WEBINAR SERIES: Global In-Market Updates

Malaysia

Adil AkbarSenior Business Development Manager (Investment & Trade) for South Australia, Austrade MalaysiaDepartment for Trade and Investment

Current Market Conditions• Movement Control Order (MCO) throughout the country from 18 March 2020 – 28 April

2020. Potentially extended again or it may end with more strict regulations for social distancing and gradual opening of certain sectors. Discourage mass gatherings, 6 months

• Malaysian cases has average between 100 – 200 cases daily for the past 2 weeks. Recovery rate is amongst the highest in the world at close to 50% .Low mortality rate at below 2%.

• Only essential services can operate. Some sectors allowed to operate. Borders remains closed. Interstate travel requires permission. Movements within 10km of your home.

• Politically stable, but with concerns on the ground. Political appointments happening.

• Economic stimulus worth RM260 Billion (AUD 94 Billion) announced. Financial systems remain robust. Currency outlook bearish in short term. GDP outlook downwards. Jobs losses: 1M – 2.4M

• The healthcare system is managing the situation well albeit under some strain conditions.

Strict Enforcement by the Authorities

Massive Roadblocks Nationwide

Enhanced MCO at Several Locations

Credit to Astro AwaniCredit to The Star Credit to Bernama

Drone Monitoring Nationwide

High Compliance Rate

Major Highway in Greater KL - LDP Malaysia – Singapore Causeway

Credit to Channel News Asia Credit to MS News

New Ways of Shopping

Personal Shopper-Aeon

Special Hours for Elderly Shoppers

Credit to Channel News AsiaCredit to Senawang TV

1 Meter Social Distancing Rule when Queuing

Increase Digital Usage

Digital Wallets Replacing Cash E-Hailing Buy4U Service

WhatsApp Order Service by Local Mini Market

Current Market Conditions (continued) • Retail Industry contracted 18.8% in Q1. Monthly household expenditure halved. Restaurants & hotels

decline by 86%. Gainer was Food & non-alcoholic beverage at 27%. Communication and education remains unchanged. Alcoholic beverages and tobacco steep decline of 64%. T20(59%) M40(48%) B40(41%)

• Internet usage increased by approx. 30%. Video conferencing, online learning, shopping and gaming. Slower internet speed. RM400M for network and infrastructure upgrade.

• SMEs are well managed and focused on their customers. Challenges to adapt to new normal. Businesses and consumers more careful in spending. More than 5 /10 are worried about their financials. Many worried about job prospects. Focusing on sustainability

• Schools will remain closed until the issue is fully under control. Public Exams expected to be delayed from PT3 until SPM. Home Based Learning focus including using TV content.

• Innovation - Greater interest on Artificial Intelligence by the Government and Businesses

• Logistics – Unprecedented demand on last mile delivery. Challenges on Air Freight.

• GP Clinics affected. 60 – 80% drop in demand. Shorten opening hours. Using phones

What you need to know• Services / Technology – more demand for innovation across logistics optimization,

retail, AI on health, online data, digital marketing. Smart Mobility – Grab 2022, Smart Townships, Interests on open data. 5G implementation in the race to implement Internet of Things (IoT), Big Data and AI. Multiple Pilot Projects. Practical solutions.

• Retail - Be updated on changing consumer behavior and new trends. E-commerce is booming. In-home dining – dry groceries, self indulgence F&B, hygiene prioritisation. Brand loyalty and experimentation. Customer experience is the new brand.

• Education & Training –impact on student intake period due to the public exams postponement. Demand for home based learning solutions. Technology / content that help mediate infrastructure challenges is preferred. Offline to Online content transfer. Digital skilling for corporates.

• Health & Medical – There is a need for more PPE in the market. COVID-19 ASEAN Respond Fund. Clinical studies on drugs to treat Covid-19 patients. Drugs and Medicine delivery by Hospitals. Telehealth demand for vulnerable groups, GP Clinics.

Reimagining Cities of The Future - KL

The New Normal

• Shift in consumers’ behaviour due to the pandemic and prolong social distancing. More home time, avoid public spaces and mass gatherings. Prioritising health, wellness and home care. New personas: The Market Observer, The Social Citizen, The Adaptive Shopper, The Resilient One, The Bored Homebody, The WFH Professional, The Health Nut, The Sad & Confused, The Home Fitness Freak. Pent-up / revenge spending by T20 Households.

• Changes in businesses behaviour– push factor for SMEs on adoption of technologies in their operation. Risk management on handling employees – reduce F2F meetings, WhatsApp. More open for working remotely. Brand affinity has a positive payback.

• Engage with your consumers. Reintroduce and reposition your brands to consumers. Address trust, safety, care and value. Creative advertising. Media consumption. Great opportunity to convert triallists into loyalists. Understand local context, eg. Festive seasons.

• Businesses tight margins - easy to implement, show cost savings, increase in productivity and or their bottom line. Work with your partners to navigate this new landscape. This market is about relationships.

Examples of Advertising In-Market

How DTI can help

Malaysia Based Support: Adil AkbarSenior Business Development Manger (Investment and Trade) for South Australia+60 (3) 2782 5619adil.akbar@austrade.gov.au

Daniel HavasSenior Trade and Investment Commissioner for Malaysia and Brunei+60 (3) 2782 5611daniel.havas@austrade.gov.au

DTI Adelaide Based Support:Sonya MadramootooSenior Market Development Officer, South East Asia+61 (8) 8303 2527sonya.madramootoo@sa.gov.au

* DTI Support programs – South Australia Export Accelerator Grants, Tradestart assistance