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TABLE OF CONTENT

Confidentiality Agreement 3

1.0 Introduction 4

1.1Vision and Mission 41.2Legal Structure 51.3Board of Directors 6

2.0 Products and Services 7

2.1JIT Delivery 72.210- Year Contract 72.3GPS Technology & Communication 82.4Risk Taking Insurance 8

3.0 Market Analysis 9

3.1Market Trends 93.2Target Market and Market Segmentation 103.3Profile of Competitors 113.4Competitive Advantages 12

4.0 Marketing Strategy 13

4.1Marketing & Advertising Programs 13

5.0 Finance 15

5.1Operational Expanses 155.2Financial Income 195.3Financial Risk 20

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Confidentiality Agreement

The undersigned reader acknowledges that the information provided in this business

plan is confidential; therefore, the reader agrees not to disclose it without the express

written permission of MaXout Sdn Bhd.

It is acknowledged by the reader that information to be furnished in this business plan

is in all respects confidential in nature, other than information that is in the public

domain through other means, and that any disclosure or use of this confidential

information by the reader may cause serious harm or damage to MaXout Sdn Bhd.

Upon request, this document is to be immediately returned to MaXout.

________________________

Signature

________________________

Name (printed)

________________________

Date

This is a business plan. It does not imply offering of securities.

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1.0 INTRODUCTION

MaXout is a company that provides just in time transportation service for various IBS

manufacturers’ components, and also building materials, engineering materials,

machineries and other construction elements for the construction site of Johor Dahrul

Ehsan. The company will provide competitive pricing while delivering components

safely and reliably in order to establish itself in the industry and beat competition.

This company will be established at the end of the year 2015 by Dato’ Seri Haji Haziq

bin Hj Zariful who has 25 years of experience in the construction industry,

1.1 VISION AND MISSION

The vision statement for our company is to be the most preferred and reliable

transportation provider for IBS components in Johor, and hopefully in Peninsular

Malaysia.

Mission statements:-

To provide safe, economical and appropriate transportation system to our

clients utilizing IBS components.

Manage the fleet in a manner that insures the lowest possible operational

cost while maintaining consistently high mechanical reliability.

Organize a staff and maintain a facility, which provided superior service,

repair, reservation and dispatch.

Insure that the service continues despite any circumstances as a secure and

self-supporting operation as it strives to achieve excellence and customers’

satisfactions.

To establish ourselves as the best transportation service provider by

garnering the respect of our shippers and developing successful and satisfied

customers and employees by focusing on our niche.

To maximize the efficiency of all of our customers’ shipments regardless of

size.

Core values:-

To conduct ethical business practices

Focus on customer needs.

Develop partnerships with all of our customers.

Practice continuous improvement

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1.2 LEGAL STRUCTURE

The company is a form of corporation, as its debt is not considered that of its owners,

so if you organize your business as a corporation, you're not putting your personal

assets at risk. A corporation also can retain some of its profits, without the owner

paying tax on them. Aside from that is the ability of a corporation to raise money. A

corporation can sell stock, either common or preferred to raise funds. Corporations

also continue indefinitely, even if one of the shareholders dies sells the shares or

becomes disabled.

ORGANISATIONAL STRUCTURE

Figure 1.0: Organizational Structure of maXout

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1.3 Board of Directors

2.0

PRODUCTS AND SERVICES

Dato’ Sri Haji Haziq bin

Hj Zariful

CEO & Chief of Executive Officer

Dato’ Haziq holds a Bachelor of Architecture (Honors) degree and Master of Architecture (Professional). He has more than fifteen years of distinguished service especially in Malaysia Government construction project. Before joining the government, Dato’ Haziq works as an Architect’s assistant in an architecture firm, involved in various projects with multinational companies and later founded and successfully managed his own consultant company in construction services.

Joshua Chua Shu Min

Director of Finance and Management

Mr. Joshua has more than ten years’ experience in the logistics industry. He started work in 2005 with his relative who owns a small transportation firm which has since expanded and became a well-established logistic company over the Peninsular Malaysia. With his Master in Finance and Management Science, he deals with several obstacles and issues happening during & outside the transportation phase while working with other departments of the business to manage their respective budget.

Thean Hai Xu

Director of Operations & Planning.

He holds a Bachelor of Art (Economic) from Brook University of Canada and has worked in a logistics company for the past ten years. He will be responsible for three major areas, planning that optimizes cost, provide supply chain input and coordination to improve growth and direct the workers, managing and assigning work while constantly communicating with them to check if everything is going on schedule.

Enoch Ang Ee Nok

Director of Product and Marketing.

Mr. Enoch holds Master in Marketing Management from the University of British Columbia in Vancouver. As experience plays a major part in this role, we have chosen Mr. Enoch as he has experienced over 20 years in this role. Develop marketing strategies and analysis is his main job in order to meet the goals of the marketing plan.

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We offer a complete range of transport services, ranging from IBS manufacturers’

components, and also building materials, engineering materials, machineries and

other construction elements, flexible for all different sizes by utilizing our trucks

among our resources. We provide cost effective, reliable and efficient solution, with

technology and methods that eliminate multiple handling and provides a secure

system for our clients.

2.1 JIT DELIVERY

The company will provide Just-in-Time (JIT) delivery, a rarely practiced system

whereby components can be delivered on a fixed time that will allow components to

be installed and erected on the actual day of use. 10% discount will be given if and

when our company fails to deliver at the set time. This allows contractors to eliminate

the need for storage; helps site management and quality control. With JIT delivery

benefiting the contractors, the company would be more preferred than competitors

who don’t practice this system. We also offer a 10% rebate to clients whose products

are IBS components in order to encourage the usage of IBS in our industry.

2.2 10-YEAR CONTRACT

The company will also provide our clients with a 10-year contract, a long-term

contract that provides clients with cheaper service charge. The benefit is again, for

both parties, clients can reduce delivery expense while our company can serve

multiple companies, delivering components for many number of projects while

eliminating competitors from providing service to said companies. Overall, it creates

a bond between two businesses, establishing trust and reliability, which are important

factors in the market.

2.3 GPS TECHNOLOGY & COMMUNICATION

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As stated therein, the company uses modern technology to compete with

competitors. Such technology would be a Tracking and Tracing Process, where our

delivery trucks would implant GPS technology in order for clients and the Director of

Operations to track the location of the trucks in real time and see if the delivery is

flowing on schedule. We will also constantly communicate with the drivers to avoid

from traffic jams or hazards to prevent delay, choose alternative routes and optimize

our service.

2.4 RISK-TAKING INSURANCE

In addition, the company takes full risk of delivery items, a type of insurance where

we will pay for all accounted damages and accidents that occurs during the time of

delivery. This would be an incentive for clients to appoint us and encourage accident

prevention.

Other than an improved way of delivery, the company also improves itself by

managing the company carefully for financial efficiency such as:

Flexible resource planning of truck, trailer, driver, etc.

Order splitting into multiple parts and clustering multiple orders together

Compartment planning

Real-time workflow management and dispatching

Event, alert and issue management

3.0 MARKET ANALYSIS

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MaXout holds the potential to entrench its competitive position in the regional

transportation services market by selectively focusing its target market and niche

products in the local construction industry. Our company understands the current

position of the construction industry and how the Malaysian government pushes for

more adoption of IBS (prefabrication) in construction projects, especially in the

government sector, and we plan to leverage this because we believe there is a

growing demand for reliable transportation solutions in this customer segment.

3.1 MARKET TRENDS

Johor is a booming hub and developing to become the second Kuala Lumpur with its

developments. Aside from the now stagnant Iskandar Malaysia, other parts of Johor

are being looked at, primarily Gerbang Nusajaya. The massive 1,800ha Gerbang

Nusajaya has a gross development value (GDV) of RM40 billion, with some of its

developments are being partnered with Singaporean companies. Its components

include lifestyle and retail parks, campus offices, industrial parks and residential

precincts, all of which will be developed in five phases over the next 25 years. As

such, there will be a surge of demand in construction developments and the need of

a reliable transportation service, and we believe prefabricated components will

inherently be integrated into such flourishing developments.

Illustrated below is the statistics of IBS contractors by size and types that currently

exist in Johor, as of June 2015.

Size Small Medium Large

Type G1 – G3 G4 – G5 G6 – G7

Concrete Precast

Contractor

56 2 14

Steel Formwork

Contractor

170 71 44

Steel Framing

System

2 1 1

Prefabricated

Timber Framing

12 - 1

10

System

Block Work

System

9 - 3

According to the data above, there are plentiful companies who specialize in IBS,

especially steel formwork systems and concrete precast elements. With the current

developing state of Johor, we will actively solicit such clients. We do believe our

service will meet the demands and requirements of construction companies involved

in the development in Johor.

3.2 TARGET MARKET AND MARKET SEGMENTATION

Customer demand projection

IBS components

Building materials & components

Engineering materials & machineries

Others

Figure: Forecast customers demand for the first 3 years

There are several potential customer segments that we will provide our transportation

services to. The primary customer segments that we will cater to are clients that

utilize IBS components. The reason is because we also encourage active

implementation of IBS in the industry, hence we provide 10% rebate for such clients.

They can be either IBS component manufacturers, or contractors. Aside from this,

they can also be either government companies, or private entities. Since IBS is still

not very popular in the private sector, we will focus more in the public sector, mainly

government public housing projects due to higher implementation of IBS. The

secondary customer segments are the ones not utilizing IBS in their construction

projects. While they are not our focus group, we do not eliminate them from our

services as well.

Large established companies in the construction industry may have their own

transportation fleets, while smaller players will seek to outsource the transportation

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function. The latter will vary in scale of their operations, but they have a steady

demand for reliable transportation services. We will actively solicit such customers.

3.3 PROFILE OF COMPETITORS

Eastern Pretect (Malaysia) Sdn Bhd

Has Facilities in Selangor, Johor & Kedah

Design, supply & deliver precast concrete components for building and

infrastructure

An experienced company, established in 1989, developing through the years,

becoming a well-respected firm and a leader in the precast concrete industry.

Competitive Disadvantage:

o Experience in the industry; hence they

o Have profound local business knowledge and a very strong international

background.

o With the company not just delivering products, but also manufacturing them,

there would be no delay, management problems & extra cost from hiring a

third party delivery service.

Conweld Engineering Sdn Bhd.

Mainly located in Selangor, Conweld has a branch office in Johor Bahru, Johor &

has made ‘significant business’ in East Malaysia

Produces and imports high quality construction equipment, generators & welders

used in the construction industry.

Conweld is another established company with 30 years of experience, becoming

a well-known producer and importer of construction equipment that have proven

track records of delivering quality and engineering products in Malaysia.

Competitive Disadvantages:

o Experience in the industry

o With the company not just delivering products, but also manufacturing them,

there would be no delay, management problems & extra cost from hiring a

third party delivery service.

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o Also exports products with business partners to other multiple countries, while

we do focus on Johor area, this attribute shows the company’s capability and

trust towards other countries, giving it a huge reputation in the market.

IGP Design & Project Management

Established in 2004 and is based on Johor Bahru.

Design and construct the project, which includes concept designing, interior

designing, project management and delivery for the project, even producing

furniture.

The company may be young, but it is founded by someone experienced in the

construction industry since 1994 and has made many projects, even in

Singapore, with the projects known to be made with professionalism.

Competitive Disadvantage:

o Another company that uses low cost tactics

o The company consists of architectures, interior designers, project managers,

skilled workers & contractors, which means if a client were to desire a one

stop solution, he/she would hire the company without considering third party

members.

o While being a young company, it has used fruitful tactics to develop itself in

the 11 years since it was established, such as partnering with many

companies and creating a well managed website showcasing their

capabilities and projects.

3.4 COMPETITIVE ADVANTAGES

Eastern Pretect manufactures many types of precast panels, columns & beams while

Conweld Engineering also manufactures their construction equipment, lowering extra

cost, time & management. However, our advantage is that we deliver components

other than said products. If a contractor need to find products not fixed to precast

components, he would need to find many different companies to hire & if each of

them were to deliver for their products, there would be a higher cost, hence, a third

party delivery would be the most preferred option.

There are many uniqueness to our delivery service such as Just in Time delivery,

10% rebate for IBS components tactics would be helpful in persuading contractors to

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hire us, Tracking and Tracing Process using GPS technology, communicating with

drivers to find alternative routes & risk tracing insurance.

Our 10-year contract will also help assure our employment towards clients and

diminish competitors from them, this means that even when the contractors choose

our competitors such as eastern pretech and conweld, they would choose our

company for delivery service as a more preferred option.

4.0 MARKETING STRATEGY

We market our company as solutions to the many construction companies

requiring cargo to be transported promptly and efficiently. The company’s future

marketing plans will be nationwide, emphasizing haulage capabilities for any cargo.

The overall marketing plan for services is based on the following fundamentals:

The segment of the market(s) planned to reach.

Distribution channels planned to reach said market segments: social media,

radio, newspapers, sales associates, and mailings.

Share of the market expected to capture over a fixed period of time.

Eco-friendly and sustainable transporting operation business in the long run

to make a name for ourselves as being the first in the country.

4.1 MARKETING & ADVERTISING PROGRAMS

Market responsibilities. MaXout Sdn Bhd is committed to an extensive promotional

campaign to reach our target market. To accomplish initial sales goals, the company

will require an effective and efficient promotional campaign to accomplish two

primary objectives:

1. Attract quality sales/service personnel with a desire to be successful.

2. Attract customers that will consistently look to MaXout Sdn Bhd for their

shipment and cargo needs in construction.

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Promotion through various mediums. In addition to standard advertisement

practices, MaXout will gain considerable recognition through these additional

promotional channels:

Press releases and advertising sent to radio stations, newspapers, and

magazines.

Social media advertising on Facebook, Instagram and Twitter. We seek for a

well-known person, which can be a local celebrity or model, influential and

impactful construction icons, and a well known construction company or

developer to help us endorse our services to reach out to our target market.

Website and internet marketing is also an important aspect. We will create

online advertisements, and also create an online internet website for our

company for any clients who wishes to reach us.

We plan to advertise throughout the state, or perhaps nationally, in

magazines and newspapers, on radio, and on banners and billboards.

We will also advertise on products and vehicles. This is done by displaying

company logo on our company vehicles.

We also plan to do direct marketing for the company.

Incentives. As an extra incentive for all of our clients, we plan to distribute souvenirs

with our company logo. Such souvenirs can include coffee mugs, coasters, T-shirts,

pens, towels, and other advertising specialties.

In addition, we will provide an extra incentive for our clients and potential clients. For

any client that has contracted us to deliver their shipments, if they have referred us to

another client, and this client has then sought our services, we will provide an extra

discount to the first client who has referred us. If this client specializes in IBS

products, on top of the 10% discount that our company provides, we will reward an

extra 5% discount for their next contracted service with us, which amounts to 15%

discount at the end of the transaction. For a client that is not involved with IBS, we

will reward them with a 10% discount for their next contracted service with us. The

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same principle applies to the downline. If any clients who habitually generates

referrals to us, we will constantly reward them with this incentive.

Brochures. The objective of a brochure is to portray the company’s goals and

products as an attractive deal and functionality. MaXout Sdn Bhd will develop three

brochures: one to be used to promote sales, one to announce our services in a new

market, and the third to recruit sales associates.

Public relations and word of mouth. MaXout Sdn Bhd will not restrict our

advertising to the ones mentioned above. We will focus on networking and public

relations. With regards to this, we will make our company known, reaching out and

lobby to potential customers in conferences, exhibitions and expos relating to

developments and construction plans. We will take such opportunities to socialise,

network and also make useful connections to potentially useful parties in the industry.

We believe this form of marketing through networking is the most useful and effective

way for us to solidify our place in the transporting business.

Professional image marketing. This is another indirect form of marketing. We

market our major competitive advantages. We will also leverage our professional

reputation as a new player in the business. We pride ourselves for a company that is

willing to go that extra mile in the customer-service department, and also in our

professional services. In that respect, we seek to conduct our businesses in an

ethical way. We hope that this will also generate word of mouth popularity to our

potential clients.

5.0 FINANCE

5.1 OPERATIONAL EXPENSES

Since Dato’ Seri Haji Haziq bin Hj Zariful has a 25 years of experience in the

construction industry. It is assume that he has a net worth of RM10 million.

Therefore, he has provided a capital of RM2million.

The reason why we chose Johor to start up our business is because its strategic

location. It also receives approximately 60% of foreign tourists who visit Malaysia

every year. It is a major holiday spot and shopping destination for neighbouring

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Singaporeans due to the comparatively lower cost of goods and services. Not only

that, Johor Bahru is the Central Business District and the main gateway into and out

of Singapore (via the Causeway). Henceforth, this will also help us to have

connections with the Singaporean construction players. Even though, Iskandar

development has already stopped due to its in that area but the transformation of

Johor to the second Kuala Lumpur is yet to come.

5.1.1 RENTAL AND UTILITIES

The site to accommodate the off road trucks will be placed at Kluang, which is also

the center of Johor Dahrul Ehsan. This will allow us to have a better access to the

other parts of Johor. Moreover, since Kluang is not a developed town yet. The prices

for the land can be also quite reasonable comparative to the city of Johor Bahru.

Despite that Johor is a large state, we are dividing the area into two different

segments, which is the north region which consists of Segamat, Muar, Batu Pahat

and Kluang and the south region that comprises of Mersing, Kota Tinggi, Pontian and

Johor Bahru. A clearer illustration can be shown in the figure below. Since it is an

outskirt of Johor, the rental is roughly RM2, 000 per month for the beginning but it is

likely to increase throughout the years. However, the rental is excluding the utilities

bills hence RM750 per month is being set aside for the water and electrical bills. We

will then buy a site to accommodate our vehicles after we are well established.

Figure : Map of JohorImage retrieved from

https://jbexpatblog.wordpress.com/2014/06/22/johor-map/

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5.1.2 OFF ROAD TRUCKS

With the 1 million provided, we will only get 10 trucks to start off our business. Based

on our research, a brand new truck costs of around RM300, 000; RM120,000 for

second hand off road trucks. Therefore, we will only be purchasing 10 numbers of

second hand trucks due to finance constrain. First hand and second hand trucks

have their own pros and cons. Though, second hand vehicles costs lesser than first

hand but it also requires higher maintenance, fuel and repair compared to the new

ones so there is an allowance of RM60, 000 per year. We will only start purchasing

first hand trucks when our business is well established so that we will not incur too

much depth. When our business are going well and we do not have sufficient trucks

to deliver the goods, we will rent it from an outsource which is estimated to be RM

555 a day. As for the insurance for the trucks to prevent from any mishaps, we have

also allocated RM2, 000 per month for each of it.

5.1.3 NATURAL GAS TRUCKS

Not only that, we would also invest in trucks that run on natural gas or electric power

to transport our goods in order to reduce greenhouse gas emissions. This plan for an

environmentally friendly cargo is however a long term one. We hope that such

implementation in the near future will raise awareness for a greener operation. Since

no other transportation services in Malaysia run on green fuel, this operation might

solidify our name and reputation as being the first one in Malaysia to be an eco-

friendly and sustainable transporting operation.

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5.1.4 SALARY AND WAGES

Furthermore, the salary and wages for the workers in being divided into three

different categories, which is top-tier, middle line and first line management. For the

top-tier management that represents the three directors of the company, the salary is

around RM15, 000. As for the middle line management, their wages will range from

RM3, 000 to RM5, 000 based on their performance, qualifications and experience in

the industry. First line is basically the off road drivers. They are being paid RM2, 000

to RM2, 500 monthly depends whether are they local or foreigners and semi-skilled

or skilled workers. The price range for the first line workers are based on the CIDB

chart in the year of 2014 and adjustments will be made throughout the years due to

the economy in Malaysia. Training and developments programme is one of the chief

methods of maintaining and improving intellectual capital, so the quality of an

organisation’s training affects its value. Thereof, a capital of RM10, 000 is budget

for it annually.

5.1.5 MARKETING AND ADVERTISING

Last but not least, marketing and advertising is essential for a brand new company

like us, as not many construction players in the state of Johor would recognize it.

Since our business have yet to be started, our revenue for it is RM7,500 monthly. As

time goes by the company will allocate more budget for advertising in order to

enhance our brand and improve our business profit when we transform into a big

company. However, there are many design company out there would will also

sponsor us to enhance their company’s name when we are well established. This

may also help us to reduce in our marketing and advertising financial estimate.

Figure : Construction Machine Operator Wage Rates January 2014 ( Daily )Image retrieved from http://www.cidb.gov.my/cidbv4/images/pdf/n3c/labour/2014/Upah

%20Machine%20Operator%20jan14_Sarawakupload%201.pdf

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5.2 FINANCIAL INCOME

5.2.1 PRICING OF SERVICES

Our delivery service is being priced at RM500 per tonne for the products. If the

products that are being transferred are not more than a certain stipulated amount

then the cost will also be based on the distance travelled.

Method 1 : Price = RM 500.00 x weight (tonne)

Method 2 : Price = RM50.00 x distance travelled (km)

5.2.2 BUSINESS AS AN INDEPENDENT CONTRACTOR

There are two methods of approach to market our business. Since our business is

new, it is assumed that we will only get a handful of clients for the first few months.

Therefore, will be running our business as an independent contractor. For example,

since we have 10 trucks to start with, each truck can fetch you RM10, 000

(assumption based on our research) or more in profits per week, depending on

the capacity of the truck, the number of trips covered per week, and the distance

travelled per trip. Therefore, which means that our customers will vary.

5.2.3 BUSINESS AS A CONTRACTOR OR SUB-CONTRACTOR

Then, we will run the business as a contractor or sub-contractor after a year because

by that time we should know some big players in the industry. Henceforth, they would

prefer a monthly deal, as they are more likely to deliver more shipments. In that case,

it is assumed that we will earn approximately RM120, 000 per month despite the

number of trips we have to make.

5.2.4 RENTAL OF TRUCKS

We would also rent out our trucks, which are available on the site as a part of our

revenue. The cost of the rental will be fixed at RM600 per day excluding the toll, fuel

and our drivers. We will only be purchasing more trucks after the 3rd quarter of the

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third year when we are forecast to make a profit. Henceforth, we will also provide an

extra service, which is the rental of trucks.

5.3 FINANCIAL RISKS

The company recognizes that our business is subject to both market and industry

risks. The two primary financial risks to the company are as follows:

Industry concentration risk. The company encourages and also mainly

focuses on catering to and providing services to the IBS manufacturers and

contractors in Johor. This position is favourable since the construction

industry is fairly stable at the moment, especially in Gerbang Nusajaya. Any

slow down in this particular industry would have negative repercussions for

MaXout Sdn Bhd. Therefore to mitigate this risk, the company will diversify

our transportation services to include other segments of construction as well.

We do not eliminate other potential clients in other sectors to maximise our

business.

Operational risk. MaXout Sdn Bhd recognizes the fact that there is an

inherent risk in our transporting services. Any damage to our vehicles may

undermine the profit of the company. To reduce this risk, we only hire skilled

drivers, and provide training to semi-skilled drivers. Aside from this, we

maintain all necessary insurance.

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Figure : Forecast Cash Flow Projections for 3 years