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Issues of Local Businesses in Malaysia

Friday 20 March 2015, 1630 – 1830, Lecture Theatre 6

Organiser:
Choy Tuck Yun
Sunway University
tychoy@sunway.edu.my

Chair:
Choy Tuck Yun
Sunway University
tychoy@sunway.edu.my

This panel looks into issues of local businesses related to the economic growth of Malaysia. As one of the faster growing country in Southeast Asia, Malaysia experiences similar economic growth in the commercial sectors of online banking, manufacturing, restaurants and coffee shops. Four diverse insights into local businesses in Malaysia are presented. The first paper will discuss on the business strategies of local entrepreneurial restaurateurs in the growing but competitive small restaurant sector. The second paper will explore the capability of local independent specialist coffee shops to survive in the trend of global specialist coffee shop chains. The third paper will examine the needs of hybrid motorcars as Malaysia gears up to manufacture hybrid cars. The final paper will investigate the impact of different consumer decision making styles on online purchase intention as Malaysia pushes towards online banking. The panel hopes that the discussions from these four studies will provide further understanding of the local businesses in Malaysia and other countries experiencing similar trends in Southeast Asia.

 

Paper 1: Business Strategy of Entrepreneurial Small Restaurateurs in Malaysia

David Chong Boon Hean
Sunway University
davidc@sunway.edu.my

In South-east Asian countries, there are many entrepreneurs who operate small restaurants serving the general trend among the South-east Asians to eat out instead of eating at home. This specialisation of cooking from working in the population creates a demand for restaurants and generates a healthy economic development in South-east Asian countries. Many of these restaurants are small operations employing less than 20 employees owned by an entrepreneur. With the high demand for eating out and low entry barriers, there is fierce competition among these small restaurateurs. There is scarce research on the business strategies of these small restaurateurs in contrast to extant research on the business strategies of larger restaurants. This study is based on West Malaysia where there is a growing group of small teh-tarik restaurants within the booming restaurant industry. These restaurants are operated by entrepreneurs with less than 20 employees. The common beverage served is teh-tarik which is a frothy milk-based tea drink. An important ingredient, condensed milk makes up a significant cost of the teh-tarik drink. There are a group of small restaurateurs in West Malaysia who buys a premium brand of condensed milk priced at 8-10% higher than its competitors. This study examines the business strategies of these small restaurateurs through a questionnaire survey of the factors that influenced their use of a premium condensed milk.

 

Paper 2: Local Independent Specialist Coffee Shops and Their Followers

Cheng Boon Liat
Sunway University
boonliatc@sunway.edu.my

In South-east Asia, there is a growing social trend among young adults to patronize branded specialist coffee shops. The pricing in these specialist coffee shops are ten to fifteen times higher than conventional coffee shops but this sub-sector continues to achieve higher growth than other sub-sectors. In Malaysia, Starbucks and The Coffee Bean & Tea Leaf are the biggest branded chain of specialist coffees shop with the most number of outlets, offering mainly coffee in an assortment of preparation styles and roast while offering a variety of beverages, baked goods, and snacks. Competing against them are a growing sub-sector of independently owned specialist coffee shops operated by local Malaysians with impressive individual brands such as Artisan Roast Coffee, JD Espresso and Top Brew Coffee Bar. These shops attempt to offer similar food and beverage with similar ambience and service but are not part of a chain. There is scarce research on the motivation to patronize independent specialist coffee shops. The aim of this study is to understand the factors that influence young adults to patronize these independent specialist coffee shops in Malaysia. The results would provide clues on how independent specialist coffee shops operated by local Malaysians compete against global specialist coffee shop chains.

 

Paper 3: Adoption of hybrid motorcars in Malaysia

Gan Chin Chuan
Sunway University
chinchuang@sunway.edu.my

There is a global trend to reduce pollution and use of unrenewable natural resources by substituting internal combustion cars with hybrid cars (hybrids). Hybrids use two power sources: internal combustion and electric motor, to achieve powerful driving performance while remaining fuel efficient and emitting less polluting gases. South-east Asian countries such as Thailand, Indonesia and Malaysia are promoting the manufacture of hybrids. In January 2014, the Malaysian government discontinued granting exemption of excise duties and import taxes for completely built up fully imported hybrid cars (hybrids). By end 2015, exemption of duties and taxes for completely knocked down imported hybrids will also cease. This is part of the National Automotive Policy 2014 to encourage car manufacturers to invest and assemble their cars in Malaysia instead of importing and local assembly of hybrids. Car manufacturers that choose to produce hybrids in Malaysia will be interested to know the needs of potential hybrid purchasers in Malaysia. This study examines the needs of Malaysian drivers when purchasing hybrids by interviewing two sales managers and a survey of potential hybrid purchasers.

 

Paper 4: Consumer Decision Making Style Towards Online Purchase Intention and the Mediating Effects of Purchase Behaviour and Security

Derek Ong Lai Teik
Sunway University
dereko@sunway.edu.my

Online banking could be the next growth frontier in South-east Asia, spurred by economic expansion, young population, low-cost smartphones and availability of internet access. The advancement of online connectivity has encouraged more consumers to shop online citing benefits and advantages of online purchasing. In 2015, Malaysian banks will charge a cheque processing fee of 50 sen on the issuer of a cheque in addition to the existing stamp duty of 15 sen per cheque. This initiative is to support the national agenda for the migration to electronic payment and will further increase the adoption of online banking. However, the expected take up of online banking in Malaysia is not expected to be without hiccups. Many consumers in Malaysia are also still concerned with the issues of security and differences in their purchase behaviour makes it more difficult to predict online purchase intention. This study investigates the relationships of different consumer styles towards online purchase intention and examines the mediation effects of past purchase behaviour as well as security concerns. The findings will help companies understand their consumers better for better marketing strategies that personally attracts different consumer attention and improve security measures to gain consumer confidence toward online shopping.