Share This

Saturday, 10 December 2011

Challenge yourselves !

Young Couple SleepingImage by epSos.de via Flickr

On The Beat By Wong Chun Wai

Young people who just whine at the demands of their employers or prefer to stay within the confines of Daddy’s home won’t go far.

THERE was a time when most youngsters could not wait to move out of their parents’ homes.

For those living outside the Klang Valley, moving to Kuala Lumpur meant the beginning of a new life, start of a career and, of course, being away from the watchful eyes of their parents.

The independence that came with it for young adults was just too irresistible. Living alone or sharing an apartment with friends offered better privacy than staying with the folks, even if it ate into their pay.

But many unmarried young Malaysian adults, especially among the urban middle class, are now opting to stay with their parents.

They have become a lot smarter. They get to keep their salaries while enjoying the comforts of a proper home and do not have to pay for the utility and household food bills. They also have the maid to take care of their demands, which include washing their cars.

No wonder our kids grumble when they are picked for National Service, which is really just like an outward bound training programme compared with the real McCoy in Singapore. There, they are dressed and treated like real soldiers.

Living such pampered lifestyles, where many seem to have their own cars even when they are still in college, these young adults’ outlook has also changed.

Employers have found that many job entrants snub a RM2,500 starting salary even when they have yet to prove themselves. Some already receive pocket money of about RM1,000 a month and fear losing their allowances from their parents once they start working. For these spoiled kids, it’s just bad mathematics.

Some, I have been told, receive pocket money of at least RM2,000 a month because they maintain a lifestyle that includes having regular sessions at Starbucks and clubs and, of course, raking up bills for the mobile phone and iPad.

So, the result is they can be choosy. This attitude is an issue faced by many employers these days.



We do not need an in-depth survey to know the condition of the job market. A managing director of a media company told me last week that a young applicant refused to accept her job offer because the office was located in Petaling Jaya.

“She said her home was in Cheras and having to wake up early to beat the traffic jam to PJ wasn’t appealing. So she just turned us down,” she said.

Good workers are hard to come by and it does not help that Malaysian employers are not quite prepared to offer competitive salaries, conscious of the fact that this would add to their costs.

Young staff bring in greater energy, freshness and a better outlook but these don’t necessarily come with more passion or loyalty. Young Malaysians today would probably have worked in at least six companies, maybe even more, within a short period.

The good ones know they would be talent scouted or they would simply leave for other jobs that offered better salaries and perks.

This writer has worked for The Star for 27 years, which probably makes me a Jurassic subject here. I have had only one employer and while it may seem strange to many young people, those of my generation would understand.

I travelled around campus on a motorcycle, which was regarded as a privilege then, and I used the same kap cai when I started work in Penang.

Getting my first car, which was the result of some serious saving, was a great achievement. And it was a second-hand car.

The biggest headache for employers today, however, is the inability of many job seekers to speak and write well in English. This is high on the list of minimum requirements.

Recruitment advertisements, whether in print or online, state clearly that English is an absolute essential, but many job seekers cannot pass this first hurdle.

“It has become a norm to hear applicants speaking in Bahasa Malaysia or Mandarin when they call up. You can tell that they cannot even carry out a simple conversation in English,’’ an employer tells me.

But as Malaysian companies look beyond the local market, which is really tiny in comparison to Indonesia, India, China or the Middle East, they would acknowledge that applicants who speak more than just English would be more marketable.

My non-Chinese friends are often annoyed when they read job advertisements specifying Mandarin-speaking candidates. I tell them many Malaysian Chinese from English-medium schools would share their feelings.

“Bananas” like me – yellow outside but white inside – would struggle like my non-Chinese brethren if we were in China because of our language handicap. The reality is that many companies need to do business in China, which has become the world’s most important market. And with Europe on the decline economically, China’s status has become even more powerful.

So there really is nothing discriminatory about those advertisements. A Malay who can speak and write Chinese would probably get the job. There are two Malay reporters in The Star with these skills and they are regarded as gems.

Dubai is also a strategic hub with many multi-national companies setting up their regional headquarters there. Surely, job seekers who speak Arabic would enjoy an advantage there.

The question is how ready are our young adults to learn new skills, including language and even social networking skills, to make them more marketable?

We won’t go far if we continue to whine at the demands of our employers or just prefer to stay within the confines of Daddy’s home.

Go out there and challenge yourselves.

Friday, 9 December 2011

Know yourself, your business


 Avoid head-on collisions with cash-flushed competitors

ON YOUR OWN By TAN THIAM HOCK

ENTREPRENEURS are the most gung-ho people in the world. But not necessary the smartest. More often than not, this everything-also-can-do attitude lands the entrepreneur in trouble especially in new projects.

Without a realistic assessment of his own capabilities in funding, experience and competitive strength, he plunges into so-called virgin territory that existing competitors dominate.

I have been trading in food, confectionary, toiletries and cosmetics for 26 years and the two product categories that I will not compete in are chocolate malt drink and mass shampoo for ladies. Nestle through Milo controls more than 90% of the chocolate malt market and unless you have suicidal tendencies, you will be better off donating your launch budget to your favourite charity.

If you turn on your TV, you will find shampoo advertisements in every channel, every hour and every brand. Well, every brand refers to brands from Unilever and P&G and the two of them control more than 80% of the mass shampoo business.

Unilever AustralasiaImage via Wikipedia
These are the only high margin high volume businesses that I will ask you to leave alone. Unless you have RM20mil to dump into TVCs in return for a 2% market share. And even then, your shampoo TVC will look the same as the others with long silicone hair swinging from side to side in slow motion being watched by slow-witted viewers already numb to new brands.

To be fair, new and small entrepreneurs have no access to market information, consumer research and competitive activities. Relying on their gut feeling and entrepreneurial spirit, they plunge into new businesses with gusto and optimism.

Unfortunately for every survivor, there are probably five casualties with battered pride, empty pockets and hungry families. What a waste of time, effort and financial resources.

Economist will tell you that competition breeds efficiency and inefficient players will be eliminated eventually. So before you invest into a new venture, do you consider yourself an efficient competitor? Do you know who your main competitors are? What is their competitive edge over you?

Competition comes in all shapes and sizes. Here are a few pointers about competitors that you should avoid and do what entrepreneurs do. Dream big, start small.



Avoid going head on with big cash-flush competitors especially when their petty cash is equivalent to your annual sales turnover. Concentrate instead on nibbling some market share. No point in waking the sleeping fat cat. There is enough fat in the business to keep everyone happy.

Avoid the herd mentality. By the time you hear the news, hundreds have gone into the business. Rubber gloves then, swiflets and kopitiams now. So stay out and let others enjoy the success. If they can.

Talking about herds, many politicians are angry because they were not offered loans that they do not have to pay back. Grave injustice indeed. I predict state feedlots will be the new trend. Opposition state government will also join in the cow and bull circus act. Opportunities of easy loans will be in abundance. Now everybody can breed.

Avoid big business. This is reserved for the well connected incumbents and GLC's. But keep your eyes open for any crumbs of opportunity that might just spill over from their inefficiencies. To the small entrepreneurs, crumbs is still better than nothing, right?

Or better still, for existing players, there will never be a better opportunity to cash out. GLC's are paying high premiums for non controlling stakes nowadays but offer is only open until cash runs out.
Avoid owning airlines and airports. Stiff competition for attention and support. Nobody trust nobody. But you. You will end up paying for every single service provided. But nobody will admit it.

But there's money in ancillary business for small entrepreneurs. Like printing protest stickers and placards. Or join the band of protestors online. RM10 for every tweet against price hike. And RM10 for any twit who is willing to believe that travelling by air will be cheaper in the next 10 years.

So where are the opportunities for small entrepreneurs? Plenty, if you know where to look for it. Just look at businesses that have been ignored by your competitors;

competitors like EPF, Khazanah, PNB, SEDCs, LTAT, Felda, Umno, MCA, MIC, politicians, politician's family, politician's cronies, politically-connected business tycoons, MNCs etc. Competitors with superior comparative advantage over you. Competitors who are allowed to sit on the dining table first and have their choice cuts before others.

But spare a thought for these competitors. There are just a limited number of seats at the table and come meal time, everyone is scrambling to get a seat. The first group gets the best cut, the second scrape the leftovers and the third gets to lick the plates and scream hell. Grave injustice indeed.

Now that competition is so intense at the dining table hosted by the government, some of these competitors have moved on to the private sector dining table. With superb strategies, bottomless funds and sheer political brute force, they have plonked themselves at the dining table and helped themselves to all the choice cuts of the economy.

The big entrepreneurs who refused to play the political game have cashed out and moved to greener pastures overseas. The small entrepreneurs will still be fighting among themselves for the leftovers. The economist is proven right again. Inefficient and weak competitors will perish.

Against my better judgement, I recommend that you stick to your original plan to open your dream 24-hour Kopitiam. It does not matter that there are already two mamak restaurants and three fast-food joints in your choice location.

At least, you get to put food on your own table, dignity in your heart and pride on your sleeve. You have fulfilled your dream to be an entrepreneur.

The writer is an entrepreneur who hopes to share his experience and insights with readers who want to take that giant leap into business but are not sure if they should. Email him at thtan@alliancecosmetics.com

IT folk upset over draft Bill

Logo of the Ministry Of Science, Technology an...Image via Wikipedia


Many say proposal will cripple industry

By JO TIMBUONG and GABEY GOH bytz@thestar.com.my

PETALING JAYA: Members of the Information Technology industry are up in arms over a proposed Bill that seeks to certify IT professionals, claiming it will cripple not help the industry.

Industry players said a draft of the Computing Professionals Bill 2011, released online on Thursday night, proposed that only registered IT professionals could create software or computer applications for government use.

The Ministry of Science, Technology and Innovation (Mosti) drafted the Bill, with the aim of maintaining a registry of certified IT professionals in the country.

It is a bid to ensure that only qualified professionals can work in the sectors classified under the Critical National Information Infrastructure (CNII).

The CNII covers, among others, banking and finance, cyber-security, the national defence industry, healthcare, emergency services, food and agriculture, and utilities.

The Bill will recognise two categories of IT talents certified IT practitioners who do not have formal qualifications, and certified IT professionals who have the full qualification.



But some industry players are arguing that the proposed Bill would in effect hinder innovation and development across the board because CNII was very broad in its scope.

Willie Chan, founder of business software maker xIMnet Malaysia, said anyone should be able to create software or applications, not just certified practitioners or professionals.

“If a doctor who writes code as a hobby comes up with a software that can benefit the health industry, shouldn't he be allowed to market it to the Government?” he asked.

“If this draft passes into law, it will hinder such cross-pollination of ideas.”

Chan holds a degree in English Literature. Under the drafted Bill, he would be listed as only an IT practitioner, and would not be able to market xIMnet Malaysia solutions to the Government or its agencies.

Daniel CerVentus, co-founder of an online resource portal and community for entrepreneurs Entrepreneurs.my, believes that if such a situation were to develop, it would aggravate the country's brain-drain problem.

Mosti said the Bill did not aim to regulate the entire computing profession and was only applied to those identified as working in CNII sectors.

It also said registration was not mandatory.

Mosti will be holding an open day at its Putrajaya premises from 9.30am to 5pm on Tuesday to collect feedback and suggestions.