SIRIMLink, Issue #3, 2011 - SIRIM Berhad Corporate … Link/2011-03 sirimlink.pdfits scientic name of citrofortunella microcarpa, calamansi or golden lime is a citrus fruit commonl

In thIs Issue:

Kelantan Dynamo

Kelantan-based Kel’s International is poised for global success.

serIous soaper

An entrepreneur has invented a new way to make transparent soap.

The role of SMEs in the Economic Transformation Programme.

the bIgger the better

PP 10002/05/2010(024916)03/2011 116-MG120-12-2011:GN

the rise of malaysia’s small and medium enterprises

GREATEXPECTATIONS

CHAIRPERSONHj. Nor Rashid Ismail

MEMBERSNoraini KassimRosmina MustafaZurina Mohd BistariAbdul Aziz LongFutom Shikh JaafarDr. Neelam ShahabDr. Kartini NoorsalAzman Hassan

For any enquiries or further information with regards to the articles featured in this magazine, please contact:

Corporate Communications Section Group Corporate Affairs DepartmentSIRIM Berhad1, Persiaran Dato’ Menteri Section 2, P.O. Box 703540700 Shah Alam, Selangor Tel: 603 5544 6770Fax: 603 5544 6745Or email to: [email protected]

Published and Printed by:SIRIM Berhad1, Persiaran Dato’ MenteriSection 2, P.O. Box 703540700 Shah Alam, SelangorToll Free: 1300 88 7035 Tel: 603 5544 6000Fax: 603 5510 8095

Writing, Design and Concept:Marcus Gomez & Partners Sdn BhdNo. 27, Jalan SS2/2,47300 Petaling Jaya, Selangor,MALAYSIA.www.marcusgomez.com

SIRIMLink is an official publication of SIRIM Berhad. The bulletin is published quarterly and is distributed free to our clients, associates, business and research establishments.

Copyright © 2011 SIRIM Berhad unless otherwise mentioned.

F or many years, malaysia relied upon the public sector and large conglomerates to drive the country’s GDP growth. Unfortunately, these traditional sources of economic

growth are no longer in malaysia’s favour – manufacturing and assembly work is being moved overseas, and although the plantation sector is strong, the country is running out of land to till.

The future of the country therefore rests on the shoulders of the private sector, which largely consists of small and medium enterprises (smes). Today, smes account for about 30-percent of the country’s GDP, but under the economic Transformation Programme, that figure should rise to 40-percent by 2020.

one of malaysia’s most successful entrepreneur development programmes is the Groom Big programme, spearheaded by the ministry of international Trade and industry (miTi). sirim played a major role in developing the programme at its conception and has been the ministry’s partner for delivering it to the rakyat. The government recently allocated rm100mil for the sme revitalisation Fund, which offers soft loans of up to a maximum of rm1mil for entrepreneurs to revive their businesses. smes can expect further support from miTi and sirim in 2012 as the country continues its transition to becoming a high-income nation.

in this dual-language issue of sirimlink, we revisit some of the Groom Big programme’s biggest success stories, and speak to the people behind it. readers will gain the perspectives of both the programme’s consultants as well as beneficiary smes themselves – in Bahasa melayu and english – as we uncover the mechanics of the programme, how it works and what smes need to do in order to make it work for them.

on that note, may i wish you a Happy new year. enjoy the issue.

nor rashid ismail Vice President

Corporate Division

A very BIG DeAL

message From the eDItor

1SIRIMLink 03/2011

serIous soaperAn entrepreneur

has invented a

new way to make

transparent soap.

FIrst ImpressIonsProfessional

packaging is

the way into the

export market.

meet the groomers1,000 entrepreneurs

have benefitted

from the Groom

Big programme.

How the new SME

Development

Centre at SIRIM will

help businesses.

2018128

sIZe matters

2 SIRIMLink 03/2011

CONTENTSISSuE 03/2011 “GREAT EXPECTATIONS”

Kelantan DynamoKelantan-based Kel’s

International holds

a big promise for

global success.

saJIan KlasIK

Jurifah Kadis

meninggalkan

kerjayanya untuk

berniaga kuih.

raJa martabaKMenti-menti terawal

dalam program

Groom Big kini

berkembang maju.

What’s neW at sIrImThe news and

highlights of the

past quarter at

SIRIM Berhad.

24 28 30 4

3SIRIMLink 03/2011

traditional treats like Kuih Baulu can be turned into multi-million ringgit businesses if handled correctly. see page 28.

SIRIM Ecolabelling Scheme upgraded to National Ecolabelling Programme; Energy Management System Certification launched.

D eputy prime minister tan sri Dato’ Hj muhyiddin Hj mohd yassin recently announced the upgrading of the sirim ecolabelling scheme to the national ecolabelling programme, along

with the launch of sirim Qas international’s energy management system Certification scheme. Both of these announcements were made at the sirim-industry dinner (msi) 2011 at the Kuala Lumpur Convention Centre, recently.

The new national ecolabelling programme is an important step towards the implementation of a national Green procurement policy, which will promote the use of environmentally responsible products in the public as well as private sectors. This policy – like similar policies in south Korea, Japan, Thailand, Germany, the united states and australia – is expected to promote green industries and increase market demand for eco-friendly products.

The Government’s decision to upgrade the sirim ecolabelling scheme was based on sirim’s long-standing expertise in the field of ecolabelling, which was recently reaffirmed when sirim Qas international was accepted into the Global eco-Labelling network (Gen), the world’s most renowned ecolabelling body.

in addition, the isO 50001 (energy management system) standard is the basis for sirim’s new energy management system Certification scheme, which helps organisations become more efficient in energy usage. When implemented, this standard will provide companies with a system of continuous improvement for improving their energy efficiency.

Themed “Quality and technology transformation for a sustainable Future,” this year’s sirim-industry dinner recognised 950 organisations that achieved certifications in

various categories, such as Quality management system Certification, environmental management system Certification, Occupational Health and safety management system Certification, sirim ecolabelling and product Certification.

“sirim offers environmental technologies in areas such as environmental management, waste disposal management and Life Cycle analysis for measuring the carbon footprint and greenhouse gas emissions of the manufacturing process of a given product,” said sirim Berhad Chairman Datuk Hajah Jamaliah Kamis. “This is in line with sirim’s desire to lead the way for malaysian industries in quality and green technology, in order to sustain our environment for future generations.”

according to Datuk Hajah Jamaliah Kamis, sirim has also developed a wide range of green technologies which are currently awaiting practical industrial implementation. These include bioplastic plants capable of producing biodegradable plastic from palm oil waste, solar-powered dryer systems for marine products, and solar-powered aquaculture management systems.

DPM Launches National Ecolabelling Programme, ISO 50001 Certification Scheme

Deputy prime minister tan sri Dato’ hj muhyiddin hj mohd yassin presenting the Quality management system From Islamic perspective certificate to one of the recipients at the dinner

4 SIRIMLink 03/2011

neWs

Body care products to be based on calamansi extract and honey.

S IRIM and the Sabah RuRal development Co-Operative (KPd) have signed a Memorandum of agreement (Moa) to join forces in the research and development of personal care products based

on calamansi and honey extract. according to the Moa, SIRIM will develop and produce cosmetic products using calamansi as the base material for making moisturiser, facial cleanser, body wash and shampoo, as well as lip balm made from honey.

both calamansi and honey have many known health and personal care benefits. also known by its scientific name of citrofortunella microcarpa, calamansi or golden lime is a citrus fruit commonly used in drinks and cooking. as with other citrus fruits, it is rich in vitamin C, a natural antioxidant and antihistamine that boosts the strength of the immune system. In tropical countries such as the Philippines, calamansi is used as an ingredient in natural insect repellent. Calamansi is also known as natural anti-inflammatory agent, and is used in hair conditioners and deodorants. Meanwhile, honey has been known for its soothing and antibacterial properties. The antibacterial quality of honey derives from its low water activity, which causes

osmosis; its bonding of free iron; its slow release of hydrogen peroxide; its high acidity and its content of methylglyoxal, an antibacterial agent.

In addition to providing expertise and advisory services as well as label and packaging design, SIRIM will also perform safety and performance tests on the products. These tests will be performed to ensure that the products meet the guidelines of the national Pharmaceutical Control bureau of Malaysia (bPFK) and achieve halal certification from Malaysia’s department of Islamic development ( JaKIM).

KPd, an agency of the Sabah Ministry of agriculture and Food Industry, maintains calamansi crops and beehives in the Kundasang district, making it the ideal supplier of raw materials for these products. With this Moa, Sabah is set to emerge as the largest manufacturer of calamansi and honey extract-based cosmetics in the country. KPd will further contribute to this project through value-adding activities for these products, reducing wastage as well as implementation costs while increasing their level of commercial value. This project, along with technology transfer activities, will benefit farmers under KPd by helping to improve their economic status.

SIRIM was represented at the signing of the Moa by dr hj Zainal abidin Mohd Yusof, acting President and Chief executive of SIRIM berhad, while KPd was represented by its Chairman, Yb datuk Saddi bin abdu Rahman.

“There is an enormous potential for our entrepreneurs, including those in Sabah, to engage in the cosmetics industry,” said dr Zainal abidin. “Judging from the sale of cosmetics, which amounted to RM800 million in 2005, the potential for the industry to grow in Sabah is huge,” he added.

SIRIM and KPD (Sabah) sign MoA for developing personal care products

Dr hj Zainal abidin, acting president and Chief executive of sIrIm exchanging documents with yb Datuk saddi abdu rahman, Chairman of KpD (sabah).

5SIRIMLink 03/2011

neWs

With countless entrepreneurs seeking their fortunes, the Ministry of International Trade and Industry (MITI) sometimes has a hard time deciding which business plans hold the most promise for success.

DIAMONDSrOUGH

IN tHe

L iFTinG UP small enTerPrises to become world-class businesses takes the work of many helping hands. in malaysia’s case, over a dozen ministries and scores of agencies are involved in these

efforts. While sirim’s role in the Groom Big programme supports numerous food and beverage (F&B) businesses, the true scale of national sme development is impressive, encompassing aspects such as infrastructure, financing, advisory services, marketing support, technology and training.

among the many bodies involved in sme development are the malaysia external Trade Development Corporation (maTraDe), sirim and the ministry of science, Technology and innovation (mosTi). many universities and private companies also play their roles in various sme development programmes. new companies can take advantage of business incubation to help them get off the ground. sirim is just one of several organisations offering incubation services for businesses – incubators can also be found in multimedia Development Corporation (mDeC),

Kulim Technology management sdn Bhd and Technology Park malaysia (TPm).

ThE ROlE Of MITI

Ultimately, the responsibility of coordinating the development of smes across the country falls to small and medium enterprise Corporation (sme Corp) malaysia, an agency of miTi. originally formed as the small and medium industries Development Corporation (smiDeC), sme Corp serves as the secretariat to the national sme Development Council (nsDC), which defines and develops policy to help build the capabilities of smes in malaysia. Through sme Corp, miTi plays a leading role in helping small businesses to grow and prosper.

at the opening ceremony of the local collection and marketing centre for Groom Big entrepreneurs’ products at the national agribusiness Terminal (Teman) in July 2011, Dato’ sri mustapa mohamed, minister of international Trade and

6 SIRIMLink 03/2011

industry reiterated that miTi is committed to raising the level of entrepreneurs. “The Groom Big programme, held in collaboration with sirim Berhad as the technical agency, is an initiative showing the Government’s interest in encouraging and developing smes to become larger, more competitive, more advanced and more sustainable on both local and domestic levels,” he said.

sirim’s partnership with miTi in the Groom Big programme is just a part of the big picture. Groom Big acts as a feeder for maTraDe’s efforts to create a pool of export-ready malaysian products and services. once sirim’s efforts have made companies ready for the international market, maTraDe comes into the picture to help those companies take the next step overseas.

although sirim is very actively involved in supporting F&B businesses, Groom Big is not just limited to just that industry alone. other sectors supported in the Groom Big programme include ceramics, cosmetics and information Technology.

Groom Big provides services tailored to match the different needs of each sector. For instance, in the cosmetics and herbal industries, Groom Big helps entrepreneurs to develop concepts for products based on traditional herbal remedies. These products also benefit from sirim’s industrial biotechnology research and development capabilities as well as the company’s intellectual property protection and business matching services.

meanwhile, the ceramics and glass programme is aimed at helping existing businesses with techniques such as glass etching. Groom Big provides training and helps to develop innovative ideas, with incubators located in both sabah and shah alam. other agencies, such as the ministry of rural and regional Development (mrrD), and the ministry of agriculture and agro-based industry (moa), are following with similar offerings in their respective industries.

GIvING A BOOST fOR ANChOR COMPANIES

additionally, miTi has a vendor development programme, designed to improve the supply chain

for several anchor companies in malaysia’s key industries. Companies such as Proton, Tenaga nasional Berhad and Tm Group have asked miTi to develop both existing and would-be vendors.

“We have many ways to support our local automotive industry, such as developing the quality of vendors and component sourcing,” commented Dato’ sri mustapa in Berita Harian on 31 January 2011. “However, it is not an easy task.”

The work to upgrade vendors is an ongoing effort. The current programme provides a package of services for existing vendors, tailored to their needs: Product development, training, conformity testing, technology support and quality systems such as 5s, QC, Kaizen and iso 9001. The second phase of the vendor development programme will add more anchor companies to the list of companies currently being served.

DATO’ SRI MuSTAPA MOhAMED: “the groom big programme, held in collaboration with sIrIm berhad as the technical agency, is an initiative showing the government’s interest in encouraging and developing smes to become larger, more competitive, more advanced and more sustainable on both local and domestic levels.” over 1,200 smes have benefitted from the programme.

7SIRIMLink 03/2011

mItI anD sme Development

The new SME Development Centre at SIRIM will help small businesses become self-sustaining in the new economy

S irim Has a lonG TraCK record in helping small businesses raise their game. Practically every department in the company already has its own list of sme clients, whether they are looking for

new standards or quality systems or new products that take advantage of sirim’s prowess in research and development. The new sme Development Centre will streamline all of the companies service offerings and effectively become a one-stop service centre for sme’s that want to grow.

“most of our clients are mom-and-pop businesses with good potential but no guidance,” explains Dr Zainal abidin mohd yusof, acting President and Chief executive at sirim Berhad. “We push up the value of these smes by helping them improve their product quality and overall management of the business.”

These mom-and-pop businesses constitute the vast majority of malaysia’s rural microenterprises. nonetheless, some of the products have tremendous potential. The sme Development Centre will help these businesses raise their game so that they can compete with international brands in first the malaysian market and then abroad.

“To compete in today’s dynamic market, businesses need more than just a good product,” explains Dr Zainal. “The sme Development Centre will bring together all of sirim’s expertise in sme development under one roof: from design and product packaging to business planning and marketing. We can help these microenterprises

with these basic business requirements as well as trademark and patent protection in the long-term.”

an sme’s success also depends on sound management standards. Take any global brand, and you will find that it is also supported by myriad quality systems and certifications. sirim’s sme Development Centre can nurture a microbusiness and ensure that it meets all the demands of modern retailing, and thus be ready to capture the biggest prize of all: the export market.

SIze MAtterS

DR ZAINAl: “We help these microenterprises with packaging requirements as well as trademark protection.”

8 SIRIMLink 03/2011

“The sad reality is that while there are programmes out there to help our smes break into the export market, most of these businesses are not ready for it,” says Dr. Zainal. “even with the right certifications, the right product and the right packaging, most smes do not have the production capacity to meet large overseas orders.”

if they do intend to break into the global market, however, smes in malaysia have a lot going for them. local smes are exceptionally well positioned to take advantage of malaysia’s expertise in the halal industry as well as its matured standards infrastructure to break into the UsD2.77 trillion global halal market. The second advantage of growing big in malaysia are the many financial incentives made available through government agencies.

“Conventional business financing is hard to get unless you have a solid track record and revenues of at least rm500,000 and above,” explains Dr. Zainal. “Very few rural mom-and-pop businesses can meet those requirements.”

Through the Groom Big programme, however, microbusinesses that fall below this standard definition can have access to financing from sme Bank, sme Development Corporation and other government agencies. The money if not free, of course – full grants are a thing of the past – but it is easier to get, and easier to pay back.

Under Budget 2012, the government has allocated rm100 for the sme revitalisation Fund, which will offer soft loans of up to rm1mil for entrepreneurs to revive their businesses. The fund will be managed by sme Bank and will be available from January 2012. The sme emergency Fund of rm10mil will also prove useful to entrepreneurs struck by floods and other natural disasters.

“Business fail for all sorts of reasons, many of which are beyond their control, but that should not be a reason to write them off completely,” says Dr Zainal. “These government initiatives offer entrepreneurs a second chance at realising their dreams.”

Mali 12

Guinea 9

Egypt 79

Germany 4

Jordan 6

Qatar 1

Iran 74

Rep. ofMacedonia 1

Uganda 4

Congo 1

India 161

Burma(Myanmar) 2

Kyrgyzstan 5

Togo 1

SierraLeone 4

Libya 6

Niger 15

Ghana 4

Ethiopia 28

Malawi 2

Lebanon 3

Iraq 30

United Kingdom 2

Bulgaria 1

Tajikistan 6Kazakhstan 9

Malaysia 17

Israel 1

Spain 1

Kosovo 2

Singapore 1

Uzbekistan 26

Chad 6

Nigeria 78

Bahrain 1

IvoryCoast

8

Algeria34

Tanzania 13

South Africa 1

Yemen 23

Syria 20

France 4

Azerbaijan 9

Afghanistan28

Bangladesh 145

United States 2

Argentina 1

Senegal12

Albania 3

Canada 1

Netherlands 1

Bosnia-Herzegovina 2

Russia 16

Gambia2

Tunisia 10

Mauritania 3

Sudan 30

Mozambique 5

SaudiArabia

25

Muslims elsewherearound the world 8

Djibouti 1

Pakistan 174

United ArabEmirates 4

Sri Lanka 2

Nepal 1

Thailand 4Philippines 5

Burkina Faso 9

Kenya 3

WesternSahara 1

Morocco32

Guinea Bissau1

Comoros 1

Benin 2 Cameroon3

Eritrea 2

Somalia 9

Palestinianterr. 4

Kuwait 3

Oman 2

Turkey 74

Turkmenistan5

Indonesia 203

China 22

MuslimPopulation1.57 billion

World Population6.8 billion

hAlAl MARKET: this weighted map of the world show’s each country’s relative size based on its muslim population. there are an estimated 1.57 billion muslims around the globe, almost a quarter of the world’s population. by leveraging sIrIm’s expertise in the halal standards and certifications, smes in malaysia can tap into this lucrative market, which is estimated to be worth usD2.77 trillion annually.

9SIRIMLink 03/2011

sIrIm’s sme Development Centre

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9

S iGninG UP For Groom BiG is easy. The national roadshows are generally held all year round where business owners can meet with sirim’s consultants to find out more about the programme. There,

sirim’s consultants will conduct a preliminary assessment of their needs to find out if the business qualifies for the programme.

“in the past, we used to go to meet these business owners at their business premises right at the outset, but this method of screening was very inefficient and time-consuming,” explains azim ng abdullah, Vice President of the standards and Quality Division at sirim Berhad. “These days, we invite business owners to a Groom Big roadshow at a hotel in a nearby town instead so we can assess their requirements on the spot. if they qualify, only then do we arrange for a site visit.”

The whole programme was once completely funded by the government, but not anymore. The idea back then was that by investing in promising microbusinesses they would one day grow and eventually contribute to the country’s GDP and employment targets. But, like similar grant programmes in other parts of the world, government munificence eventually breeds smes who are just interested in getting a free ride. They take the free materials and training, but do not

reinvest into new materials once the free resources run out. The result, of course, is that they fail to grow, and the government’s investment is wasted.

“some business owners expect to be given everything without having to risk their own money,” explains azim. “The real world of business does not work that way.”

These days, funding is provided in the form of soft loans by licensed financial institutions, which will charge smes a nominal interest on their loans. This model makes business owners more accountable for their performance and allows the free market to determine whether or not they have what it takes to succeed.

“We help them with their applications for these loans, because there is a lot of paperwork involved,” says azim. “These moms-and-pops do not always understand what is required of them. We have to explain everything before they sign the dotted line.”

on the upside, smes that do succeed in the Groom Big programme can look forward to better support from the private sector and government-linked companies, which are being encouraged to buy products and services from new smes to help support their fledgling businesses. azim cites the example of the mydin supermarket chain, which

As the government’s Economic Transformation Programme shifts into high gear, small and medium businesses must ready themselves to become the country’s new engine for growth

BIGGertHe

tHeBetter

10 SIRIMLink 03/2011

does not require all its shelves to be stocked with products in handsome packaging as long as a food product complies the country’s basic labeling requirements, it has a chance of being sold in all mydin stores nationwide.

in other words, smes are going to have to get used to being judged based on their performance and nothing else. There was a time when winning a tender from a GlC was all about who you knew, not what you could do. That time is passing.

“The government is firm in its commitment to transform the public sector and to reward businesses based on their performance, not their networks,” says azim.

That said, azim still believes that the government has an important role to play in developing microenterprises who might not have much in the way of business acumen but have very good products.

“one cannot expect rural makciks and pakciks to be able to write a business plan, conduct competitive market analysis, submit proposals and understand food labelling regulations,” says azim. “Government agencies like sirim can help bridge that knowledge gap. let the entrepreneurs concentrate on making better products.”

ChIlD’S PlAy

as it stands, most microenterprises under sirim’s wing are quite content to remain small, and rarely show an inclination to break into the ‘medium’ business category. once they have their basic product identity and packaging that complies to national regulations, they are generally happy to stay that way. But azim believes that the future of these organisations is nonetheless bright despite their owners’ apparent complacency.

“Today, practically all these microenterprises are run by an older generation of rural malaysians that are happy with the status quo,” explains azim. “However, their businesses will one day pass on to their children, who are much better educated and connected to the world outside. no 20-year-old

in his right mind is going to slice potato chips for the rest of his life, but he might be persuaded to invest into a potato slicing machine to do the job for him, along with industrial kitchen equipment, a packaging and labeling machine and simple website.”

such new technologies will make their family business more competitive in the market. and as their parents go into full retirement and gradually relinquish control over their businesses to their offspring, so will these younger entrepreneurs be freer to introduce new growth strategies into the business – getting national halal and GmP certifications, for example, and establishing co-ops in their villages to leverage collective demand. automation, iCT, internet marketing and supply chain management are just some of examples of business modernisation techniques that many small business owners today feel unsure about, but whose children can easily grasp.

“it takes a lot of energy to build a business empire,” says azim. “For that reason, i think it’s best to let the young lead the way.”

AZIM NG: “the government is firm in its commitment to transform the public sector and to reward businesses based on their performance, not their networks.”

11SIRIMLink 03/2011

groWIng smes bIg

W HaT Do a&W rooT Beer, Häagen-Dazs ice-cream and lays potato chips have in common?

answer: they are all examples of tiny cottage businesses that became

world-renowned brands.

The histories of these brands are typical of small-town, family-owned enterprises that climbed the ladder to worldwide success one step at a time – first, the booth; then, the shop; then, the global empire.

This is precisely what the Groom Big programme hopes to do for malaysia’s rural cottage businesses.

The Groom Big programme had its origins in the Daya saing Perabot initiative, first spearheaded

by the then ministry of entrepreneur and Co-operative Development (meCD). its objectives were to increase the competitiveness of the local furniture industry in the global export market, and the project had a good run before it had to be terminated for various reasons.

The backlash from the local furniture industry was instantaneous. many businesses which were in the process of equipping themselves with the skills and systems they needed to tackle the global furniture export market were dismayed at being unable to complete their training. seeing their predicament, the meCD asked sirim to develop a substitute programme to help coach the abandoned entrepreneurs. sirim did so with the assistance of mara’s Furniture industry Technology Centre (FiTeC), and it was a roaring success.

But the best was yet to come.

The Groom Big team at SIRIM has already shown more than 1,000 entrepreneurs how to turn their start-ups into competitive businesses, with 1,000 more entrepreneurs awaiting their turn in the aisles.

Branding & Packaging

Product Prototyping

Networking & Marketing

Testing & Certification


Khirul salleh (left) explaining the groom big programme. nik mohd. nuruddin (right) says that businesses can leapfrog to more advanced stages in the programme depending on their readiness.

START SMAll, ThINK BIG

The success of the mini programme with meCD begged the question: if there is so much demand for mentoring programmes in the local furniture industry alone, what about other industries? Khirul salleh marzuki, Head of the Business and Brand Consulting section at sirim says that this was when they knew they had something special going.

“We knew we had stumbled onto something big, but we didn’t know how big,” explains Khirul.

sirim hosted the first Groom Big workshop in melaka for a group of small cottage entrepreneurs. it was a simple presentation that consisted of little more than a lecture on the importance of branding, labelling and packaging and how they can help small businesses jump into the big time (see page 16, “When First impressions are everything”).

“The Groom Big workshop was never meant to be anything more than a seminar, but it was such a huge success that sirim and the meCD decided to take it onto the road,” says nik mohd nuruddin nik ibrahim, one of sirim’s most experienced Brand and Consulting experts. “over 1,200 smes have benefitted from the programme to date.”

The Groom Big roadshow trundled across malaysia’s major cities and towns and proved equally successful as the one in melaka. smes and cottage businesses from all sorts of industries attended the talks, eager to learn more. many of these businesses sustained poor families in rural areas. recognising the opportunity to transform the lives of these rural folk, sirim’s team hunkered down to refine the Groom

Big idea, asking themselves what it would take to transform a cottage business into a renowned brand without shooting itself in the foot.

“many entrepreneur development programmes try to push a cottage business out of its backyard and straight into the world export market without equipping it with the knowledge and tools it needs to sustain itself,” says nik nuruddin. “The result is a bunch of products that sell very well, but also a bunch of companies that unable to fulfil the demands of large customers.”

The result of sirim’s brainstorming was a complete six-step ladder to success that any entrepreneur can climb, each step preparing them incrementally for the challenges of bigger business. But then the meCD dissolved after a cabinet reshuffle, and for a time, the Groom Big programme was in danger of being abandoned. luckily, the ministry of international Trade and industry stepped in to fill the void.

With a new partner, a new mandate and a new model, the Groomers were back in business.

fOOD fOR SuCCESS

The Groom Big model as it exists today comprises six ‘rungs’ which all entrepreneurs must climb in order to hit the big time, whether or not they actually sign up for the programme (see chart). This is because it is based on practical, real-world requirements that all businesses face as they grow from fledgling start-up to market leader: a&W, Häagen-Dazs and lays all had to go through the same rigorous challenges before they became the world-renowned brands they are now – they all need to be halal-certified to

13SIRIMLink 03/2011

the groom bIg programme

penetrate foreign markets, and they all need to meet stringent international regulations.

“The ministry has since tweaked our Groom Big model so that it can be applied to other sectors such as automotive components, electronics, cosmetics and services like tourism and logistics,” says nik nuruddin. “However, the F&B sector is the most popular by far among local cottage businesses, and so that is our focus.”

The first five rungs of the Groom Big model improve a product’s quality, packaging and production processes while supporting the business with quality systems and certifications. The sixth and final step prepares the business for the export market, and tackles issues like international regulatory compliance, branding and building human capital. How soon a business reaches the top largely depends on how badly it wants to get there – work hard, and you get there sooner; go slow, and you can expect to be delayed. However, not all businesses have to start at the bottom.

“Prior to signing up, we will conduct an evaluation of the business and identify where the gaps are in its operations before deciding which rung it should start on,” explains nik nuruddin. “For example: if a business already has a consistent production and quality control system with its own licensed premises, it can leapfrog the first rung and go straight to the second; and if it already has a state halal certificate, it can leapfrog to the third rung, and so on.”

assuming a food business does have to start at ground zero, then it will have to fulfil two tasks before moving on to level Two: first, all its products must be sold with proper nutrition labels that meet the requirements of the ministry of Health; and second, the business must initiate company-wide training for quality control and the 5s quality improvement system – sirim’s preferred quality tool for small start-ups.

“We help them at both tasks,” says Khirul. “our laboratories at sirim will conduct a nutritional analysis of up to three products so that they know what they have to print on their labels, and our business consultants will help them prepare

their staff and company for QC and 5s quality improvement training programmes.”

sirim consultants will also help the business establish a product identity (if it does not have one already) with the help of professional design firms, during the Groom Big roadshow. entrepreneurs are introduced to graphic designers and photography firms during Groom Big workshops, and they can haggle about prices and terms on the spot until they find a designer they are comfortable with.

“Bakers and chocolatiers in rural areas have no idea where to start looking for these services, and graphic design start-ups are eager to get new business,” explains Khirul. “We match the needs of both parties by providing a venue for them to meet, negotiate and shake hands.”

once the Groom Big client has got its new identity and design, and the nutritional analysis on the client’s products is complete, sirim will help with printing the plastic wrappers, stickers and jackets for their products. it then helps the business protect its intellectual property and trademarks by filing the necessary paperwork (although actual registration takes a few years to go through).

“one might wonder what trademark a cottage business could have that is worth protecting, and the answer is quite a bit – Budu Cap Ketereh lost hundreds of thousands in sales to pirates a few years ago,” warns nik nuruddin. “We redesigned the packaging with unique security features that allowed the authorities to discover the fakes and have them removed from the market.”

ThE BRANDING ChAllENGE

The second rung of the Groom Big model largely entails applying for state halal certification (in the food business, that is). This can be a fairly complex procedure, depending on where the business is located and the ingredients of its products. among other measures at their disposal, businesses can replace conventional recipe ingredients such as gelatine and butter with plant-based substitutes such as agar-agar and margarine to ensure that their products are halal. inspectors will also check



the location of the production facility to ensure that it is far and away from sources of non-halal contamination.

“state halal certification requirements are more lenient than the ms 1500 halal certification requirements,” says Khirul. “The ms 1500 halal mark is valid nationwide, but it is much tougher to get. That is why it is only introduced on the fifth rung in the Groom Big model, when a business wants to make itself export-ready for the estimated UsD150 billion global market for halal food products.”

nonetheless, a business that does get its state halal certification out of the way can then get on with the real interesting stuff of business: packaging and labelling, which is the gateway to supermarkets and hypermarkets.

“a pre-requisite for any product that wants to be on a supermarket shelf is that it must have proper packaging that is both durable and attractive to consumers,” explains nik nuruddin, who actually began his career as a graphic designer. “a hypermarket in K.l. will not sell a bag of crackers that is not vacuum packed, airtight or both. most second-rung clients do not have either.”

enter sirim’s packaging experts: men and women who interview entrepreneurs, find out how they want to position their products, and design the packaging to fulfil those demographic objectives. Thus you get the understated sophistication of Bahulu Classiq™, the classy luxuriance of G’leiz soap and the trendy colours of the Kel’s range of cosmetics. and if a product does cover a very mixed demographic, it gets a steadfast, reliable image that anyone can trust, such as martabak raja.

“some businesses opt for more expensive packaging which generally yields better profit margins, while others choose cheaper packaging so that they can stay cost-competitive,” says Khirul. “We tell them what we think they should do based on our observations, but ultimately, we let them decide what they want for their businesses.”

This is when a business has to start thinking about its branding in more serious terms, although

branding itself does not really form part of the criteria for advancement up the Groom Big ladder. nonetheless, marketing textbooks are littered with case studies about brands that tried to change their image half-way through their life cycles, only to confuse customers and ultimately lose everything. a business has to decide what its brand should stand for at the outset, because it will not get an opportunity to re-brand itself again for a long time.

ThE quAlITy ChAllENGE

By level Three, the 5s quality programme implemented in level one should already be yielding positive results on the company’s culture and product quality. Businesses on the third rung will now have their quality improvement practices upgraded in preparation for their move to the fourth rung, where things get really tough.

“From level one to level Three, the focus is on building a high-quality product, which is generally easy to do if you have the right attitude,” explains nik nuruddin. “But from level Four onwards, the focus will shift towards building a high-quality organisation. That is a lot more difficult to achieve.”

The logic behind this argument is simple: high-quality organisations tend to produce high-quality products, no matter what those products are. Build a better company, therefore, and you automatically build better products. But that company must be able to make its goods of consistent quality and in large numbers, and it must have a sound marketing strategy and distribution chain to get its products to market.

“Basically, level Four is where the business has to scale up,” explains Khirul. “it has to optimise its processes, become more efficient and start developing new products – these are the hallmarks of all successful companies.”

sirim’s in-house expertise in quality systems and product research and development makes it the ideal partner for businesses at this crucial stage of development. sirim’s resident engineers can help the company optimise its production processes and oversee product development processes, while

15SIRIMLink 03/2011


sirim’s quality consultants can help the company initiate quality improvement systems.

“We also help them source new equipment so they can upgrade their facilities and scale up,” says Khirul. “all this takes a lot of money, of course, but by this time, the business should already have a very healthy annual turnover. Provided the owner is not profligate with the company’s funds, the business should be able to finance its own growth, or at least be able to secure financing to do so.”

nonetheless, dollars and cents are only part of the criteria that are used to measure a company’s readiness to proceed to the next level.

“Companies at level Two generally need at least rm250,000 in annual revenues to move to the next level, but meeting this criterion alone does not mean automatic qualification for level Three,” explains nik nuruddin. “if a company doesn’t have the state halal certification, for example, then it cannot sell its product outside its immediate community. This will make it difficult for it to

achieve economies of scale later. That is why we make this as one of the criteria for level Two graduation – it is better to face that problem sooner rather than later.”

The fifth and final rung on the Groom Big model demands that a food business be certified to the standards of ms 1500 (halal requirements) as well as Good manufacturing Practices (GmP), Hazard analysis and Critical Control Points (HaCCP) and the erstwhile iso 9000 quality management system. These are the standards that a business must meet to maintain its competitiveness in the national and global marketplace – if a company is capable of meeting these requirements, only then is it ready for the challenges of open markets.

CO-OPS fOR SuCCESS

sirim’s world-class consultancy and product development services all come at a price, of course. However, clients are only expected to contribute

Application and

assessment

Export ReadyHuman capital development, compliance to international regulations, marketing and promotions

Basic quality improvement and production enhancement

State-level halal certification

Packaging and labeling

Quality improvement culture, product development, value engineering, process optimisation

Halal MS 1500, Good Manufacturing Practies,HACCP, ISO 9000 quality management system

STAIRWAy TO SuCCESS: the groom big programme walks an entrepreneur through every stage of the business life-cycle until the company is ready for global expansion.



10-to-30-percent of the actual costs incurred, with the rest borne by sirim and miTi. They are asked to put forward 10-percent of the estimated costs up-front to defray workshop expenses and to demonstrate their commitment to the programme.

“if you are serious about your business, you have to invest into it,” nik nuruddin warns. “The sponsors spend between rm0.5 to rm1 million on each entrepreneur to complete the six-step Groom Big programme, but some entrepreneurs forget that their businesses belong to them, not us.”

There are challenges at every level, of course. martabak raja, which has sufficient demand and quality to fuel its journey to level Five, is being hampered by a lack of capacity – the company has to scale-up its operations quickly if it is to meet awaiting orders from a large airline and several hotel chains, for example. i-medical, on the other hand, faces the opposite problem: although the company meets all its quality and production requirements for level Five, there is not yet sufficient local demand for its products to sustain its global ambitions. The cosmetics industry requires enormous advertising and marketing budgets, which is something the Kelantan-grown brand does not yet have.

most interesting of all is the challenge for Bahulu Classiq: a good product with steady demand that will never be exported because of its short shelf life.

“exported foodstuffs need a shelf life of at least six to 12 months to survive the travel, warehousing and shipping demands – that is almost a regulatory requirement,” explains Khirul. “Bahulu Classiq has a shelf life of about two weeks, which rules out the possibility of export completely. instead, we are exploring a franchise model where booths in malls could make the cake on the spot.”

These small Groom Big graduates will also have to tackle the question of capacity. if an importer in the middle east wants to start selling your product to 50 million arabs, will your small factory in Pasir Puteh be able to keep up? a visitor to your factory might not think so… unless you were backed by a co-operative.

Co-ops also inspire the confidence of traders that want to make large orders – one small company might not be able to make one million snacks every month for sweet-toothed arabs, but twenty small companies which sell similar products should not have a problem meeting that demand. The co-op model is widely used in europe and other parts of the world as way to support small businesses during their early stages of growth. aCe Hardware (hardware retail) and sunkist (fruits) are both modern examples of successful co-ops, as is Fonterra – the world’s largest exporter of dairy products is a co-operative jointly owned and managed by over 12,000 farmers in new Zealand.

“Co-ops allow a group of otherwise small entrepreneurs to pool their resources, share costs and ultimately leverage economies of scale off each other,” explains nik nuruddin. “By pooling together all their orders for raw materials like flour, sugar and paper, for example, they can enjoy better discounts. They can also build stockpiles of their goods to meet large orders from unexpected customers.”

The future, then, is bright for malaysia’s aspiring cottage businesses, with avenues for global expansion already available for them to exploit. over 1,000 businesses have already benefited from the Groom Big programme, of which 38 are senior undergraduates on the fifth rung, preparing to spread their wings overseas. most of the other businesses are still in levels one and Two, and that is where most of them will remain – one cannot expect all programme participants to have the necessary drive, luck and discipline to make it to the top.

nonetheless, even level one and Two participants typically report a tripling of their sales volume once they start including nutrition labels with their products – not bad for a small business.

“We have 1,000 businesses waiting for their turn to enter the programme, but we need more manpower and more money to cater to the demand,” says Khirul. “Businesses have learned that the Groom Big programme does not just give them a first-class product. it turns them into a first-class company.”

17SIRIMLink 03/2011


SME’s need good packaging to break into the big time.

perFect pAckAGe

N oT all BaGs oF CrisPs are created equal. Walk into a supermarket and buy three packets of potato crisps - although the oily and salty chips inside look and taste similar, there is nonetheless

a distinct difference between the three products: the packaging.

Before a consumer even gets a look at – or a whiff of – the contents of a product, its packaging has typically already created a strong impression. marketing research confirms that the look and feel of product packaging can have an impact on the perceived benefits of a product, determining how likely it is to fly off the shelves. and of course, consistent packaging design helps to promote the brand identity of the product.

“…lIKE A BOX Of ChOCOlATES”

many small and medium businesses in malaysia start out with insufficient understanding of the art and science of packaging design. This is because most entrepreneurs are unaware how they should choose their packaging. many of these businesses simply use transparent plastic packaging with

photocopied inserts as labels. This does not enhance the appeal of the products at all.

one of sirim’s roles is to help these entrepreneurs. sirim offers complete product design and packaging solutions, including styling the appearance of the product, developing suitable label standards and training. Package design serves several other purposes besides making a product more marketable. This includes protecting the product’s contents and maintaining its freshness, convenience, portion control, and compliance with labelling and packaging regulations. it has to be robust enough to fit the nature of the contents: egg cartons, cereal boxes, pet food pouches and shampoo bottles all need to keep to certain shapes and forms. Be it food and beverage, toiletries or household supplies, the package has to guard against spoilage or leakage of the contents.

Packaging is also a matter of deciding on the weight and size of a product. Different portion sizes can cater to different needs. many food products or toiletries are made available in small “convenience store” sizes for quick purchases, appealing to business travellers and customers of 24-hour stores who find that they need a small portion of a


paCKagIng anD labelIng

product in a pinch. at the other end of the scale, we have “bulk” and “economy” packages of the sort found in hypermarkets.

intelligently designed packaging should also make it convenient to dispense and store the contents, especially for liquids, powders and fine-grained materials. Features like spouts for pouring fluids, re-sealable bags for foodstuffs, and child-proof caps can greatly enhance a product’s usability. The right package shape and material can extend the shelf life of consumables considerably.

Given the importance of serving consumer interests and complying with business regulations, it is vital to present accurate information about the contents of a product. some categories of consumer goods, like food products and household chemicals, require very specific product information on the packaging. These requirements are determined by government regulations and in some cases, industry standards.

ATTAINING WORlD-ClASS PACKAGING STANDARDS

in other words, simple packaging that might be good enough to get by in your local mini market is not competitive enough for export markets, which is where sirim’s printing and packaging design services come in. Here, designers and consultants put products through a rigorous packaging design process to ensure they meet the standards for international markets. The entire process takes about seven days from concept to the final automated full colour printing of the packaging, after which the product is “in the bag.”

The process begins with a product study, in which the package is designed to specific weight, dimensions and legal requirements. The package is outlined with technical drawings on a computer before any mechanical testing takes place. The

first (primary) packaging is intended to protect the product from damage. When developing the primary packaging for chocolates or cookies, for example, the department uses wooden moulds to create plastic trays through a process called ‘thermoforming’. other products will require other types of primary packaging such as sachets or boxes.

The next step to packaging a product would be the secondary packaging that protects the primary packaging. For most foodstuffs, this would mean a box or a durable, airtight bag that may either be vacuum-sealed or puffed up to protect the product. The secondary packaging is generally designed in full-colour and includes labelling and nutrition information in compliance with standards set by regulatory bodies such as the ministry of Domestic Trade and Consumer affairs, U.s. FDa, U.n. or other food agency.

in accordance with the government’s goal of helping smes to reach international markets, sirim assists local entrepreneurs with all aspects of labelling and designing their packaging. local entrepreneurs who qualify for this assistance need only pay a small fee, with much of the cost subsidised by the government.

since the programme has begun, sirim has helped hundreds of local businesses to upgrade their packaging, significantly improving their sales both locally and abroad. Having the perfect package isn’t that hard to get after all.

19SIRIMLink 03/2011

paCKagIng anD labelIng

An ambitious entrepreneur from Seremban has invented a new and more efficient way to make transparent soap.

SerIOUS SOAper


transparent soap

e Ver sinCe anDreW Pears FirsT invented translucent soap over two hundred years ago, transparent soap bars have represented the peak of luxury in toiletries and cosmetics. such soap bars usually offer

exceptionally high-quality cleansing action and are suitable for even the most delicate skin. They are also expensive to make, and command a special place among premium self-care products on the market.

safril saban of sirius excel sdn Bhd has long been a fan of transparent soap. But as an entrepreneur, he is also constantly on the lookout for business ideas. Three years ago, he had the foresight to see that palm oil was going to become the preferred ingredient for soap-makers, or ‘soapers’, as they are called. sniffing an opportunity that could be turned to his advantage, he decided explore the idea further.

“The soap business is unique because it has not stopped expanding ever since it was invented,” says safril. “as long as humans are around, we will consume soap bars; and as long as we consume soap bars, we will need to make new soap bars. it is a fast moving consumer good whose market grows in tandem with the world’s population… and we all know how fast that is growing.”

at the time, safril’s start-up was an incubatee at sirim. He brainstormed ideas back-and-forth with the technical team for months, conducting market research and technology studies. They found that most soap manufactured today is produced with stamping technologies, and that some soaps made in this way are advertised as being transparent, but are usually only mildly translucent. in fact, the only known way for making transparent soaps the way andrew Pears did two hundred years ago is to use die-cast processes, which are awfully inefficient.

“Die-casting soap generally means that you have to wait at least eight hours for the soap to harden before it may be safely removed from the moulds,” says Zuriani Usop, sirim’s senior engineer. “During this time, the soap bars are exposed to all

kinds of contamination risks. The process is also very inefficient.”

and therein lay the opportunity that safril knew had been waiting. He challenged Zuriani’s team to come up with a better method for producing truly transparent soap bars that are on par with or better than the soap bars made by the world’s existing die-cast and stamping systems.

“We wanted to have a technological edge against potential competitors, because that would give us a solid foundation to our business,” says safril. “i am happy to say that sirim did not disappoint.”

CAST-Off SuCCESS

Zuriani and her team began by analysing how soap is usually made. They knew, for example, that die-cast and stamping technologies are widely used in other industries to form plastics and metals. They began exploring other forming techniques used in plastics and metals manufacturing, and worked

SAfRIl SABAN: “as long as humans are around, we will consume soap bars; and as long as we consume soap bars, we will need to make new soap bars.”

21SIRIMLink 03/2011

transparent soap

backwards to see which ones might be suitably applied to soap. They eventually hit upon injection moulding, which is the basis for safril’s innovation.

even though the underlying technology used is fairly well-known and widely-used in plastics and metals manufacturing, safril believes that his is the first if not only application of injection moulding to soap-making. Zuriani and her team members concur, and the patent for safril’s machine has been approved and certified by the malaysia intellectual Property office (myiPo).

“our early studies found that no one in the world uses injection moulding technology to produce soap, which meant that safril’s process could be patented and protected,” says Zuriani.

Using injection moulding will also yield safril and his company other cost advantages. Besides the eight-hour cooling time, the team estimates that die-cast transparent soap bars are prohibitively expensive to make (up to rm40 per soap bar, by sirim’s reckoning), which makes economies of scale very difficult to achieve. a manufacturer

would therefore need to have a lot of expensive machines in order to instantiate a mass production process of transparent soap bars with the die-cast method.

With injection moulding, however, the soap bars are ready almost instantaneously. and the unit costs are much lower, estimated to be between rm10-rm20 each. assuming safril decides to sell his product on the same price tier as similar premium products, his profit margins could therefore potentially be 200-to-300 percent more than his competitors. and if the market incumbents tried to muscle him off the shelves in a price war, he would be able to drop his prices to be much lower than theirs without suffering a loss.

However, the real challenge to sirim’s team was to meet safril’s quality demands.

hIGh quAlITy ClEANlINESS

Transparent soap is far more refined than conventional opaque soap, and is a luxury product

ThE SOAPERS: safril saban with his crew of soapers. the team pays serious attention to quality control, inspecting each bar of soap by eye to ensure that its transparency is acceptable before it is packaged.


transparent soap

that wins the hearts and minds of women -- and to a lesser extent, men -- all over the world. a single speck of dust, grime or dirt can ruin a transparent soap bar’s appearance, which is why makers of such soap pay special attention to quality control in their systems.

“look at a premium transparent soap bar in the right light, and you can actually see its purity -- that is the difference,” explains safril. “That’s what makes this a premium product.”

The attention to quality at sirius excel’s pilot plant in seremban is certainly nothing to be sniffed at. each soap bar is painstakingly examined by eye for flaws and defects before being packed. The chemical mixing processes are completely automated within closed chambers, ensuring that there is no risk of contamination. environmental conditions are carefully monitored to ensure that soap bars are not exposed to excess humidity that will ruin the carefully-designed water content of each soap bar.

“if our soap recipe strays by just one microgramme of an ingredient, it is considered imperfect,” explains safril. “We want our product to be absolutely perfect.”

in tests conducted by sirim’s research team, the soap produced by sirius excel’s injection moulding method was calculated to be about 12-percent more transparent than other commercial transparent soap currently available on the market (presumably produced with the die-cast method). sirius excel’s soap was also less acidic than competitors’ soap and performed better in both detergency and foaming power.

But safril’s fascination with transparent soap bars is about more than just the way it looks. Because they are transparent, objects cannot be hidden inside them, and safril sees useful

applications for his soap bars in high-security environments such as on airplanes or in prisons. The advantages of injection moulding technology can also be extended to foodstuffs such as chocolates and candies, especially since it is more hygienic than conventional methods for producing such goods.

“our transparent soap recipe is also 100% plant-based, pH-neutral and has been certified as halal by JaKim,” says safril. it is therefore well-positioned

to compete in the UsD17 billion global soap market, especially since it is also non-harmful to the environment -- a crucially important characteristic among the wealthy elite, which are sirius excel’s target market.

market observers say that the amount of soap a country consumes depends directly on its standards of living, and that the richer a country gets, the more soap it consumes. That is good news for safril and his soap-making machine, because asia, the middle east and africa already account for

over 50-percent of global demand for soap, and as consumers in these regions get richer, their use of soap will increase. sirius is also well-positioned to take advantage of the developing world’s steady rise in per capita soap consumption by virtue of its proximity to the world’s leading sources of palm oil, which is fast becoming the most preferred raw material for soap.

“at every exhibition we have ever been to, we have been overwhelmed by the response to our product, and we haven’t even started promoting ourselves,” says safril. “Foreign companies are already showing an interest in partnering with us as a contract manufacturer for their brands.”

indeed, sirius excel has all the ingredients to one day become a thumping success – the right technology, a great recipe and a captive market. it is no longer a question of if, but When.

“if our soap recipe strays by just one microgramme of

an ingredient, it is considered imperfect. We want our product

to be absolutely perfect.”

23SIRIMLink 03/2011

transparent soap

Of all the companies in the Groom Big programme, Kel’s International probably holds the biggest promise for global success.

keLANtAN DyNAMO

W HeneVer miTi, maTraDe or other government agency needs a model company to showcase the makings of a true entrepreneur, they call upon yusmat mamat: pharmacist,

serial entrepreneur and Ceo of Kel’s international sdn Bhd.

The company he founded in 1993 started life as a retail pharmacy in Kota Bharu, Kelantan. after seven years of selling other companies’ products, he decided to develop some of his own, and in 2000, he developed a range of nutritional supplements based on spirulina. The success of that venture spurred him to develop other products based on spirulina, and in 2002, he launched his first spirulina-based soap.

“Customers loved our spirulina soap,” recalls the dynamo entrepreneur yusmat in his office in Kota Bharu. “We were the first malay company to develop spirulina products, which meant a lot to the captive halal market. Pharmacies all over the state began asking for follow-up products.”

The spirulina cyanibacterium is a source of at least one dozen different vitamins and has been shown to prevent hay fever and increase the antioxidant potential of blood plasma. The only drawback, it would seem, is that spirulina is not a plant and must be carefully cultivated in ponds. For that reason, yusmat chose to import the spirulina he needed for his soap from producers overseas rather than attempt to make it himself.

nonetheless, yusmat knew that the task of formulating other products would be beyond his expertise. in 2004, he went to sirim with a simple

challenge for the r&D team there: develop a range of cosmetic products based on spirulina that could be certified as being halal. The project was led by Zulaikha Paidi, Principal Consulant and sarifah rejab, senior researcher at sirim. it took 18 months to complete, at the end of which the team had formulations for six brand new products: day cream, night cream, body scrub, hand and body lotion toner and facial wash.

The Kel’s range of spirulina cosmetics products have proven hugely successful. The company earned rm2.8 million in revenues last year alone, mostly through word-of-mouth – it has spurned traditional retail channels in favour of an older and far more effective distribution strategy: multi-level marketing. The firm has about 10 retail outlets nationwide, and enjoys the support of over 2,000 members within the Kels international network. These agents buy products from Kels at significant discount and then sell them for handsome profit.

This is all besides the company’s own pharmacy in Kota Bharu, which remains its centre of operations and generates about rm2 million in revenues per annum. However, yusmat has refrained from selling his products through mass retail chains, mainly because he does not like the way hypermarkets squeeze small businesses. Their unfavourable credit terms – often as long as six months – and unreasonable pricing demands make it very hard to make a profit. Far better, he believes, to rely on a network of independent agents who are passionate about his products.

“The hypermarkets can wait,” says yusmat, who has turned down offers of retail space from both the Tesco and Giant hypermarket chains in the past.


CosmeCeutICals

“We will do business with them when we are ready to, not before.”

SERIAl ENTREPRENEuR

Kel’s international currently boasts over 200 products in its product portfolio, ranging from food supplements to cosmetics – very impressive for such a young company. But the energetic yusmat believes that much still needs to be done. Besides a new range of spa products, yusmat has also roped in sirim’s r&D team to develop a toothpaste based on spirulina. He intends to extend his product offering to include a range of men’s skincare products within the next two years.

To support all these activities and as part of the criteria for graduating to the fifth and final step in the Groom Big programme, yusmat is moving all his production facilities into a spanking new factory in Kota Bharu. The factory will be certified as compliant to Good manufacturing Practices for both food and cosmetics products, after which yusmat will be ready to take on the world.

“sirim has taught us about the importance of having the right product, the right packaging and of certifications and standards,” says yusmat. “We are using all that knowledge right now as we prepare for the next step in our journey in the Groom Big programme.”

With the new factory, Kel’s will also be able to offer contract manufacturing services to entrepreneurs that want to get into the cosmetics and selfcare business. This could open up a whole new revenue stream for the company. in fact, he is already in negotiations with interested businessmen from the U.K. who would like to see Kel’s international products on the shelves of Boots and sainsbury stores across the kingdom. The catch is that the products have to be redesigned to suit the tastes of conservative British consumers as well as the UK climate. This will involve fine-tuning both the range of colours offered as well as the chemical composition of the products.

But the real rewards of yusmat’s hard work are yet to come. The technology in his Kota

Bharu factory does not yet belong to his company, which means his profit margins are still pretty slim. However, once the transfer of technology is complete, Kel’s will begin to realise the benefits of their years of hard work in the Groom Big programme.

“We even get to put sirim’s logo right next to ours on our front door,” says yusmat of the sign that reads, ‘Technology Under the Guidance of sirim Berhad’. “not many businesses get that kind of endorsement.”

yusmat attributes much of his success from having benefited from sirim’s technology and expertise, especially with regards to building his factory. But what he really likes is the fact that he can call upon sirim’s business consultants and engineers at any time to look over his site to see if it is operating at optimal conditions.

“sirim does not just rubber stamp you and let you blunder off on your own,” says yusmat. “The company sticks with you every step of the way until you succeed.”

yuSMAT MAMAT: “sIrIm has taught us about the importance of having the right product, the right packaging and of certifications and standards.”

25SIRIMLink 03/2011

CosmeCeutICals

Progressing from factory canteens to hypermarket shelves, Fitrah Food has built a successful brand on simple thirst-quenching drinks

reFreSHING OrIGINALIty

F olloWinG an exTensiVe private sector career in big-name food and beverage conglomerates such as F&n, Pepsi and socma Trading (mentos), Hashim muhammad decided that he had

an appetite for something different: independence. He founded Fitrah Food sdn Bhd to create an alternative to the sugary drinks filled with artificial flavouring and preservatives that dominated the market. Just as importantly, he wanted to see more small companies taking on the big names.

“i ran away from the big companies because i wanted to make my own product,” says Hashim. “i wanted something i could drink myself, something that i could ensure would be good for the customers. There aren’t enough small companies doing this, so i founded my own.”

although Fitrah Food started out trading various products, its Fresh Herbal Cincau Drink quickly became the standout success. The big breakthrough came when Fitrah managed to tap into the previously unexploited market of factory canteens, catering to the thirst of mainly-

Bumiputra factory workers with a drink that was both halal and refreshing. soon, the drink appeared in mydin hypermarket

shelves as well, and its success was

assured.

“once we saw that it could be our main product, we established our manufacturing plant in subang UsK industrial Park,” explains Hashim. “When we first started up, we were one of the first tenants in the area.” He thinks back and laughs: “There was nothing here. in fact, this place was practically just a jungle!”

Fitrah Food was also one of the first participants in the Groom Big programme, which provided consultation and advice to help the company to expand. sirim also provided assistance with the packaging design of Fitrah’s second major product, the seaweed with lemon Drink, which is the first-ever seaweed drink in the market.

While Hashim can boast of many accomplishments, including getting his products into mydin Hypermarket, mymydin, mydin mart and Kedai 1 malaysia, the toughest achievement to date has been to get Fitrah’s drinks onto the shelves of Petronas mesra stores.

“Petronas requires us to maintain a 24-hour delivery schedule, which is not easy,” says Hashim. “right now, we are able to ensure deliveries to the 250 stores in the Klang Valley, but we need to take a good look before we are ready to expand to other states.”

Hashim admits that his seaweed and cincau drinks, which lack preservatives and have a limited shelf-life, are not suited for the export market. That is why Fitrah Food is looking into the export potential of another product, Beauty Queen, a collagen drink enhanced with seaweed, royal jelly and other natural ingredients for promoting skin regeneration.


By selling doner kebab in satay form, Azizul Akmal has brought a new flavour to dining tables in Malaysia

tHe tASte OF SUcceSS

F or malay sTUDenTs PUrsUinG their education in the United Kingdom, doner kebabs are an ever-present staple of a halal diet. For azizul akmal, kebabs also represented something else: an

entrepreneurial opportunity.

“There are so many kinds of kebab over there, and i saw that there wasn’t anything like it in the malaysian market,” explains azizul. “after i graduated in 2010, i decided to try producing kebab in the form of satay to suit local tastes. That was when i founded akmal Food industry.”

Using a special meat-and-spice mix based on doner kebab, but based on chicken instead of lamb, akmal sate Kebab was born. although azizul experimented with various other products such as Burger Kebab, Bologna Kebab and Popiya Kebab, it was the basic sate Kebab (available in spicy, black pepper and biryani flavours) that drew the most interest from the market.

STANDING OuT fROM ThE PACK

“i first learned about the Groom Big programme through a friend,” says azizul. “after we entered the programme in may 2010, sirim helped to redesign our product packaging. The new food packaging tripled our sales!”

The benefits of the Groom Big programme also included networking and publicity. By participating in food expos through the sirim booth, akmal Food industry gained valuable exposure to the public. and as part of level Two of the Groom Big programme, the company’s products were all

certified as halal. Today, these unique products are now available across Peninsular malaysia.

at their factory in Kuala selangor, a team of five manufacturing workers shape the kebab meat paste into satay sticks and pre-cook them at a rate of 150-200kg per day. The sticks are then packed into packages of 20 and frozen for distribution, with a shelf life of one year. However, lack of space and power supply problems keep the company from reaching its full potential, and more capital will be required to expand further.

azizul quips: “During the Hari raya rush, we don’t have enough capacity to catch up. Then, after 30 syawal, the drop in demand is like a stock market crash!”

meeting the demands of a hungry market is hard work for the small company, but the company is proving its mettle. in 2012, azizul hopes to expand into hypermarkets. after that, akmal Food industry may tackle other markets such as sabah and sarawak, as well as exporting to Brunei, indonesia and may be even Dubai.

“it is tough to survive in this business, but we are still around,” says azizul.

27SIRIMLink 03/2011

A Pa yanG mUnGKin TerCeTUs Di minda anda bila melihat Jurifah Kadis adalah kepastian kendiri dan keyakinan dirinya yang amat tinggi, apatah lagi dia berani mengharung segala cabaran dengan

berhenti dari kerjayanya di sebuah bank untuk memulakan perniagaan kuih tradisi. Tapi tanpa disedarinya, langkah beraninya itu berjaya menukar haluan hidupnya sehingga bergelar seorang usahawan berjaya.

segala-galanya bermula apabila Jurifah mengambil keputusan berhenti kerja pada tahun 1997 untuk menumpukan perhatian kepada keluarga. Didorong oleh kos sara hidup yang tinggi

di ibu kota, dia memulakan perniagaan dengan menjual kuih bakar secara kecil-kecilan dari rumah.

Perniagaannya terus dipelbagaikan dengan jualan baulu gulung dan sambutan ramai yang diterima mendorongnya untuk mengembangkan perniagaannya dengan jualan kuih baulu. Dia turut gigih menyertai pelbagai pertandingan memasak kuih tradisional sehingga berjaya mencuri perhatian Jabatan Pertanian yang berminat membantunya mempelbagaikan produk baulunya yang kini menampilkan pelbagai perisa menarik yang juga bernilai komersial.

Kuih baulu Jurifah menarik perhatian ramai dengan menonjolkan resipi inovatif seperti baulu pandan dan kapucino tanpa menggunakan sebarang perisa tiruan. Hanya dengan menggunakan pandan asli dan biji kopi, ia mampu membangkitkan selera ramai melalui aroma dan teksturnya yang lebih ringan dan gebu.

“segala-galanya bermula pada pertandingan memasak pada tahun 2003 dan sejak itu, saya tidak menoleh ke belakang lagi,” imbas kembali usahawan ini di kafe Bahulu Classiq™ miliknya di Kampung Jawa, Hulu langat.

PAKEj yANG BERjAyA

Tidak berhenti di situ sahaja, Jurifah terus mengembangkan sayapnya dengan mengikuti program Groom Big yang ketika itu diterajui oleh Kementerian Pembangunan Usahawan dan Koperasi dan diuruskan oleh sirim. Berkat bimbingan serta inovasi pembungkusan dan reka

Apabila Jurifah Kadis membuat keputusan berhenti kerja di bank untuk memulakan perniagaan kuih baulu, dia tidak menyedari bahawa ia bakal menjadikannya seorang usahawan berjaya.

SAjIAN kLASIk

juRIfAh KADIS: “reka bentuk dan pembungkusan yang diperoleh di bawah program groom big telah memberi satu batu loncatan ke tahap yang lebih tinggi.”


maKanan traDIsIonal

bentuk dari sirim telah membantu meningkatkan jualannya berlipat kali ganda.

“Pembungkusan menarik dan praktikal itu telah memberi batu loncatan ke tahap yang lebih tinggi dalam perniagaan saya,” tambah Jurifah. Dahulu, dia menjual baulunya hanya dengan membungkusnya dalam plastik dan kini dia berdiri megah dengan pembungkusan inovatif yang dihasilkan.

“sememangnya teknik pembungkusan dan pelabelan canggih oleh sirim telah memberi impak yang ketara,” katanya lagi, sambil menambah bahawa pembungkusan itu telah mendapat pengiktirafan majlis reka bentuk malaysia dengan memenangi anugerah reka bentuk Terbaik untuk dua tahun berturut-turut dari 2007 hingga 2008.

Untuk memenuhi permintaan yang meningkat, Jurifah juga mempunyai kesukaran mempertingkatkan kapasiti pengeluarannya. ini kerana proses pengeluaran kuih tradisi ini tidak boleh diautomasikan dengan sewenang-wenangnya.

“Proses memasak tidak boleh diautomasikan sepenuhnya,” terang Jurifah. “saya telah cuba menggunakan mesin tetapi baulu saya kehilangan aroma dan teksturnya. Para pelanggan turut mengadu bahawa ia tidak sesedap dahulu.”

mementingkan kepuasan pelanggan, Jurifah berkeras menggunakan tenaga kerja manual tetapi dia berdepan dengan cabaran besar dengan komitmen yang diberikan pekerjanya memandangkan ia satu pekerjaan yang amat memenatkan, apatah lagi dalam keadaan dapur yang amat panas.

PENyElESAIAN fRANCAIS

Jurifah juga berdepan dengan masalah hayat simpanan baulu yang amat singkat. Hanya mampu bertahan selama dua minggu, Jurifah sukar memasarkan baulunya di pasar-pasar raya di seluruh negara dan ini mendorongnya untuk menerokai idea francais gerai satelit yang mampu mengatasi masalah ini.

“orang ramai boleh menikmati baulu segar yang dimasak di kiosk di pasaraya terpilih tersebut dan ini dapat menjamin agar jenama Bahulu Classiq™ terus berkembang di pasaran,” kata Jurifah.

Jurifah turut berkata dia menerima banyak permintaan sejauh dari Brunei yang berminat membawa jenama dan francais Bahulu Classiq™ ke negara itu. Bukan itu sahaja, dia turut mempelbagaikan produknya dengan jualan kek kukus yang mendapat permintaan yang amat tinggi, terutamanya sewaktu musim Hari raya.

“semua ini tidak mungkin berlaku tanpa program Groom Big dan sirim,” kata Jurifah.

“Bantuan dan nasihat yang diberikan telah memberikan saya platform yang diperlukan

untuk merancang kejayaan saya.”

29SIRIMLink 03/2011

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D iPerKaTaKan BaHaWa martabak – yang bermaksud “berlipat” dalam bahasa arab – berasal dari india semasa abad ketiga belas, dan diperkenalkan kepada warga muslim di

seluruh negara asia oleh para pedagang ketika itu. menarik sekali, martabak turut dikaitkan pada zaman Kesultanan melaka sebagai santapan kegemaran sultan terutamanya sebagai santapan berbuka puasa di bulan ramadhan.

oleh itu, sewajarnyalah jenama martabak terkemuka di malaysia berasal dari Kelantan Darul naim dengan menjunjung kedaulatan dan membawa konotasi diraja. martabak raja Zairah yang didatangkan dalam pelbagai perasa ini bukan sahaja layak dijadikan santapan diraja tetapi juga boleh dinikmati oleh semua individu.

Dinamakan martabak raja, ia mempunyai ciri-ciri istimewa yang diilhamkan khas sebagai hidangan kerabat Diraja Kelantan sekitar tahun 1950an. Bagaimanapun, di zaman dahulu kala, makanan ini hanya boleh dinikmati oleh kerabat Diraja sahaja berikutan harganya yang mahal serta proses pembuatannya yang amat rumit.

SAjIAN ISTIMEWA

Pada awalnya, raja Zairah raja Zakariah memulakan perniagaan martabaknya secara kecil-kecilan dengan beroperasi dari dapur rumahnya nun di pelosok Kelantan. Walaupun hanya mampu menghasilkan 50 keping martabak sehari, namanya sudah pun menjadi sebutan ramai berikutan keenakan dan keunikan martabak yang dihasilkannya.

Tarikan utamanya adalah ketebalan martabaknya yang tiga kali ganda lebih tebal berbanding martabak yang ada di pasaran ketika itu, membuatkan ramai yang sanggup memandu begitu jauh, sehingga ada yang merentasi negeri hanya untuk mendapatkan martabak istimewanya. mengangkat namanya sebagai jenama produk, ia kini sinonim dengan semua penggemar martabak di seluruh negara.

martabak raja berintikan daging ayam atau daging lembu ini mempunyai resipi rahsia bertunjangkan rempah raja tradisional Kelantan dan disaluti dengan telur dan bawang bergred tinggi. apa yang istimewa adalah ia disertakan dengan acar bawang tradisional yang sesuai dijadikan sebagai hidangan sampingan, sarapan, makan tengah hari mahupun makan malam.

Menti-menti terawal dalam program Groom Big kini semakin berkembang maju.

RAjA ZAIRAh: “Dengan pembungkusan sIrIm, jualan saya meningkat dua kali ganda dalam sekelip mata.”

rAjA MArtABAk


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Beberapa tahun berlalu, dan martabak yang sama dihasilkan di rumahnya dahulu kini mampu dikeluarkan secara besar-besaran di sebuah pusat pengeluaran makanan di kawasan perindustrian Pengkalan Chepa di Kelantan. Jika dahulu raja Zairah hanya mampu menampung kapasiti sebanyak 50 keping sehari di dapurnya, kini syarikatnya mampu menghasilkan sehingga 1,000 keping martabak sehari, jauh melangkau kapasitinya yang terdahulu. namun, kejayaan yang dicapainya pada hari ini tidak membuatnya leka di mana raja Zairah tetap mengekalkan standard, kualiti dan ketebalan martabaknya yang membuatkannya terkenal di kalangan penggemar martabak.

Bagaimanapun, tidak ramai yang tahu bahawa kejayaan raja Zairah yang membawanya keluar dari kepompong perniagaan yang serba kecil itu adalah program Groom Big yang disertainya pada tahun 2006.

“Dengan pembungkusan sirim, jualan saya meningkat dua kali ganda dalam sekelip mata,” kata raja Zairah, ketika ditemui di dapur kilangnya di Pengkalan Chepa. “martabak sejuk beku saya kini mempunyai hayat simpanan antara enam hingga 12 bulan, yang bererti saya kini boleh mengedarnya ke seluruh pelosok negara.”

Bukan itu sahaja, melalui kerjasama institut Penyelidikan dan Kemajuan Pertanian malaysia (marDi), proses pengeluaran syarikatnya mampu dipertingkatkan dan dijadikan sebagai produk makanan sejuk beku di mana ia boleh disimpan selama setahun, manakala pembungkusan sirim memberikan kemasan kepada produknya untuk memasuki pasaran antarabangsa.

Kini, martabak raja Zairah dijual pada harga sekitar rm12 sehingga rm17, bergantung pada lokasi anda membelinya. ia mungkin kelihatan mahal terutamanya kepada mereka yang biasa membeli martabak di pasar malam pada harga tidak sampai rm5. Bagaimanapun, martabak yang dijual di pasar malam tidak sama dengan martabak raja ini dengan ketebalan melebihi satu inci dan berat sehingga 700 gram setiap satu. Bukan itu sahaja, satu martabak raja ini cukup untuk disajikan kepada

tiga hingga empat orang dewasa (walaupun penulis amat gembira dapat menghabiskan satu martabak dengan sendiri yang menzahirkan betapa sedapnya martabak ini).

Pada masa ini, martabak raja hanya boleh didapati melalui pengedar tempatan yang terpilih di bandar-bandar terpilih, disebabkan kilang kecil kepunyaan raja Zairah hanya mampu mengeluarkan martabak pada skala yang kecil serta sukar memenuhi permintaan yang banyak. Tetapi ini semua bakal berubah tidak lama lagi apabila dia berpindah ke kemudahan baru yang lebih besar dan selesa tidak berapa jauh dari kilangnya sekarang.

“Kemudahan baru ini membolehkan saya mendapatkan pensijilan yang diperlukan di Tahap lima dalam Program Groom Big,” kata raja Zairah, merujuk kepada standard ms 1500 (makanan halal), amalan Pengilangan Baik (GmP), analisis Bahaya dan Titik Kawalan Kritikal (HaCCP) serta sistem pengurusan kualiti iso 9000. “selepas itu, saya lebih bersedia untuk menerokai pasaran eksport. ini sudah menjadi iltizam saya untuk memperkenalkan makanan tradisional Kelantan ke seluruh negara.”

Bukan itu sahaja, raja Zairah juga yakin dapat mencecah edaran sehingga 5,000 pek hidangan sejuk beku yang pernah menjadi sajian istana itu berikutan maklum balas positif yang diterima. ini membuktikan bahawa martabak raja yang pernah menjadi hidangan kerabat istana Kelantan silam mampu bertakhta di hati penggemar makanan di seluruh dunia dengan menitikberatkan kualiti dan standard yang diperakui.

31SIRIMLink 03/2011

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