Perodua's 1H14 performance

Folks,

I attended Perusahaan (Perodua)'s briefing of its first half of 2014 (1H14) -- six months to June 30, 2014 -- performance by its president and group managing director Datuk Aminar Rashid Salleh on Wednesday, July 16, 2014 at Kuala Lumpur Convention Center.

Of course, being a journalist, I have to translate the briefing into a piece of news, which is shown below.

(source: The Edge Financial Daily, Thursday, July 17, 2014, page 5)

Do note that the briefing by Perodua was conducted earlier than the briefing by the Malaysian Automotive Association (MAA).

MAA is an automotive industry organisation representing all automobile makers in Malaysia. An authority in automotive, MAA compile monthly and yearly automotive statistics, particularly (i) The Total Industry Volume (TIV), and (ii) The Total Production Volume.

TIV is a measure to record the total sales of new cars in a market or region. It is used to gauge a given car market’s performance.

Besides compiling relevant statistics, MAA also provide relevant forecast and industry outlook which reflects the automotive industry landscape in Malaysia. The forecast is also the benchmark used to gauge the industry performance and its figures are widely quoted by researchers, analysts, government agencies as well as relevant stakeholders.

Summary of the Briefing

For those interested to understand the numbers churned by Datuk Aminar Rashid, here are some key take-away from the briefings. Please note that the numbers shown below was compiled by Perodua, and MAA has yet to verify these numbers.

1. Perodua is seeing its market share reduced due to stiff competition and challenging market conditions.

The following table shows Perodua's market share from 2006 until 2013, and also the forecast market share for 2014. Notice that the numbers have been moving on the downward trajectory.

Year	Market Share
2006	31.7%
2007	33.3%
2008	30.5%
2009	31.1%
2010	31.2%
2011	30.0%
2012	30.1%
2013	29.9%
2014f*	28.8%

Source: Perodua

*forecast figure

2. Perodua has reduced its sales target to 193,000 units for 2014

Datuk Aminar Rashid also announced that Perodua has reduced its sales target from 197,000 which was announced early this year to 193,000, citing "formidable competition" as its main culprit.

Below are Perodua's sales figures from 2006 until 1H14 (to-date).

Year	Perodua Sales	TIV
2006	155,400	490,800
2007	162,200	487,200
2008	167,400	548,100
2009	166,700	536,900
2010	188,600	605,200
2011	180,000	600,100
2012	189,100	627,800
2013	196,100	655,800
2014f	193,000	670,000

Source: Perodua

3. Perodua saw its Viva model severely impacted - its bookings and registration recorded negative trends.

Currently, Perodua manufactures and sells three variants - Viva, Myvi and Alza. Of the three, the most hardest hit in terms of bookings and registration is the Viva model, followed by Myvi.

This is what Datuk Aminar Rashid told us in his presentation, on the reason why Viva suffered the most:

"The current bank loan rejection rates that our customer is facing is between 40% to 45%, and at the same time, the  aging stock of the model is old since Viva was introduced in 2007, making it 7 years in the market. We have reduced the price of this model, which saw strong sales of 1,001 cars to date."

Suprisingly, bookings and registration of Alza has been gaining momentum and popularity among Malaysians.

The numbers below will tell you why.

Brands	Booking		Registration
	1H13	1H14	1H13	1H14
Viva	61,100	55,700	47,700	44,300
Myvi	36,200	28,700	26,200	20,000
Alza	31,400	42,200	23,000	30,200
TOTAL	128,800	126,600	96,900	94,500

Source: Perodua

4. National marque market share in 1H14 has dropped below 50%

Datuk Aminar Rashid alerted the reporters that the market share of the national marque has reduced from 51.6% in 1H13 to 47.3% in 1H14. National marque means local cars made by both Proton and Perodua.

Interestingly, the market price of the non-national car leaped from 48.4% in 1H13 to 52.7%. Their sales has been growing stronger with more than 20 new models introduced this year. I have personally witnessed this as I have been to few launches of BMW cars. This year alone, BMW has launched quite a number of cars, and other makers have also aggressively done the same thing. Thus, it is not surprised that sales from these newly launched models from non-national car segments has steadily climbed.

According to Perodua's estimates (again, please verify this with the latest MAA figures):

	1H13	1H14
National cars	51.6%	47.3%
Non-national cars	48.4%	52.7%

Source: Perodua

5. Perodua is taking a cautious stand on Bank Negara Malaysia's recent move in increasing the interest rate by 25 basis points (bps).

When queried by the reporter on recent hike in the overnight policy rate by 25bps, Perodua said that it is cautious as the automaker has yet to see its full impact. Note that interest rate could affect the automotive industry.

Any hike in the interest rate will eventually result in higher installment of the automotive (hire-purchase) loans, and it could affect any automakers sales performance. In this case, we have yet to see whether the interest rate will affect Perodua's sales. Perhaps the numbers to be published in the next few months will enlighten this issue a bit further.

At the moment, Datuk Aminar Rashid is trying to say that opinions on the effect of the hike interest rate is speculative (which may be true, or may be not; depending on the outcome).

Target for 2014

Below is Perodua's target for the year 2014:

Key Performance Indicator	2013	Target for 2014
Sales	196,100 units	193,000 units
Market Share	30.0%	28.8%
Service Intake	1,870,000 units (1.87 million)	1,900,000 units (1.90 million)
Parts Revenue	RM243,000,000 (RM243 million)	RM250,000,000 (RM250 million)
Production Volume	206,700 units	203,900 units

Source: Perodua

Focus on Service and Customer Retention

On its focus for the next six months, Datuk Aminar Rashid said that Perodua's will strengthen its sales and customer service, but he also stressed on the need to improve its service intake.

In this case, the service intake refers to the service of Perodua cars at its authorized service centers.

Previously, after its warranty period lapsed, many has opted to service their cars (regardless of their brands) at any automobile service centers, citing higher expenses will be incurred if they were to service at their own brand's authorized service center. Often, automobile manufacturers would have hard time in retaining their customers to service their vehicle at its authorised service center.

I think that this is true to some extent.

Often, servicing your "second wife" outside your brand's authorized service center seems to be the logical thing as it will lessen the amount of money that you have to fork. However, you do so at your own risk as some service centers may not have their technician properly trained to service particular brands of car.

In recent times, Perodua had seen significant number of its customers maintaining their vehicle service at its authorised service center. This is a positive growth as it provides Perodua with recurring income, to some extent.


Below are the figures given by Perodua:

	1H13	1H14
Service Intake	924,000	956,000
After Warranty Intake	261,000	277,700
Market Share	55%	58%
Revenue	RM261 million	RM272 million

New Launch

Datuk Aminar Rashid told us reporters in his briefing that Perodua will launch new models by the end of this year (he keeps his lip tight on the exact launching date, though).

He said that one of the car that will be launched will be EEV-compliant. EEV stands for energy efficient vehicle.

About Perodua

Perodua, otherwise formally known as Perusahaan Otomobil Kedua Sdn Bhd, was established in 1993 in partnership with Japanese companies.

Shareholders in Perodua include:

Shareholder	Stake in Perodua
UMW Corp Sdn Bhd	38%
MBM Resources Berhad	20%
Daihatsu Motor Co. Ltd	20%
PNB Equity Resource Corporation Sdn Bhd	10%
Daihatsu (Malaysia) Sdn Bhd	5%
Mitsui & Co. Ltd	4.2%
Mitsui & Co, (Asia Pacific) Pte Ltd	2.8%
TOTAL	100.00%

Source: Perodua

Coca Cola issue - La Muhammad, La Mecca

Folks,

Quite sometimes ago, there was this issue cropping up in the Muslim community about the official logo of "Coca Cola", which when analysed by some people said that it could mean "La Muhammad, La Mecca".

In Arabic, the world "La" means "No". Take a look at the picture below.

(source: internet)

(disclaimer: I do not own this image)

Retorting to the analysis by this smart Alex, Coca Cola said that it is baseless, and it even provided a report from the grand mufti (the highest degree of Islamic scholar) of Al-Azhar University in Cairo, Egypt, which quashed the claims made by the irresponsible people. The opinion was presented by Sheikh Nasr Farid Wassel, the Grand Mufti of Al-Azhar University.

Coca Cola issued the following statement with regards to this rumour. I have copied the statement verbatim from its website, and the link can be traced here.

Some people have been lead to believe that the Coca-Cola trademark can be translated to "No Mohammed, No Mecca" in Arabic when it is reversed and read from left to right.

This claim is not true. The Coca-Cola trademark was created in 1886 in Atlanta, Georgia, at a time and place where there was little knowledge of Arabic.

The allegation has been brought before a number of senior Muslim clerics in the Middle East who researched it in detail and refuted the rumor outright.

During the late 1990s, a special committee of authorities in Saudi Arabia, with representatives from the Ministry of Islamic Affairs, the Ministry of the Interior and the Ministry of Trade, was formed to review the rumors against the Coca-Cola logo. The committee determined that there is no basis to these false allegations and that the Coca-Cola trademark does not connote anything defamatory to Islam.

More recently, in May 2000, the Grand Mufti of Al-Azhar (the Islamic world's foremost institute) Sheikh Nasr Farid Wassel, said that "the trademark does not injure Islam or Muslims directly or indirectly." Moreover, he stated that Islam is against "the propagation of empty rumors and intended lies that affect either public or private interests." 

And here is the response from the grand mufti with regards to this issue:

This logo was studied from all its aspects in this meeting and none of the researchers, university professors or members of the public found any injury done the true Islamic religion directly or indirectly.

The legal rule is that things are allowed unless there is a text disallowing it. It became clear to us that this trademark for which a legal opinion was requested, was designed more than 114 years ago and no one objected to it until today. The trademark was used in more than 200 Islamic and non-Islamic countries throughout the world.

The trademark was originally designed more than 114 years ago in cities in the State of Georgia in the United States. It was designed for non-Moslems who do not know Islam’s origins and branches. This trademark was not changed since it was designed until now. It is written in a foreign language and not in Arabic and all this proves that this trademark does not injure Islam or Moslems directly or indirectly because Islam’s rules stipulate justice between all people.

Those who spread these rumors should fear God in their religion and country and fear God in all their sayings and actions because such a rumor can harm their country and their religion (Islam) more than it benefits it. This is because it leads to the displacement of thousands of workers in the company and harms their families and children. Islam totally banned harming persons’, the nation’s and peoples’ interests. The Prophet Peace be Upon Him said: “Do not harm yourself and do not harm others”. Moslems now really need to protect their economy, increase their production, protect their workers’ rights, and the strength of their unity so they can become a power that can protect their nation from their enemies’ envy and to reach the highest level of advancement and prosperity in (Koran) and (Koran).

The original opinion of the grand mufti can be found here (in Arabic), and the translation is here (in English).

What I Think

I think Muslims in general should be wary of doubtful claims by certain quarters.

We should stop associating certain image with things that is beyond fathomable for the great mind to discern. In this case, I do not see the logic of associating the Coca Cola logo with "La Muhammad, La Mecca". Though I am in no way a qualified calligrapher, but my mind is still sound and not at insanity to differentiate between the right and wrong.

Be skeptical, people. When you are presented by a particular claim, always ask five basic questions - Who, What, When, Why and How. And then ask the relevance of such claim and how it will impact us?

I sincerely hope that Muslims from all over the world stop spreading such rumours, as it is sinful for us to do so.

Self Liberation

Folks,

I found this interesting Muslim cartoon, below, in my Facebook.

(source: The Muslim Show)

It talks about liberation, freeing something, some place or someone. In light with the recent cases, we have heard about liberating Syria, Iraq, Palestine etc.

While I agree that these countries urgently needed to be liberated from all the evil forces, I wonder whether we humans have considered of liberating ourselves -- our minds in particular, from all the evils surrounding us?

Sometimes, we talk so highly on the urgent need to liberate these places, but look at ourselves. Have we liberated ourselves from all the small and big sins? Have we completed what we are supposed to do (God's orders etc)?

The act to liberate is actually a jihad. This word often confuses people. It brings negative connotation to people in the sense that when they hear the word jihad, they immediately thought of killing people.

There are two forms of jihad -- the big one and the small one. The "small one" is about liberating and fighting the corrupts, the bad and the evil. This form of jihad is a tangible one, where it could mean war, when it is absolutely and really necessary. The small jihad can be acted upon publicly through law and order, punishment and correction.

And then there's the big jihad. The "big one" is about liberating yourself from all the evils in the world. It is about living honestly, doing good to people, and above all, to be a good Muslim especially in this tough time. This is the biggest and ultimate jihad. Liberating yourself from all the evils in the world.

Indeed, it is so true that the hardest thing is self-liberation, which is why in Islam, this is the biggest type of jihad. And yet, this term is still misunderstood by almost every living human in this planet Earth.

I particularly adore this comment from one Facebook user, where he went on to say that we should ...

Liberate ourselves , automatically you liberate the ummah [Muslim nation]... stand united and then no one can touch us. 

How do we liberate ourselves? The answers are for you to seek and find.

And as always, this post is to remind myself first as I am a human of many errors and mistakes.

This Thing on Balanced News

Folks,

I refer to the commentary by Nuri Vittachi, a prolific writer whom I greatly admire, on his latest piece entitled "Why it’s sometimes wrong to write balanced news reports", which was carried by The Malaysian Insider here.

This is my personal opinion.

First of all, the publication should be biased. Yes, you read that right. Biased. What I mean by biased is that the publication need to take a stand on a particular issue -- either you are for or against. For example, in the recent issue of Israel assaulting the Palestinians, a particular newspaper must take their stand.

Now, in taking a stand, the publication must also allow and give equal space to the proponent of their agenda to ensure that the issue will be balanced. What I am trying to say is that you must be biased first, then balanced next. Once your stand is made known to the public, whether directly or indirectly, then you can balance it with another perspective and views.

It must be remembered that there will always be detractors whenever there are proponents. If you are for a particular issue, there will always be someone who will be against it. It is normal. Being biased will ultimately result in being balanced.

But don't be blindly biased -- that is taking a stand on the issue but at the same time ignorant on alternative views. There will always be opposing views, and you must absorb these views accordingly in order to balance your views.

Second, the fact must be accurate. Yes, people do make mistakes and screw-up, but then again, the facts must be thoroughly checked.

Once the facts have been thoroughly verified, then only the news can be published. If the facts are not checked and the news hastily published, we will get the following news, as aptly and rightly pointed by Mr Vittachi:

"It will allegedly be cloudy with an alleged chance of rain, according to the alleged weather forecast released by our alleged government"

It is very mouthful, isn't it? The writer trying to be cautious at all times by unnecessarily using the words "allegedly" in most instances.

Third and last, the writer (I remind myself first on this issue) must be careful in his or her writing. According to Mr Vittachi, "But the main point is that reporters these days have to be very careful..."

If you are not careful, biased and balanced, then you will most likely screw-up big time.

And this, I remind myself first.

The Case of Burning Israel Flag

Folks,

Recently, a Malaysian newlywed couple burned the flag of Israel in their marriage ceremony and also place the flag of Israel on the floor for people to step on it every time they pass-by.

The picture and the video link are shown below for your reference:

(credit: Sinar Harian, a Malay newspaper in Malaysia)

(disclaimer: I do not own this video)

And this has caused some uneasiness among those (the so-called) who preached harmony because they view this as an act of extremist. They are saying that a fire should be fought with water, not with another fire.

There is some element of truth in their context, but I think that truth itself is very much biased. It can either be your version of truth and their version of truth.

My argument in this case is simple: their action is not even tantamount to being an extremist. They are just angry -- for all sorts of reasons, some of which include:-

1. Israel has killed countless number of innocent children in Gaza, Palestine.
2. Israel has displaced the Muslim communities there -- bombed their house, universities, mosque etc.

Need to go on? You can read about them on the Internet.

It is also funny that in some western countries, particularly in the United States of America, anti-semitism (the act of expressing hatred against the Jews) is frowned-upon, but the act of killing innocent children is fully supported and condoned, as shown through their supply of missiles and aid to Israel.

What is this madness, dare I ask?

If Israel can assault and insult Palestine through their rockets and missiles and guns and what have you, and kill countless numbers of innocent children through their barbaric action, then I do not see anything wrong with the way this newlywed couple express their dissatisfaction.

Don't be ridiculous and trying to promote harmony when clearly Israel is on the offensive!

An eye for an eye, but in this case, it is not even there yet.

Most read books in the world

Friends,

Recently, the Geneva-based think tank World Economic Forum published the list of most read books in the world (quoting figures published by another source, it seems).

What is most interesting to note that The Holy Bible, the sacred book for Christianity, is the most widely read book in the world, with 3,900 million (or 3.9 billion) copies sold in the past 50 years.

Come to think of it, I think that the main reason for this may be due to the fact that:

• Christianity is the largest religion in the world - the data published by Pew Research Center in 2011 showed that there are 2.2 billion followers of Christianity.
• Most Bibles are present in almost all hotel rooms - whether people  actually reads them, that is a different matter

Being a Muslim, this information of course struck me in the head, in the sense that I am interested to know how many Muslims actually read The Holy Quran?

And come to think of it, why is the Quran not in the ranking list? There are about 1.6 billion Muslims in the world, the second largest religion after Christianity, and the Quran is still not part of the ranking. That seems a bit ... odd.

Is it because Muslims are not fond of reading the Quran, or is it because the Quran was discounted from the rank or is it because of something else? 

Just a thought.

I am somewhat concerned on the ranking [I am in no way disputing them, but just have a tinge of doubt], but then again, the information presented below came from an established body of World Economic Forum.

Below are the list of books that are widely read (as appeared in the World Economic Forum Facebook page). On cursory glance, it seems that the rank was formed through the number of copies sold in the past 50 years.

Rank	Book	Number of copies sold in the past 50 years
1	The Holy Bible	3,900 million
2	Quotations from Chairman Mao Tse-Tung	820 million
3	Harry Potter by J.K. Rowling	400 million
4	The Lord of the Rings by J.R.R. Tolkien	103 million
5	The Alchemist by Paulo Coelho	65 million
6	The Da Vinci Code by Dan Brown	57 million
7	The Twilight Saga by Stephenie Meter	43 million
8	Gone with the Wind by Margaret Mitchell	33 million
9	Think and Grow Rich by Napoleon Hill	30 million
10	The Diary of Anne Frank by Anne Frank	27 million

Source: World Economic Forum

The table above is nicely translated to the info-graphic shown below:

(Source: The World Economic Forum)