Views and Comments on Malaysia's Oleochemical Industry

1. Local oil palm companies are keen to invest further downstream from oleochemicals to oleo derivatives, but many are still hesitant given the good revenue derived from their core upstream business.

2. Attributed the slow take up rate to the perception that oleo derivatives business was capital intensive and involved some challenges.

3. Oleochemicals, Oleochemical Derivatives or Preparations are included in the list of promoted activities and products which are eligible for tax incentives considerations under the Promotion of Investment Act 1986 depending on the merits of each project.

Understanding Oleochemical Industry in China

STAGES OF GROWTH IN CHINA OLEOCHEMICAL INDUSTRY
1. Initial Stage: Before the 1990s, China oleochemical industry mainly developed its home-grown technology and was confined to soap production and soap co-products like stearic acid and glycerol. The production scale was small and the technology was relatively backward.

2. Developing Stage: From the 1990s to the early 21st century, China’s further reform and opening up policies had created a good economic and political environment. Through introducing the advanced technologies of Germany, Italy and other countries, the production scale of enterprises was greatly enlarged and the technical level was improved, which laid a good foundation for the development of China oleochemical industry.

3. Rapid Growth Stage: Since 2003, the influx of some large multinational groups (mainly referring to those of Malaysia and Singapore) had brought in the advanced technologies and business principles. Meanwhile, many domestic enterprises began to build up or expand production devices, which greatly enhanced their production scale and concentration. Hence, the oleochemical industry entered into a rapid development period.

Tax Incentives for Foreign Investment in Singapore - Part 2 - R&D

Continuation from previous posts. Tax incentives offered to the R&D Industry.

Tax Incentives for Foreign Investment in Singapore - Part 1

Singapore offers a wide range of investment incentives for investors including tax holidays and concessions, accelerated depreciation schemes, grants and favorable loan conditions to attract investments. The tax incentives and grants offered in Singapore are in the form of exemption from tax, reduction in the rate of tax or subsidies, and are available to a very broad range of industries.

Tax Incentives for Foreign Investment in Vietnam

Vietnam’s low wages have traditionally provided these cost savings; however, the country has also quietly developed one of the most competitive tax regimes throughout Southeast Asia. 

B10 - Part 2 - CPO Prices, Production Capacity and Specs of B10

1. At the moment diesel sold has a 7% palm oil content and is called B7. The Malaysia government is looking at increasing the blend to B10 this year, meaning 10% of palm oil content in diesel.

2. In Indonesia, the government has taken an aggressive approach and is now adopting a B20 policy.

3. Indonesia's policy created an additional 3 million tonnes of demand in a year.

B10 - Part 1 - Biodiesel implementation in Malaysia

1. The B10 blend that was slated to be introduced at petrol stations nationwide consists of 10% palm methyl ester and 90% regular diesel fuel.

2. Fuel stations currently sell the B7 blend (7% palm methyl ester). However, the implementation of the B10 blend will only affect Euro 2M diesel in Malaysia, while Euro 5 diesel will continue to be a B7 blend.

Impact from China's Plastic Scrap Ban

Information Compiled for Internal Newsletter Circulation

Plastic recycling is the process of recovering scrap or waste plastic and reprocessing the material into useful products. Plastic recycling includes taking any type of plastic, sorting it into different polymers and then chipping it and then melting it down into pellets.  Soft plastics such as polyethylene film and bags can also be recycled. 

Building Information Modeling (BIM)

BUILDING INFORMATION MODELING (BIM)
1. Building Information Modeling (BIM) is an intelligent 3D model-based process that gives architecture, engineering, and construction (AEC) professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure

Feeder Vessel and Feeder Ports

1. A feeder vessel is a vessel that “feeds” the large ocean vessels with containers. 

2. A feeder port is a port where the large ocean vessels normally don’t go. Partly because there are not enough containers to load onto a large ocean vessel or because the port is not large enough to handle the large ocean vessels.

3. Feeder ports and feeder vessels play a very important role in the worldwide transportation of containers. 

Freight Village: European Models

1. The “freight villages” (english designation) are called in different ways depending on the country:

“Interporti” in Italy;
“Transport Centres” in Denmark;
“Gunterverkehrszentren” in Germany;
“Zonas de Actividaedes Logisticas” in Spain.

2. The different experiences of achievement show differences in the organization of infrastructure and services that offer the same logistics platforms.

Inland Ports

1. Some countries imports a lot of goods, and these imports must enter the country through a few seaports. Often, these seaports become bottlenecks; in addition to offloading freight, they must function as distribution hubs. 

Impact and Opportunities From China's Plastic Scrap Ban

China is upending the global plastics market. The world’s biggest user of scrap has stopped accepting shiploads of other countries’ plastic trash as it phases in a new ban.

Insurance Sector Global Reports

Compilation of reports and outlooks for 2017 - 2018 covering the global market, Malaysia's Takaful and Vietnam's growing insurance sector.

Blockchain and the Insurance Industry

The financial industry is at a “crossroad” and risks future growth if it does not adapt to changing consumer behaviour. By embracing blockchain, insurers can benefit from more efficient underwriting, the development of bespoke products, and a smarter way to process and manage claims.

BNM's Comments on the State of Malaysia's Insurance

Key points from governor’s Keynote Address at the Malaysian Insurance Summit (MIS) 2017.

Product Spotlight - Graphene Application and Potential

1. Sir Andre Geim and Sir Konstantin Novoselov, isolated and characterised graphene in 2004 with remarkable properties – strong, light, almost transparent, and an excellent conductor of heat and electricity.

2. Sheets of graphene held together by van der Waals bonding make graphite. Graphene sheets are composed of carbon atoms linked in hexagonal shapes with each carbon atom covalently bonded to three other carbon atoms. Each sheet of graphene is only one atom thick, and each graphene sheet is considered a single molecule.

3.  Graphene Market has been gaining remarkable traction, owing to the extensive use of graphene for power storage and composites with a graphene market revenue at USD 20 million in 2016.

4. R&D on this revolutionary material continues with more than $2.4 billion in funding committed globally.

Generalized Linear Model - Part 3 - Overcoming Rigid Pricing Structure and Alternative Use

1. the most important elements of the price,is the expected claims cost and the demand for the product.

2. There are other considerations, such as a more in-depth treatment of variable expenses, investment income, cash flows, claims development, return on capital and fixed expenses.

3. How we can build these different rating components into a pricing system.

4. Most statistical analyses are compromised in order to fit into a rigid table design from which the premiums are calculate. The situation is further exaberated when profit margins especially when loads and discounts given for a variety of reasons.

Generalized Linear Model - Part 2 - GLM Functions for Pricing Structures

DEVELOPING OPTIMAL PRICING STRUCTURES
1. There are four basic components of estimating the premium to be charged; firstly the risk premium, secondly the direct policy related expenses, thirdly a contribution to fixed overhead expenses and finally a profit margin.

2. The industry partices with profit load and risk premium relativities for different customers being combined in some way. Consequently, in a competitive market, marketing discounts and/or rating action in response to competition become indistinguishable from rating action taken in response to changing claims experience.

3. if it were possible to anticipate an individual customer's response to the new business or renewal terms offered, then a probabilistic approach could be adopted in setting both the contribution to overheads and the profit margin in order to maximise expected profit.

4. The model needs to be flexible enough to take into account the individual characteristics of each policyholder and be able to respond to the dynamics of the market place. Under certain market conditions or market segments it is quite plausible that the profit loads can be negative.

Generalized Linear Model - Part 1 - Multiple Regression Approach

1. A dynamic pricing system can be built for personal lines business, whereby profit loads and risk premiums can be tailored to the individual behavioural characteristics of the customer. 

2. The objective is to use as much information as input to these models in order to establish which risk factors are the most predictive.