Standards_Featured

Promoting Standards in Agriculture to Improve Competitiveness

By Dr. Sarinder Kumari & Dhanendra Sivarajah

Agriculture quality standards have become imperative not only to ensure safe and quality products but also for farmers to access international markets.

A highlighted by the World Trade Organisation (WTO) and academicians, tariff barriers have been replaced by sustainable requirements for market access as a means of protecting domestic  producers. Understanding the requirements of the importing country and ensuring these elements are incorporated and harmonised with the standards of the importing countries is key as defined by the WTO Technical Barriers to Trade, an agreement which strongly encourages members to base their measures on international standards as a means to facilitate trade. Hence, it is essential for Malaysian farmers to practice Good Agriculture Practices that are aligned with international standards to access these markets.

These standards were introduced in accordance with Malaysian Standards that define processes in resource management for good and sustainable agriculture production which improve farm productivity and ensure produce is safe and of quality, with the welfare and safety of workers taken into account.

Spearheading a new approach to standards adoption

However, the introduction of the local standards brought on a different set of challenges.  Among those highlighted by the farmers were limited market access, insufficient capacity building programmes to assist in compliance to standards, as well as questions from the importing countries on the standards applied.  The value of certification was also questioned by farmers who saw the exercise as adding more work to an already laborious industry. Consequently, farmers were selling to middle-men, often at a minimal price, who were able to stretch their own profit margins through with their ability to penetrate the hypermarkets and as well as the export market.

To overcome these challenges, a mini-lab facilitated by PEMANDU Associates (during its time as a Delivery Unit in the Prime Minister’s Department) in collaboration with the Ministry of Agriculture was held, involving farmers associations and other relevant agencies.  It was decided in the mini-lab that a rebranding of all three schemes under a single brand name was to be introduced to create a brand name that is easily recognised in the foreign market – this standard would also be harmonised with all other good agricultural practices used by other countries for the export market.

Thus, a series of focus group meetings chaired by the Undersecretary of the MOA as well sessions with the then-Minister of Agriculture, led to the birth of the Malaysian Good Agricultural Practices (myGAP) in 28 August 2013. Since then, myGAP has become known internationally and is synonymous with other standards such as GlobalGAP, JGAP (Japanese certification) and China GAP (China certification), to name a few. 

Further to this, the MOA and its respective agencies also stepped up efforts in educating the public on the importance of certification to ensure sustainability, quality and lastly to also allow for market access, with the respective departments aggressively involved in promoting myGAP in their bilateral talks for market access.  All main initiatives and sub-initiatives had individuals accountable for its implementation who were able to provide regular and comprehensive progress reporting.

Breathing new life into Malaysian produce

After the launch of the myGAP Certification and its brand promise of “Producing More, Improving Lives”, the MOA continued to work with various stakeholders to not only educate the farmers about the need and benefits of myGAP, but also encourage them to look beyond just farming but towards creating a safe and sustainable community.  In an effort to further enhance the standards usage among farmers, MOA also allocated funds to assist farmers in upgrading their storage, sewage, collection, and other facilities that are requirements under the myGAP certification programme. Besides funding assistance, farmers also benefited from capacity-building programmes, awareness and promotion programmes.

The capacity-building programmes involved educating the farmers on the requirements of myGAP and its importance, which was then followed by assistance in completing the checklist in preparation for compliance and audit. This effort encouraged strong participation from farmers who were keen to understand the certification process.


Mr. M. Kaliyannan, who puts his customers at the top of his priority, has adopted myGAP in his 39-hectare watermelon farm to ensure higher standards of quality and safety for his crops. With myGAP, he has been able to widen his market for Grade A watermelons to foreign markets such as Dubai and Hong Kong. His revenue has increased more than 20% when compared to before myGAP.

“Under myGAP, there are many practical steps to follow including staff training, usage of pesticides, safety, and best practices for planters. I’ve seen many positive results since the adoption of myGAP.

“My ambition is to be the king of watermelon in Malaysia by exporting my entire Grade A products to the rest of the world. The myGAP programme is a good initiative, especially to assist us in the agriculture sector shared. I would definitely continue to encourage other farmers to follow my steps so that they can be successful as well,” he says.


Beyond addressing the supply side, the MOA also worked with hypermarkets in running awareness campaigns and promoting certified produce to encourage consumers to demand for produce that are certified. This has resulted in benefits for farmers by leveraging hypermarkets as a means of directly accessing the customer and avoiding the middle-man, and MOA’s efforts in increasing the number of certified farms in Malaysia.

Giving farmers a leg up into foreign markets

In 2017, with the introduction of myGAP, the cumulative number of farms certified with myGAP increased by 451% from 1,378 farms in 2011 to 6,226 farms in 2017, as more countries require the certification for the export of fruits and vegetables. Brunei become the most recent adopter of the certification, starting in January 2018. There was also an increase in the number of livestock farms were certified by the Department of Veterinary Services, as China, a major market for edible birds’ nest, started making it mandatory for bird’s nest imports from swiftlet farms to be myGAP certified, further proving that adopting international standards does help secure local exporters’ market penetration.

To further strengthen the transition to a globally accepted standard, the Ministry included routinely monitored KPIs that trigger problem-solving sessions which allow for effective intervention. The result of the effort is felt by the operators, as demonstrated by the following feedback received in a survey commissioned by Standards Malaysia back in 2014:

Farmers acknowledged that myGAP propagates prudent and economical administration of chemical fertilisers, which in turn helps check/control pest infestation, contributing to increased yield and reducing cost.

The feedback obtained from the farming community shows that while the process of converting from a local to a global standard does come with a learning curve and temporary pain points, the benefit of securing market access and improving profits is well worth the investment. The transformation to the global standard was made possible by bringing the public and the private sector together to problem-solve anticipated issues for the conversion, and relentlessly monitoring the work toward a common purpose.


“Before I adopted myGAP, I had to spend about RM16,000 on chemical fertilizers, but after the adoption, I was able to save money because I only spent RM2.000 by using the Sri Product via the Natural Farming concept. Now, I am using 70% of Sri Products and 30% chemical fertilisers. With myGAP, I am able to sell my rice for RM6.00/kg compared to before when it was only RM2.00. I have also sold rice seeds to Sendi Enterprise for RM1,350/tonne and sold rice at RM1,200/tonne to Bernas.” – Abdul Razak Chik, better known as ‘Pak Lang Sri’, who owns a paddy farm in Sekinchan, Selangor.


Oman_Energy_Featured

A Sultanate’s Journey Towards Sustainable Energy – Oman’s Story

By Woody Ang & Khoo Woon Hann

Gas is a finite asset

The gas industry is a substantial component of Oman’s economy, contributing significantly to export earnings and serving as an important enabler to local industries. In 2017, Oman produced 41 billion cubic feet of gas, of which 32% was exported by Oman LNG while the remaining 68% was consumed locally, with consumption growing at an average of 2.3% per annum for the past eight years. Its proven total gas reserves stood at 25 trillion cubic feet as of end-2017.

As a GCC country rich in natural resources, Oman’s gas reserves are however a finite asset. Its current supplies remain healthy in the short-to-medium-term, but with pressure now to diversify the economy and reduce its over-reliance on oil and gas, its gas assets will need be utilised to directly spur other economic sectors. Gas requirements for economic generation, particularly in the manufacturing sector, will need a long-term supply commitment, and the country will need to balance this with its existing industrial and residential commitments, the latter of which continues to grow as the nation’s population increases.

Against this backdrop, and as part of a wider programme of economic diversification, the Omani Government saw a need to carefully manage supply and demand in the gas industry to mitigate any probability of a gas deficit situation in the medium-term. The supply-demand dynamics were further impacted by the fact that 97% of its power was generated from gas-fired plants. From an energy security perspective, Oman needed to consider diversifying its sources and avoid over-reliance on gas. Preserving this precious finite resource and allocating it to industries that generate the highest economic returns then became a priority for long-term sustainable development.

Complementing the effort to manage its gas resource was the need for effective governance that provided a conducive planning and regulatory environment for Oman’s industry players. The Ministry of Oil and Gas serves as an able custodian for the Oil & Gas industry, while the Electricity sector is managed by separate Authorities who do their best within their respective mandates. Moving forward, consolidation of the strategy and planning of these two closely related sectors would allow for harmonised development, taking into consideration a rapidly changing economic landscape.

Delivering tangible transformative outcomes

Through the PEMANDU Associates’ BFR Methodology Labs, Oman devised and adopted a 3-pronged strategy specifically for the Gas sector: (i) Ensuring long-term gas supply security, (ii) Optimising growth-driven gas demand and (iii) improving infrastructure capacity and efficiency.

Firstly, thorough investigation was conducted on all existing gas producing assets and development plans for greenfield projects. Specific supply-based projects were identified with the potential to increase Oman’s gas production substantially by 2042, and as a result, extend Oman’s available gas supplies. These projects include immediately implementable initiatives such as flare gas reduction, replacement of gas usage in existing operations to generate thermal energy, increasing asset productivity through modern technology; and longer-term greenfield and brownfield gas development projects.

Secondly, to complement the effort to increase gas production, the Lab deliberated on ways to optimise demand. After careful selection, a set of robust and stringent gas allocation criteria was developed and proposed. The ultimate objective was for Oman to allocate gas to industries that generate the most economic returns. Future applications for gas usage will be assessed and then prioritised using these new criteria. This represents a paradigm shift to a more objective, measurable and impactful allocation practice. In addition, a standardised gas application process was designed and communicated to all impacted stakeholders from both the public and private sector.

The third strategy for the Gas sector is to improve gas infrastructure capacity and efficiency. The Lab assessed high industrial growth areas against the availability of pipelines to meet future demand. This culminated in new pipeline projects that will transmit extra gas transmission capacity to critical regions like Sohar, Duqm, Sur and Salalah by 2019.

One of the key components in Oman’s Energy sector is the Electricity sub-sector. A comprehensive transformation of gas consumption would not be complete without assessing this sub-sector, where gas contributes 97% to all power generation capacity. There is thus a critical need for energy diversification for electricity generation to include renewable energy sources.

Two major outcomes were achieved in the Lab. First, 17 non-gas power generation projects were identified and prioritized for implementation. These projects will cumulatively provide up to 11% non-gas source generation by 2023. This is a substantial achievement considering Oman is still a developing nation with overall projected electricity demand expected to increase further in the next five years. The projects encompass utility-scale solar PV plants, wind farms and waste-to-energy plants. The Ibri 500MW solar power plant is an example of Oman’s government drive to diversify its energy source mix. This project is expected to be completed by 2021 and will be the first large scale solar project in the Sultanate.

Lastly, the Lab recommended that harmonised planning and development of Oman’s Energy Policy be institutionalised. Currently there is no one single entity, nor there exists a process that will enable the holistic development of an Energy Policy that considers interest of all sectors. The solution adopted will involve expanding the jurisdiction of a single existing entity to include policy-making for both the electricity and gas sub-sectors holistically.

Momentum for the future

The key lessons revealed through Oman’s Energy Lab is the need for a coordinated and structured approach for planning in this critical sector. Since the sub-sectors are all intricately linked, changes in policy and executive decisions must be done taking into consideration ramifications to all stakeholders. The Lab discovered that one of the biggest hindrances that industry players faced was due to the lack of central coordination of policy decisions and follow-up actions. If possible, policy-making should be centralised to encourage greater efficiency.

In addition, for a country facing diminishing reserves of a finite resource, demand planning such as consumption optimisation and subsidy rationalisation should take precedence. The political will to shift from a way of potentially wasteful cheap resource consumption to a more conservative approach of utilisation needs to be present. The BFR Methodology Labs have certainly provided the platform for a collective realisation that continued reliance on gas as Oman’s sole energy source will not be sustainable for the long-term, and has generated the momentum for the country to aggressively diversify into renewable energy. The future of energy diversification and security looks to be on the right track.

Uncaging Creativity in Consulting Companies

By Leon Jala

In an industry filled with polarising buzzwords, 2018 welcomed a new contender – the ‘cagency’.

The slightly cringe-worthy term describes a new wave of consultancies venturing into the creative space. In an increasingly data-driven landscape, this seems like a natural trajectory for consultancies and agencies. But is it, really?

A glimpse of the industry’s future

A look at Cannes Lion 2018, the festival and awards event for the creative and marketing communications industry, already points to the increasing presence of consultancies actively desiring a share of the proverbial agency pie. Accenture Interactive set the tone in a big way bagging a Gold Lion for its interactive campaign, JFK Unsilenced.

As all good things should be, the idea was simple: give the world the speech that John F. Kennedy was supposed to give before he was assassinated. Illustrate the possible social impact. Its success at Cannes has sent a strong message on the boundless possibilities when creativity and data enabled by technology find synergy.

A creative and a consultant walk into a bar…

If it was really that simple, everyone would be playing the same game. But the reality is that creative and management consulting are often two different creatures – while the currency of the creative is emotion, consulting banks on data. Finding real synergy is not easy. But easy never made for much fun anyway.

And that’s exactly the challenge that PEMANDU Associates has gone head-first into, by setting up its communications subsidiary, COMMUNICATE. Helmed by its Managing Director, Alex Iskandar Liew, the company’s approach to this conundrum has been to build a team of creative-consultant hybrids passionate about storytelling and communicating the right messages to the right target audience through focused platforms.

But the main point here isn’t about hybrids. For Alex, it’s about “breaking down silos or the perception that communication is a last mile of a strategy or an implementation programme.” When we stop putting each other in the traditional boxes where planners only do strategy, suits only manage accounts and creatives only tell everyone else they’re wrong (I know, I was a copywriter), individuals within a creative agency will begin developing a collective sense of ownership for the work.

Thus, just as the ad people of yesteryear realised the magic in bringing an art director and writer into the same room, so too should we be looking to get more people into the bigger rooms of today. And that includes our clients.

Collaboration over order-taking

More creative agencies can benefit from working closer with their clients by involving them more heavily in the process. Not just by taking a brief. Much like their parent company, COMMUNICATE advocates ‘labs’ in their methodology. A lab is an extended workshop involving the client’s stakeholders for a given area of focus, facilitated by the consultancy.

For COMMUNICATE, being able to accurately identify and verify the case for change and opportunities together sets a clear path for the creative work to begin. More importantly, it establishes a clear narrative and illustrates an outcome that the work should deliver.

Many creative agencies pride themselves as branding experts, but ultimately, the brands will know their challenges more intimately. Brands are not just driven by perception or awareness; their performance is also anchored on profit and loss. And brand diagnostics are multi-layered with solutions influenced by all facets of the corporation.

You wouldn’t trust a doctor’s diagnosis without first revealing your own symptoms. It is similar with the clients – they have a need; they need to know that we are listening; they must be assured that we understand before they can take our proposals seriously.

Over-fascination with creative. Under-fascination with outcomes.

More importantly, we need to facilitate the essence of a brief against the desired outcome so that the work actually works. After all, what good is an award-wining creative campaign if it’s homogenous?  What good is a warm and fuzzy piece of piece of advertising, if the brand logo is interchangeable? Brands are unique. Therefore, the messaging too must be unique.

On the topic of awards, it’s great to see the annual Kancil Awards exploring a festival format. This is a step in the right direction to being more inclusive to those outside of the ad world. Agencies were always meant to be partners. Not vendors.

Ultimately, the cagency model is still a model – it isn’t the answer in and of itself. To truly transform the industry landscape, we must begin engaging in ‘business unusual’ – to embrace the ever-transforming process on how a good piece of creative work is delivered. Perhaps, then, as teams find themselves on award show stages amidst roaring applause, it will truly be a collective award for both clients and agencies, regardless of budget.

Learning Academy Masterclass: Transforming Engagements with the C-Suite

PEMANDU Associates’ Learning Academy is organising a one-day workshop focused on improving participants’ ability to structure their communication as well as develop and deliver compelling and impactful presentations in their engagement with their superiors. This workshop is targeted at young executives to mid-management executives.

Date: Monday, 30 July 2018

Time: 9.00 am – 4.00 pm

Location: Sunway Putra Hotel

Event Fee: RM750 per person


This workshop will cover:

Module 1: Structuring Your Thought Process

Module 2: Creating Compelling Presentation Decks

Module 3: Delivering an Impactful Presentation 

Masterclass Introductory Bonus: Power Lunch Talk with Dato’ Sri Idris Jala, CEO of PEMANDU Associates

Seats are limited. Register now!

Click to download the Masterclass Programme Overview.

This workshop is HRDF claimable.
For further enquiries, kindly email: [email protected] or contact us at +6 019 283 7953/+6 012 346 2562.