2016 APRC Conference, Tokyo

Presentation by

Datin Kalavalli Sethu
President of Marketing Research Society Malaysia
Founder and Managing Director of Compass Insights Sdn Bhd

1

Theme 1 : Inviting Inbound Work Into Malaysia

Attractiveness of Malaysian Market• economy-socio-demography• major consumers trends2Macro view of the Malaysian economy (Q1’16) – more gloomy than glowy
BCI dives below threshold point to 83.9.

Inflation rate roses 1.5% YoY in

Sept’16, slowing from a 4.2% increase inFeb’16. Price increase in food, housing &utilities eases while while transportation costdeclines.

Ringgit is expected to trade at 4.3 by

Business condition remains challenging withslow down in sales & production, decline inlocal and export orders and rising stocklevels.

CSI CSI dips q-o-q to 73.6. Jobs improved,

Consumer price decreased to

GDP expanded 0.7% in Q2/2016 overbut fears of rising prices remain. As such
Consumers may watch their spending. Job
worries weigh on consumer sentiments

3

115.3 Index Points in Sept 2016 from highest
115.6 Index Points just a month earlier.

end of 2016. MYR reached all time high of
4.71 in Jan1998 and record low of 2.10 in
Oct 1978previous quarter. GDP growth rate averaged
1.28% from 2000 until 2016; all time high of
5.9% in Q3/2009 and record low of -7.6% in
Q1/2009

Malaysian consumer confidence remains stable at the start of 2016, at 79% (dipping
one point from previous quarter).

SOURCE: NIELSEN CONSUMER CONFIDENE REPORT

4

With no real changes in economic outlook, Malaysians’ confidence remains low.
This trend is expected to continue until the pressure on the Ringgit eases.
Priority will be on savings rather than spending

SOURCE: NIELSEN CONSUMER CONFIDENCE REPORT

5

CPI for food categories (i.e. Food & Non-Alcoholic Beverages, Food at home & Food out from home)have registered slight uplift.

Consumer Price Index (CPI)Oct –Dec 14Index

Jan –Mar 15
Index

Apr– Jun
15 Index

Jul-Sep
15 Index

OctDec’15
Index

JanFeb’16
Index

111.7

110.5

111.6

113.8

114.6

114.5

Food &NA Bev.

115.9

117.4

117.2

120.4

121.1

122.2

Food At
Home

115.6

117.9

114.4

120.3

120.8

122.8

Food OOH

117.7

118.4

116.2

121.9

122.8

124.1

Rest. /Hotels

118

118.9

120.1

122.8

123.5

124.2

130
125

Total

120
115
110

100

Jan'13
Feb'13
Mar'13Apr'13
May'13
Jun'13
Jul'13
Aug'13
Sep'13
Oct'13
Nov'13
Dec'13
Jan'14
Feb'14Mar'14Apr'14
May'14
Jun'14
Jul'14
Aug'14
Sep'14
Oct'14
Nov'14
Dec'14Jan'15
Feb'15Mar'15Apr'15May'15
Jun'15
Jul'15
Aug'15
Sep'15Oct'15
Nov'15
Dec'15Jan'16
Feb'16105

Food
Food At Home
Food Away From Home

SOURCE : Department of statistics, Malaysia, http://www.statistics.gov.my/

6

Both individuals & businesses are facing challenging times
 Rising cost of living (i.e hike in transportation fare, toll rates, natural gas, cigarette taxes, removal of rebates for electricity) Declining purchasing power

Besides the GST, Malaysian consumers and businesses have had to contend with thehike in public transportation fares, natural gas tariff hike for commercial and industrial
users as well as higher toll rates for certain major highways in and around the Klang
Valley.
The drastic rise in cigarette taxes from Nov 4 was felt by smokers and showed up in theNovember consumer price index (CPI).
Starting from January, heavier users of electricity would have to pay more, as rebates
would be cut.

“We expect Malaysian consumers’ purchasing power will
decline further. The recent toll hikes will lead to anotherround of price increases in the next few months”.
Budget 2016 did not provide incentives that will spur
consumers’ spending in next year’s first half.

7

Households with kids struggle to keep up with price increase for children’s essential items(e.g. uniforms, stationery, canteen food, bus fares).

As children across the nation scurry back to school,
parents struggle to keep up with the various pricehikes that the new school year presents.
These price hikes include the cost of school supplies
like stationery and uniforms, tuition fees, bus fares
and even canteen food.

Parents may face additional financial burden next year as school bus
operators look to hike their fares to cope with the Goods andServices Tax (GST).

8

Among Chinese consumers  CNY vendor sales dipped by >30%.
Retailers are less hopeful as the unfavourable economic prospects and diminishingpurchasing power are making consumers more cautious in their festive season spending“While (demand for) quite a number of items, like
Mandarin oranges, dried meat and canned seafood,are always on the rise during the festive season, I
do expect some consumers like myself to settle forcheaper grades of items this time around.”9

Seeing students struggling in universities due to lack of money (even to eat) is not new.
But with the rising cost of living, it is a serious issue now.

A survey of 25,632 students in six public universities foundthat 96% of students questioned felt burdened by the
economic situation and 74% had no money to buy meals.
More than half of respondents could only spend MYR5 / dayeating (44% only eat rice with fried egg and 41% only eat
instant noodles).

10Malaysian consumers are getting fast entrenched into mobile technology and digital world11

Malaysia is among the most connected markets globally – Internet use is well into themainstream
Internet penetration (weekly internet usage) bell curve for 48 markets
Vietnam
50%
Malaysia 201455%

MCMC : 68%

Malaysia 2015
67%

India
22%

UK
80%
Norway92%

0% Internet
penetration

Users predominantly early
adopters

Source : 2014 - 2015 Google CCS Program

Full methodology in full report (Appendix)

12

Users predominantly
higher income

Users now
mainstream

100% Internet
penetration

Users now close to total
market, including late adoptersSmartphone penetration growth is pronounced since 2014, with all other devices seeing uptake
as feature phones further die out
Device ownership
%

97
95

Malaysia 2015:
Average number ofdevices owned*

3.0

2.9

62

74

56
49

48

22
21

Feature phone
Malaysia 2014:
Average number ofdevices owned*

81

Smartphone

33

TabletLaptop45

45
76

Ownership

Desktop69

Ownership + Intention to buy

SOURCE: TNS CONNECTED LIFE REPORT 201513

Malaysia is the strongest Leader market globally!
(in terms of how socially active they are on internet and instant messaging)
Fragmentation of social and IM platforms
Average number of platforms used daily

Functional

Connector

LeaderObserver

5
4
3
2
1

2014

2015

Based on 3 Social Engagement Attributes and 7 Digital Influence Attributes
Base: Global 2015 (53,495) | Global 2014 (49,302)

SOURCE: TNS CONNECTED LIFE REPORT 2015

14

Malaysia

Singapore

UAE

TaiwanHong Kong

IsraelRussiaSouth Korea

Italy

Spain

Australia

NorwayUSA

CanadaUK

Portugal

Slovakia

Belgium

Netherlands

Austria

FranceSwedenSwitzerland

Germany

Czech Republic

GreeceHungary

New Zealand

DenmarkJapan

Finland

Saudi Arabia

MexicoColombia

TurkeyChina

ThailandGhana

NigeriaSouth Africa

VietnamIndonesia

Philippines

Kenya

0

Top 5 consumer trends in Malaysia
 Facing multiple financial issues, many consumers cut spending Tougher credit requirements place home ownership out of reach for manyConsumers’ desire for home ownership unabated by rising property prices

Households cutting spending to counter rising energy costs

 Consumers increasingly shopping online

 Holiday-makers increasingly opting for domestic destinations

 Consumers preparing more meals at home, cut spending on dining outConsumers adopting healthier eating habitsGreater demand for halal food
SOURCE: EUROMONITOR

15

Halal is big business in Malaysia• Halal means ‘permissible’ in Arabic.
• Large majority of the population in Malaysia comprises of Malay Muslims.

Malaysians' Population As
At 2010• Malaysia is leading global halal hub with an annual export value of RM35.4 billion for halal products, which
contributes approximately 5.1% of the total exports for the country.

1%7%• Estimated global market value for Halal business is USD2.30 trillion.
• JAKIM (Department of Islamic Development Malaysia) was world’s first halal certification body responsible
for monitoring halal industry  leading to amendment of Malaysia’s Trade Description Act in 2011  thisgives JAKIM much stronger mandate to regulate the halal industry• Malaysia plays host to 2 most important annual halal events, playing pivotal role in building Malaysia’s
reputation as global reference and trade centre for new mainstream halal industry since 2003

1. Malaysia International Halal Showcase (MIHAS)
2. World Halal Forum (WHF)• With government’s full support and heavy involvements, Malaysia’s credibility and leadership in the halal
sector is recognised by Organisation of Islamic Cooperation (OIC).
• Malaysia provides the world’s first halal in-flight catering on board its national carrier, Malaysia Airlines.

• Malaysian halal standard is now widely used by even renowned MNCs such as Nestlé, Colgate Palmoliveand Unilever.
• Malaysia’s halal portfolio expanded beyond food and beverage into cosmetics, logistics, pharmaceutical,
banking and tourism sectors
Source:1.
http://www.itc.gov.my/tourists/discover-the-muslim-friendly-malaysia/malaysia-the-worlds-leading-halal-hub/2.
http://www.panduanmalaysia.com/2013/01/statistik-terkini-penduduk-malaysia.html

16Bumiputera
25%

ChineseIndian67%

OthersMalaysia is conducive for foreign investors

Source: Guide On Pharmaceutical Industry In Malaysia Page1217

Malaysian officials visit bigger countries seeking for bilateral trade deals

18

Theme 2

Expectations Or Interest of Malaysians Towards Japan• Products/Services• Tourism• Cultural

19

Malaysia imports from 202 countries, so it is no surprise share of Japan is only around 8% butthat accounts for RM632mil
Total Import of Malaysia from Japan 2000-2015 By SITC Categories (RM)
682,937,147,307

700,000,000,000

685,390,710,981

648,694,873,307
606,676,949,806
600,000,000,000

628,225,368,157 631,802,391,983

573,626,326,352

592,334,953,332

528,828,183,337

519,804,293,717
502,044,624,342

544,303,420,207

478,147,922,564

500,000,000,000

434,669,802,283
508,264,314,900

432,870,797,663
462,293,384,279

454,926,516,305

399,632,170,928

437,245,477,236

400,000,000,000

414,635,111,277
311,458,868,267

303,090,465,492
280,229,093,025

300,000,000,000

380,353,445,650

370,097,328,410

316,537,853,174

Japan
Other 201 Countries
Total Imports

335,243,551,977

245,946,283,255
249,188,097,064

200,000,000,000

100,000,000,000

262,499,324,501

226,479,209,241

65,512,585,012

64,799,147,106

62,773,469,253

54,038,528,673

53,749,883,784

64,877,777,412

63,512,811,287

64,388,618,951

53,902,368,428

66,534,799,058
65,362,011,452

54,316,356,633

54,711,779,150

62,373,529,599
56,359,919,975

53,588,318,998

0

2000

2001

2002

2003

2004

2005

2006

2007

Source: http://trade.stats.gov.my/tradeV2/

20

2008

2009

2010

2011

2012

2013

2014

2015

Import from China and Singapore is growing over the years
Total Import of Malaysia from Japan & Other Countries 2000-2015 By SITC Categories (RM)
682,937,147,307
685,390,710,981

700,000,000,000
648,694,873,307
606,676,949,806
600,000,000,000

Japan

573,626,326,352

China
USA

528,828,183,337

519,804,293,717

Singapore

502,044,624,342
478,147,922,564

500,000,000,000

Other 196 Countries

434,669,802,283

Total Imports

432,870,797,663
399,632,170,928
400,000,000,000

374,450,702,537
355,138,586,888
311,458,868,267

303,090,465,492

322,874,534,384

316,537,853,174

303,452,850,320
280,709,509,816

280,229,093,025

300,000,000,000

365,014,059,849

279,326,945,040

258,674,654,239
234,010,395,353
193,829,228,737

215,731,018,343

205,382,368,132

200,000,000,000
137,186,282,855 131,773,206,838 140,054,548,795

100,000,000,000

65,512,585,012
51,743,942,073

53,749,883,784
44,881,336,691
35,351,973,518

53,902,368,428
49,554,925,911
36,249,538,785

149,010,545,601

64,388,618,951
54,038,528,673
57,862,911,691
48,716,711,159
44,277,686,556
37,141,635,943

44,695,546,086

0

21

12,320,512,241

2000

14,472,692,194

23,329,083,573

27,630,431,798

2001

2002

2003

62,773,469,253
55,869,132,835
58,259,604,954

63,512,811,287
60,068,051,792
64,712,667,982

66,853,661,263
64,799,147,106
54,157,662,985

50,586,222,489

55,843,996,150

57,559,498,749

2005

2006

2007

64,877,777,412
61,025,653,247
56,134,953,663

66,429,785,195
54,316,356,633
48,833,532,956

57,056,399,579

49,359,109,156

2008

2009

39,273,724,993

2004

75,706,497,649
66,429,785,195
73,699,477,848
66,534,799,058

91,863,923,782
80,476,342,355

106,264,794,115

115,513,139,845

80,249,180,736
56,359,919,975

60,277,770,309
56,258,883,735

65,362,011,452
55,405,489,083

2010

2011

129,360,046,611

82,096,523,706
85,886,980,813
54,711,779,150
55,331,761,817

62,373,529,599
49,088,619,686

50,682,391,593

53,588,318,998
52,374,544,962

2012

2013

2014

2015

Malaysia’s biggest import is Machinery & Transport Equipment followed by Manufactured Goods,
Mineral Fuels, Lubricants etc and Chemicals
Total Import of Malaysia 2000-2015 By SITC Categories (RM)
100%

4%
0.2%
2%
5%
0.2%
7%

90%

4%
0.3%
2%
5%
0.3%
7%

4%
0.4%
2%
5%
0.4%
7%

4%
0.4%
2%
6%
0.4%
7%

80%
10%

10%

10%

4%
0.3%
3%

4%
0.3%
2%

4%
0.3%
3%

5%
0.3%
3%

6%
1%
8%

8%
0.5%
8%

9%

9%

1%
8%

1%
8%

10%
11%

70%

5%
0.4%
4%

6%
0.5%
3%

6%
0.4%
4%

11%

8%

10%

1%
9%

11%

12%

1%
9%

6%
1%
4%

6%
1%
4%

12%

14%

16%

17%

2%

1%

1%

9%

9%

10%

12%

13%

13%

1%
9%

2%
9%

13%

13%

12%

6%
1%
4%

6%
1%
3%

7%
1%
3%
12%
1%

Code 0:Food
Code 1:Beverages & Tobacco
Code 2:Crude Materials, Inedible

10%

Code 3:Mineral Fuels, Lubricants, Etc.

12%

60%

13%

13%

50%

Code 4:Animal And Vegetable Oils & Fats

Code 5:Chemicals

40%

63%

61%

62%

62%

58%

57%

56%

Code 6:Manufactured Goods
53%

30%

49%

51%

49%

45%

44%

43%

42%

43%

Code 7:Machinery & Transport Equipment

Page 22

6%

6%

6%

6%

3%

3%

3%

5%
3%

5%
3%

5%
3%

6%
3%

6%
2%

6%
2%

6%
2%

6%
2%

6%
2%

6%
2%

7%

3%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

399,632,170,928

432,870,797,663

478,147,922,564

502,044,624,342

519,804,293,717

434,669,802,283

528,828,183,337

573,626,326,352

606,676,949,806

648,694,873,307

682,937,147,307

685,390,710,981

TOTAL by YEAR

0%

6%
3%

316,537,853,174

Code 9:Miscellaneous Transactions & Commodities

303,090,465,492

10%

280,229,093,025

Code 8:Miscellaneous Manufactured Articles

311,458,868,267

20%

2%

From Japan, Malaysia biggest import are Machinery & Transport Equipment followed by Mineral
Fuels, Lubricants +Total Import of Malaysia from Japan 2000-2015 By SITC Categories (RM)
100%

0.1%
0.02%
1%
0.1%
0.03%
7%

0.1%
0.03%
1%
0.1%
0.03%
7%

0.1%
0.02%
1%
0.1%
0.04%
8%

0.1%
0.02%
1%
0.1%
0.03%
7%

0.1%
0.03%
1%
0.1%
0.03%
7%

0.1%
0.03%
1%
0.1%
0.02%
8%

0.1%
0.03%
1%
0.2%
0.03%
7%

0.2%
0.02%
1%
0.1%
0.03%
8%

0.3%
0.02%
1%
0.2%
0.05%
8%

0.3%
0.03%
2%
0.2%
0.03%
8%

0.3%
0.06%
1%
0.4%
0.03%
8%

0.3%
0.05%
2%
0.2%
0.03%

0.4%
0.04%
1%
0.4%
0.05%

9%

9%

90%
14%

15%

15%

15%

17%

80%

17%

0.4%
0.04%
2%
3%
0.02%

0.4%
0.06%
2%
2%
0.03%

1%
0.1%
2%
1%
0.04%

9%

10%

10%

Code 0:Food
Code 1:Beverages & Tobacco

19%

20%

22%

18%

20%

22%

22%
24%

23%

19%

Code 2:Crude Materials, Inedible70%
Code 3:Mineral Fuels, Lubricants, Etc.
60%
Code 4:Animal And Vegetable Oils & Fats
50%
70%

67%

65%

65%

64%

40%

64%

Code 5:Chemicals
60%

60%

59%

60%

58%

54%

57%
54%

54%

57%

Code 6:Manufactured Goods

30%
Code 7:Machinery & Transport Equipment
20%

Page 23

8%

4%

5%

4%

2004

2005

2006

2007

63,512,811,287

64,799,147,106

2001

2002

2003

53,902,368,428

54,038,528,673

1%

1%

2008

2009

2010

9%

8%

9%

1%

8%
1%

1%

1%

2011

2012

2013

2014

2015
53,588,318,998

2000

3%

54,711,779,150

4%56,359,919,975

4%

62,373,529,599

4%

12%

65,362,011,452

3%

11%

66,534,799,058

6%

6%

54,316,356,633

5%

7%

64,877,777,412

6%

8%

6%

53,749,883,784

8%

6%
2%

65,512,585,012

TOTAL by YEAR

0%7%62,773,469,253

10%

64,388,618,951

Code 8:Miscellaneous Manufactured Articles
Code 9:Miscellaneous Transactions & Commodities

Japan is only one of several countries Malaysia imports Machinery and Transport Equipment, so
plenty of opportunity for Japan to increase its share
Total Code 7: Machinery and Transport Equipment (RM), Import of Malaysia 2000-2015

700,000,000,000

600,000,000,000

Japan
China
USA
Singapore
Other Countries
Total Imports

500,000,000,000

400,000,000,000

300,000,000,000

266,662,988,413 267,349,682,519
248,767,525,563

254,282,970,999

232,491,296,972
195,727,987,401

200,000,000,000

100,000,000,000

187,969,238,634

261,591,113,086 255,279,744,508 266,469,850,124

297,064,288,693

222,364,139,903

169,608,995,403

65,512,585,012
57,213,024,394
53,902,368,428
39,294,659,811 53,749,883,784
60,592,303,286
27,374,541,370 53,855,215,745
32,974,882,699 38,880,374,328
20,264,289,023 19,760,529,820

6,333,176,814

2000

24

285,547,578,125

195,328,532,586

64,388,618,951 86,305,189,805 93,009,746,782
54,038,528,673 76,919,676,614
41,684,490,369 43,851,475,278
66,176,648,608
23,183,942,834 25,871,288,492
38,370,439,578 44,023,226,010
20,692,803,907
18,605,392,880
62,773,469,253 63,512,811,287

98,943,462,140
36,706,428,669
24,633,819,382

87,295,532,314 70,668,853,810
39,003,657,563 54,316,356,633
20,544,447,296 34,038,277,774
64,799,147,106 64,877,777,412 22,669,684,333

92,298,038,555
38,236,616,394
24,676,034,807

80,845,845,140
36,229,993,975
28,700,006,862

66,534,799,058
65,362,011,452

0276,277,976,465

8,764,724,152

2001

14,833,662,772

2002

18,137,522,847

26,466,971,490

2003

2004

34,820,433,302

40,417,666,574

42,266,825,222

42,561,556,414

2005

2006

2007

2008

90,616,845,436
30,730,781,805

102,883,568,672 108,105,531,271 109,161,542,848
35,072,088,434
32,596,048,213 33,662,540,034

62,373,529,599

62,096,083,834

63,983,859,578

67,150,985,412

56,506,371,981

56,359,919,975

54,711,779,150

53,588,318,998

40,670,967,353

39,845,624,272

44,141,887,079

26,242,321,303

22,342,355,771

25,083,868,092

32,091,353,001

2009

2010

2011

2012

2013

2014

2015

Visitors arrival to Japan is on the increase driven by Tourists
Visitors’ Arrival to Japan – Total vs By Type2,000,000

1,918,356
1,817,023 1,829,265

Total

1,800,000

TouristBusiness

1,764,691

Others1,773,130

1,712,803
1,647,550
1,641,734
1,612,208
1,602,198 1,584,484
1,599,537
1,564,772
1,528,848
1,525,879

1,600,000

1,411,626
1,398,845

1,386,982
1,231,471
1,200,000

1,270,048

1,399,516
1,346,488

1,400,000

1,271,705

1,236,489
1,236,073
1,218,393
1,207,242
1,168,427

1,109,569
1,099,102
1,097,211 1,080,552
1,074,350
1,055,273
1,050,559
1,029,922
1,020,474
978,476
944,009943,831923,017 901,066 906,379 928,560
903,919
892,577
866,966
866,883
864,491 880,020
857,024 875,408
846,241
839,891
819,985
802,434
1,003,032

1,000,000

847,194
779,481800,000 714,099

681,786

679,393774,239

729,460 719,277 720,877
705,848 689,679
676,551
658,239 648,548 668,610
624,502592,809544,731 559,949

676,662

615,701
582,655
572,101
561,489
546,503546,451
538,727 551,571
511,443
486,156
452,710 473,792
432,883
404,377 423,650
396,559
373,195
364,800
358,056
352,676 357,783
323,947
295,826 282,118

600,000 505,543
506,441

400,000

716,059

682,932
667,046
666,603480,255
455,666
430,025

730,519710,030
688,902702,911628,688627,679

456,009

190,730

183,799
173,986
166,456
158,866
158,451
151,984
151,752
145,637
144,808
143,498
142,464
140,783
139,879
139,608
138,697
134,254
131,296130,166
129,963
128,430
128,535
128,235
128,180
126,504
126,044
125,646
124,113
123,709
123,751 135,563
122,506
120,915 128,692
120,411 126,883 137,739 110,762
120,258
118,741
117,300
114,641
114,132
111,276
108,820
108,493
108,056
106,479
104,275
103,202101,352
100,286
100,213
98,14396437
94,01591,02089,301
88,94575,95356,643

200,000 111,444
109,951

Source: www.tourism.jp
www.tourism.jp/wp/wp-content/uploads/2012/11/JTM_inbound20160526.xls

25

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2015 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

Apr．

May．

Mar．

Feb．

2014 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2013 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

Apr．

May．

Mar．

Feb．

2012 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

131,466
130,363
118,407
117,298
117,411 137,406
110,595
105,437
104,997 108,246
101,839 106,018
101,331
98,037
97,487
97,11296,30596,23587,644
93,78672,713
90,41084,68384,36397,48067,826
83,33265,730
82,81774,67159,85565,745
80,84159,451
79,95678,09470,622
74,04862,317
72,377
65,23665,09964,82451,23160,180
64,65674,257
63,00185,993
57,94255,14348,511
55,244
54,14562,132
52,73248,165
51,25949,41356,874

2011 Jan．

-

There are 44 nations visiting Japan; Malaysia has a weak minority share. While weak currency isa potential issue, plenty can be done to induce Malaysian tourists
Visitors’ Arrival to Japan – Total vs By Country
2,000,000

1,918,356
1,817,023 1,829,265
1,764,691

1,800,000

Total Visitors

Malaysia

Korea

China

Other 41 Countries

1,641,734
1,602,198

1,612,208

1,773,130

1,647,550

1,525,879

1,600,000

1,386,982
1,400,000

1,231,471
1,200,000

1,050,559

1,270,048

1,271,705

1,236,073
1,218,393
1,168,427

1,109,569
1,099,102
1,097,211
1,055,273

1,024,785

1,003,032
847,194
779,481800,000 714,099

600,000

984,373
977,735
960,176
913,378885,274
869,921822,241
798,055

891,409821,749774,894735,892
713,557 721,749
694,254
687,057
657,610
621,774
619,225
594,401

774,239

729,460
705,848 689,679
658,239 648,548 668,610

682,932
667,046

681,786 676,662
615,701
572,101
561,489
546,503546,451
538,727 551,571

679,393944,009906,379 928,560
866,966
864,491 880,020
839,891

923,017 901,066
857,024 875,408

1,000,000

651,045
631,192
609,206
603,912 580,803
556,549
550,154
540,897534,585
534,412518,926
517,642
496,173

466,143456,650445,318
591,510420,172 403,185
576,868
415,656
397,828
396,373 374,487
390,971 370,842
385,321385,022
381,382
370,226
363,245359,845
358,093357,783
354,244352,676
343,799
339,811337,305491,201
333,258
328,743
400,000
321,576 304,619
317,684
315,389462,248
301,645
295,826
295,258
291,614445,562
288,106
270,903
268,368
268,156
262,964
255,517251,504
251,428 249,577
250,741
405,731
243,992
234,456
234,390
231,640
231,502387,170
228,670
217,689 239,029
215,498
211,465
207,588
206,946
362,950204,229
201,764
359,080
199,950
195,622 211,022
195,263
193,998
192,078
189,701
347,034
183,557
182,846
338,121173,000
170,901
169,025
168,150
164,499
158,273
157,141
152,410
152,323
152,131150,291
147,030 132,259
145,742
141,536
140,053
134,009200,000
281,309
122,436
103,817
253,80289,121
246,105
84,014
226,214223,214
63,790207,462204,270
39,48150,264
39,305
190,558
189,973
184,064
25,16623,372
22,607
17,02916,2499,93816,08324,02027,682
173,046
13,96114,109
12,31219,26928,19329,55625,79718,52519,95412,30121,30728,488
12,22212,7318,445 7,905190,254
11,68117,76026,15328,524
10,951
165,784
7,734 9,44211,33515,17017,2217,60910,98213,40114,71615,0139,802 9,929162,288
6,789 9,133 5,483 3,462 4,139 4,683 5,730 5,219 8,540 7,042 7,72413,5728,876 7,35411,748
156,201
155,605
148,793
139,905
138,236
136,665 129,302
125,983
121,673
121,335
112,493
112,152
106,174
105,362
102,640
102,265
101,940
100,160
99,131
98,996
96,572
92,15479,688
86,963
81,966
81,571
69,71351,99352,33672,30180,903
62,45076,16458,60861,419

Source: www.tourism.jp
www.tourism.jp/wp/wp-content/uploads/2012/11/JTM_inbound20160526.xls

26

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2015 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

Apr．

May．

Mar．

Feb．

2014 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2013 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

Apr．

May．

Mar．

Feb．

2012 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2011 Jan．

432,883

Cherry Blossom Season appears to sharply drive visitorship to Japan, an opportunity to promotethat in Malaysia
Visitors’ Arrival to Japan – Total
2,000,000

1,918,356
1,817,023 1,829,265
1,764,691

1,800,000

11 March 2011 - Tōhoku
earthquake & tsunami

1,600,000

1,641,734
1,602,198

1,386,982

11 April 2011 Fukushima earthquake

1,200,000

1,647,550

1,525,879

July – Summer, Mount Fuji
open for climbing

1,400,000

1,612,208

1,773,130

1,231,471

1,050,559

1,270,048

1,271,705

1,236,073
1,218,393
1,168,427

1,109,569
1,099,102
1,097,211
1,055,273

1,003,032
847,194
779,481800,000 714,099

681,786

679,393615,701
572,101
561,489
546,503538,727 551,571

600,000

774,239

729,460
705,848 689,679
658,239 648,548 668,610

682,932
667,046

676,662

944,009906,379 928,560
866,966
864,491 880,020
839,891

923,017 901,066
857,024 875,408

1,000,000

546,451432,883

April – Cherry Blossom
Season (Sakura)352,676 357,783
295,826

400,000

200,000

27

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2015 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

Apr．

May．

Mar．

Feb．

2014 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2013 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

Apr．

May．

Mar．

Feb．

2012 Jan．

Dec．

Nov．

Oct．

Sep．

Aug．

Jul．

Jun．

May．

Apr．

Mar．

Feb．

2011 Jan．

-

At traditional culture side, Bon Odori has some good opportunity for communal bonding in
Malaysia• Obon is a Japanese Buddhist custom to honor the spirits of one's ancestors--

Has evolved into a family reunion holiday-

people return to ancestral family places-

visit and clean their ancestors' graves as spirits of ancestors are supposed to revisit theirhousehold altars.

It has been celebrated in Japan for more than 500 years and traditionally includes a dance,
known as Bon-Odori.

• Started in Malaysia 1977•

Celebrated yearly at Esplanade (Padang Kota Lama) Penang, Matsushita Corp Stadium in Shah
Alam and Universiti Malaysia Sabah•

Major attraction for Selangor, brain child of Japanese Expatriate & Immigrant's Society- Less associated with Buddhism and more with Japanese culture.
- To expose locals to a part of Japanese culture,- To promote and strengthen cultural ties between Malaysia and Japan- Estimated over 30,000 people participate in the celebration

Source: http://dancelessons.net/dancehistory/HistoryofBonOdoriDance.html: http://www.tourismselangor.my/event/bon-odori-festival-2015/28

At traditional culture side, Japanese Concept House has clear lifestyle benefits to property
buyers• Property purchase decisions in Malaysia typically involve 2 steps
1. buyer first purchases house from developer with minimal interior finishing
2. then engage interior designer to customise lighting and built-in furnitures
according to preference and budget• Provision of PanaHome MKH Malaysia’s construction and Living Design
Package is one-stop solution for potential buyers, offering a building
framework with compatible interior furnishing• Three Japan-quality PanaHome technologies is employed
1. Wall Pre-cast Concrete (W-PC) which is cost competitive, leveraging on
construction expertise & know-how in Japan
2. PURETECH ventilation system filters dust and air pollutants
3. “Kajiraku2” is intelligently-designed house layout and efficient space utilisation
which enhances security, safety and communication among family members

Source:http://www.businesswire.com/news/home/20160329006679/en/PanaHome-MKH-Malaysia-Adds-Malaysias-Housing-Industry: http://www.my-panahome.com.my/eco-ideas-house/: http://news.panasonic.com/global/stories/2016/45009.html

29

At Pop Cultural end, Animé has big demand• Animé (short for animation), Japanese animated cartoons• Animé is usually hand-drawn, but techno-trends have introduced
computer assisted illustration into the genre• Has a huge following in Japan, gaining worldwide recognition.
• Distributors can now release animé via• Television• Video• Theatres• Online• Phenomenal success of Nintendo’s Pokémon franchise was helped by
the spinoff 1990s animé series.

Source: http://www.kcpstudentlife.com/culture/anime-and-manga/
30

At Pop Cultural end, Manga has big demand•

Manga is Japanese graphic novels or comics.

•

Spans many genres•

Romance•

Sports

•

Games

•

Sci fi•

Fantasy•

Adventure•

Horror•Sexuality•

Business and so on•

Manga artists work with few assistants in a studio under guidance of publishing company’s
creative editor.

•

In Japan alone, manga as an industry reached $3.6 billion in 2007.

•

Japan has also begun opening manga kissa, cafées where customers sip cappuccinos andread their manga.

•

Webmanga are popular now with online viewing portal to buy in graphic novel form.
Source: http://www.kcpstudentlife.com/culture/anime-and-manga/

31

At Pop Cultural end, Harajuku Culture and Trends also has some opportunity here
• Harajuku Culture started during the postwar Allied occupation of Japan• The movement got a boost when 1964 Tokyo Olympics brought in waves of
tourists and shops that catered to them.
• Some of the more popular and enduring styles• Cosplay• Lolita• Punk• Gyaru• Ganguro• Yamanba/Manba• Visual Kei• Harajuku fashion and culture has gone international• Regular Harajuku-style meetings in many countries including Malaysia• Fashion stores (eg. Aeon) are already offering Harajuku brands in Malaysia
Source: http://www.travelchannel.com/destinations/japan/articles/harajuku-culture-and-trends

32

Thank you

33