Integrated project final

J.MEC | FNBE0115 / AUG 2015 | INTEGRATED PROJECT
SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
FOUNDATION IN NATURAL BUILD ENVIRONMENT
PRESENTATION TITLE: Research Assignment Report (Pawnshop)
GROUP MEMBERS:
Name Student I.D Research Report Roles.
Justin Chong Yong Sheng 0322845 Cover/Research/Summary/Comparative
analysis/Presentation Slides
Michelle Wong Sook Yin 0322362 Video Editing/Bibliography/Appendix/ Table of
content
Lew Quo Ming 0322884 Video Editing/ Meeting Minutes/ Job
Description/ Comparative analysis
Liew Cherng Qing 0322613 History of Pawn Shop/Presentation Slide/Layout
Checker
Ee Hui Teng 0322548 Video Editing/ Brief History of both business/
Interview Questions
Cham Zheng Chee 0322317 Presentation Slides/Grammar Checker/Interview
Questions/ Recommendation
MODULE: ENGLISH II / ENGLISH 2 (ELG 30605 / ENG 0205)
LECTURER: CASSANDRA WIJESURIA
SUBMISSION & PRESENTATION DATE: 26th November 2015

TABLE OF CONTENT
No. Title Page Number
1. Artistic Cover -
2. Cover Page -
3. Table Of Content -
4. Key Summary 1
5. History 2
6. Brief Description of Businesses 3-5
7. Comparative Analysis of the Businesses’ Competitive
Traits
-Comparison between both businesses
-Comparative Analysis between Joo Ngien Pawnshop and
Choong Xin Pawnshop
-Comparative Analysis Summary Table
6
7-11
12-13
8. Recommendations 14-16
9. Bibliography 17
10. Appendices 18-35
11. Minutes of Meeting 36-38
13. Conclusion 39-40
14. References 43
15. Attachment of Slides -

1
KEY SUMMARY
The Pawnshops
Joo Ngien Pawnshop & Goldsmith and Choong Xin Pawnshop are the names of both of the
pawn shops that our team has decided to do more in depth research on. These pawnshops are
both situated in different states, Alor Gajah and Kota Damanasara, respectively.
The shop in Alor Gajah, Joo Ngien Pawnshop & Goldsmith, was the first pawnshop that we
visited as we planned our trip to Alor Gajah, earlier in order to avoid any inconvenience. The
pawnshop is owned by Chin Kian Ngok and his family, the third generation pawnshop owner
after Chin Kon Tow. The shop is located at Alor Gajah, Melaka and is commonly visited by
people with a middle or low income to exchange gold chains, watches and rings.
On the other hand, the shop in, Choong Xin Pawnshop, is owned by Ho Teck Keun. It is
located in Kota Damansara, and it is also commonly visited by people with a middle or low
income.
Joo Ngien Pawnshop, Alor Gajah.
Choong Xin Pawnshop, Kota Damansara.

2
HISTORY
Pawn broking (lending money on portable security) is one of the oldest professions.
It was believed that Franciscans were the earliest pawnbrokers in the history.
Franciscans were known as the people who adhere the teachings and spiritual disciplines of
St Francis of Assisi and associates, which is Old Catholic. Even though it was a church
prohibition against usury, which is lending money with high interest, there is some evidence
stating Franciscans were permitted to begin the practice as an aid to the poor.
However, the pawnbrokers of China started with a man named ‘Si Ma Xiang Ru 司
馬相如’, a writer, selling his robe on the market so that he have money to make wine, and
sell the wine to earn profit as well as buying his robe back. And after then, well-recognized
earliest pawnbrokers began in the 5th
Century. The activity were established and operated by
Buddhist Monasteries to help poor. Later, it became widely seen in the China society. There
were some businessmen who formed partnerships with Buddhist monasteries to avoid
taxation from government.
Greece and Roman too are familiar with pawn broking, which was practiced by their
people, with the word ‘Pawn’ coming from a latin word ‘patinum’ meaning clothing.
However, the pawn broking activities in the Western country began in Italy. They follow the
rules practiced by Roman. For the pawn broking of gold, silver and jewels, customers are
allowed to borrow a loan up to 80% of the value; where else when pawn broking everything
else, customers are allowed to borrow a loan up to 2/3 of the value. Interest calculated
monthly would be 5% to 7%, however there will be no interest charged for loans up to 5 lire.
Customers must pawn at least 6 months and renew up to 5 years. If it is not redeemed or
renewed within a fortnight, item will be sold. If the loan is up to 10 lire, taxation up to 1%
has to be paid to the government.
Pawn broking is popular in the United Kingdom too. During the 14th
to 15th
Centuries,
noted families became popular for their money lending. King Edward III famously pawned
jewels for the Lombard Family to help raise funds for war against France. However, in 1872,
Queen Victoria illegalized pawn broking business, due to many knockoff scandals in London.
In Malaysia, however, due to multiple racial culture, pawn broking was introduced
from both Chinese and Western influences. Malay pawn shops knew pawn broking as ‘Pajak
Gadai Islam System (Ar-Rahnu)’. Ar-Rahnu started off by learning from the Western culture.
As time passes and a new civilization of Malaysia emerged, Ar-Rahnu had to follow rules
and regulations set by Pajak Gadai Islam Ar-Rahnu scheme built on Act81-Act Pemegang
Pajak Gadai 1972 under Section 46.
Chinese pawn shops mostly inherit and originated from the China pawn broking
system. But overtime, they had to follow the rules set by the government too, except private
pawn shops where higher interest rates will be charged.

3
BRIEF DESCRIPTION OF BUSINESSES
A) Joo Ngien Pawnshop & Goldsmith
Joo Ngien Pawnshop is a pawnshop located at 2852, Alor Gajah, 78000 Melaka, just
opposite the Alor Gajah field and there is a roundabout nearby. The pawnshop provides
service of pawning items such as gold, diamonds and watches. Customers deposit their
valuable with a pawnbroker as security for money lent. Other than that, the business also sells
jewelleries.
The history of Joo Ngien Pawnshop was first started on the year 1938 under the company,
CFL & Sons SDN BHD when founder Mr Chin Fun Luan was given the share by his boss.
Chin Fun Luan migrated from China to Melaka, Malaysia and started working in a pawnshop.
It was because of his hardworking spirit that gained trust and recognition from his boss. His
boss then decides to give him a pawnshop to take care of by himself. After a few years later,
his boss gave him the share and the pawnshop eventually became his as he has gained full
charge over it. The business then became the Chin family’s family business. After running
the pawnshop for a few years, he then invested in a new pawnshop located at Masjid Tanah,
Melaka which is now the main branch of the business. Since the year 1938, the pawnshop has
been operating for 77 years till today. The pawnshop is now inherited by Mr Chin’s second
son, Dato’ Chin Kon Tow and the business has been expanded to have 5 pawnshops. Two of
the branches are located in Melaka, two in Selangor and another one Johor. The main branch
is located in Masjid Tanah, Melaka. All of the branches, except the main branch, are
currently operated by the family, and Dato’ Chin’s brothers and sons are in charge of the
business’ operation.
This pawnshop has a total of two workers and the estimated number of customer each
month is around 1000 people. According to our interviewee, Mr Chin Kian Ngok, the
pawnshop’s customers are mainly Malays and Indians. However, it is more accurate to say
that their customers are mostly people from a lower income family. The customers visits the

4
pawnshop when they face problems with cash turnover. Therefore, they give the pawnshop
their valuables as deposit for loan. When they have sufficient cash, they will redeem back
their items by paying back their loan together with deposit. Joo Ngien Pawnshop charges
1.5% interest to their customer per month and the redemption period is 6 months long. The
shop faces great competition nowadays as many other newcomers have entered the market
because the operating license is now not limited anymore and anyone can operate a pawnshop.
The pawnshop’s main competitors are the banks, the other pawnshops and also illegal loan
sharks.
B) Choong Xin Pawnshop SDN BHD
Choong Xin Pawnshop is located at No, 32A-1, Jalan PJU 5/B, Dataran Sunway, 47810
Kota Damanasara, Selangor Darul Ehsan. The first pawnshop by the company was founded
on the year 1954 by Mr Ho Ying Chai. It is located at Kuala Selangor. Our interviewee, Dato’
Ho Teck Kuen was not very sure how the business was first founded because he was not born
yet during that time. However, he thinks that the business was founded by Mr Ho when he
first came to Malaysia from China and got the chance to get familiarise with the business. He
thinks that the business creates great opportunity and that prompted him to start his own
pawnshop. The pawnshop has been operating for the past 61 years and now it has 5 branches.
The branches are located at Kuala Selangor, Batang Berjuntai, Kampar, Pandan Jaya and
Kota Damansara.
The pawnshop is a simplified version of a financial company. The shop provides pawn
service, which is receiving deposit from customers as security to give out loans. The deposits
are in the form of golds, diamonds, watches and pearls. Whenever a person needs cash, he
will bring his valuables to be pawned. The valuables is then kept by the pawnshop and he is
given cash as loan. If he wants his valuables back, he needs to return the loan and the interest.
The interest charged by the shop is 2.0% and the redemption period is 6 months long. If he
does not have enough money to repay the loan, he can repay the interest first and the

5
redemption period will be extended again for 6 months. If he has no money to pay back the
loan and the interest, his valuables will then be brought to auction according to the pawnshop
law. The money earned from auction will then be given to him. According to Dato’ Ho,
around 60-70% of customer will redeem back their valuables because they pawn to solve
their short term financial problem, not because they want to sell their valuables. Even though
nowadays the items that are accepted as a deposit are only gold and diamonds, items such as
bicycles, fountain pens and sewing machine are also accepted in the past. Their main
customers mainly consist of people with middle range or lower range income and mostly are
Indians and Malays. The valuables are then recorded in a book and stored in their safe.
Pawnshops are known as a sunset business nowadays as many have never heard of it before.
However, Dato’ Ho do not agree that it is a sunset business as its nature of business is to
provide money for people who face financial problems and it is essential to the business. He
believes that the business will not distinguish in our society but the business will not be as
good as before. The business faces great competition because the customers will be more
selective on the pawnshop. Therefore, he thinks that good customer service is most important
strategy to face the competition and trains his workers to have provide excellent customer
service.

6
COMPARISON OF BOTH BUSINESSES:
Joo Ngien Pawnshop, Alor Gajah || Choong Xin Pawnshop, Kota Damansara
Comparisons Joo Ngien Pawnshop &
Goldsmith
Choong Xin Pawnshop SDN
BHD
Location Alor Gajah, Melaka Dataran Sunway, Kota Damansara
Founder Chin Fun Luan Ho Ying Chai
Date founded 1938 1954
Current Owner Dato’ Chin Kon Tow Dato’ Ho Teck Kuen
Items pawned Gold/ Diamonds/ Watches/
Jewellery
Gold/Diamonds/Watches/Pearls
Bicycles/Fountain Pens/ Sewing
Machines
Branches 2 in Melaka/2 in Selangor/1 in
Johor
Kuala Selangor/Batang
Berjuntai/Kampar/Pandan
Jaya/Kota Damansara
Total number of
workers
2 6
Customer’s class Middle or lower Middle or lower
Regular customers Malay & Indian Malay & Indian
Average customers
per month
1000 1500
Interest rate 1.5% 2.0%
Redemption Period 6 months 6 months
Competitors Banks/Other Pawnshops/Illegal
Loan Sharks
Banks/Other Pawnshops/Illegal
Loan Sharks

7
COMPARATIVE ANALYSIS BETWEEN JOO
NGIEN PAWN SHOP AND CHOONG XIN
PAWNSHOP
I ) Number of Competitors
Joo Ngien Pawnshop & Goldsmith Sdn. Bhd. is located in Alor Gajah, Melaka. Joo Ngien
Pawnshop and Goldsmith Sdn. Bhd. has only 3 top competitors which are CIMB Bank, Hock
Nin gold store and Maybank. However, Pajak Gadai Choong Xin (Choong Xin pawnshop)
which is located in Kota Damansara, Selangor has up to 10 nearby competitors, but only 4 are
their main competitors, which are Visiber Sdn.Bhd. , HSBC Bank, Ambank and RHB Bank.
II ) Brief Description of Competitors
A) JOO NGIEN PAWNSHOP, ALOR GAJAH
Even though Joo Ngien Pawnshop & Goldsmith Sdn. Bhd. are located in a place that isn’t as
busy as a city, there are still a couple of competitors competing with them. CIMB Bank and
Maybank in Alor Gajah, Melaka, both provide gold investment services. The customers will
have to create a Gold Investment Account “GIA” and start investing with at least 1gm of gold
or multiples of 1gm gold. At the same time, customers may sell their gold to the bank to earn
profits.
The other top competitor will be Kedai Emas Hock Nin (Hock Nin gold store). Hock Nin
gold store is a competitor running the same pawn broking business similar to Joo Ngien
pawnshop and goldsmith.
Competitors: Maybank (left), Kedai Emas Hock Nin (middle), CIMB bank (right)
B) CHOONG XIN PAWNSHOP, KOTA DAMANSARA
Choong Xin pawnshop is located in a moderate city, Petaling Jaya. It has many competitors
surrounding itself, including banks and jewelry shops. Banks include Public bank, Maybank,
Hong Leong Bank, Al Rajhi Bank, Standard Chartered Bank and United Overseas Bank. But
the main competitors are Am Bank, RHB bank, and HSBC bank. Am bank and RHB bank

8
are located 250 meters away northeast from Choong Xin pawnshop, and located next to each
other. However, both RHB bank and Am bank are not as strong of a competitor towards
Choong Xin pawnshop compared to HSBC bank, due to the fact that they are competing
among themselves and HSBC bank is located only 30 meters away towards east from Choong
Xin pawnshop. All mentioned banks provide gold investment service to their customers.
Competitors: RHB Bank (left), AmBank (middle), HSBC Bank (right)
The other strong competitor would be Visiber Sdn. Bhd. Visiber Sdn. Bhd. is a jewelry store
that sells common jewelry accessories, and they are quite popular.
Numbers Methodology jewellery accessories.
Numbers Methodology uses an inverted triangle and simple calculation adding up birth
dates into a single digit and represents the customers’ personality number. This means, each
of the jewelry accessories are custom made and one of a kind. Numbers Methodology are
also believed to bring good luck to the customer.
Competitor: Visiber Sdn. Bhd. (left), Visiber Logo (right)
III) Nature of Market
JOO NGIEN PAWNSHOP, ALOR GAJAH || CHOONG XIN PAWNSHOP, KOTA
DAMANSARA
The nature of the market for Joo Ngien Pawn Shop & Goldsmith and Choong Xin
Pawnshop Sdn Bhd is monopolistic competition as both businesses operate differently from

9
other businesses in the similar market. Both of these businesses sell unique products and is
always changing constantly. Besides that, the pricing power of monopolistic competition is
weaker as this type of business does have the full ability to charge the price higher than the
market price. In order to maximize their profit, these business strive to differentiate their
products from that of their competition which is other pawnshops or even banks.
IV) Competitive strategies
A) JOO NGIEN PAWN SHOP & GOLDSMITH
Experience
As Joo Ngien Pawn Shop & Goldsmith is a more traditional pawn shop, they rely mostly on
experience to determine the quality, price and exchange value of the specific item. Even
though technology is so advanced these days, Joo Ngien Pawn Shop and Goldsmith’s staff
still believes that the best technique for this specific business is their decades of experience.
Knowledge
Staff at Joo Ngien Pawn Shop and Goldsmith are trained to be very knowledgeable about
everything that is going on in the pawnshop. Information about the shop, pricing of the items
pawned, interest rates as well as the redemption period are the most common questions asked
by customers.
Economy condition
The staff at Joo Ngien Pawn Shop and Goldsmith fixes their price based on the economy
condition, this is to ensure that their customers won’t be affected too much by the economy’s
rise or fall when it occurs. By doing so, the customers are more attracted to come to Joo
Ngien Pawn Shop and Goldsmith compared to other pawnshops that fix their prices.
B) CHOONG XIN PAWNSHOP SDN BHD
Customer service
The staff at Choong Xin Pawnshop Sdn Bhd treats their customers very well. If there were
to be any questions asked by the customers, the staff will try their best to accommodate to
their customer’s needs. For them, the customer is always right and they take appropriate
actions to make the customers happy.
Security
The safety vaults in Choong Xin Pawnshop Sdn Bhd are well-equipped with the best
security system to ensure that everything in the vault such as gold chains, watches, pearls etc
are protected 24/7 behind those stainless steel walls.

10
Technology
Due to the advancement of technology in today’s era, the staff at Choong Xin prefers to use
technology in their aid to determine the price and quality of the pawned items. For them, they
think that the fake items in the market today are really identical compared to the past,
spurring them to use up to date machinery.
V) Barriers to entry
A) JOO NGIEN PAWN SHOP & GOLDSMITH
Competitors
As Joo Ngien is more of a traditional pawn shop, the customers of today would feel that
their methods are too old-fashioned, causing them to go look for other pawn shops, banks or
even illegal loan sharks to do business with.
Bank Interest
For every item that they sell, they are required to provide 1 % of their earning profits to the
bank as part of their contract with the government. Making it one of their major obstacle in
running a pawn shop business.
B) CHOONG XIN PAWNSHOP SDN BHD
Competitors
Similar to any other pawn shops, most customers in this day and age would rather go for
more advanced method of trading comparing to the old-fashioned way. As more and more
platforms of trading and selling causes more obstacle for Choong Xin Pawnshop Sdn Bhd to
run their business. Other competitors such as banks, online trading, and illegal loan sharks
usually are the main obstacles for running a pawn shop business.
Technology cost
Given that the countless amounts of counterfeit items and fake replicas that are being made
these days have been constantly increasing, Choong Xin Pawnshop Sdn Bhd have decided to
use high end technology to assist in determine whether the item is legitimate or a counterfeit.
However, this type of technology cost quite a small fortune as it cost quite an amount to be
made and also requires servicing every few months.

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COMPARATIVE ANALYSIS SUMMARY TABLE
Competitive Traits JOO NGIEN PAWN SHOP &
GOLDSMITH
CHOONG XIN PAWNSHOP
SDN BHD
1. Competitors 3 to 5 within the immediate area 5 to 8 within immediate area
2. Competition
Strategies
Experience
 Traditional Pawnshop
 Experience to determine
quality, price and value
 Best technique for the
business
Knowledge
 Staffs are well-trained and
knowledgeable
 Knowledgeable about every
item in the Pawnshop
 Using the knowledge to
assist in the business
Economy Condition
 Fixes the price based on the
economy’s condition
 Ensure customers are not
affected by the economy’s
condition
 Attract more customers due
to having better prices
compared to other
pawnshops with fixed prices
Customer Service
 Main priority
 Staffs treat the customers
very well
 Do their best to
accommodate to the
customer’s needs
Security
 The safety vault is very
well-equipped with the latest
security system
 To ensure the safety of the
goods stored there
 Protected 24/7
Technology
 Prefer to use technology to
aid in their business
 To assist the business to
determine the price and
quality of the item.
 Easier to differentiate fake
replicas compared to using
the old traditional way
3. Barrier to
Entry
High Barrier to Entry
Competitors
 Customer of today would
feel that the methods they
use are too old-fashioned
 Will prefer to go for other
pawnshop or banks due to
High Barrier to Entry
Competitors
 Most customers would
prefer a more advanced
method of trading
 More and more platforms for
trading in this day and age
 Main obstacles are usually

12
the old-fashioned way
Bank Interest
 Required to provide 1 % of
their earning profits
 Part of their contract with
the bank
 Major obstacle in running
this type of business
from their competitors like
banks and loan sharks
Technology Cost
 Technology helps in
determine the item is
whether legitimate or
counterfeit
 Requires a small fortune to
have one
 Also requires quite a sum to
maintain the machine as it
requires servicing time to
time
4. Differentiated
or
Standardized
Products
Differentiated Products
 As this type of business
offers various types of
product.
Differentiated Products
 As this type of business
offers various types of
product.
5. Pricing Power Price Taker
Weak Pricing Power
 This type of business does
not have the full ability to
charge the price higher than
the market price
Price Taker
Weak Pricing Power
 This type of business does
not have the full ability to
charge the price higher than
the market price
6. Nature of
Market
Monopolistic Competition
 As there is only one
pawnshop in that area, the
pawnshop market in general
is very low.
Monopolistic Competition
 As they is only one
pawnshop in that area, the
pawnshop market in general
is very low.

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RECOMMENDATIONS
After carrying out our studies regarding our business, there are some issues that can be
improved in order to allow their businesses to perform at its best. The list below shows a few
recommendations that can be taken to enhance both pawnshop’s future performance in their
career.
Joo Ngien Pawnshop, Alor Gajah || Choong Xin Pawnshop, Kota Damansara
1. Brand Recognition
Current condition:
In Malaysia, pawnshops often reside in low-income neighborhoods to cater to people down
on their luck. Even though the pawnshop provides a quick and hassle free way of trading
valuables for cash to get people through to pay-day, they are lacking in terms of advertising
their brand to the public. Nowadays, we barely see promotions or advertisements about
pawnshops anymore. Both pawnshops did not focus on the advertisement of their shop. This
results in the unawareness of the public, especially the younger generation not knowing how
does pawnshop actually works because it was never properly introduced to them.
Recommendation:
Both pawnshops should package themselves properly. The pawnshop owners must expose
themselves with the current modern technology. This way, they are able to widely promote
their brand and slowly become recognized by the public. For example, owners can create a
website to introduce what their pawnshop is all about, advertise events and promotions and
announce products that are available for sale. They can also highlight their specialty areas,
such as coins, jewelry, watches, gold and include links to information about their product’s
history, manufacturer and also production methods. Pawnshop owners can even include
coupons and incentives for customers to visit. They can announce visits by appraisers and
antiques experts so that customers can plan to bring their items in for appraisal. Owners of
the pawnshops can also share their expertise by offering classes on coin collecting or
recognizing rare antiques, gold, and other items.
2. Changing Perceptions
Current condition:
When we talk about pawnshops, it is often being related to the ritual reserved only to low-
income workers. This perception has become a major issue for both pawnshops as it becomes
the obstruction of their businesses from propelling forward. The perception that has been
installed into people’s minds are that pawnshops are only meant for people coming from a
low-income background. It is a false perception and it’s a perception that must be changed in
order to see the variation of customers and generally the development of both pawnshops.

14
Recommendation:
It’s important that the public are aware of what pawnshops can offer in their business. One
of the ways to expand the range of customers in pawnshops is to promote their brand name
through any form of media. The public needs to know the pawnshop’s real objectives and
purpose in order to attract new customers. Another way to change people’s perception is by
widening the range of items that can be pawned. In the past, pawnshops used to have a wide
range of items that can be pawned. Other than gold and diamonds, items like bicycles, sewing
machines, even branded pens can be used to pawn. But nowadays, pawnshops in Malaysia
are limited to only a few main items that the customers can pawn, which are gold, watches
and diamonds. Therefore, the owners of pawnshops should really reconsider of bringing back
the past generations way of dealing with pawn items. Owners can reconstruct their system,
organize their business structure systematically, and categorize pawn items in order to expand
the range of customers. By pawning items like antiques, people’s lives become easier in
terms of financial strain. Environmental factors could even be incorporated in a pawnshop’s
business through collaborations and proper planning of the whole business structure. This
way, pawnshops will be recognized by the public with the change of perception towards
pawnshops businesses. Thus, the people have more options than they may think after looking
at what pawn stores can offer.
3. Customer Service
Current condition:
The workers in both pawnshops do their work accordingly with mainly one objective, which
is focusing on the increase in sales of the shop. This is the reason why both pawnshops
businesses only standstill as there is no progression in their businesses. When there are
problems like other competitors, both of the pawnshops solve the problem by making
adjustments with the rate of exchange. But by doing so, it doesn’t really help in improving
their businesses. One issue that pawnshop owners always neglect is the importance of
customer services, which becomes another reason why the performance of both pawnshops
business are always stationary.
Recommendation:
All businesses can be benefited by providing exceptional customer service. Pawnshop
owners can review the basics of good service with their staff and train them on the store’s
lending and return policies. Owners must ensure that they understand the laws governing
pawnshop transactions so that they can convey them to customers. Another thing pawnshops
can do is always ask for customer feedback following a sale or service transaction with a
feedback card. They can even include space for an email address so that pawnshop staff
members can notify the customer about events, promotions and items of interest that become
available for sale.

15
4. Image Management
Current condition:
The exterior and interior look of both pawnshops isn’t that attractive. The design of both
pawnshops are done in a conventional way, which is normal looking. It reflects on how the
owners are not really particular with the design of their shops. Even though the functionality
and security of the shop are done properly with the systems serving its purposes, but both
pawnshops took for granted of the packaging of their shop in terms of attractiveness.
Recommendation:
The first impression of the pawnshop to the customer is very important. Most of the people
always judge a book by its cover,that is why it is important to take note of the environment of
the shop. Potential customers who see a dusty window crammed with items as they pass by
the store may just keep walking, whereas an attractive entrance beckons them to go inside.
Thus, pawnshop owners should give their shop a fresh look with paint, a window display
with items organized by category and signs promoting your specialty items. Other than that,
pawnshop owners can even add a new pawnshop sign, polish their old ones, and also
subsequently carry out maintenance for their shop. After customers step inside, it is important
to treat them to a clean, well-lit store with items clearly marked and sorted by type.

16
BIBLOGRAPHY
1. Baye, M. (2003). Managerial economics & business strategy (4th ed., p. 578). Irwin,
Boston: McGraw-Hill.
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http://www.freemalaysiatoday.com/category/leisure/2013/09/12/the-pawn-industry-quick-
money-at-a-price/
3. Doyle, P., & Stern, P. (2006). Marketing Management and Strategy (4th ed., p. 446).
Harlow, Essex: Pearson Education.
4. Heath, R. (1998). Crisis Management for managers & executives (p. 466). London:
Financial Times.
5. Keh, H. (2004). Strategic Asian Marketing: An Essential Guide for Managers (p. 269).
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6. Little, P. (1977). Communication in business (3rd ed., p. 345). Harlow: Longmans.
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Hill.
8. So, Y. (2006). Explaining Guanxi: The Chinese Business Network (p. 169). London:

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APPENDICES
Alor Gajah Pawn Shop:
Joo Ngien Pawnshop Exterior Shop House Image
Location: 2852 Jalan Besar Alor Gajah, 78000 Alor Gajah, Melaka
This is the exterior of Joo Ngien Pawnshop where the signboard can be seen hanging above
the area of operation.
The pawnshop is located in a row of shop houses where the business is carried out on the
ground floor.
This is the row of shop lots where the pawnshop is located.
It is located in an area that has no other pawnshop nearby. This means that they can avoid
competition in that particular area.

18
Joo Ngien Pawnshop Shop Name & License
The pawnshop’s plaque hangs in front of the office since the beginning of the business.
The shop’s license is hung in the owner’s office to show that the pawnshop is a legal operant.
The license states all legal information needed in order to operate the shop.

19
Joo Ngien Pawnshop Shop’s Outer Area (Operating Area for Customers)
These are examples of where the gold are placed and arranged for sale to the public.
The gold placed here does not belong to customers who have placed their gold for loan. The
gold now belongs to the pawnshop and the pawnshop can sell the gold to customers.
This is the placement of the gold which is placed in the outer area of the store.
There is a barrier between the outer area and the interior part of the store.

20
These are where the customers bring their gold to be set on loan. They are only allowed to be
at the outer part of the pawnshop.
The transaction is carried out from the inside and outer side of the store which is separated
from each other.
This is an example of the interaction between the customers and the pawnshop worker.
The workers are only allowed to interact using a small sliding glass door under the barriers.
The interaction between them is strictly for trading using valuables such as gold, watches and
other valuable items for money only.
They are also allowed to sell the available gold placed on the display set to customers through
that small sliding glass door.

21
Joo Ngien Pawnshop Interior of the Pawnhop
This is the inner counter which is a high table top placed with equipment such as a special
weighing machine for gold which is used while trading.
The people on the inside are able to look outwards whereas the people on the outside are not
able to look inside due to the difference in height.
This is another area of the inner part of the shop where the printing, accounting and other
paperwork are carried out. The back part leads to their office and safe which is confidential
and cannot be seen by outsiders.

22
This is the part of the shop where gold can be sold to the public is located. This is area where
the workers stand to carry out trading or sales.
Workers only operate from the inner part of the pawnshop. They do not operate outside as the
outer part is meant for customers to make sales or trading only.
There is a cashier machine behind the standing area that is used when sales for gold are made.
Recordings are done using the computer there and receipts are printed in that area too.
This is an example of gold sales made from the inner part of the shop where the worker
works. The worker takes the gold out of the casing and shows the customer from the inner
part which is behind the steel bars and glass window.
The sales are made through a small sliding glass window at the lower part which is below the
steel bars whereby the transaction of money and gold is passed through the sliding window.

23
Joo Ngien Pawnshop Outer Part of the Shop with the Group Members
This is our group photo with the owner of this pawnshop. This picture also shows the exterior
of the pawnshop where the name of the pawnshop, the gold for sale display area and the area
of sales (for customers) can be seen.
s
This is our group photo at the pawnshop.

24
Kota Damansara Pawn Shop:
Choong Xin Pajak Gadai Shop Exterior and Pawnshop’s Name
Location: No. 32A-1, Jalan PJU 5/8, Dataran Sunway, 47810 Kota Damansara, Selangor D.E.
This is the name of the pawnshop which is hung directly above the main door of the
pawnshop.
It shows the Chinese name of the pawnshop and a Malay translation of the pawnshop below
the Chinese name.
The pawnshop’s exterior consists of a glass door which separates the shop and the pavement.
Customers need to enter the shop through the glass door in order to make their transactions
unlike the pawnshop in Melacca which is only a walkthrough.

25
Choong Xin Pajak Gadai Exterior Look
This is the overview of the pawnshop shop house as an individual shop lot. We were able to
see through the transparent glass door to observe or look at the operating pawnshop while
they are carrying out their business.
There is a signboard of the pawnshop’s name hung above the shop indicating that the shop is
located and operates at the group floor.
The pawnshop is located in an area which has no other pawnshops nearby. This means they
can avoid competition in the same row of shop lots.

26
Choong Xin Pajak Gadai Pawn Shop’s Interior
This is an overview of where transactions are carried out in the pawnshop. Pawnshop staff sit
behind the counter which has a steel bar and glass window that separates themselves and the
customers.
The only transactions carried out here is gold loaning. There is no gold on sale.
This part of the pawnshop has a seating area for customers who are waiting for their turn to
carry out transactions. There is a notice board which enables staff and customers to view
notices easily.

27
Interview Sessions
Choong Xin Pawnshop, Alor Gajah Interview
This interview is carried out between Ee Hui Teng and Mr Chin at Joo Ngien Pawnshop
which is located in Melacca.
Interviewer: Ee Hui Teng || Interviewee: Mr Chin
Interviewer: Hi. We are students from Taylor’s University and we would like to know
more about how a pawnshop function.
Interviewee: Okay. No problem.
Interviewer: When was this pawnshop founded?
Interviewee: 1960
Interviewer: Who are the key founders of this pawnshop?
Interviewee: My grandfather, Chin Fun Luan.
Interviewer: What prompted the founders to start this business?
Interviewee: During the old times, there wasn’t any pawnshop because most people are into
the business of selling foreign goods. When the consumers do not have enough money to buy
the goods, they will bring their goods to pawn. This results in the birth of the business.
Interviewer: Can you briefly explain the process of pawning an item?
Interviewee: Pawning means that you take gold to be pawned. It is a trading process between
gold, or other valuables, and cash. For example, when a customer brings their valuables to the
pawnshop, the gold will be calculated by gram. After calculating, we will offer the customer
a price for the gold to be successfully pawned. When the customer accepts the price offered,
we will take their gold and they will receive cash in return.
Interviewer: What should customers do if they want to redeem back their gold? How
long is the redemption period?
Interviewee: The customer would have to return the same amount of cash offered initially.
After the interest rate is calculated based on the initial amount of cash and time span they
have pawned their gold, they will have to pay off the interest rate which is 1.5% per month in
order to receive their gold back. The redemption period for one customer is 6 months
Interviewer: What if they exceed 6 months? Would they still be able to redeem their
pawned gold?
Interviewee: Yes, they will be able to redeem their pawned gold but once it exceeds 6 months,
the interest rate will increase to 2% per month. However after 7 or 8 months, the customer

28
must redeem their gold and pay the interest. If the customer still doesn’t come back to redeem
their gold after 8 months, the gold will then be brought to auction. After the auction, the gold
will be given to the government.
Interviewer: What happens to the gold after auction?
Interviewee: It will belong to the person who won the bid.
Interviewer: How often does this auction occur?
Interviewee: Once every month.
Interviewer: What are you the main products pawned in a pawnshop?
Interviewee: They are mostly gold, watches and diamonds because these are the most
valuable items in exchange for cash.
Interviewer: Who are your main customers?
Interviewee: Indians and Malays.
Interviewer: How many branches does your business have? Where are they located?
Interviewee: We have 5 branches in total. There are 2 branches in Melaka, 2 in Kuala
Lumpur and 1 in Johor.
Interviewer: Can you briefly explain the history of how the business first started and
recent development of the business?
Interviewee: I am not very clear about the history of this shop. But generally speaking, in the
past, most of the Hakkas are involved in this business. This is most likely how this business
first started.
Interviewer: I have heard that this is a sunset business. Is it true?
Interviewee: Yes, this is an undeniable fact. This is because the pawnshop business faces
competition from banks which causes a decrease in business opportunities. Nowadays, banks
too have pawn business so customers have a wider range of choice to select where to pawn
their valuables.
Interviewer: Is the competition strong in this business? How many competitors do you
have in this business? Can you name a few specific competition who have similar
business around this area?
Interviewee: Yes, the competition in this business is quite strong. Our main competitors are
banks such as Agro Bank and Bank Yapin. There are also other pawn shops such as Lian
Sheng Pawnshop and illegal loaners.

29
Interviewer: How does your competitors compete with you?
Interviewee: We compete by the interest rate charged. The lower the interest rate charged, the
higher the chance that customers will approach the pawnshop to pawn their valuables as they
do not need to return as much money over a period of time. Banks usually charge a 1%
interest rate.
Interviewer: On an average scale, how much capital is required to start this business?
Do you think if it is easy or hard to enter this market?
Interviewee: The pay-out capital is around 5 million. It used to be quite easy to enter this
business in the past. However it is harder to enter in the present day because competition in
this business is very strong due to the presence of more competitors. Not only that, the
economy now is not as good compared to the past. Therefore, the business revenue is not as
high as before.
Interviewer: What are your strategies to compete with your competitors? How would
you attract more customers and avoid them from going to your competitors’ shop?
Interviewee: Our strategy is to charge them a lower interest rate, provide better customer
service and offer them a higher pawn price.
Interviewer: Are there any limitations on the pawn price you offer to your customers?
Do you have a price floor?
Interviewee: By law, there is no limitation on the maximum or minimum price when a
valuable is being pawned by the customer. We can make adjustment on the pawn price by
ourselves and it is not necessary for us to follow any listed price in our own business. This
allows us to offer a special and higher price for loyal customers.
Interviewer: Are your pricing decisions strongly affected by your competitors? For
example, if you competitors offer 1% interest rate to customers, will you offer 0.9%
interest rate to them?
Interviewee: Yes, we will try to give a better offer so that customers will approach us instead.
Interviewer: Is there any specialized field of knowledge a person needs to know in order
to run this business?
Interviewee: The person needs to have the ability to identify the value of gold, diamonds and
watches. This ability can be learnt through experience. It hard to identify using instruments
because with the technology today, people are able to create fake valuables which might not
be able to be identified through instrument measurements.
Interviewer: I think that is about all. Thank you for your precious time
Interviewee: You’re welcome.

30
Joo Ngien Pawnshop, Kota Damansara Interview
This interview is carried out between Ee Hui Teng and Dato’ Ho at Choong Xin Pawnshop
which is located in Melacca.
Interviewer: Ee Hui Teng || Interviewee: Dato’ Ho
Interviewer: Hi. We are students from Taylor’s University and we would like to
interview you to know more about the pawnshop business.
Interviewee: Hi. What would you like to know about this business?
Interviewer: When was the business founded? Which shop or branch was it?
Interviewee: The first shop is founded in 1954. The first shop was located in Kuala Selangor.
Interviewer: Who is the founder of the business and what prompted him to start the
business?
Interviewee: The founder of this business is Ho Ying Chai. I was not born when the business
first started, but I have heard stories on how he brought started his pawnshop business in
Malaysia. As Mr Ho and his family migrated from China, this pawnshop business has already
been practiced back there and then in China. So later on when they migrated, they brought
this business into Malaysia. They were not first to start this business in Malaysia because
pawn business has already been operation during the 1950s in Malaysia long before our
company started. When they arrived in Malaysia, they had the chance to familiarize with the
operation of this business which caused them to start this business on their own.
Interviewer: Can you briefly explain the process of pawning an item?
Interviewee: Generally speaking, a pawn shop is like a financial company which is operated
in a simpler way. Pawning is a trading system. When a person is in need of cash, that person
will bring his valuable to exchange it for cash. In short, the customer give us a valuable item
in which we set a value to it. We keep the pawned valuable item and loan cash to the
customer in return. After that, if the customer is able afford the initial pawned cash value and
pay off the charged interest rate, the customer will be able redeem back their pawned items.
We will incurred a 2% interest rate charge and the redemption period is 6 months. After 6
months, the customer needs to return cash and the charged interest in order to redeem his
item. If the customer is unable to pay the initial cash price and charged interest, he can
choose to extend the redemption date for another 6 months. However, he must pay the
interest rate for each month.
Interviewer: What if he is still unable to pay back after 6 months?
If he is still unable to afford paying back the interest after 6 months, according to the law, his
item will be brought to auction to see if anyone wants to buy it. If the valuable is sold during
the auction, the capital will be returned back to the shop while the profit made from the
auction will be given to the owner of the valuable.

31
Interviewer: Is there a high probability of customers returning to redeem their
valuables? Or will most of them not return to redeem their valuables?
Interviewee: Most of them will redeem their valuables back because their financial problems
they face are only temporary. All they need is a cash turnover. Most of them do not want to
sell their items away because all they need at that moment is hands on cash. More than 60-
70% of customers will redeem their items.
Interviewer: What are the main pawned products?
Interviewee: Mainly pawned products nowadays are mostly gold and jewelry. Some other
shops do accept watches and pearls too. However, in the past we received bicycles, sewing
machines and fountain pens because their value at that point of time is high.
Interviewer: Who are your main customers?
Interviewee: Our main customers consist of people with middle or lower range income. If we
were to differentiate by ethnics, it depends on the geographical location of the shop. For
example, if the location of the pawnshop has a high population of Indians, then most of the
customers will be Indians. As an example, in KL, there is a higher population of Chinese
people, so the pawnshop customers are mostly Chinese. If we were to see it in a bigger
picture, on average, there are more Indian and Malay customers compared to Chinese
customers. However, an actual and accurate percentage is difficult to be calculated.
Interviewer: How many branches does your business have? Where are each of them
located?
So far we have 5 branches. Which are located at Kuala Selangor, Batang Berjuntai, Kampar,
Pandan Jaya and Kota Damansara.
Interviewer: Could you briefly explain the history and recent development of the
pawnshop business?
Interviewee: The information I have on pawnshop history are mostly information after the
1950s-1960s in Malaysia. Pawnshops are known as a traditional financial company. The
business does not only exist in China, the business exists even in India and Europe. The pawn
business is practiced even more around the 17th
or 18th
century. However, the business has
existed even longer in China, maybe around 1000 to 2000 years of history. In Malaysia, the
business is not practiced as long as in China. Before the Malaysia’s Independence Day, the
Chinese have brought in the pawn business from China. During that time, Malaysia is
governed under the British and the British thinks that this business is a method to financially
help people in certain regions. At that time, banks do not provide sufficient service to the
people and this is the reason why the pawnshop business is accepted by the society. The
business is then governed by the local regional government because there is no parliament at
that time. As example, places like Jatung or Kajang. This has continued even after the
country’s independence. Instead, the business is being governed under the finance ministry. If
we were to talk about the pawnshop business in general, we did not have any computers in

32
the past. The gold received from the customer will be weighed by using a lever-balance and
the information on the valuables and other details are all recorded using calligraphy pen.
When ball pens were invented, the business was then recorded everything in a big book using
ball pens. Initially, receipts were printed out with blank spaces. When printers came about,
the code number was introduced and printed out on the receipt. Now that we have computers,
everything is recorded into the computer and a complete receipt is printed out. The operation
of this business develops with the development of technology.
Interviewer: Recently, there is a saying that pawn business is a sunset business. Do you
agree with this statement or you think that the business will continue on even after 100-
200 years later?
Interviewee: The nature of business for this pawnshop is a financial company and I believe
that there won’t be a sunset for any financial company. In the olden days, when cash is not
used in the society, people trade using items like rocks, poultries and vegetables. Nowadays,
a person’s assets are measured by cash and inventories. In this way that the society functions,
it is impossible for a financial company to distinguish. If pawn shops distinguish in the
society, it means that banks will too because they share the same nature of business. Now that
our living standards are higher, the business revenue might be lesser but this does not mean
that there is no revenue at all. It also does not mean that the entire society do not need this
type of organization anymore because it functions to solve problems faced by people with
middle to lower range income. Therefore it won’t distinguish. However, the business might
that be as profitable as before. It will not have high volume but the business will is considered
more stable.
Interviewer: Does the business have a lot of competitors? Can you list out 3 competitors?
Interviewee: Yes we have many competitors but the amount of competitors cannot be
calculated that way. All pawn shops are like different individuals. So far there are more than
400 traditional pawn shops and nowadays, there are also more than 1000 Muslim pawn shops.
All of these pawnshops are competing with each other which creates a great competition.
Interviewer: Is the competition of the business strong?
Interviewee: The competition is pretty strong because the customer nowadays are different
from before. Customers nowadays will compare the value they can get from different pawn
shops unlike the customers in the past. So this creates a strong competition. If you are unable
to provide the customer good service and price, they will shift to another shop.
Interviewer: How do you compete with each other?
Interviewee: I think that customer service is the most important factor. For example, if you go
to a bank, you will have some enquires and I will grade their service provided. If they do not
provide good service, why should I go to this bank? I would rather to go to Public Bank,
Maybank or Standard Chattered to get my house loan. Therefore I think that customer service
the most important strategy to compete with other pawnshop business.

33
Interviewer: How much capital is required to start this business? Are there any
specialized field of knowledge I need to know in order to run this business?
Interviewee: Around 20 years ago, you might only need around 1-2 million to start this
business. However, since the Malaysian currency is getting smaller now, you might need
around 5-6 million as the start-up capital. It also depends on the location of your shop. Some
locations might need up to 10 million capital. The knowledge needed will generally be the
ability to identify or determine the value of the items you want to receive such as gold. You
can not only receive gold as deposit, you may receive watches too. Nowadays, a watch may
be worth up to 500-600 thousand ringgit. You may also receive jewelleries. It depends on
what item you want to receive as deposit and you need to have the knowledge in order to
identify the value of the item. I think that stamps are also acceptable. Maybe a 1 cent stamp
can be worth around 200-300 ringgit. As long as you have the knowledge, then I think it
should not be a problem. If not, you might be fooled, conned or cheated by others.
Interviewer: There are a lot of real and fake gold and diamonds nowadays. How do you
identify and tell apart the real from the fake
Interviewee: 60% is based on experience and the other 40% can be based on technology. The
technology advancement has created instruments to identify whether the gold is genuine.
However, very real-looking replicas are also made in the market dues to the advancement of
technology. So there is a competition between the creation of replicas and the invention of
instruments to identify the replicas. In such cases, experienced elderly are able to identify the
genuine item more accurately.
Interviewer: Does your pawn shop identify the originality of the item based on
experience?
Interviewee: Yes. We need to train our staff to be able to differentiate the valuables. At the
same time, we also need instruments to aid the staff. This is why I say that 60% is based on
experience while 40% based on instruments. However, it may be 90 to 100% based on
experience in the past but it is not applicable nowadays because the replicas look too real to
be fake.
Interviewer: Do you think it is easy to operate this business?
Interviewee: I have to say that it is not that easy to operate because you need to think of ways
to improve and learn. Business with no improvements will be eliminated by its. In-depth
knowledge is also required to operate this business. This business is a high risk business,
therefore you need to have high security system. You will have to continuously improve and
monitor your staff’s attitude because it is considered a service line. You also need to know
the economy of the gold, whether the price will increase or decrease in the future. So it is not
a very easy business.

34
Interviewer: How do you compete with your competitors other than providing better
customer service?
Interviewee: I think the most important is customer service. Other than that, since we receive
interest from our customers, we may charge them a lower interest rate (lower than 2%) or pay
them a higher loan, for example, offer them RM150 for valuables which might be only worth
RM100. All these can be strategies to compete. However, I still think that customer service is
prioritised because living standards are higher now.
Interviewer: Is any limit on the loan you offer to your customer? Like a price floor or a
price ceiling.
Interviewee: There are no limitations on this matter. It is pretty flexible.
Interviewer: What about the interest rate charged?
Interviewee: There is a ceiling for the interest charged. According to the pawnshop act, the
maximum amount of interest charges is 2%. There is no minimum amount of interest
required to be charged. So it is possible that you might not charge any interest to your
customer. There are no other limitations other than this.
Interviewer: Will the loan price depend on the current market price of gold?
Interviewee: The price will be the wholesale price of gold. The wholesale price is around 70-
80% of the retail price. But at the very end, the loan price depends on the decisions by the
owner or staff of the pawn shop.
Interviewer: Are your pricing decisions strongly affected by your competitors?
Interviewee: Generally speaking, our loan price is not strongly affected because we cannot
offer a price too high. Offering a high price will create a very high risk because the gold price
may drop at some point in time. It may cause financial problems as you will lose a lot of
money. So if you want to operate this business, you will need to be able to predict the gold
price after 6 months. You need to obtain this knowledge by learning, reading and calculating.
The gold worth RM100 now may be worth RM150 6 months later. In this case, I may offer
RM140 to my customer. Others may think that you are offering too much but it actually
depends on the operation knowledge you have. If you predict that the gold price will fall in
the future, as example the gold worth RM100 now will only worth RM50 6 months later, then
you can only offer your customer RM40. So there is no any limitations to it.
Interviewer: I think that’s all. Thank you.
Interviewee: You’re welcome.

35
MINUTES OF THE MEETING (1)
DATE: 30/10/15
TIME: 3:30 PM
VENUE: Ee Hui Teng’s House in Malacca
Details:
Meeting called by: Cham Zheng Chee
Notes taken by: Lew Quo Ming/Justin Chong Yong Sheng
Subject: Regarding the trip to Joo Ngien Pawn Shop
and Goldsmith on 30/10/15
Attendees:
NAMES OF GROUP MEMBERS TUTORIAL GROUP ROLE
Justin Chong Yong Sheng Friday Research/Report Writing
Michelle Wong Sook Yin Wednesday Recording/Report Writing
Lew Quo Ming Wednesday Research/Report Writing
Liew Cherng Qing Wednesday Recording/Report Writing
Ee Hui Teng Wednesday Interviewer/Transport
Cham Zheng Chee Wednesday Leader/Interviewer
Minutes:
NO. ACTIVITY ACTION TAKEN BY
1. Introduction Brief of current situation of the project.
2. Discussion of
business
Location of the chosen business and interview along with the
itinerary of the day ( Refer to Itinerary table)
3. Delegation of duty Distribution of each member’s duty with clear instructions.
4. End Meeting adjourned.
Itinerary:
Time ACTION
3:15 PM Arrival at Ee Hui Teng’s house in Malacca
4:45 PM Arrival at Joo Ngien Pawn Shop and Goldsmith, begin
interview
5.15 PM Return to Ee Hui Teng’s house

36
DATE: 7/11/15
TIME: 12:30 PM
VENUE: Event Hall Library, Taylor’s University
Details:
Subject: Regarding the trip to Choong Xin Pawn
Shop on 7/11/15
Attendees:
NAMES OF GROUP
MEMBERS
TUTORIAL
GROUP
ROLE
Justin Chong Yong Sheng Friday Recording/Research/Report Writing
Michelle Wong Sook Yin Wednesday Recording/Research/Report Writing
Lew Quo Ming Wednesday Recording/Research/Report Writing
Liew Cherng Qing Wednesday Recording/Report Writing
Ee Hui Teng Interviewer/Transport/Report Writing
Cham Zheng Chee Wednesday Leader/Interviewer/Transport/Report
Writing
Minutes:
2. Discussion of
business
Location of the chosen business and interview along with the
itinerary of the day ( Refer to Itinerary table)
Itinerary:
Time ACTION
8.00 AM Meet at Taylor’s University roundabout and departure
11.30 AM Estimation of arrival at Choong Xin Pawn Shop
1.00 PM Interview Ended and returned to Taylor’s University
DATE: 8/11/15
TIME: 2:00 PM
VENUE: Event Hall Library, Taylor’s University

37
Details:
Subject: Regarding on writing the report
Attendees:
NAMES OF GROUP
MEMBERS
TUTORIAL
GROUP
ROLE
Justin Chong Yong Sheng Friday Cover
page/Summary/Comparison/Slides
Michelle Wong Sook Yin Wednesday Appendix/Research/Video
Lew Quo Ming Wednesday Meeting Minutes/Job
Description/Comparison/Video
Liew Cherng Qing Wednesday Compile/History of Pawn Shop/Slides
Ee Hui Teng Brief bio of the shop chosen/Video
Cham Zheng Chee Wednesday Leader/Recommendations/Slides
Minutes:
2. Discussion of the
report
Discussed upon what is needed to be in the project and start
working on it.

38
CONCLUSION
It has been concluded that the Choong Xin Pawnshop in Kota Damansara, Klang Valley is
commercially more successful compared to the Joo Ngien Pawnshop in Alor Gajah, Melaka
based on the comparative analysis done. This conclusion is supported by the evidences
obtained through research and critical analysis based on economics principles we had learnt.
Choong Xin Pawnshop in Klang Valley is more successful because it has a more strategic
location, incorporate advanced technology, focuses on customer service and higher efficiency.
Firstly, Choong Xin Pawnshop has a more strategic location compared to Joo Ngien
Pawnshop. Choong Xin Pawnshop is located at Kota Damansara which is a township located
in Petaling Jaya, Selangor, Malaysia. It is spread across 4,000 acre (16 km²) of land. It is also
a state seat constituency which is sandwiched between Shah Alam and Petaling Jaya. Notable
landmarks located within the constituency are the old Subang Airport and the Rubber
Research Institute of Malaysia. On the other side, Joo Ngien Pawnshop is located at Alor
Gajah which is the district seat of the Alor Gajah, Malacca, Malaysia. It located on north part
of Malacca state. Alor Gajah is located 25 km, around 30 minutes’ drive from Malacca City.
Comparing both locations of the shops, Choong Xin Pawnshop’s location is better than Joo
Ngien Pawnshop’s as it is located at a highly populated place. Therefore, this lead to more
customers to visit Choong Xin Pawnshop in overall.
Secondly, Choong Xin Pawnshop has incorporated advanced technology in their business
but Joo Ngien Pawnshop did not. From our interview conducted, we found out that
identification of replicas are plainly based on experience at Joo Ngien Pawnshop. However,
Choong Xin Pawnshop has used advanced technology to aid this process. This has helped to
lower the risk of the business because the business will not face problems of being fooled by
their customers who want to use real-looking replicas as deposit for their loan. Joo Ngien
Pawnshop identifies replicas based on experience which may result in the occurrence of
human error as replicas created nowadays are not much different from the original ones. This
aspect is very crucial to the business because the business will need to bear great loss if this
mistake is made. For instance, a replica worth only RM100 can be perceived as an original
product which worth more than RM1000. If the pawnshop fails to identify the replica, they
will need to bear the loss of RM900 and the customer earned RM900 out of nothing.
Other than that, Choong Xin Pawnshop focuses more on customer service while Joo Ngien
Pawnshop puts their focus on the price of their product and loan interest. The perception of
success of a business is often dependent on employees who can adjust themselves to the
personality of the guest. Our interviewee representing Choong Xin Pawnshop believes that
good customer service experience can change the entire perception a customer holds towards
the organization. Therefore, Choong Xin Pawnshop concerns the priority an organization
assigns to customer service relative to components such as product innovation and pricing. In
this sense, Choong Xin Pawnshop which values good customer service spend more time and
money in training employees than Joo Ngien Pawnshop. From our observation obtained when
we visit the shop, we find that the workers at Choong Xin Pawnshop are friendlier and they

39
welcome every customer with a smile. All of this leaves a good impression to the customers
and may lead them to come back to the shop again.
Last but not least, we found out that Choong Xin Pawnshop has higher efficiency compared
to Joo Ngien Pawnshop. Not only does Choong Xin Pawnshop have modern instruments to
aid the identification of replicas as stated above, it also hires more workers compared to Joo
Ngien Pawnshop. Choong Xin Pawnshop has a total of 6 workers and 5 of them are in-charge
of the service work such as communicating with their customers and determine the worth of
items owned by their customers. On the other side, Joo Ngien Pawnshop only hires 3 worker
and among the 3, only 1 of them is experienced and able to identify the value of their
customers’ valuables’ worth. This difference stated shows that Choong Xin Pawnshop has
higher efficiency and Joo Ngien Pawnshop lacks of man power and technology advancement
to upgrade their efficiency.
In a nutshell, we have come to a conclusion that Choong Xin Pawnshop is more
commercially successful compared to Joo Ngien Pawnshop. This is due to the factors stated
above, namely strategic location, advancement of technology, good customer service and
high efficiency.

40
REFERENCES
1. Chin, F. (2015, October 30). Pawnshop business [Personal interview].
2. Diana, C. (Ed.). (2013, September 12). The pawn industry: Quick money at a price.
Retrieved November 23, 2015, from
http://www.freemalaysiatoday.com/category/leisure/2013/09/12/the-pawn-industry-quick-
money-at-a-price/
3. Donna, E. (Ed.). (n.d.). Ways to Make a Pawnshop Better. Retrieved November 23, 2015,
from http://smallbusiness.chron.com/ways-make-pawnshop-better-50526.html
4. History of Pawnbroking. (2013, July 30). Retrieved November 23, 2015, from
http://www.history.co.uk/shows/pawn-stars-uk/articles/history-of-pawnbroking
5. Ho, Y. (2015, November 7). Pawnshop business [Personal interview].
6. The History of Pawn Shops. (n.d.). Retrieved November 23, 2015, from
http://scribol.com/anthropology-and-history/the-history-of-pawn-shops
7. 典当业. (2015, June 29). Retrieved November 23, 2015, from
http://baike.baidu.com/view/1095582.htm
3.8. 杜君立：话说当铺历史--中国古人最长时间使用的银行. (n.d.). Retrieved November
23, 2015, from http://www.aboluowang.com/2014/0719/418544.html

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