh,
Malacca and Johor Baru.
“Further reduction in
electricity cost and the cost PETALING JAYA: For five days from today, brand to cruise the Klang Valley to promote
of doing business would also 30 taxis will provide commuters with free the product. The taxis, of course, will smell
assist in retaining companies rides within the Klang Valley between noon refreshing and pleasant, coming equipped
that would otherwise close and 2pm. with the new Ambi Pur Car diffuser.
or relocate to lower cost cen- Look out for taxis with an Ambi Pur Car The campaign was initiated in conjunc-
tres.” logo and a sign which reads “Free Ride” on tion with the introduction of the improved
top of the vehicles. product, featuring a diffuser that enables the
The first pick-up points at noon everyday device to fit better on your car’s dashboard.
The above survey was con- will be malls such as Bukit Bintang Plaza, A bigger vent allows better air flow, while a
ducted by Experian Business Leisure Mall, Mid Valley Megamall, Sunway control pin in front allows better fragrance
Strategies Ltd. Grant Thorn- Pyramid and Ampang Park. Thereafter, pas- intensity control.
ton International donated sengers will be picked up and dropped off “We’re celebrating the efficiency of Ambi
US$5 (RM18.50) to Unicef for anywhere within the Klang Valley. Pur Car by offering the public an opportunity
every completed IBR question- Realising that taxi rides can sometimes be to experience a pleasant ride despite the mid-
naire, donating more than unpleasant, especially on a hot and humid day rush. Ambi Pur Car will make any drive
US$39,000 (RM144,300) in afternoon, Ambi Pur – a brand of air fresh- time great,” Tan Chooi Khim, president of Sara
all last year. ener – has selected 120 taxis displaying the Lee Malaysia, Singapore and Vietnam said.
Towards better higher Baba of the International Islamic University,
Prof Ghauth Jasmon and Prof Edmund Ter-
memorandum of understanding to be
signed during a three-day Developing
education institutions
ence Gomez of Universiti Malaya, Datuk Dr 8 ministerial meeting here.
PETALING JAYA: The International Insti- Paul Chan Tuck Hoong of HELP University Agriculture and Agro-based Minister
tute of Public Policy and Management will College and Prof Shad Saleem Faruqi of Datuk Mustapa Mohamed said the MoU
hold a two-day conference on improving Universiti Teknologi Mara. would cover the exchange of technical
higher education institutions as a way to The venue for the conference will be expertise and resources, among other
empower future generations. the Best Western Premier Seri Pacific areas.
Presenting papers at the conference to Hotel. “The collaboration is timely as Indo-
be opened by Higher Education Minister nesia has been successful in agriculture
Datuk Seri Khaled Nordin on Wednesday
are Prof Ignaz Bender from Germany, Prof
Agricultural initiative and has a high self-subsistence level in
rice and meat production.
Sombat Thamrongthanyawong from Thai- with Indonesia “It is also able to meet the domestic
land and Prof Akiko Kamogawa-Orihara PUTRAJAYA: Malaysia and Indonesia demand for livestock feed although
from Japan. are set to further strengthen relations, previously a major importer of the
Other presenters include Prof Sidek particularly in agriculture, through a product,” he said recently. – Bernama