Team Name: HABITS

TEAM MOTTO

HABITS from the sentence from How All Brilliants Idea Take
Shapes and a good HABITS make us keep on going.

International Business Challenge

Assessment 2A: Business Case DRAFT

Team Name:
Liaw Lip Hong (Lips) 4538938

Teh Yan Yao 4538927

Tan Chia Yan (Angela) 4538583

Slyvia Ng Ming Fong 4539031

Waleed Abdulhalim Salim 4531794

0
Table of Content
1.0 Introduction and Background to the business case .............................................2
2.0 Aim of the business case ........................................................................................3
3.0 Key objectives of the business case ......................................................................3
3.1 Operational ....................................................................................................3
3.2 Marketing .......................................................................................................3
3.3 financial .........................................................................................................3
3.4 Corporate Social Responsibility (CSR) .......................................................3
4.0 Feasibility ..................................................................................................................4
4.1 Market Analysis .............................................................................................4
4.1.1 Nature of Industry .....................................................................................4
4.1.2 Demographic Influence .............................................................................4
4.1.3 Past and Future trends..............................................................................4
4.1.4 Potential Customers...........................................................................5
4.1.5 Suppliers..............................................................................5
4.1.6 Price..............................................................................5
4.1.7 Product.................................................................................5
4.1.8 Place.................................................................................5
4.1.9 Promotion.................................................................................6
4.2 SWOT Analysis .............................................................................................6
4.3 Practical Point of View .................................................................................7
4.3.1 Logistical issues ........................................................................................7
4.3.2 Operational issues .....................................................................................7
5.0 Financial Projection ..................................................................................................8
5.1 Initial once-off cost .......................................................................................8
5.2 Month-by-month income statement for 3 years..........................................8
5.3 Three years Income & Expenditure .............................................................9
5.4 Return On Investment ................................................................................10
5.5 Total Seed Funding .....................................................................................10
Reference list.............................................................................................................11
6.0 Appendices .............................................................................................................12
Appendix 6.1: The Project Team .................................................................................12
Appendix 6.2: Furniture and Fittings ..........................................................................13
Appendix 6.3: Rental...............................................20
Appendix 6.4: Advertising Expenses..............................................21
Appendix 6.5: Shipping fees............................................................27
Appendix 6.6: Cash Inflow............................................................28
Appendix 6.7: Cost Of Good Sold..............................30
Appendix 6.8: Promoter at AEON Store...............................32
Appendix 6.9: Wages and Delivery..............................................................................34
Appendix 6.10: Road Show Expenses ........................................................................36
Appendix 6.11: Salary .............................................................................37
Appendix 6.12: EPF.......................................................................................................39
Appendix 6.13: SOCSO......................................................................................41
Appendix 6.14: Electricity.......................................................................43
Appendix 6.15: Internet ..............................................................................44
Appendix 6.16: Import Duty.......................................................................................45
Appendix 6.17: Corporate income tax.........................................................................47
Appendix 6.18: AEON Store................................................48

1
1.0 Introduction:

As the worlds population keeps on increasing, so does the garbage and

disposables that people produce. Most of these disposables are plastics which
when accumulates results in plastic pollution. Plastic pollution is when plastic
gather in one area which results in a negative impact on the nature creating
problems for the wildlife and the human population as well. Plastic is considered
to be one of the reasons which harm environment as it contains major toxic
pollutants. Malaysia is known to be one of the most countries which has a high
plastic pollution alongside many countries such as Indonesia, Sri Lanka and
Philippines. China is responsible for the most plastic pollution per year with an
estimate of 2.4 million tons (Leslie 2015).

By slowly eliminating the use of plastic bags and looking for a substitution, the
plastic pollution can be reduced by a large percentage. So AEON Malaysia has
come up with a solution which involves the introducing of reusable bags instead
of normal plastic bags. This solution not only will reduce the cost of production
plastic but will also involve a corporate social responsibility. These reusable bags
will not be made of plastic but a non-woven material which can be reuse. The
bags will not only be environmental friendly but user friend as well. AEON will be
importing these bags from China to reduce their cost of production.
2.0 Aim of the project

The aim of our project is to improve the environment by slowly eliminating the
use of plastic bags and by substituting it with reusable bags which is not only
environmental friendly but user friendly and convenient to customer. The bag will
be having several compartments which are indicated by different colors to make
it easier for the customer to divide the detergents from the dairy products and
many other things which cannot be kept in one bag. The main target of this
product would be the AEON shoppers who are individuals from the age of 20 and
above.

2
3.0 Key Objectives
3.1 Operational:

The operational objective of this project is to conduct a campaign which will be

called the SAY NO to Plastic Bag campaign and will be hosted at Sunway
Pyramid. The main purpose of this campaign is to sell 75,000 reusable bags per
year to 12 Aeon stores and outlets in Selangor (mainly in Kuala Lumpur) starting
from 1st September 2016 to 30th August 2019.
3.2 Marketing:

The marketing objective of this project is to reach out 74,400 customers per year
through the SAY NO to Plastic Bag campaign which is conducted at Sunway
Pyramid. The 74,400 customers will be reached out using the purchase of
reusable bags. The marketing objective will be commencing from the 1st
September 2016 to 30th August 2019.
3.3 Financial:

The financial objective of this project is to reduce Aeons cost by 2% with the
decrease usage of plastic bags. Customer will no longer need plastic bags when
the reusable bags are introduced. So the cost of buying the plastic bags will be
eliminated from the income statement of AEON. AEON will also increase its
revenue from the sales of the reusable bags. The selling of the plastic bags will
be from the 1st of September 2016 to 30th August 2019.
3.4 Corporate Social Responsibility (CSR):

The corporate social responsibility of this project is 10% of the net profit from the
sales of the reusable bag will be donated to the National Recycling Coalition
(NRC) which is a non-profit organization that has an aim on the promotion and
enhancement of recycling their mission is waste reduction and sound
management practices for raw materials (NCR 2016). This corporate social
responsibility will be conducted from the 1st September 2016 to 30th August 2019.

3
4.0 Feasibility
4.1 Market analysis
4.1.1 Nature of the industry

The company that we choose to do collaboration with our business case is

AEON CO. (M) BHD. Aeon is one of the leading retailer among all the others
supermarkets or hypermarket in Malaysia. Aeon also has a total revenue of RM
3.51 Billion under the financial report which has been reviewed. The nature of the
industry is Aeon focus on establish themselves as a chain of General
Merchandise Stores and supermarkets (AEON CO. (M) BHD., 2016). Besides
that, Aeon also active in operate others business such as specialty stores, credit
card business and so on. According to AEON CO. (M) BHD., Aeon always
emphasize on their philosophy Customer First philosophy that indicated Aeon
are really take care customers experience on the good quality product with their
unique service provided by Aeon.
4.1.2 Demographic Influence

From 2010 to 2016, there is an increase of 3.4 million people in Malaysia for all
the age range. In 2010, the population of Malaysia is 28.3 million people whereas
in 2016, the population has become 31.7 million people (Statistics.gov.my, 2016).
For the working proportion of this 15-64 age range, in 2010, it has taken up
67.3% whereas in 2016, it has increased to become 69.4% (Statistics.gov.my,
2016). This indicates that the market that we can targeted for our product- Trolley
recycle bag that sell in Aeon has become bigger as the statistic of working
proportion is increased.
4.1.3 Past and Future trends

In the past time, the free plastic bags that seller provided free for shopper for
shopping convenience has become a trend in Malaysia whenever there is people
purchased your product, the shop will provide a free plastic bag for shopping
convenience. But nowadays, since government have strengthened the law for
reduction of excessive consumption of plastic bag, hence Ministry of Domestic
Trade, Cooperative and Consumerism (MDTCC) has launched the No Plastic
Bag Campaign Day in January 2011 and for every Saturday the supermarkets,
hypermarkets, major retailers and shopping malls will impose a charge of
RM0.20 for a plastic bag that requested by the shoppers. To save the
environment, most of the supermarkets and hypermarkets such as Tesco
Malaysia started to sell reusable bag for shopping convenience and also support
the No Plastic Bag Campaign Day (The Sundaily, 2009). For future trend,
shoppers will be more familiar for the usage of reusable bag for shopping
convenience and then slowly the usage of plastic bags will eliminate out from
shoppers in shopping.

4
4.1.4 Potential Customers
Using reusable bag is the current trend that supermarkets encourage shoppers
shopping use it to replace of using plastic bag to save the environment. So now
our business case is promoting our trolley reusable bag this business idea to
Aeon. Aeon is the media that sell this reusable bag to customers. Thus, for this
product we are targeting everyone that do shopping in supermarkets or
hypermarkets, but for potential customer we are focusing on those working
proportion which age between 14 to 65 years old customer.

4.1.5 Suppliers
There are so many suppliers that can supply this type of reusable bag in Alibaba
webites. After we get quotation from all the suppliers, we finally choose this
company as our supplier to produce our reusable bag. Our supplier is called Neo
Regal (Xiamen) Industrial Co. Ltd, this supplier is from China, is manufacturing
bags products. It is located at Fujian, China. This reusable bag is made of non-
woven material, and it has few compartment which is easier for user to arrange
the goods in this trolley reusable bag. And we are not manufacturing this bag by
ourselves because this supplier has already produce the real product and sell in
a very affordable price, so we are not planning to produce by our own.

4.1.6 Price
For this reusable bag, we have counted all the production cost, shipping cost and
others cost, hence we have set RM 20 for each reusable bag that sell to the
market. The reason we sell it at the price of RM 20 because this price only able
to be cover up all the cost and get the profit after sold it out in the market.

4.1.7 Product
Our product is trolley reusable bag. This bag is made of non-woven material, and
it has 4 compartment which user can put it in the trolley tray and place those
goods nicely and neatly. And this product is manufacturing by the China
manufacturer, Neo Regal (Xiamen) Industrial Co. Ltd.

4.1.8 Place
For this reusable bag, we are planning to sell in Aeon stores, but we have
chosen 12 selected locations that can buy this reusable bag. For more
information about which 12 selected stores has been chosen, please refer to the
appendix 6.18.

5
4.1.9 Promotion
The promotion of this reusable bag is we are having an environmental
awareness campaign in Sunway Pyramid for promote this product to the market.
Although in the market there has a lot of reusable bag, but our product is slightly
different with them. So during the event, we can promote out our product more
successfully to the market and encourage them to use this when they do
shopping in mall.

4.2 SWOT
Strength Weakness
~user friendly ~people need to carry reusable bag
~price affordable for shopping
~environmental friendly ~people unwilling to pay for the
reusable bag
Opportunity Threats
~provide awareness to public ~Competition between similar
~reduce the excessive usage of products
plastic bag ~people think this is a unnecessary
product

4.2.1 Strength
The strength that our product have is user friendly that make people life more
convenient when do shopping. This is because the reusable bag is helping you in
arrangement of your goods once check out at the counter and you may just carry
each compartment to put inside your boot nicely and neatly. The other strength is
price affordable and environmental friendly. Why price affordable? It is because
as right now government are running no plastic bag for Saturday so shoppers
request plastic bag is needed to be charge on RM0.20. So instead of buying
plastic bag, this reusable bag is cheaper compare to plastic bag, as you bought it
for one time for long term usage.

4.2.2 Weakness
The weakness that imply in this product is people need to carry this reusable bag
for every time shopping. Some of the shoppers find that bring reusable bag out
for shopping is inconvenient to her and find that is quite troublesome. Another
weakness is people are unwilling to pay for buying reusable bag when there are
free plastic bag provided by the supermarket.

6
4.2.3 Opportunity
The opportunity that we have is it has provided a great awareness to public about
environmental awareness. And then through this product promote in the market,
it can lead to reduce the excessive usage of plastic bag. And the environment
become better and better.

4.2.4 Threats
The threat that we might face is there are many intense competition of similar
product in the market. The shopper might think there are so many choices why I
need to choose your product as my purchase. And then another threat is some
people might think this is an unnecessary product for them, so it wont be able to
target them to buy it.

4.3 Practical Point of View

4.3.1 Logistical issue

Due to our product is not producing by our own, the logistical issue that we worry
about is the quality of the product. We worried that the quality of the product was
not as the same as shown in Alibaba website. Besides that, because of the
product was made in china, the material that they used is also can be an issue of
harming the health after using it. Moreover, due to we have chosen sea freight as
our shipping method, another logistical issue that we might need to be face is the
product are not on time shipped out from China and reach on time in Malaysia.

4.3.2 Operational issue

This business idea was new to Aeon company, the operational issue that might
need to go thru by Aeon is no demand for this product. Due to this product is
new, the promoter might do not know how to promote to customer hence lead to
low demand of the product. And this will lead to the stock is unable to sell out and
face a loss.

7
5.0 Financial Projection
5.1 Initial once-off cost

From the diagram 5.1 initial once-off cost show the expenses (RM 453,145.60)
that the project going to pay once and not repeating which is USD 112,722.79.

5.2 Month-by-month income statement for 3 years

8
5.3 Three years Income & Expenditure

9
5.4 Return on Investment

Based on table 5.5 Return on Investment, the ROI calculation showed that ROI
had increased from -0.900 to -0.810. Therefore ROI would continue to rise slowly
to positive in the future when organise more campagne and promote.

5.5 Total Seed Funding

In the table 5.6 total seed funding, we would like to request for a fund of RM 1.5
million which is $373,134.33 based on the 4.02 currency ratio. We also can
clearly seen our once-off expenditure which link to the table 5.1 and total
expenses for the first year which is from Sep 16 to Aug 17.

10
Reference list

AEON corporate 2016, corporate profile, Viewed 30 Aug. 2016,

<http://www.aeonretail.com.my/corporate/about/profile/>.

Leslie, L 2015Malaysia figures in study showing oceans choked by plastic

trashMalaymailonline, viewed 28 August 2016,
<http://www.themalaymailonline.com/features/article/malaysia-figures-in-study-
showing-oceans-choked-by-plastic-trash>

Mei Kei, H 2016, Current Population Estimates, Malaysia, 2014 2016, Viewed
29 Aug 2016,
<https://www.statistics.gov.my/index.php?r=column%2FcthemeByCat&cat=155&
bul_id=OWlxdEVoYlJCS0hUZzJyRUcvZEYxZz09&menu_id=L0pheU43NWJwR
WVSZklWdzQ4TlhUUT09>.

NRC 2016, National Recycling Coalition | We Are Recycling, Nrcrecycles.org,

viewed 28 August 2016, <http://nrcrecycles.org/about/our-mission/>

TheSundaily n.d. Tesco introduces reusable designer bags, theSundaily, Viewed

30 Aug 2016 <http://www.thesundaily.my/node/148954>.

Zen, I, Ahamad, R. and Omar, W 2013, No plastic bag campaign day in Malaysia
and the policy implication, Environ Dev Sustain, 15(5), pp.1259-1269.

11
6.0 Appendices
Appendix 6.1 The Project Team

Liaw Lip Hong is graduate from Victoria University holding a degree in Bachelor
of Accounting and Banking & finance. He has worked in accounting industry as a
part time job in the past. Therefore, he has a great experience and ability on
communication and problem solving skills. Besides that, he also is a good
student who attend all the classes and study hard to achieve a good result
throughout the semester because he have to maintain his Jeffrey Cheah
Scholarship. Lastly, he always be responsible for grouping up for meetings and
come out of many brilliant ideas.
Teh Yan Yao is a graduate from Victoria University holding a degree in Bachelor
of Commerce in Accounting and Banking & Finance. He has a good adaptability
and great teamwork, where he can quickly get into the team and make them
work together. While he also will lend a helping hand to those who are in
troubles. On the other hand, he is also a hardworking person who done his work
timely and perfectly. He is also a careful person, which he will check the work
and find out the little mistake that others didnt and correct it.
Waleed Abdulhalim Salmin is a graduate from Victoria University holding a
degree of bachelor of Commerce in Banking and Finance. He is the one who
always cheers up the group when they feel down and motivates them when they
are about to give up. He is an athletic person who like to participate in sports
activities mainly football. He is a critical thinker as he and his group leader we the
two who came up with the idea of this project. In short, he is excellent in group
working because all his activities include team working which makes him an
excellent team player.
Sylvia Ng Ming Fong is a graduate from Victoria University holding a degree in
Bachelor of Commerce in Accounting and Banking & Finance. She has good
marketing skill and good communication skill. This is because during her free
time, she will work part time job as sales promoter by promoting the product to
the customer. Besides that, she is also good in Mathematic. She is willing to
teach her group members whether they have a mathematic-related problem.
Other than that, she has a caring personality, as she cares her friends and looks
after them. She is also a good listener as she will listen to other members idea
and analyze which is useful for them
Tan Chia Yan (Angela) is a graduate from Victoria University holding a bachelor
of Commerce in Accounting. As an accounting student, she is able to do all those
accounting and find out solution to solve the problem within very long time. She
is good in presentation whenever there is question, she can quickly think of
solution and solve it, and she can present it well to the audience without nervous
feeling. She also good in critical and creative thinking when the team need some
new ideas, she will voice up the idea without hesitation.

12
 All currency converted base on this ratio , USD 1 = RM 4.02

Appendix 6.2 Furniture and Fittings

Price per unit

Unit Total (RM) Notes
Furniture and Fittings (RM)

4-Drawers Steel Filing Cabinet 4 290.00 1160.00 A

Acer Aspire AXC780 i5 W10

Desktop 8 2399.00 19192.00 B

Acer Decktop PC 8 1099.00 8792.00 C

PAMICA Texas 3 Shelf

Bookcase & filing Cabinet 4 99.00 396.00 D

All in one Printer 2 884.36 1768.72 E

Leather Swivel Office Chair 8 193.00 1544.00 F

Corner Desk 8 683.36 5466.88 G

Total Furniture and Fittings 38319.60

13
A)

4-Drawers Steel Filing Cabinet = 4 x 290 = RM 1160

Sources: <http://www.officepro.my/4drawers-steel-filing-cabinet-with-anti-
tilt-system

14
B)

Acer Aspire AXC780 i5 W10 Desktop = 8 x 2399 = RM19192

Sources:<http://www.harveynorman.com.my/computers-and-
tablets/computers/desktops/acer-aspire-axc780-i5-w10-desktop.html>

C)

Acer Decktop PC = 8 x 1099 =RM 8792

Sources:http://www.harveynorman.com.my/computers-and-
tablets/computers/desktops/acer-g277hl-bd-27.html

15
D)

PAMICA Texas 3 Shelf Bookcase & filing Cabinet= 4 x 99 = RM396

Sources:http://www.11street.my/productdetail/pamica-texas-3-shelf-
bookcase-filing-cabinet-in-19789048

16
E)

$219.99 x 4.02 =RM884.36

All in one Printer = 2 x884.36 = RM1768.72

Sources:<http://www.officedepot.com/a/products/700656/Brother-
Wireless-Laser-All-In-One/.>

17
F)

Leather Swivel Office Chair = 8 x 193 =RM1544

Sources:<http://www.lazada.com.my/noble-executive-pu-leather-swivel-
office-chair-11571218.html>

18
G)

$169.99 x 4.02 = RM683.36

Corner Desk = 8 x 683.36 =RM5466.88

Sources:<http://www.bizchair.com/nan-wk-105-gg.html>

19
Appendix 6.3 Rental

2 month deposit for rent = 2 x 17000 = RM34000

Rental per year = 12 x 17000 = RM204000

Sources:<http://www.iproperty.com.my/propertylisting/4295294/kota-
kemuning-shah-alam-commercial-semi-d-forrent#wki4dwoUJEq8hIfU.97>

20
Appendix 6.4 Advertising expenses

Advertising RM Notes

The Star Newspaper 152000.00 a

Banners 2100.00 b

Flyer 389.00 c

Television 42400.00 d

T-shirt 525.00 e

Total 197414.00

21
A)The Star Newspaper Full Colour rate (Wednesday Saturday)

For Year 1, Year 2 (September)

RM38,000 X 4 Weeks (20cm x 8 col) = RM 152,000

Sources: Ad Rates display, The Star, viewed 22August 2016,

<http://advertising.thestar.com.my/newspaper.php>

22
B) Banner

X-Stand (10 Sets) Rm50 = RM500

T-Stand (10 Sets) Rm70 = RM700

Roll Up Stand (10 Sets) Rm 90 = RM900

Total Banner expenses = 500 + 700 + 900 = RM 2100

Sources : http://www.printingservicesmalaysia.com/services/banner-
bunting/

23
C) Flyer

Estimating printing 7000units; A4 size; 80g (2 Sided Colour)

RM 389

For every year road show (December) estimating printing 500 units;
A4size; 80g(2 Sided Colour)

RM 114

Source: http://www.e-print.my/products_Flyer_Leaflet_a4

24
D)Television

Astro

For year 1 only

RM 10,600.00 x 4 week = RM 42,400

Sources : TV ADVERTISING RATE CARD, Astro, viewed 23 August 2016,

<http://www.astroradar.my/_files/download/2015%20Astro%20TV%20Adve
rtising%20Rate%20Card%20%28wef%201%20Feb%202015%29.pdf>

25
E)T-shirt

Price per shirt Rm 10.50

Print 50 shirts = 50 x 10.50 = RM 525

26
Appendix 6.5 Shipping fees

Shipping fees for every 3 month = $600 x 4.02 = RM 2412

27
Appendix 6.6 Cash inflow
Appendix 6.6.1 Cash inflow (Year 1)

Sep16 - Aug17

Appendix 6.6.2 Cash inflow (Year 2)

Sep17 - Aug18

28
Appendix 6.6.3 Cash inflow (Year 3)

Sep18 - Aug 19

29
Appendix 6.7 COGS - Cost Of Goods Sold
Appendix 6.7.1 COGS (Year1)

Sep16 - Aug17

Appendix 6.7.2 COGS (Year2)

Sep17 - Aug 18

30
Appendix 6.7.3 COGS (Year3)

Sep18 - Aug19

31
Appendix 6.8 Promoter in Aeon store
Appendix 6.8.1 regular promoter

Salary per promoter @2 person x 100 = RM200

3 Days @ 4 weeks = 200 x 3 x 4 = RM 2400

When having roadshow(December)

3 Day Roadshow additional 3 promoter = 3 x 3 x 100= RM900

Promoter in Aeon store(December) = 2400 + 900 = RM3300

Source: http://www.indeed.com.my/jobs?q=Promoter&l=Kuala+Lumpur

32
Appendix 6.8.2 Salary of MC for roadshow(December)

Master of ceremonies salary RM1,000 per day

3 days of road show RM1,000@3 days = RM3,000

33
Appendix 6.9 Wages & delivery

34
Every 3 months (4 times per year) rent three trucks with driver (Rm 150 one
truck per day) out of purchasing their own transport to carry the goods
from port to office. After that the truck will carry the goods from office to
12 outlets and they also hire 4 workers per truck (RM50 one worker per day)
to help them to transfer the goods.

1. Truck delivery : Per Truck plus driver (Rm 150) @ 3 truck = RM 450
4 time per year @ Total Truck delivery = 4 x 450 = RM1800

2. Wages(Part time): Per worker per day (Rm50) @ 4 Person= Rm 200 per
truck

RM 200 per truck @ 3 truck = RM 600

4 time per year @ Total Truck delivery= 4 x 600 = RM 2400

Source: http://www.sewavan.com/396974212

35
Appendix 6.10 roadshow expenses (time square)

Estimate RM10,000 per day

3 days roadshow rental @ RM10000 per day = 3 x 10000 = RM30000 (Every

December)

36
Appendix 6.11 Salary

Sources: Employers: Fresh Graduates Have Unrealistic Expectations,

Jobstreet, viewed 24 August 2016, <http://www.jobstreet.com.my/career-
resources/employers-fresh-graduates-unrealistic-
expectations/#.V8MZ_eLD6eA>

Sources: Admin/Human Resources, Jobstreet, viewed 23 August 2016,

<http://www.jobstreet.com.my/en/job-search/job-
vacancy.php?key=office&location=51200&specialization=133%2C137%2C146
%2C148&area&salary=1%2C800&ojs=3&src=12&x=99q11u0d7iiiauh34o5kdu6v
37>

37
Year 1

Salary for fresh graduate per month = (RM)2500 x 5 = (RM)12500

Salary for Workers per month = (RM)1500 x 3 =(RM) 4500

Total salary per month =12500 + 4500 = (RM) 17000

Total salary per year = 17000 x 12 = (RM)204000

Year 2

Salary for fresh graduate per month = (RM)3000 x 5 = (RM) 15000

Salary for Workers per month = (RM)1800 x 3 = (RM) 5400

Total salary per month= 15000 + 5400 = (RM)20400

Total salary per year = 20400 x 12 = (RM)244800

Year 3

Salary for fresh graduate per month = (RM)3500 x 5 = (RM)17500

Salary for Workers per month = (RM)2100 x 3 =(RM) 6300

Total salary per month =17500 + 6300= (RM) 23800

Total salary per year = 23800x 12 = (RM)285600

38
Appendix 6.12 EPF

Year 1

5 Fresh graduate salary 2500 each, 2500 x 13%= 325

Monthly EPF= 5 x 325 = (RM)1625 Per year = 12 x 1625 = (RM)19500

3 Workers salary 1500 each, 1500 x 13%= 195

Monthly EPF= 3 x 195 = (RM)585 Per year= 12 x 585 = (RM)7020

Year 2

5 Fresh graduate salary 3000 each, 3000 x 13%= 390

Monthly EPF= 5 x 390 = (RM)1950 Per year = 12 x 1950 = (RM)23400

3 Workers salary 1800 each, 1800 x 13%=234

Monthly EPR= 3 x 234 = (RM)702 Per year = 12 x 702 = (RM)8424

39
Year 3

5 Fresh graduate salary 3500 each, 3500x 13%= 455

Monthly EPF= 5 x 455= (RM)2275 Per year = 12 x 2275 = (RM)27300

3 Workers salary 2100each, 2100 x 13%=273

Monthly EPR= 3 x 273= (RM)819 Per year = 12 x 819= (RM)9828

Sources : Rate of EPF, PWC, viewed 24 August 2016,

<http://www.kwsp.gov.my/portal/documents/10180/175560/Jadual_Ketiga_
BI_1Ogos2013.pdf>

40
Appendix 6.13 SOCSO

Year 1

SOCSO for 5 fresh graduate per month = (RM)44.65 x 5 = (RM)223.25

Per year = 223.25 x 12 =(RM)2679

SOCSO for 3 workers per month = (RM)27.15 x 3 = (RM)81.45

Per year = 81.45 x 12 = (RM)977.4

Total SOCSO = 2679 + 977.4 = (RM)3656.4

41
Year 2

SOCSO for 5 fresh graduate per month = (RM)53.35 x 5 = (RM)266.75

Per year = 266.75 x 12 =(RM)3201

SOCSO for 3 workers per month = (RM)32.35 x 3 = (RM)97.05

Per year =97.05x 12 = (RM)1164.6

Total SOCSO = 3201+ 1164.6 = (RM)4365.6

Year 3

SOCSO for 5 fresh graduate per month = (RM)62.15 x 5 = (RM)310.75

Per year = 310.75 x 12 =(RM)3729

SOCSO for 3 workers per month = (RM)37.65x 3 = (RM)112.95

Per year = 112.95 x 12 = (RM)1355.4

Total SOCSO = 3729+1355.4 = (RM)5084.4

Sources: Rate of SOCSO, SOCIAL SECURITY ORGANISATION, viewed 26

August 2016, <http://www.perkeso.gov.my/en/social-security-
protection/employer-employee-eligibilty/rate-of-contributions.html>

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Appendix 6.14 electricity

Assume 22 working day per month

Monthly Electricity :RM30.3 x 22 days = RM666.6

Total per year = 12 x 666.6 = RM 7999.2

Sources:<https://www.tnb.com.my/commercial-industrial/pricing-
tariffs1/#industrial-tariff>

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Appendix 6.15 internet

Internet & Phone = RM379

Total per year = 12 x RM 379 = RM4548

Sources: http://www.unifimalaysia.com.my/packages/tm-unifi-business/

44
Appendix 6.16 import duty

Import duty rate

Material : Non-Woven

45
Import Duty Rate For Non-Woven bags in Malaysia = 0%

GST = 6%

Sources: Import Duty Rate, Pitney Bowes, viewed 22 August 2016,

<http://www.dutycalculator.com/dc/165907/bags-shoes-watches-
accessories/bags-of-textile/shoulder-bags/import-duty-rate-for-importing-
non-woven-bags-from-china-to-united-kingdom-is-2.7/>

46
Appendix 6.17 Corporate Income Tax

Corporate Income Tax = 28%

Sources:http://www2.deloitte.com/content/dam/Deloitte/global/Documents
/Tax/dttl-tax-malaysiahighlights-2016.pdf

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Appendix 6.18 AEON Store

Kuala Lumpur 1 AEON Mall Shah Alam

2. AEON AU2 (Setiawangsa) Shopping Centre

Selangor 1. AEON Bukit Tinggi Shopping Centre

2. AEON Cheras Selatan Shopping Centre
3.. AEON Mahkota Cheras Shopping Centre

Kuala Lumpur 1. AEON Mid Valley

2. AEON Wangsa Maju

Selangor 1. AEON Bandar Puchong

2. AEON Bandar Sunway
3. AEON Bandar Utama
4. AEON Bukit Tinggi
5. AEON Mall Shah Alam

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