A Comprehensive Corporate Strategy for effective business environment change management and demonstration of state legal requirements to enter the Malaysia, Singapore & Indonesia
Global Business Consultancy Ltd. (GBC) is a pioneer in consultancy services, helping brands grow. It offers its services to various segments such as: 1. Start-Ups/MSME/MNCs 2. International/National Market Expansion 3. Product Portfolio Enhancement 4. Legal Consultancy 5. Project based Research & Analysis GBC has been helping companies for past 38 years and has a trusted client base including RBC Foods Ltd., Gymnasium Footwears Ltd., Sleepmore Polymers, Swastik Foundation to name a few. Global Business Consultancy was approached for international expansion by Ramalingam Foods (Tagline: Making Homemade Chefs Since 1965) which has a ready to cook product portfolio, predominantly South Indian food mix including dosa-idli instant mix powder, dhokla , gulab jamoon mix and filter coffee. GBC has decided the company to expand in Malaysia, Singapore and Indonesia of South-East Asia where there is huge south Indian population. The company would make greenfield expansion in Malaysia followed by export to Singapore (by road) and Indonesia (by waterways) from there. GBC has advised Ramalingam Foods to launch with current products at these three countries in this year with planned product portfolio enhancement over next two years. Ramalingam Foods will focus on R&D for product innovation (both authentic Indian and Indian themed foreign dish), marketing for extending reach cum brand building, world-class IT infrastructure for coping up with digital disruption, employee friendly productive HR policy. The regions for expansion have been chosen with a view to venture into new geographical areas as by means it already has a presence in Middle east, Southeast Asian countries and England.
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A Comprehensive Corporate Strategy for effective business environment change management and demonstration of state legal requirements to enter the Malaysia, Singapore & Indonesia
3. About Company
Brand Value
International-
Malaysia,
Singapore and
Indonesia
Ramalingam Foods is famous
for its South-Indian, North
Indian, desert and chutney
mixes, predominantly Dosa-
Idli batter, dhokla mix, Gulab
jamoon mix, filter coffee etc.
The company now wants international
expansion for mainly two reasons-
first, it found that there have been
unorganized sellers of their products
Which got popularities in
South East, Middle East
and England and second,
it wants to get outside
India to get good share of
large market
Need to prepare
various certificates
needed to accomplish
this legally and
companies expansion
plan & Strategy
Home Branch
India
4. General Manager
Apart
From this Case
1-Srategy to deal with changes in the
new business environment
2- Certifications needed
3- State legal requirements to enter
Main Objective
To prepare various certificates
needed to accomplish entry into
Malaysia, Singapore and Indonesia
Since there are lots of differences
in customer behavior, work culture,
Govt. regulations etc., it is required
to formulate strategy to comply
with the change in business
environment evolving from this
international expansion
To find the legal requirements
needed to enter and set-up
manufacturing unit at Malaysia and
for exporting in Singapore and
Indonesia
5. Strategy in New Business
Environment
Adapt your Rhythm
Watch the competition
Improve the Internal
Process in
Organization
Environmental Impact
on Business
Adapt and Change as
the Environment
Changes
Strategy in the New
Business
Environment
“Adaptation to change is not made in a day”!
6. Barrier Vs Solution
Barrier
1. Not enough understanding about
the change itself
2. Lack of leadership
3. No engagement and/or buy-in of
key stakeholders
4. No clear process for managing
endings and beginnings, and co-
ordination the change process
5. Progress is not measured and
the learning is not reviewed
Solution
1. Constantly track changes by internal and customer
survey by Ramalingam Foods
2. Appointment of experienced personnel in
Malaysia, Singapore and Indonesia
3. Proper and in time communication to all
stakeholder of Ramalingam Foods
4. Dedicated personnel would be given responsibility
to develop change management module
5. Continuous knowledge transfer and training to
employees by Ramalingam Foods
New Environment
7. Incorporation
To incorporate a company, an
application must be made to the SSM
through the MyCoID 2016 Portal
Company Structure
The Act stipulates that a company must be
registered with the SSM in order to engage
in any business activity
GST License
The maximum income tax rate in
Malaysia is 26% while the corporate tax
rate is 24% and the SST rate is 6%
Registration of
Foreign Companies
Registration of Foreign Company Sec 562(1) CA
2016 - applicants must submit the following
registration documents to the SSM thirty (30)
days from the date of approval
E-Services
Payments can be made via credit card,
direct debit or prepaid accounts.
Legal Process
Legal Aspects in
Malaysia Government
8. Manufacturing
Employees
Provident Fund Act
The Employees Provident Fund Act 1991
stipulates a compulsory contribution for
employees.
Employment Act
The main legislation, the Employment Act
1955 applies to all employees in
Peninsular Malaysia and the Federal
Territory of Labuan
Human Resource
Fund
Employers who have paid the levy
will qualify for training grants from
the fund to defray or subsidies
training costs for their Malaysian
employees
Labour Cost
The common types of
leave provided by companies include
annual leave, public holiday, sick leave,
maternity leave and compassionate leave
Employees’ Social
Security Act
Employment Injury Insurance Scheme
Invalidity Scheme
Workmen's Compensation
Act
The Act provides for the payment of compensation
for injuries sustained in accidents during
employment and imposes an obligation on the
employers to insure workers.
Step 5
Step 4
Step 3
Step 2
Step 1 Step 6
Legal Aspects in
Malaysia Government
Industrial Relations - Non-Unionized Establishments
9. Intellectual Property Protection
TRADE MARK
Trade mark protection is governed
by the Trade Marks Act 1976 and
the Trade Marks Regulations 1997.
The period of protection is ten
years, renewable for a period of
every ten years thereafter.
PATENTS
The Patents Act 1983 and the
Patents Regulations 1986 govern
patent protection in Malaysia.
Protection period is of 20 years
COPYRIGHT
the Copyright Act 1987 provides
comprehensive protection for
copyrightable work
the life of the author and 50 years
after his death. In sound
recordings, broadcasts and films,
copyright protection is for 50 years
after the works are first published
or made.
10. Licenses and Certificates Required
Export License
To obtain the license, an exporter
No Objection Certificate for Exports
Country of Origin Certificate
Importer Exporter Code (IEC) issued by the DGFT
FSSAI Food Business License
Bill of Entry
The end-use declaration, a declaration that food is not GM
food
Besides this, depending on individual import items, other
documents may be required.
FSSAI Certificate Export License
No Objection
Certificate for
Exports
HACCP
Certificate
HALAL
Certification
FSSAI Certificate
To manufacture, distribute and
transport food products. The FSSAI
has been established under the
Food Safety and Standards Act,
2006.
HACCP Certificate
The Malaysian Certification Scheme for
Hazard Analysis and Critical Control Point
system
Certification is subject to renewal every
two years. New Cost – RM 4505 and
Renewal Cost - RM 600.00
FSSAI CertificateFSSAI 2016
Export License
HALAL Certification
HEALTH MINISTRY
CREDIBLE FOREIGN HALAL
CERTIFICATION
HACCP CertificateGRANTED,FOOD PRODUCT
No ObjectionLicense to export
HALAL Certification
Department of Islamic Development Malaysia (JAKIM is
responsible for the Islamic affairs including halal
certification in Malaysia. JAKIM requires a reputable and
credible foreign halal certification bodies
11. Exporting process - Malaysia to
Singapore in Roadway
Permit
The party who imports goods into
Singapore for their own account or
use or for the account or use of
some other person is considered to
be an importer.
Customer Account
Unique Entity Number (UEN) by registering with the
Accounting and Corporate Regulatory Authority (ACRA),
or another relevant UEN issuance agency, which will
allow the importer to activate its Customs Account.
About Singapore
It is separated from Malaysia by
the Straits of Johor, and from
Indonesia's Riau Islands by the
Singapore Strait
Export
GST and duty are not levied on
goods exported from Singapore.
The Free on Board (FOB) value of
the goods in the export permit
application. A Customs export
permit is required for export
12. Exporting process - Malaysia
(Johor) to Indonesia in Vessels
Term and conditions may
include Minimum Export
Price (MEP), registration
with specified authorities,
quantitative ceilings and
compliance with other
laws, rules, regulations.
Export Process
Indonesia
It consists of more
than 17000 islands,
including Sumatra, Java,
Borneo (Kalimantan), Sula
wesi, and New
Guinea (Papua).
To determine the license
is needed to export a
particular commercial
product or service
Product
Export License
Schedule 2 of ITC (HS)
Classifications of Export
and Import items
13. Exchange - Bank Negara
Malaysia
MANDATORY
DOCUMENTS
IMPORTS
•Bill of Entry
•Commercial invoice
• Packing List
•Bill of Lading
•Foreign Exchange Control Form (Form A-1)
•Terminal Handling Receipt
•Certified Engineer's Report
•Cargo Release Order
•Product manual
•Inspection report
EXPORTS
•Shipping Bill
•Commercial Invoice
•Packing List
•Bill of Lading
•Foreign Exchange Control Form (SDF)
•Terminal Handling Receipt
•Technical Standard Certificate
Bank Negara Malaysia (BNM) is empowered to act
as the regulator of banking institutions under the
FSA, the IFSA and the Central Bank of Malaysia
Act 2009 (CBA).
14. Approval Process Malaysia to
Indonesia Vessels
Exporter a unique e-IEC Number
(Electronic-Importer Exporter Code). IEC
Number is a ten digits code required for
the purpose of export as well as import.
The promotion of various goods exported
from Malaysia in international market.
EPC (Export Promotion Councils) works in
close association with the Minister of
International Trade and Industry
(Malaysia)
DPJ (Directorate General of Taxes) governs
Indonesia’s tax system, helps develop a
stronger economy, better environment and
a more vibrant economy
Registration with
Export Promotion
Council
API-U (General Import
License)
Registration with
Director General of
Foreign Trade (DGFT)
Registration with Tax
Authorities – Malaysia
to Indonesia
This Indonesian license may be used to
import finished products or to trade goods
with a third party
15. Export Documents
Manufacturer's
Certificate
Black List
Certificate
Certificate of
Chemical Analysis
Cart/ Lorry Ticket
Shut out Advice
Short Shipment Form
Consular Invoice
Certified Invoice
Legalized / Visited
Invoice
Customs
Declaration Form
Certificate of
Shipment
Shipping Bill / Bill
of Export
Dispatch Note
Customs Invoice
Certificate of
Inspection
Shipping Order
Health/ Veterinary/
Sanitary Certification
Export
Documents
Packing List
Antiquity
Measurement
Certificate of
Conditioning
MANDATORY DOCUMENTS FOR EXPORT & IMPORT
S.
No
EXPORTS IMPORTS
1 Bill of Lading/ Airway Bill Bill of Lading/ Airway Bill
2
Commercial Invoice cum
Packing List
Commercial Invoice cum
Packing List
3 Shipping Bill/ Bill of Export Bill of Entry
16. Bonded Warehouse – Indonesia
BONDED WAREHOUSE
A Bonded Warehouse can only store
imported goods and is prohibited from
storing goods from other areas
THE
SOLUTION(S)
Bonded Storage Areas, pursuant to
Government Regulation No. 32 of 2009,
as recently amended by Government
Regulation No. 85 of 2015 ("Bonded
Storage Regulation"), are areas that
fulfill specific requirements which are
used to store goods and receive certain
facilities
17. High Priority
Medium Priority
Milestones:
Low Priority
1965 1975 1985 1990 2010 20201965
95%
100%
100%
95%
5%
20%
5%
Defects Rectified
Successful Ramalingam
International Business
2030-2040
Result.?
PHASE 1
PHASE 2
1st Generation
Task 2
Vijay Ramalingam 2nd Generation
Timelines.!
Fast Rood Restaurant