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Review of the Goal: A Process of Ongoing Improvement

MANAGEMENT AND ACCOUNTING WEB| Maaw Home| Contents| Bibliography| Maaw’s Book| Books| Journals| Summaries| Marketplace| Software| Gadgets| Introduction| Main Topics| Search maaw| Grad Course| Textbooks| Journal Bibs| Links| Maaw’s Blog| Videos| Contribute| Goldratt, E. M. and J. Cox. 1986. The Goal: A Process of Ongoing Improvement. New York: North River Press. Summary by Chris Hourigan University of South Florida, Spring 2001| The Goal is a very compelling novel. Novel, HUH!! Who ever heard of a novel about a production plant? Well, Eli has made the production managers have quite an epiphany.

In one book he might have changed the whole world of cost accounting. Eli approached the production world with a common sense view. Using just one goal, making money, he referenced every activity to it. Eli said, “I view science as nothing more than an understanding of the way the world is and why it is that way. ” You see, Eli is a physicist, and in being one, has to understand why things work the way they do. His common sense approach is illustrated beautifully in this novel. He has looked at cost accounting from the outside and has developed a whole new system because of it.

Everyone from accountants to production managers to CEO’s should read this book. Because of its fundamentals, it should be part of the curriculum of every accounting program. This novel has and continues to help the industry to make strides toward continuous improvement. Chapter One | The first chapter gets the reader acquainted with Mr. Alex Rogo and his apparent problems with his production plant. This is shown through a confrontation between Mr. Rogo and his boss Mr. Peach, the Division Vice President. The dispute is over an overdue order #41427. Through their conversation it’s learned that Mr.

Peach will not settle for anything less than the order being shipped today, and since the plant is neither productive nor profitable, Alex has three months to show an improvement or the plant will be shut down! Chapter Two| This chapter gives insight to Alex’s home life. Since moving back to his hometown six months ago, it seems adjustment isn’t going well for his family. It’s great for Alex, but it’s a big change from the city life that his wife is used to. You also experience Mr. Rogo’s background through his reflections back on his travels to eventually find himself back where he started. He’s now 38 years old and a crummy plant manager”. By the way, the order #41427 does get shipped, but not very efficiently. All hands in the plant are working on one order with forbidden overtime to boot. Chapter Three| Mr. Peach calls a meeting at headquarters for all plant managers and his staff. At the meeting everybody finds out how bad things are and are given goals to achieve for the next quarter. Through the grapevine Mr. Rogo finds out perhaps why Mr. Peach has been acting so erratic lately, the Division has one year to improve or it’s going to be sold, along with Mr. Peach. Chapter Four|

While at this meeting, Alex thinks back on a recent business trip where he ran into an old physics professor, Jonah, at the airport. Jonah puzzles Alex with how well he knows how Alex’s plant is doing. Jonah has no knowledge of where Alex is employed. Johan predicts the problems of high inventories and not meeting shipping dates. He also states that there is only one goal for all companies, and anything that brings you closer to achieving it is productive and all other things are not productive. (See What is this thing called Theory of Constraints for more on Alex’s encounter with Jonah. Chapter Five| Alex decides to leave the meeting at the break. He has no particular place he would like to go; he just knows this meeting isn’t for him, not today. He needs to understand what the “goal” is. After a pizza and a six pack of beer it hits him, money. The “goal” is to make money and anything that brings us closer to it is productive and anything that doesn’t isn’t. Chapter Six| Mr. Rogo sits down with one of his accountants and together they define what is needed in terms of achieving the goal. Net profit needs to increase along ith simultaneously increasing return on investment and cash flow. Now all that is needed is to put his specific operations in those terms. Chapter Seven| Alex makes the decision to stay with the company for the last three months and try to make a change. Then he decides he needs to find Jonah. Chapter Eight| Alex finally speaks to Jonah. He is given three terms that will help him run his plant, throughput, inventory, and operational expense. Jonah states that everything in the plant can be classified under these three terms. “Throughput is the rate at which the system generates money through sales. “Inventory is all the money that the system has invested in purchasing things which it intends to sell. ” “Operational expense is all the money the system spends in order to turn inventory into throughput. ” Alex needs more explanation. Chapter Nine | Alex fresh off his talk with Jonah gets word that the head of the company wants to come down for a photo opportunity with one of Alex’s robots. This gets Alex thinking of the efficiency of these robots. With the help of the accountant, inventory control woman, and the production manager, Alex discovers the robots increased costs, operational expenses, and therefore were less productive.

Implementing the robots increased costs by not reducing others, like direct labor. The labor was shifted to other parts of the plant. Chapter Ten | After explaining everything, Alex and his staff (Bob from production, Lou from accounting and Stacey from inventory control) hammered out the meaning of throughput, inventory and operational expense until satisfied. Lou, states the relationships as follows. “Throughput is money coming in. Inventory is the money currently inside the system. And operational expense is the money we have to pay out to make throughput happen. Bob is skeptical that everything can be accounted for with three measurements. Lou explains that tooling, machines, the building, the whole plant are all inventory. The whole plant is an investment that can be sold. Stacey says, “So investment is the same thing as inventory. ” Then they decide that something drastic is needed to be done with the machines. But how can they do that without lowering efficiencies? Another call to Jonah is placed and Alex is off to New York that night. Chapter Eleven | The meeting with Jonah is brief. Alex tells Jonah of the problems at the plant and the three months in which to fix them.

Jonah says they can be fixed in that time and then they go over the problems the plant has. First, Jonah tells Alex to forget about the robots. He also tells Alex that “A plant in which everyone is working all the time is very inefficient. ” Jonah suggest that Alex question how he is managing the capacity in the plant and consider the concept of a balanced plant. According to Jonah, this “is a plant where the capacity of each and every resource is balanced exactly with demand from the market. ” Alex thinks a balanced plant is a good idea. Jonah says no, “the closer you come to a balanced plant, the closer you are to bankruptcy. Then Jonah leaves Alex with another riddle, what does the combination of “dependent events” and “statistical fluctuations” have to do with your plant? Both of those seem harmless and should work themselves out down the production line. Chapter Twelve | This short chapter tries to capture the essence of the problems the job is causing at home with the extra workload. The marriage is very strained because of the devotion Alex needs to give to the plant. Chapter Thirteen| Stuck for the weekend as troop master, Alex discovers the importance of “dependent events” in relation to “statistical fluctuations”.

Through the analogy between a single file hike through the wilderness and a manufacturing plant, Alex sees that there are normally limits to making up the downside of the fluctuations with the following “dependent events”. Even if there were no limits, the last event must make up for all the others for all of them to average out. Chapter Fourteen | Finally, through the dice game or match bowl experiment, it becomes clear that with a balanced plant and because of “statistical fluctuations” and “dependent events” throughput goes down and inventory along with operating expenses goes up.

A balanced plant is not the answer. (See the Dice Game or Match Bowl experiment note). Chapter Fifteen | Fully understanding the “dependent events”, Alex puts the slowest kid in the front of the hike and he relieves him of extra weight he has been carrying in his backpack. This balances the fluctuations and increases the kid’s productivity, which increased the throughput of the team. Chapter Sixteen | Well, after the camping trip the boys arrive home to find the mother has disappeared. All the stress of his job was too much for her so she left.

Now the kids and the job are all Alex’s responsibility. This was supposed to be a weekend for Alex and his wife, but when the hike came up it seemed to be the last straw for her. Chapter Seventeen | Alex tries to portray his new revelation to his team at the plant. Nobody seems interested. But the walk in the woods becomes apparent when it is put to the test for an overdue order in the plant. Now even the production supervisor agrees. Now what? Chapter Eighteen | In this chapter Jonah introduces Alex to the concept of bottlenecks and non-bottlenecks. Jonah defines these terms as follows. A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it. “A non-bottleneck is any resource whose capacity is greater than the demand placed on it. ” Jonah explains that Alex should not try to balance capacity with demand, but instead balance the flow of product through the plant. Later, Alex and his team recognize the bottlenecks, the areas where capacity doesn’t equal demand, like the slow kid Herbie on the hike. With this discovery goes the ideas related to reorganizing the plant like Alex did with the hike. Production is a process and it cannot be moved around so easily.

Many processes rely on the previous one to be able to complete the next. Alex would need more machines, which takes more capital, and division is not going to go for that. Chapter Nineteen | Well, Jonah makes a visit to the plant. Jonah tells Alex that a plant without bottlenecks would have enormous excess capacity. Every plant should have bottlenecks. Alex is confused. What is needed is to increase the capacity of the plant? The answer is more capacity at the bottlenecks. More machines to do the bottleneck operations might help, but how about making them run more effectively.

Jonah tells them that they have hidden capacity because some of their thinking is incorrect. Some ways to increase capacity at the bottlenecks are not to have any down time within the bottlenecks, make sure they are only working on quality products so not to waste time, and relieve the workload by farming some work out to vendors. Jonah wants to know how much it cost when the bottlenecks (X and heat treat) machines are down. Lou says $32 per hour for the X machine and $21 per hour for heat treat. How much when the whole plant is down? Around $1. 6 million. How many hours are available per month? About 585.

After a calculation, Jonah explains that when the bottlenecks are down for an hour, the true cost is around $2,735, the cost of the entire system. Every minute of downtime at a bottleneck translates into thousands of dollars of loss throughput, because without the parts from the bottleneck, you can’t sell the product. Therefore, you cannot generate throughput. Chapter Twenty | Alex organizes the bottlenecks to work on only overdue orders from the most overdue to the least. He then finds his wife. She is at her parent’s house. Through their conversation it is learned that she still needs to be away from everybody, even the kids.

Chapter Twenty-One | The crew works out some of the details for keeping the bottlenecks constantly busy. In the process they find that they need another system to inform the workers what materials have priority at non-bottlenecks. Red and green tags are the answer. Red for bottleneck parts to be worked on first as to not hold up the bottleneck machine, and green for the non-bottleneck parts. That concludes another week. The true test will be next week. Chapter Twenty-Two | Great, twelve orders were shipped. Alex is pleased, but he definitely needs more. He puts his production manager on it.

His production manager rounds up some old machines to complement what one of the bottlenecks does. Things are looking up. Chapter Twenty-Three | They are becoming more and more efficient, but lag time arouse with the two bottlenecks because of workers being loaned out to other areas and not being at the bottlenecks when needed to process another order. It seems there was nothing to do while waiting for the bottleneck machine to finish the batch. Therefore, in keeping with the notion that everybody needs to stay busy, workers were at other areas between batches. Alex decides to dedicate a foreman at each location all the time.

Then one of those dedicated foreman, the night foreman, discovers a way to process more parts by mixing and matching orders by priority, increasing efficiency by ten percent. Finally, one process being sent through a bottleneck could be accomplished through another older way and therefore free up time on the bottleneck. Chapter Twenty-Four | Now that the new priority system is in place for all parts going through the bottlenecks, inventory is decreasing. That’s a good thing right? But lower inventory revealed more bottlenecks. This intrigues Jonah so he’s coming to take a look. Chapter Twenty-Five | There aren’t any new bottlenecks”, says Jonah. What actually has happened is a result of some old thinking. Working non-bottlenecks to maximum capacity on bottleneck parts has caused the problem. All parts are stacked up in front of the bottlenecks and others are awaiting non-bottleneck parts for final assembly. There needs to be balance. The red and green tags need to be modified. It seems as if the bottlenecks will again control the flow, by only sending them exactly what they need and when they need it. Chapter Twenty-Six | Ralf, the computer wiz, says he can come up with a schedule for bottleneck parts and when they should be released.

This will alleviate any excess inventory in front of the bottlenecks, but what about the non-bottlenecks? Jonah says with the same data out of the bottlenecks to final assembly, you should be able to predict non-bottleneck parts as well. This will make some time, but there are enough parts in front of the bottlenecks to stay busy for a month. Chapter Twenty-Seven | There is another corporate meeting. Mr. Peach doesn’t praise Alex like Alex thinks he should. Alex decides to talk with him in private. Mr. Peach agrees to keep the plant open if Alex gives him a fifteen percent improvement next month.

That will be hard because that relies heavily on demand from the marketplace. Chapter Twenty-Eight | Fifteen Percent!! Fifteen Percent!! Just then Jonah called to let Alex know that he will not be available to speak with in the next few weeks. Alex informs him of the new problem of more inventories and less throughput. Jonah suggests reducing batch sizes by half. Of course, this will take some doing with vendors, but if it can be done, nearly all costs are cut in half. Also, they get quicker response times and less lead times for orders. Sounds good. Chapter Twenty-Nine |

Alex is propositioned with a test. They can greatly increase sales, current and future, if they can ship a thousand products in two weeks. Impossible without committing the plant to nothing but the new order? Wrong! How about smaller batch sizes. Cut them in half again. Then promise to ship 250 each week for four weeks starting in two weeks. The customer loved it. Chapter Thirty | Seventeen percent!! That’s great, but it’s not derived from the old cost accounting model. The auditors sent down to the plant from Division find just 12. 8% improvement. Most of it accounts from the new order.

Which by the way, the owner of the company that placed the order came down personally to shake everybody’s hand in the plant and to give a contract to them for not a thousand parts but ten thousand. Anyway, tomorrow is the day of reckoning at division. Chapter Thirty-One | Well the meeting at Division started out rough. Alex thought he would be meeting with Mr. Peach and other top executives. Instead, he met with their underlings. He decides to try and convince them it doesn’t work. Just before leaving he decides to see Mr. Peach. It’s a good thing he did, because he just got promoted to Mr.

Peach’s position. Now Alex has to manage three plants as the whole division. He calls Jonah desperately and asks for help. Jonah declines until he has specific questions. Chapter Thirty-Two | Alex has a nice dinner with his wife. Through the veal parmesan and cheese cake it is decided that Alex should ask Jonah how he can get other people to understand these techniques that his team has discovered without being condescending. Chapter Thirty-Three | Now is the time to assemble Alex’s team for Division. Surprisingly the accountant with two years to retirement is on board, but the production manager isn’t.

He wants to be plant manager to continue their efforts. Everything is totally into place at the plant but more is needed for division. Chapter Thirty-Four | Alex is firmly engrossed with the problems of taking over the division. With advice from his wife he decides to enlist the help of his team at the plant. Every afternoon they will meet to solve the problem. After the first day it is obvious , they will need them all. Chapter Thirty-Five | The second day they are led in a discussion about the periodic table of elements, and how the scientists actually got a table of any sort.

Maybe that is how they will solve the massive problems of division, by understanding how the scientists started with nothing and achieved order. A way to define them by their intensive order is needed. Chapter Thirty-Six| The team finally comes up with the process: Step one – identify the system’s bottlenecks; Step two- decide how to exploit those bottlenecks; Step three- subordinate everything else to step two decisions; Step four- evaluate the systems bottlenecks; Step five- if, in a previous step, a bottleneck has been broken, go to step one.

It seems so simple, just different. Chapter Thirty-Seven | The team decides to revise the steps: Step one – identify the systems constraints; Step two – decide how to exploit the systems constraints; Step three – subordinate everything else to step two decisions; Step four – evaluate the systems constraints; Step five- warning!!! If in the previous steps a constraint has been broken, go back to step one, but don’t allow inertia to cause a system constraint.

It also has been discovered that they have been using the bottlenecks to produce fictitious orders in an effort to keep the bottlenecks busy. That will free up twenty percent capacity, which translates in to market share. Chapter Thirty-Eight | Talking with the head of sales. Alex finds out that there is a market order to fill the capacity. It’s in Europe, so selling for less there will not affect domestic clients. If it can be done, will open a whole new market. Then Alex ponders Jonah’s question, to determine what management techniques should be utilized.

Alex determines how a physicist approaches a problem. Maybe this will lead to an answer. Chapter Thirty-Nine | Alex experiences a problem at the plant. It seems all the new orders have created new bottlenecks. After analyzing the problem, they agreed to increase inventory in front of the bottlenecks an tell sales to not promise new order deliveries for four weeks, twice as much as before. This will hurt the new relationship between sales and production, but it is needed.

Production is an ongoing process of improvement, and when new problems arise they need to be dealt with accordingly. Chapter Forty | Finally, struggling with the answer to Jonah’s question, Alex comes up with some questions on his own: What to change? What to change to? How to cause the change? Answering these questions are the keys to management, and the skills needed to answer them are the keys to a good manager and ultimately the answer to Jonah’s question. Theory of Constraints Main Page| Deming Main Page| Deming ; Goldratt Main Page|

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Departmentalization: Geography and Example Human Resources

* Functional departmentalization – Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations. * Product departmentalization – Grouping activities by product line.

Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line. LA Gear is an example of company that uses product departmentalization. Its structure is based on its varied product lines which include women’s footwear, children’s footwear and men’s’ footwear. Customer departmentalization – Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization. The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists. The sales activities in an office supply firm can be broken down into three departments that serve retail, wholesale and government accounts. Geographic departmentalization – Grouping activities on the basis of territory. If an organization’s customers are geographically dispersed, it can group jobs based on geography. For example, the organization structure of Coca-Cola has reflected the company’s operation in two broad geographic areas – the North American sector and the international sector, which includes the Pacific Rim, the European Community, Northeast Europe, Africa and Latin America groups. Process departmentalization – Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogenous activities to be categorized. For example, the applicants might need to go through several departments namely validation, licensing and treasury, before receiving the driver’s license.

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Pm592 Quiz1

1. Question :(TCO B) Three-point estimate: The SuperFlyer Corporation is developing a revolutionary flying disc. The new toy can fly straight over a great distance, which is exciting by itself. However, this disc will also return to the owner in response to their voice! Because this is an advance over anything that this company has done before, estimating the amount and cost of the hi-tech materials are difficult. The project manager recommends using a range estimating process to develop an estimate. The values below are submitted by the project team. Current estimates for cost of material are as follows:

Optimistic cost of smart resin:$6. 00per lb Most likely cost of smart resin:$8. 00per lb Pessimistic cost of smart resin:$8. 50per lb Current estimates for total material requirements are as follows: Optimistic quantity:21 lb/ 100 units Most likely quantity:24 lb/ 100 units Pessimistic quantity:30 lb/ 100 units (a) What is the expected price of the material per pound? (b) What is the expected amount of material needed for 100 units? (c) What is the expected cost for 100 units using the Simple Method? Student Answer:a) Expected price of the material per pound: 6+4(8)+8. /6= $7. 75 b) The expected amount of material needed for 100 units: 21+4(24)+30/6= 24. 5 lb/ 100 units c) The expected cost for 100 units using the simple method: $7. 75(100)= $775 Comments: 2. Question :(TCO A) Single-project budgeting must fit into the overall budgeting process of the organization and the company as a whole. As a project manager for one of your company’s projects, you have been asked to provide a brief description of the top-down approach to the budgeting process. Explain the three basic steps in the top-down budgeting approach by dentifying the organizational level (Upper Management, Functional Management, and Project Management) and type of budget prepared at each step. For each type of budget, explain why it is used at its level. Student Answer:Step1 : Upper Management : The type of budget prepared is strategic budget based on organizational goals, constraints, and policies. Step2: Functional Managers: The type of budget prepared is a Mid-range budget for each functional unit Step3: Project Managers: The type of budget prepared is detailed budgets for each project, including the cost of labor, material, capital equipment, subcontracting, overhead and contingencies.

Comments: 3. Question :(TCO B) You have been requested to provide a contingency estimate for a project involving the manufacturing of a new television. You are provided with the following component and labor estimates, together with the type of estimate: DescriptionEstimated base costType of estimate Plasma Screen$780. 00Order of Magnitude Tuner$87. 00Definitive Sound circuits$34. 00Definitive Controls$56. 00Order of Magnitude Case$142. 00Budget Labor$385. 00Definitive The target retail price for the new TV is $4,995. 00.

New products are targeted for 125% markup on introduction, so that price and cost reductions can be taken as required by competitive pressure and still keep the product profitable. Your estimating department currently defines estimate accuracy as follows: Order of Magnitude-25%, +85% Budget-10%, +25% Definitive-5%, +10% (a) What cost budget do you recommend for the product? (b) Will the project be approved? (c) What would you recommend to reduce or eliminate any contingency from the budget? Student Answer:a) Cost budget recommended for the product: OM= +85% Budget= +25% Definitive +10% 1. 5($780+$56)+1. 25($142)+1. 1($87+$34)+$385 = $2185. 7 b) $2185. 7 at 125% markup (2. 25*$2185. 7) = $4917. 825 The project will be approved because the marked-up retail price is bellow the retail target price c)We need to firm up estimates for order of magnitude and budget items, and revise estimates before project can proceed. Comments: 4. Question :(TCO A) We are now in week 3 and have only discussed the plan. It is as if we will never get to work and make this project happen. Why are we taking so much time to develop the project plan, and how does that fit with monitoring and control?

For full credit you must provide specific reasons and justifications, not just generalities. Student Answer:The key to a successful project is in the planning. Creating a project plan is the first thing we should do when undertaking any kind of project. A project plan can allow a Project Manager to complete a project within a specified timeline and a specified budget. Reaching these important goals, will make the project customer happy and help the organization to build a good relationship with the customer for future projects. Project planning is fundamental in order to avoid failure and disappointment.

In project management, effective planning is absolutely required if the individual or group wishes to deliver a finished project on time and on budget. From a Project Management article (http://www. brighthub. com/office/project-management/articles/40904. aspx) I read that during the project planning phase, plans are developed in the form of project baselines for schedule, cost, scope, quality and risks, all of which are components of the overall project plan. This gives the Project Manager basis for monitoring project progress and upon which to base ecisions necessary for managing changes needed to help get the project back on track. Comments: 5. Question :(TCO A) A consumer electronics firm is planning an expansion into Milwaukee. Generally, the firm prefers to remodel large existing tenant spaces to suit their needs. After a site is selected from several alternatives, the corporate architect develops plans by reviewing the suitability of existing structure and utilities. A modification and demolition plan is then developed. Interior finish plans are then developed from corporate standards and adjusted to each site.

Building permits are handled by the general contractor (GC). The firm uses a GC for all of its construction in a region. The GC hires local subcontractors and provides on-site construction supervision. As construction begins, the firm also begins to assemble a new management team from existing management staff, making an attempt to use only staff that has an interest in relocating. Sales staff is hired locally. When construction is approximately six weeks from completion, inventory is ordered. Prepare a work breakdown structure (WBS) for this project with activities corresponding to a two level task and sub-task hierarchy.

Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified. Student Answer:LEVEL WBS ELEMENTS NAME 1 1 Modification and Demolition 1 1. 1 Wall modification and demolition 1 1. 2 Floor modification and demolition 1 1. 3 Roof modification and demolition 2 2 Interior finish 2 2. 2 Floor tile 2 2. 3 Electrical output and lights 2 2. 4 Wall and ceiling Painting 2 2. 5 doors and windows installation Comments: * Times are displayed in (GMT-07:00) Mountain Time (US & Canada)

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Chapter 10 Malaysia Tourism 2020

chapter Tourism 10 Economic Transformation Programme 317 A Roadmap For Malaysia Chapter 10: Revving Up the Tourism Industry “The tourism sector will continue to be in the forefront of Malaysia’s economic development. This sustainable and high-yield sector will continue to drive Malaysia’s economy, providing income and job opportunities to the Rakyat. Malaysia has a strong global tourism position today. We are the 9th most visited country in the world and we receive RM1 billion receipts per week from foreign visitors.

Realising the advantage and strong position we possess in the tourism industry globally, the Government is committed to further develop this sector together with the private sector for the benefit of the Rakyat. We have set sight on the target of 2020:36:168. That is in the year 2020, Malaysia will receive 36 million tourist arrivals and RM168 billion tourist receipts. This would mean the industry will grow by 3 times and tourism will contribute RM3 billion receipts per week to the country in 2020. This strategic ambition will be achieved through the 12 initiatives proposed under the Tourism National Key Economic Areas (NKEA).

As the Minister of Tourism, I look forward to the successful delivery and implementation of the Tourism NKEA. I seek the support of all Malaysians to work together with the Ministry of Tourism to ensure the success of this important national agenda. ” YB Dato’ Sri Dr. Ng Yen Yen M alaysia is recognised globally as one of the leading tourism destinations, ranking in the top 10 in arrivals and top 15 in global receipts. The tourism industry is also an important contributor to our economy, generating RM36. 9 billion in gross national income (GNI) in 2009. This makes ourism the fifth largest industry in our economy after Oil, Gas and Energy, Financial Services, Wholesale and Retail, and Palm Oil. By 2020, the tourism industry will contribute RM103. 6 billion in GNI, with arrivals increasing from 24 million in 2009 to 36 million in 2020. DEFINITION OF THE TOURISM NKEA Tourism refers to both leisure and business tourism and includes the following subsectors: accommodation, shopping, tourism products (i. e. eco-tourism, cruise tourism and other related activities such as spa and wellness) and food and beverage as well as inbound and domestic transportation. 318

Chapter 10 Revving Up the Tourism Industry Two key tourism subsectors – education tourism and medical tourism – are not included in this NKEA, as they are addressed in other NKEA Labs . 1 MARKET ASSESSMENT Malaysia has a solid starting position to propel itself into a key tourism destination. The industry is already large (RM53 billion in receipts in 2009), has been consistently fast growing (14 percent per annum for the past ten years and 12 percent growth per annum from 2004 to 2009) and has a strong global competitive position. This good foundation can be leveraged to enhance the sector’s contribution to our economy.

Globally, there are several megatrends that affect the tourism industry. Megatrends represent inexorable growth, cut across industries and are structural shifts that will be relevant to the business world in the next five to ten years. The four megatrends that are both relevant and important for the future of our tourism industry are: • Trading up and trading down: This refers to consumers selectively spending above or below their income level for selected goods. A consumer may choose to splurge on one item, while deciding to economise on others.

An example of this behaviour would be a consumer who flies on a budget airline to Malaysia to reduce cost, but then stays in a five-star resort to enjoy an exclusive luxury experience; • Creation of global elite: This refers to the increasing number of high-income or high net worth consumers around the globe. This group is characterised by having homogenous demands and has high expectations about product and service quality. For example, a very wealthy Mumbai resident is likely to have many more similarities with a wealthy New Yorker than a middle-class Mumbai resident.

With the number of wealthy individuals increasing across all key Malaysian tourism source markets, the importance of offering high-end products and high service levels is growing ever greater; • Faster pace of life: This refers to the increased stress levels and reduced time for leisure that has accompanied urbanisation of the workforce around the world. Urban consumers are increasingly interested in frequent short escapes from their busy lives to relieve stress. These include spa and wellness getaways and short holiday tourism experiences.

The effect of this megatrend is seen worldwide, especially in developed countries, through increased numbers of leisure departures per person and shorter lengths of stay; and • Rise of China, India and new market leaders: This refers to the increasing economic importance of the BRIC (Brazil, Russia, India and China) and Middle East (ME) countries. These countries are currently under-represented in global tourism departures and expenditures, both in proportion to population and economic contribution. However, as these economies continue to grow, consumer disposable income will increase, which will lead to more people who can afford to travel.

Malaysia has already penetrated well into the Middle East segment, but can look into increasing its penetration into other growth markets. 1 Medical or health tourism refers to any activity related to the provision of healthcare services such as cosmetic surgery or other forms of medical procedures and is covered under the Healthcare NKEA. This also includes areas such as assisted living that require the provision of licensed doctors and nurses. Other areas such as wellness and spa fall under the scope of the Tourism NKEA.

Education tourism refers to activities related to targetting and attracting foreign students to study in Malaysia and falls under the Education NKEA. However, the visiting friends and relatives segment of this group falls in the scope of the Tourism NKEA. Economic Transformation Programme 319 A Roadmap For Malaysia Status of Malaysia’s Tourism Industry Over the past two decades we have managed to increase our international arrivals from 7. 4 million in 1990 to approximately 16 million in 2004 and to approximately 24 million in 2009. Exhibit 10-1 illustrates Malaysia’s global tourism ranking in terms of tourist receipts and tourist arrivals.

The tourism sector has grown from RM30 billion in 2004 to RM53 billion in 2009 – a growth of 1. 8 times (or 12 percent per annum from 2004 to 2009) placing Malaysia 13th in terms of global tourist receipts. Only a few countries have been able to sustain double-digit growth over such a long period of time, including Egypt, China and South Africa. Exhibit 10-1 Growing the Tourism Sector would Increase the Per Capita Incomes of its Large Employment Base The tourism industry currently employs a significant number of workers – an estimated 14 percent of our total workforce.

Currently however, the average salary within the sector is relatively low compared with other large sectors of the our economy. For instance, Malaysians working in hotels and restaurants make on average RM1,084 per month compared to RM2,114 in financial services and RM2,621 in oil, gas and energy sector. Malaysia also faces a skills drain issue, where locals who choose to enter the hospitality industry are enticed by better income prospects in markets abroad such as Singapore, Hong Kong and Macau. For instance, the opening of the integrated resorts in Singapore has attracted a large number of Malaysians to seek employment opportunities there. 20 Chapter 10 Revving Up the Tourism Industry Why Business as Usual is Not Enough Despite the industry’s strong historical growth of 14 percent over the last decade and 12 percent over the last five years, it has predominantly been dependent on growth in the number of arrivals rather than on yield per tourist. If this trend were to continue, Malaysia would have to depend on mass tourism arrivals, especially from its neighbouring countries (Singapore, Brunei, Thailand, and Indonesia) given their higher frequency of visits. Mass tourism brings with it two separate concerns.

The first is a high dependence on a few neighbouring countries for low yield tourists. The second is Malaysia’s capacity to accommodate a higher number of tourists before compromising on the quality of its offerings. Malaysia Today – High Arrivals, Low Yield Malaysia’s growth in tourism is predominantly reliant on growth of arrivals rather than yield. As shown in Exhibit 10-2, 75 percent of Malaysia’s growth has been due to the increase of tourist arrivals compared to only 25 percent growth from yield. In comparison, Singapore and Thailand have grown in a more balanced manner.

In Singapore, whereby 65 percent of Singapore’s growth was driven by tourist arrivals while 35 percent of growth was attributed to yield. Thailand had the reverse situation, where 42 percent of growth was due to tourist arrivals and 58 percent was due to yields, indicating that it is attracting higher spending tourists. Out of the 24 million tourist arrivals into Malaysia in 2009, 78 percent came from short-haul markets especially from neighbouring countries, 15 percent from medium-haul markets and 7 percent from longhaul markets (2009).

In comparison, 43 percent of arrivals in Singapore were from the medium-haul markets, while 36 percent of arrivals in Thailand were from the long-haul markets2. Exhibit 10-2 2 Short-haul: Indonesia, Philippines, Vietnam; Medium-haul: China, India, Saudi Arabia, UAE, Japan, South Korea, Australia; Long-haul: UK, France, Germany, Netherlands, Russia Economic Transformation Programme 321 A Roadmap For Malaysia The yield per tourist in Malaysia is also relatively low at RM2,260 compared to RM3,106 in Singapore and RM3,785 in Thailand (Exhibit 10-2).

The reasons for this include: • Lower average length of stay: Long-haul tourists currently spend 10 nights in Malaysia versus 14 nights in Thailand; • Lower spend per day: Tourists to Malaysia currently have a lower spend per day versus Thailand for all inbound markets (with the exception of Saudi Arabia and UAE); and • Dependence on arrivals from short-haul markets: Malaysia is highly dependent on tourists from the short-haul markets who spend less in Malaysia versus their average spend in other neighbouring destinations.

Going forward, it is more sustainable for Malaysia to shift its focus on growing yield per tourist rather than to rely heavily on growth in tourist arrivals. To attract the higher yield segment, we will need to both improve and upgrade tourist offerings and services, and also enhance connectivity to key priority markets. TARGETS AND ASPIRATIONS The tourism industry will contribute RM103. 6 billion in GNI by 2020.

This will require the sector to nearly triple GNI contribution from its starting position of RM36. 9 billion in 2009. To achieve this ambitious growth target, the tourism industry will need to achieve: • Tourist Arrivals: From 24 million in 2009 to 36 million by 2020 (1. 5 times growth); • Yield (receipts per arrival): From RM2,260 in 2009 to RM4,675 by 2020 (two times growth); and • Tourist Receipts: From RM53 billion in 2009 to RM168 billion by 2020 (3. times growth) As an outcome of this, Malaysia will be able to achieve: • Income per capita: Increase in income per capita above the current average of RM10,843 will also attract and retain high quality workers through higher pay and clear career paths for workers in the industry; and • Higher employment: 497,200 additional tourism jobs in the tourism sector by 2020. This represents a 30 percent increase from 2009.

The total workforce will however grow at a lower rate compared to tourism receipts due to an anticipated rise in productivity ensuing from attracting and retaining a better quality workforce as well as upgrading the skills of the current workforce. 12 EPPs to Deliver RM66. 7 Billion Incremental GNI Twelve entry point projects (EPPs) have been identified across five themes to enhance our tourism yields.

In addition, we have identified three business opportunities which will materialise due to the expected growth in the industry. As described in Exhibit 10-3, these 12 EPPs and three business opportunities together with organic sector growth will stimulate tourism growth from RM36. 9 billion in GNI today to RM103. 6 billion in GNI by 2020. 322 Chapter 10 Revving Up the Tourism Industry The RM103. 6 billion GNI contribution includes RM9. 7 billion of GNI from the multiplier effect created by EPPs from other sectors.

The largest sources of this multiplier effect are NKEAs including Electronics and Electrical and also Palm Oil, which are anticipated to bring benefits from professionals working in Malaysia, who will provide stimulus to restaurants, hotels and the broader tourism sector. The 12 entry point projects (EPPs) are segmented in five broad themes that cater to different segments of tourists ranging from the avid shopper to the nature lover and the business traveller, as well as families on vacation.

The five themes and 12 high-impact projects identified are: Theme 1: Affordable Luxury • EPP 1: Positioning Malaysia as a duty-free shopping destination for tourist goods; • EPP 2: Designating Kuala Lumpur City Centre-Bukit Bintang area as a vibrant shopping precinct; and • EPP 3: Establishing three new premium outlets in Malaysia. Theme 2: Nature Adventure • EPP 4: Establishing Malaysia as a global biodiversity hub. Theme 3: Family Fun • EPP 5: Developing an eco-nature integrated resort in Sabah; and • EPP 6: Creating a Straits Riviera.

Theme 4: Events, Entertainment, Spa and Sports • EPP 7: Targetting more international events; • EPP 8: Establishing dedicated entertainment zones; • EPP 9a: Developing local expertise and better regulating the spa industry; and • EPP 9b: Expanding sports tourism offerings in Malaysia beyond hosting events. Theme 5: Business Tourism • EPP 10: Establishing Malaysia as a leading business tourism destination. Cross-theme projects: Medium-haul connectivity; Better quality hotels • EPP 11: Enhancing connectivity to priority medium-haul markets; and • EPP 12: Improving rates, mix and quality of hotels. Average wage for workers in hotel and restaurant sector Economic Transformation Programme 323 A Roadmap For Malaysia Exhibit 10-3 AFFORDABLE LUXURY Shopping currently accounts for 28 percent of total tourism receipts, compared to 35 percent in Singapore and 57 percent in Hong Kong. Tourists spend less on shopping because products are priced higher and also due to the limited selection of goods. This lower volume of sales in Malaysia translates into a lack of scale resulting in a vicious cycle. One of the ways to address this is to position Malaysia as a shopping destination.

With this strategy, we aim to grow shopping receipts from 28 percent in 2009 to 35 percent by 2020. This will also increase average tourist shopping expenditure from RM631 to RM1,636 by 2020. To achieve this aspiration, we will undertake the following three EPPs, which together will generate RM9. 9 billion in GNI and an additional 80,340 jobs. EPP 1: Positioning Malaysia as a Duty-Free Shopping Destination for Tourist Goods Rationale The higher prices in Malaysia of imported retail products, such as apparel, shoes and handbags, as compared to Singapore and Hong Kong, are in part due to the import taxes imposed on these products.

Furthermore, due to the lack of economies of scale, many high street and luxury brands have chosen not to enter Malaysia thereby limiting the latest available product range. 324 Chapter 10 Revving Up the Tourism Industry Actions Exempt products popular with tourists from import duties. By positioning Malaysia as a duty-free haven, it is envisioned that our prices will be more competitive in the region, attracting tourists to shop more and in turn leading to an increase in sales.

To achieve this, a crucial first step will be to expand the category of duty free products to include those that have high tourist spend, with duty exemption granted on an automatic basis. The categories of goods proposed for exemption based on the Customs Tariff codes are: cosmetics and perfume (Section 33), leather goods (Section 42), textiles, apparel and clothing (Sections 61-63), footwear (Section 64), headgear (Section 65), jewellery, excluding coins (Section 71), electrical goods (Section 85) and toys (Section 95).

These products constitute the main purchases of tourists in Malaysia with textiles, clothes and handbags (leather goods) being the top categories of tourist spending. This proposal will allow us to market Malaysia as a duty-free shopping destination. While it is recognised that Government revenues from import taxes will be reduced as a result of this duty exemption, this can be offset by the additional yield from corporate taxes. The estimated loss of Government revenue will be approximately RM630 million while the incremental corporate taxes collected by 2020 are expected to be RM780 million.

Help local manufacturers compete. An area of concern arising from this duty exemption is the impact on local manufacturers. Clear mitigation plans will be put in place to enable domestic manufacturers to compete in this more liberalised market. These include: • Fiscal incentives: Provide financial assistance to automate and upgrade manufacturing equipment; • Non-fiscal incentives: Provide training to enable local manufacturers to move up the value chain (e. g. stablish a training centre for shoe manufacturers); assist local manufacturers to develop their own brands and connect them with international brands to develop higher value products; and • Local product collaboration: Shopping complexes and local manufacturers should work together to promote local products. The Ministry of Tourism will work with the Ministry of International Trade and Industry on the deadline and implementation of this EPP. Funding There are no direct investment requirements for this EPP. However, there will be an estimated RM630 million loss in Government revenues with the removal of import duties.

This loss in Government revenue would be netted off by the increase in corporate tax revenues. Impact The impact of this EPP is estimated at RM7. 8 billion which will come from increase in spend on shopping by foreign tourists coming to Malaysia (from 28 percent of receipts in 2009 to 35 percent by 2020). Total jobs that will be created are estimated at 64,000. Economic Transformation Programme 325 A Roadmap For Malaysia EPP 2: Designating KLCC–Bukit Bintang Area as a Vibrant Shopping Precinct Rationale Key shopping areas in Kuala Lumpur are relatively stand-alone locations, with little collaboration or connectivity between them.

This has resulted in a lack of vibrancy in each shopping area, poor traffic flows, almost non-existent pedestrian connectivity, poor streetscape and overall lower yield on tourism-related assets (i. e. hotel rates and retail rental). Actions Connect major shopping centres into a precinct. We will designate Kuala Lumpur City Centre (KLCC)–Bukit Bintang area as a premier shopping precinct in Malaysia. Seamless connectivity between these shopping malls and hotels in the area, both in terms of pedestrian walkways and public transportation, will be developed.

Pedestrian walkways will link the following areas: • KLCC Convention Centre to the KL Pavilion shopping centre’s Raja Chulan bridge; • KL Pavilion shopping centre across Jalan Bukit Bintang to the Fahrenheit 88 shopping centre; • Fahrenheit 88 shopping centre to the Lot 10 shopping centre; • Sungei Wang Plaza to Berjaya Times Square shopping centre’s Jalan Imbi bridge in Jalan Imbi; and • Sungei Wang Plaza to Jalan Bukit Bintang-Jalan Pudu intersection. By linking these areas, Malaysia would be able to market a shopping precinct similar to Orchard Road in Singapore or Causeway Bay in Hong Kong.

Year-round events, such as shopping festivals, culinary festivals and festive light-ups will be organised to improve the vibrancy of the area and enhance Malaysia’s position as a shopping destination. Establish a KLCC-Bukit Bintang Tourism Council. The Council will manage, promote and develop the precinct. The terms of reference of the Council are: • Improve the business environment of KLCC–Bukit Bintang, through the organisation of events, business development, promotions and marketing; • Assist in the promotion and management of KLCC–Bukit Bintang’s activities and other public-related issues (e. g. oordinate with relevant authorities on permits for organisation of events, security and general cleanliness of the precinct); and • Promote the precinct as Malaysia’s shop, eat, play and stay destination. The Council will be funded by the Government with contributions from property owners and the private sector. Its members will include representatives from the Ministry of Tourism, Dewan Bandaraya Kuala Lumpur (DBKL) as well as property owners within the precinct. As DBKL already has plans to enhance connectivity in this precinct, alignment between DBKL and property owners within the precinct is crucial.

The Ministry of Tourism will establish the KLCC-Bukit Bintang Tourism Council. Together with the Ministry of Tourism, the Council will plan and organise events within the precinct as well as promote the precinct. 326 Chapter 10 Revving Up the Tourism Industry Funding Total cumulative public investment for this EPP will be RM132 million which compromises RM75 million in capital expenditure (to construct pedestrian walkways to enhance connectivity in the precinct) and RM57 million in operating expenditure (to support promotion and marketing activities in the precinct).

Impact This EPP is expected to contribute RM1. 2 billion by 2020 which will be driven by higher tourist volume into the precinct and increased retail spend, food and beverage sales and higher hotel occupancy rates. The total number of jobs that will be created is estimated to be 14,500. EPP 3: Establishing Three Premium Outlets in Malaysia Rationale Currently, premium outlets in Asia are found only in Japan and Korea. These outlets offer heavily discounted luxury items that include out of season or new luxury products for market testing.

Actions Establishing premium outlets in Malaysia will support Malaysia’s tourism aspiration as a top shopping destination which will complement the current multiple retail offerings the country already has. Ideally, the outlets should be located in areas that meet three criteria. Firstly the location should be a popular tourism destination with a high captive market. Typically, outlets should be located within a onehour driving distance from key tourism sites and have a large domestic captive market to support sales. Secondly, the location should have a good network of connectivity and be easily accessible by air and road.

Lastly, the outlet should complement the current site offerings. Based on these criteria, we will establish the premium outlets in three locations: • Iskandar Malaysia: To cater to both the domestic market and tourists and day visitors from Singapore and Indonesia; • Sepang: To cater to tourists (including transit passengers) from Kuala Lumpur International Airport and the Low Cost Carrier Terminal; and • Penang: To cater to the large volume of tourists in Penang as well as to tap Indonesian tourists who are en route to Thailand for shopping.

The first premium outlet in Iskandar Malaysia is currently being developed by the private sector and is scheduled to be operational by 2013. As this effort is highly dependent on the private sector, the Government’s role is primarily to encourage and facilitate the implementation of this EPP. MIDA will identify potential local and foreign investors to establish premium outlets, especially on a joint venturebasis with local private sector investors by December 2012. Funding The total investment required for this EPP is estimated at RM355 million which will be used to construct the three proposed premium outlets.

This investment is expected to be fully private-sector funded. Economic Transformation Programme 327 A Roadmap For Malaysia Impact The estimated impact from this EPP is RM875 million. This was calculated based on the impact of similar premium outlets operating in the region such as Korea and Japan. Total jobs that will be created are estimated at 1,500. NATURE ADVENTURE Malaysia is blessed with an abundance of biodiversity, ranking 12th globally in terms of mega-biodiversity4. However, Malaysia is at a risk of losing this priceless natural asset if conservation initiatives are not taken to protect it.

Malaysia currently faces negative perceptions internationally due to logging activities in rainforests and the perceived destruction of Orang Utan habitats for palm oil plantations5. Leatherback turtles are also virtually extinct in Malaysia due to irresponsible tourism, including allowing tourists to use flash photography and flashlights6. There have also been numerous complaints regarding poor planning of accommodation which do not take into account the carrying capacity of environmentally-sensitive ecotourism sites, resulting in overcrowding, congestion and problems of sewage and waste disposal.

These in turn cause tourist discomfort and impacts overall satisfaction. These problems stem from the fact that there are too many authorities and agencies involved in managing natural sites and limited coordination in managing sites sustainably. Nevertheless, there is tremendous potential for ecotourism if it is well managed according to the principles of long-term sustainability. Currently, about 10 percent of total tourist arrivals into Malaysia are ecotourism-related. However, the packages sold to these tourists are not sold at a premium that reflects the true value of our precious natural resources and heritage.

Therefore, there is potential to increase the yield per tourist which will also ensure that the development of ecotourism sites takes into account the limit to their carrying capacity. Moving forward, Malaysia aims to become one of the best presenters of biodiversity in the world. We target to have a recognised network of different biodiversity sites of international calibre, which will be developed or rehabilitated and allow for tourist participation in rehabilitation ecotourism activities. Based on a report from the Convention on Biological Diversity. Biodiversity refers to variation of life forms within an eco system, be it flora or fauna. 5 BBC News 6 World Wildlife Fund 328 Chapter 10 Revving Up the Tourism Industry EPP 4: Establishing Malaysia as a Global Biodiversity Hub Actions The Global Biodiversity Hub (GBH) will be an accreditation body overseen by a Board of Management, drawn from key stakeholder groups, to establish the desired standards of excellence in the management and presentation of key ecotourism sites.

The key functions of the Board will be to accredit and monitor each site to ensure the sustainability of ecotourism development and activities and assist with the promotion and marketing of accredited sites. The objective of the GBH is to attract international attention to Malaysia’s outstanding biodiversity and promote responsible tourism and foster sustainable management of Malaysia’s natural areas. On the ground, the GBH will comprise a network of natural areas that showcase the biodiversity of Malaysia’s rainforests, freshwater habitats and marine environments and their associated flora and fauna.

Sites will be managed by their individual management bodies. A GBH site that submits itself for accreditation and is designated as a GBH site must maintain the expected level of excellence or risk losing accreditation. Ensuring Governance and Accountability To ensure that the quality of all ecotourism sites in Malaysia is well preserved, Tourism Malaysia will only promote GBH sites from 2015 onwards. Since only international calibre sites will be accredited, Malaysia can expect to obtain higher yields from tourists to these key sites.

On its part, the GBH will deliver on three main imperatives: • Develop Malaysia as one of the world’s premium ecotourism destinations; • Ensure standards of excellence in product packaging, service delivery and sustainable use; and • Empower rural communities to help them move up the value chain. The Malaysian Rainforest Discovery Centre and the Malaysian Marine Discovery Centre will act as showcases for Malaysia’s biodiversity offerings.

Similar to the concept of a zoo, the Malaysian Rainforest Discovery Centre will be developed as a joint zoological and botanical garden using the open zoo concept. Likewise the Malaysian Marine Discovery Centre will showcase Malaysia’s marine offerings to the masses. It is recommended that the Aquaria KLCC be leveraged for this purpose. While the Discovery Centres will cater to mass tourists, they will also promote live sites around Malaysia to visitors who want to experience these flora and fauna in the wild.

The Ministry of Natural Resources and Environment (NRE) and the Ministry of Tourism will work together to set up a interim GBH Board of Management. Representatives for the interim board will comprise representatives from both the Federal and State Governments as well as the private sector, academia and non-governmental organisations. Following a one-year interim period, a formal GBH Board of Management will be appointed; it will be managed as a non-government body, with Federal and State government Economic Transformation Programme 329 A Roadmap For Malaysia epresentatives participating in a Policy Oversight Committee to ensure that policies of the GBH Board are in line with national objectives as illustrated in Exhibit 10-4. Exhibit 10-4 Funding Total funding required is estimated at RM896 million over ten years (2010-2020) which will be used to construct the new Rainforest Discovery Centre and upgrade and improve sites identified to be part of the GBH. The bulk of this funding – RM640 million – will come from the private sector, while the remaining RM256 million will be provided by the Government.

Impact Total GNI impact of this EPP is RM1. 5 billion and 2,900 jobs will be created. FAMILY FUN The Family Fun theme primarily targets the rapidly growing middle-class populations of India, China and the Middle East, which represent about 48 percent of global population but only 13 percent of global tourism departures. The middle-class represents 67 percent of all leisure travellers from India, 46 percent from China and 47 percent from Saudi Arabia. Departures from this segment grew at an average rate of 11 percent per annum from 1995 to 2008 versus 2 percent for the rest of the world.

From a competitive perspective, there is no clear leading family destination within Southeast Asia. Thailand has a clear position as a destination offering beaches, entertainment and value for money, while Singapore has largely positioned itself as a business and higher-end tourism destination and has only recently started to focus on the family segment with the development of Resorts World Sentosa in Singapore. Thus, Malaysia should take steps to capture a bigger share of the family market segment.

However, to do so Malaysia needs to increase the availability of world-class family bonding activities and tourism products. Two high potential projects have been identified to cater to families: integrated resorts and cruise tourism. 330 Chapter 10 Revving Up the Tourism Industry EPP 5: Developing an Eco-nature Integrated Resort in Sabah Rationale The development of integrated resorts (IRs) has recently gained momentum, for instance in Singapore (Marina Bay Sands, Resorts World Sentosa), Bahamas (Atlantis) and Dubai (The Palm).

Singapore’s opening of Resorts World Sentosa in February 2010, which doubled its tourist arrivals (including a 46 percent increase in arrivals from Malaysia), illustrates the significant tourism potential of such large-scale tourism developments. IRs can be catalysts for economic development and have a significant impact on GNI, as evidenced by the opening of the Atlantis IR in Bahamas. Actions To differentiate and leverage on our strengths, Malaysia will develop an Eco-nature Integrated Resort in Sabah.

As illustrated in Exhibit 10-5, it will be a showcase of green development, with energy-efficient buildings, renewable energy, recycling and electric transportation, as well as displaying Sabah’s rich biodiversity, through a mangrove education centre. It will leverage on Malaysia’s competitive advantages in ecotourism and biodiversity, with attractions such as a river and rainforest safari, nature lodges, a mangrove centre and a discovery cove. In addition, the IR will feature world-class events, duty-free shopping, a water theme park, a world-class golf course and waterfront villas.

A private investor has already been identified for this EPP and the company has the land, financial resources and industry expertise to develop the IR. The Ministry of Tourism will oversee the implementation of this EPP. The investor will work with the Sabah State Government and related Federal agencies to obtain the necessary approvals before the end of 2011. Based on this timeline, the first phase of the IR could be operational by 2013. Funding Total investment is expected to be RM6. 7 billion which will also include upgrading existing utilities and infrastructure and undertaking flood mitigation measures within the proposed site.

The bulk of this funding – RM6. 1 billion – will be provided by the private sector, while the remainder will be provided by the Government. Impact Overall, the GNI impact is expected to be RM707 million with 7,700 jobs created by 2020. Economic Transformation Programme 331 A Roadmap For Malaysia Exhibit 10-5 Selected integrated resort features Green Showpiece Energy Efficient Buildings Reuse, Reduce, Recycle Electric/ Solar Transport Renew-able Energy source: Karambunai source: Nexus Resort, Karambunai River & Rainforest Safari

Nature Lodges Discovery Cove Mangrove Centre International Events source: KIRC,TAK Design EPP 6: Creating a Straits Riviera Cruise Playground Rationale The global cruise industry looks to Asia as a major growth engine, with cruise passenger arrivals growing twice as fast (7 percent per annum) as international tourist arrivals (3 percent per annum) from 1990 to 2008. Almost 50 percent of cruise passengers are high-yield international travellers. In Southeast Asia, the industry is dominated by Singapore.

Many global cruise itineraries today bypass Malaysia’s ports, mainly due to the lack of terminal infrastructure, quality shore excursion tourism products and services that meet the requirements of the cruise operators. Actions To realise this potential, Malaysia will develop the Straits Riviera cruise playground. It will be anchored by five purpose-built world-class integrated cruise terminals in Penang, Sepang, Malacca, Tanjung Pelepas and Kota Kinabalu complemented by nine secondary ports. This will help establish a compelling cruise experience and exploit existing coastal destinations.

The vision is modelled after the French Riviera cruise experience, which consists of the key ports of Nice, Cannes, Monte Carlo and St. Tropez and is supported by other popular secondary ports like Golfe-Juan and Villefranche. To ensure the success of the Straits Riviera, the Ministry of Transport, together with the Ministry of Tourism, will develop a National Passenger Sea Ports and Cruise Tourism Implementation Blueprint, which will articulate the vision and policy for cruise industry development in Malaysia until 2020.

This Blueprint will take into account the infrastructure development and improvement plans for each key cruise terminal and port and make recommendations to reinforce the themed-based cruise circuits as well as communitybased infrastructure, perimeter attractions and connectivity. This Blueprint will be developed by mid-2011. In parallel, a Straits Riviera Council will be set up under the guidance of the Ministry of Transport and the Ministry of Tourism. Findings from the Blueprint will indicate the feasibility and suitability of the ports identified for this project.

The cruise terminals will be operational on a phased basis from 2013 onwards. 332 Chapter 10 Revving Up the Tourism Industry The main tasks of the Straits Riviera Council include charting the direction for the country’s cruise industry, coordinating marketing efforts to attract cruise liners to establish home ports at each of the main cruise terminals as well as strategies for inter-port routes, a fly-cruise network and a greater IndoAsian alliance to attract cruise ships to the region.

This private sector-led Council will be the interface with other departmental authorities and the singular voice for the cruise industry in Malaysia in reinforcing the Government’s commitment to effectively implement the Cruise Tourism National Blueprint. The Council will consist of representatives from the major ports, industry stakeholders that equitably represent interests and concerns for the betterment of the cruise industry and community, supported by the relevant Government bodies.

Each cruise terminal will serve as a catalyst for waterfront and urban renewal, with the development of adjacent waterfront retail and residential areas and accompanying renewal of tourism sites at each port city to encourage shore excursions. A consortium of private investors has been identified and is prepared to provide the requisite funding subject to obtaining the required Government facilitation and approvals. This consortium has experience in developing cruise terminals in Southeast Asia and has a vision of transforming Malaysia into a leading cruise playground for Asia. Funding Total investment required will be RM2. billion which will be needed to enhance infrastructure at the five proposed sites. The bulk of the funding – RM2. 5 billion – will be provided by the private sector while the remainder will be provided by the Government. Funds will also be used to enhance road and rail connectivity to the proposed sites. Impact Overall, the GNI impact is expected to be RM1. 8 billion with 9,700 jobs created by 2020. EVENTS, ENTERTAINMENT, SPA AND SPORTS Today, Malaysia lags neighbours such as Thailand, Singapore and Indonesia in the magnitude and variety of events hosted, as well as in our nightlife offerings.

We have also not fully leveraged international events as key attractions for tourists. Hosting more international events and promoting a vibrant nightlife in Malaysia is necessary to attract tourists and will provide a boost to the tourism industry. EPP 7: Targetting More International Events Rationale Moving forward, we aim to increase the number of tourist arrivals for international events by 3. 6 times, from 70,000 in 2009 to 250,000 by 2020. In order to achieve this target, we will need to develop or attract three to four major international events and enhance the events already hosted in Malaysia.

Economic Transformation Programme 333 A Roadmap For Malaysia Actions To achieve this ambition, we will establish a dedicated events body for Malaysia to identify and bid for more major international events, repackage F1 and MotoGP and other existing major international events, and amend the Central Agency Committee for Application for Filming and Foreign Artists Presentation (Agensi Pusat Permohonan Penggambaran Filem dan Persembahan Artis Luar Negara or PUSPAL) guidelines for international events nd introduce performance ratings for concerts. Establish a Dedicated Events Body for Malaysia. Using successful benchmarks from Scotland, Australia and New Zealand, the establishment of a dedicated events body is critical to attracting and hosting large international events. This body will identify, assess and bid to secure major international events but will not operate the events. However, sufficient funding is crucial given the competitive nature of bidding for such events.

This dedicated events body will be established under MyCEB with the responsibility to (1) identify new major international events for Malaysia by attracting reputable international events and developing home grown international events; (2) synergise and develop a cluster of events around major international events; and (3) evaluate the impact of major international events hosted. This body will develop the overall business and operational plan and is expected to be fully operational by mid-2011.

Repackage F1 and MotoGP with better collaboration between the private and public sector. Malaysia was the regional pioneer in motorsport events, which began with the hosting of the MotoGP in 1990 and subsequently the F1 in 1999. However, there has been a decline in foreign interest in these events in Malaysia. The number of foreign spectators for the F1 has declined, from approximately 53,000 foreign spectators in 2006 to approximately 23,000 in 2009, driven partially by intensive competition from similar events in the region.

Malaysia will need to enhance and revitalise both the F1 and MotoGP events that will appeal to more international spectators. The event organiser of F1 and MotoGP, Sepang International Circuit (SIC) will work closely with various key tourism sectors to develop attractive pre- and post-event tour packages and to strengthen international sales and promotion channels. Tourism Malaysia, with its wide international marketing representation, will leverage its channels to promote F1 and MotoGP under Malaysia’s national Calendar of Events.

This EPP is expected to extend the average stay of tourists for F1 events from four days to nine days by 2020. In addition, the SIC will work together with the dedicated events body (under MyCEB), the Ministry of Tourism, DBKL, the Selangor State Government and other event organisers to develop a cluster of exciting events around the F1 and MotoGP. The SIC will target key events in the adjacent weeks of the F1 or MotoGP events such as high profile conferences, such as Invest Malaysia and the Forbes CEO Conference.

Amend PUSPAL guidelines for international events and introduce ratings for concert performances. From Q4 2010, events with international performers that fulfil the minimum criteria of (1) A-rated based on the Billboard top 100 in the past five years; (2) attract 2,500 spectators per event; and (3) have performed in three international venues, will be exempt from the current PUSPAL guidelines and will instead be subject to more flexible guidelines that will support the development of international events in Malaysia.

Organisers of international events will rate the performances according to the suitability of such performances for the younger age-groups i. e. “G: General” or “18+: 18 years old and above”. In addition, 334 Chapter 10 Revving Up the Tourism Industry changes to withholding tax and immigration requirements will be considered to ensure Malaysia becomes a more competitive events destination. In order to amend the PUSPAL guidelines as proposed, the PUSPAL committee will syndicate with other relevant agencies involved (local councils, Immigration Department, and the Ministry of Finance).

The Ministry of Tourism will monitor and track the implementation process. Funding Total cumulative investment required will be RM467 million, all of which will be provided by the Government. Impact Overall GNI impact will be RM427 million and 8,000 jobs will be created. EPP 8: Establishing Dedicated Entertainment Zones Actions We aim to enhance nightlight, as selected nightlife entertainment areas are expected to stimulate revenue growth from RM600 million to RM1. 8 billion by 2020.

To achieve this ambition spur the development of the industry, regulations relating to entertainment will be liberalised by: • Clearly demarcating dedicated entertainment zones to minimise any adverse impact on local residents as such areas are set up mainly to cater to foreign visitors. • Allowing an extension of operating hours for entertainment outlets; • Relaxing restrictions on the ratio of local to foreign artistes specified in the current PUSPAL guidelines; and • Extending he validity of working visas of foreign artistes and crews based on the type of performance (e. g. one-off shows, bands with long-term contracts or long-term production shows). The selection criteria to determine an entertainment zone requires it to: • Fulfill sound-proofing requirements as defined by the local authority’s building codes; • Achieve minimum scale of an average 1,000 visitors per night in one entertainment zone; • Ensure adequate accessibility and transport accessibility (e. g. arking spaces, taxis and other forms of transportation); • Provide adequate patrols by police or private security firms to ensure public safety in the surrounding area; and • Be located in a non-residential area or at a minimum of 100 meters from residential and religious areas. Economic Transformation Programme 335 A Roadmap For Malaysia Five cities have been identified as potential locations for dedicated entertainment zones: Greater Kuala Lumpur/Klang Valley, Genting Highlands, Penang, Langkawi and Kota Kinabalu. As Kuala Lumpur will attract more expatriates, a vibrant entertainment industry will be an integral part of its liveability.

The existing entertainment zones are not sufficient to cater to the expected growth given the average weekend occupancy rate of the city’s night clubs is 85 to 90 percent. In syndication with the Greater KL/KV NKEA, it was agreed that the potential location for a new entertainment zone will be the area surrounding Central Market. This area will be designed to attract tourists with 24-hour facilities, adequate public safety, transportation and infrastructure, and yet it will remain segregated from residential and religious areas. The establishment of a new entertainment zone will be administered by the Master Plan Department of DBKL.

DBKL will work together with relevant bodies to attract private nightclub operators to invest in the gazetted entertainment zone. The Licensing Department of DBKL will facilitate the issuance of the licenses for these nightclubs to start operations in the dedicated entertainment zones. Funding Total funding requirements will be RM276 million which will be fully private-sector funded. Impact Six new nightclubs, each with a capacity to cater to at least 900 club visitors per weekend night are targetted to start operations by early 2012. Two nightclubs will commence perations in 2013 and 2014 respectively. By 2014 there will be at least 10 nightclubs in the new entertainment zone. The expected impact of this will be RM0. 7 billion in GNI and approximately 5,614 jobs by 2020. EPP 9a: Developing Local Expertise and Better Regulating the Spa Industry Rationale Malaysia’s spa industry has experienced the fastest growth in the region for the past five years, even though its consumer base has been predominantly domestic (55 to 60 percent). Our spa industry is expected to reach RM830 million by 2020, mainly driven by increasing tourist arrivals of 1. times. However, skills requirement and service delivery remain the most pressing issues hindering potential growth. We have only a limited supply of workers and training facilities to create an appropriate talent pool, especially for local spa therapists. Immigration policies to attract foreign spa therapists are very stringent, given the current freeze on hiring foreign semi-skilled workers since 2008. In addition, the spa industry is currently unregulated and the quality of customer services varies widely between establishments.

Actions In order to address the shortage of skills, the private sector will take the lead to develop three centres of excellence (CoEs) as training centres to produce local therapists in the spa industry. Three potential locations have been identified based on proximity to spa establishments: Greater Kuala Lumpur/Klang Valley, Johor and Sabah. The first CoE is expected to begin operations by the beginning of 2012 to train 500 therapists annually. During the first three years of establishment, these CoEs will train local spa therapists. Once fully operational, the three CoEs will be able to produce 1,500 local therapists annually.

With this increase in local supply, the aim is that by 2018, the ratio of local to foreign therapists will be 70:30. 336 Chapter 10 Revving Up the Tourism Industry By mid-2011, the Spa and Wellness National Council shall be established with the role of providing accreditations and ratings for spa and wellness outlets to ensure service delivery and consistency. The Council will also be a self-funded private independent body with Board Members from the Ministry of Tourism, the Ministry of Health, the Ministry of Housing and Local Government, and the private sector (from spa outlets, hotels and resorts associations and spa academies).

Accreditation criteria and classifications of spa outlets shall be developed by the Council. By the end of 2012, 20 percent of the total spa outlets shall be accredited and endorsed by the Council. Funding Total funding requirement for this initiative will be RM23 million which will be used to fund the establishment of the three Centres of Excellence and the establishment of the proposed Spa and Wellness National Council. Impact The total GNI impact of this initiative is expected to be RM0. 4 billion and will create approximately 3,500 new jobs.

EPP 9b: Expanding Sports Tourism Offerings in Malaysia Beyond Hosting Events Rationale To date, Malaysia has generally focused on large-scale sporting events, from hosting the Commonwealth Games in 1998, to the Monsoon Cup, Le Tour de Langkawi and the F1 as a way to raise interest in the country’s sports offerings. However, Malaysia can improve its GNI from sports tourism by developing and enhancing general sports offerings, particularly golf tourism. Actions The development of golf courses in Malaysia has predominantly been as a complement to property development rather than as a tourism product in itself.

However Malaysia’s golf tourism offerings can be enhanced by repackaging products to target the high-yield segment. Malaysia can focus on developing the golf tourism business by addressing three areas: (1) increase promotions and marketing of golf tourism by leveraging on existing offerings such as the international golf events held each year ; (2) establish a Golf Tourism Task Force to bring the golf tourism industry together to plan and execute joint promotions and marketing efforts; and (3) provide tax exemption for selected items that are large-cost components for golf courses, e. . fertilisers and buggies. The private sector needs to work together with the Ministry of Tourism to set up a Golf Tourism Task Force and to ensure a cohesive national plan to develop and propel golf tourism as a key product to attract high yield tourists. The Task Force is to be set up by 2011 with clear strategic planning on future promotional and marketing plans for golf tourism, especially in conjunction with large-scale international events. Funding Total investment requirement will be RM1. 4 million for marketing and promotion of sports tourism.

Impact Through these improvements and continuous push for sports tourism, Malaysia can look to gain approximately RM0. 3 billion in GNI by 2020 and create 2,100 jobs. Economic Transformation Programme 337 A Roadmap For Malaysia BUSINESS TOURISM The business tourism segment currently represents only a small part of our tourism industry and accounted for 5 percent of total arrivals and an estimated 19 percent of receipts in 2009. In comparison, business tourism accounts for 30 percent of tourist arrivals and 40 percent of receipts in Singapore. We believe there is potential to further grow this segment in Malaysia.

Business tourism is an attractive segment to develop given that: • Delegates to business events spend up to three times more than non-business tourists; • Up to 60 percent of delegates eventually return as regular tourists; and • Yields high return on Government investment, i. e. 111 times return per Ringgit of Government investment. EPP 10: Establishing Malaysia as a Leading Business Tourism Destination Rationale We aim to grow the share of arrivals for business tourism from five percent (of total tourist arrivals into Malaysia) in 2009 to eight percent by 2020 which translates to a growth from 1. million business tourists today to 2. 9 million by 2020. Actions Provide support and allocate funding through MyCEB. An effective and properly-funded convention and exhibition bureau is critical to ensure Malaysia is able to successfully grow its business tourism. The need for adequate funding is important given the competitive nature of bidding for business tourism events. Funding is required for the entire process: from preparing the bid document to supporting due diligence during the selection process, providing subsidies to defer costs during the event itself and finally to supporting post-event activities.

In light of this, we will allocate RM50 million per annum over the next two years and over time raise this to RM100 million per year by 2020 to support the growth of business tourism in Malaysia. Dedicate two to three iconic “shell sites” to host business tourism events. Iconic shell sites are an important feature of any leading business tourism destination. Typically these are sites where gala dinners or cultural shows are held for large business events (more than 3,000 to 4,000 delegates). Currently there are no such sites in Kuala Lumpur that can cater for large business tourism events.

Taman Tasik Titiwangsa is the only site used regularly. In comparison, cities such as Singapore and Bangkok have several iconic sites such as the Old Parliament House in Singapore and the Rose Garden and Royal Palace in Bangkok. In order to strengthen business tourism, we will identify at least two sites that are suitable for the purpose of hosting gala events. In addition to these two key recommendations, it is also important to note that full Government support will be given to ensure the success of this initiative. 338 Chapter 10 Revving Up the Tourism Industry

Funding Total funding required will be RM800 million which will be provided by the Government for subvention support and to fund the operational and marketing expenditure of MyCEB. Impact The expected impact of this by 2020 will be RM3. 9 billion in incremental GNI and 16,700 additional jobs. MEDIUM-HAUL CONNECTIVITY AND BETTER HOTELS We have identified two cross-theme projects that will support delivery of the other projects: enhancing connectivity to priority medium-haul markets and improving the rates, mix and quality of our hotels.

EPP 11: Enhancing Connectivity to Priority Medium-Haul Markets Rationale Tourists from the medium-haul markets contribute 53 percent higher yields than tourists from short-haul markets. Medium-haul markets also have the highest forecasted growth from 2010 to 2020 of 8 percent (versus 3 percent for short-haul and 2 percent for long-haul). However, as shown in Exhibit 10-6, Malaysia’s proportion of medium-haul tourist arrivals is only 15 percent compared to 43 percent for Singapore and 36 percent for Thailand.

A key reason for this difference is the significant gap in medium-haul flights. In 2010 Malaysia had 579 medium-haul flights per week, compared to 928 for Thailand and 1,010 for Singapore. This gap is critical as we expect 43 percent of incremental arrivals in 2020 to come from medium-haul markets (Exhibit 10-6). Actions To address this gap, we will focus on increasing frequencies to 10 priority cities and developing an air-rights allocation framework to facilitate efficient development of these key routes. Economic Transformation Programme 339 A Roadmap For Malaysia

Exhibit 10-6 Increase flight frequencies and air rights to 10 priority cities. Australia, China, India, Japan, South Korea and Taiwan are expected to contribute over 90 percent of incremental tourist arrivals from mediumhaul countries by 2020. It is thus critical to focus on the key cities within these six countries where there is a significant connectivity gap today, namely: Beijing, Delhi, Melbourne, Mumbai, Osaka, Seoul, Shanghai, Sydney, Taipei and Tokyo. Compared to Singapore and Thailand, Malaysia has a double-digit flight frequency gap to most of these cities.

The increase in flight frequencies to address this gap and meet 2020 tourist arrivals will be achieved through focused capacity increases from our local airlines and targetted efforts by Malaysia Airports Holding Berhad (MAHB) to attract more airlines from these countries to either start operating or increase existing flight frequencies to Malaysia. In parallel, the Ministry of Transport will focus efforts on increasing air rights to the countries that currently have restricted air rights (primarily Australia, India and Japan). Develop an air rights allocation framework.

A transparent and liberalised air rights allocation framework will enable our local airlines to plan and launch additional flights to priority cities in a more efficient manner after additional air rights have been negotiated. Specifically, the Ministry of Transport will identify immediate action steps to enhance connectivity for Malaysia to Sydney and Osaka as well as other priority medium-haul cities namely Shanghai, Beijing, Mumbai, Delhi, Melbourne, Seoul, Tokyo and Taipei that have already been given approval by the Ministry for operations by both MAS and AirAsia X.

The Ministry of Transport will facilitate the development of an air-rights allocation framework with inputs from local airlines and other relevant stakeholders. This will include the application process as well as the allocation criteria. Once approved, the airlines will be briefed on the new framework. Such a framework will be critical for further development of both Malaysia’s tourism and the airline industries. 340 Chapter 10 Revving Up the Tourism Industry Funding Total funding will be RM84. billion which will be used to fund purchase of aircraft, undertake expansion of airport capacity and to fund marketing efforts in targetted countries. The bulk of this funding – RM83. 3 billion will be provided by the private sector – while the remainder will be provided by the Government. Impact Overall, the GNI impact is expected to be RM3. 3 billion with 13,400 jobs expected to be created by 2020. Furthermore, the impact of medium-haul connectivity goes beyond its GNI and jobs impact as this is a crucial enabler to deliver on all the other EPPs.

EPP 12: Improving Rates, Mix and Quality of Hotels Rationale Hotels represent a critical part of the tourism industry. In order to achieve our goal of attracting high yield tourists, we need to ensure Malaysia has the right mix and quality of hotels. Relative to our regional peers, Malaysia today has a lower mix of five-star hotels (i. e. 5 percent in Malaysia versus 13 percent and 14 percent in Singapore and Thailand respectively). In moving towards our ambition of growing tourist receipts by three times and tourist arrivals by 1. times, we will need more investments (to first upgrade and subsequently to increase supply) into our four- and five-star hotels as well as to ensure higher quality of service. We need to enable our hoteliers to generate sufficient returns to encourage re-investment into the sector as well as attract higher quality staff. A key impediment to this today is our relatively low hotel rates (RM320 per night for a five-star hotel in Malaysia versus RM766 in Singapore). Actions Link rating of four- and five-star hotels to a target average room rate. From 2013, a minimum room rate will be set for four- and five-star hotels.

This move is to encourage the hotel industry as a whole to increase their rates to close our gap versus peers in the region. This increase is meant to ensure hotels are able to provide a higher quality of service (through attracting and retaining better quality staff) and to encourage more investment into the four- and five-star hotel segments. Adjust MIDA incentive to encourage investment into more four- and five-star hotels. In order to encourage hotels to upgrade and refurbish their assets, we will extend the Investment Tax Allowance (ITA) to include four- and five-star hotels with foreign ownership.

In addition, we will also allow ITA for new construction as well as new purchase of four- and five-star hotels across Malaysia. Currently this incentive is open given to one-, two- and three-star hotels across Malaysia and four- and five-star hotels in selected states. The ITA for refurbishment of hotels will also to be increased from three times per company to five times for each property regardless of ownership. Following preliminary discussions with MIDA, the Ministry of Tourism will champion and push through the request for ITA expansion. Economic Transformation Programme 341 A Roadmap For Malaysia

Funding Total funding required will be RM39. 9 billion which is needed to construct the estimated incremental rooms required by 2020. The bulk of this funding – RM38. 7 billion – will be provided by the private sector while the remaining amount will be provided by the Government. Impact The impact expected from this EPP is significant with a GNI contribution of RM5. 5 billion and 64,000 additional jobs. This will be achieved by the increase in the number of four- and five-star hotels to meet the projected supply and the higher hotel rates for the industry as a whole. BUSINESS OPPORTUNITIES

In addition to the 12 high-impact EPPs, we have also identified three business opportunities which will support the growth of the tourism industry. The three business opportunities are focused on (1) food and beverage outlets; (2) local transportation; and (3) tour operators. Business Opportunity 1: Food and Beverage Outlets Food and beverages represents one of the core components of tourist spend. Given the increase in arrivals as well as the shift towards high-yield tourists, there is an opportunity to increase GNI from food and beverage outlets by RM3. 6 billion in 2020.

This will be achieved through an increase in the number of food and beverage outlets which will be driven by additional demand arising from growth in the number of tourist arrivals. We estimate the food and beverage segments will require approximately RM1. 4 billion in capital expenditure. An estimated 9,600 job opportunities will also be generated due to this business opportunity, though these will predominantly be positions for lower-wage service workers given the nature of the industry. Business Opportunity 2: Local Transportation Tourists spend about 10 percent of total expenditure (about RM230 per visit) on local transportation.

A significant portion of that is spent on taxis, which has contributed to the 5 percent growth in the number of taxis from 2007 to 2009. Additional taxis to support further growth will be required not only in the Klang Valley, but also in the other tourism clusters in the North (Penang), South (Melaka and Johor), Sabah (Kota Kinabalu) and Sarawak (Kuching), that are being developed through EPPs such as the Integrated Resort and Cruise Tourism. Specific EPPs, such as the Global Biodiversity Hub, which promote development of tourism sites away from traditional city centres, will also increase the need for local transportation and taxis.

Overall, the GNI impact is expected to be RM0. 7 billion with 45,000 jobs generated by 2020. Total capital expenditure required is estimated to be RM1. 2 billion. 342 Chapter 10 Revving Up the Tourism Industry Business Opportunity 3: Tour Operator Segment Given the increase in arrivals, there is an opportunity to increase GNI from the tour operator segment by RM0. 9 billion in 2020. This will be accomplished through an increase in the number of travel agents, an improvement in the productivity of travel agents and an increase in the number of tour guides to serve more inbound tourists to Malaysia. Additional capital expenditure of RM1. billion will be required and it is expected that this will generate 7,450 additional jobs, including 2,300 additional tour guides. Baseline Growth In addition to the three business opportunities, we also e

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How Muslims Are Represented in Australian Media

How Muslims are Represented in Australian Media Muslim Australians are an ethnically diverse group of people, yet the tone of certain media reports implies that all Muslims are the same. A stereotype of hysteria, inherent violence and barbaric practices often seems to be deliberately perpetuated, either to marginalise Muslim people as the uncivilised “Other” in the dichotomy between Eastern and Western culture, or for purely commercial reasons—sensational stories guarantee higher newspaper sales The media plays a central role in how our society understands events and issues, and has the power to marginalise whole groups of Australians.

With this power comes responsibility – the responsibility of informed, fair and critical reporting. Constant negative representation implies that all Muslims are fundamentalists and support terrorist actions. This in turn creates social and economic disadvantage and discrimination. The media’s focus on Islam and Muslims has increased significantly since September 2001. Although labeling of Islam and Muslim’s as the ‘Other’ was common in media before, since the September 2001 tragedy it has become persistent.

It is easy to exploit people’s fear of terrorism by using unconnected images and headlines to confuse readers and suggest that all Muslim people approve of terrorist activities. By not placing pictures and articles in their correct context, the media encourages readers to draw their own (mistaken) conclusions. The anxiety and paranoia that this focus manipulates helps to maintain support for government policies of mandatory detention, surveillance, and its military actions such as the war in Iraq.

The motive for the association of Muslims and violence is explained in Edward Said’s discourse, Orientalism. Said argued that through a discursive conception of the Orient, the West was able to construct an image of its own identity – that is, that the West is the negative of “Oriental”, comprising of what the West as central to modern, enlightened thought and the Orient as the mysterious and often dangerous Other. Some scholars also hold the perception of media bias against Muslims.

Howard V Brasted conducted research on Muslim representation through images from 1950 to 2000. Analysis showed that Islam has received a less than fair and at times farcical press through the portrayal of images of Mosques, bearded mullahs, Muslim crowds and veiled women, which have collectively come to symbolise irrationality, fanaticism, intolerance and discrimination on an almost medieval scale. This trend worsened after September 11, 2001 with Muslims and Islam now being equated with terrorism.

Peter Manning’s research on Arabic and Muslim representation in the Sydney Morning Herald and the Daily Telegraph found that almost 60 percent of the time reports in the two newspapers associate Muslim people with violence and terror and only 22 percent of the time see other cultural matters as being of interest. Manning goes on to state that analysis seems to indicate that the portrayals exhibited in the two Sydney newspapers are so broad-brush as to represent a new kind of racism. If such sweeping generalisations were made of Jews, black Americans, black Australians or Asians, they would be condemned out of hand as absurd.

Even smaller, independently owned newspapers use placement of images and headlines to promote an association between Muslims and violence. On its front page, Perth’s Voice News printed an article about an Australian who complained about letterbox bombings by local children. It’s heading read ‘Letterbox bombing spree hits Mt Lawley’ featuring a small image of the complainant. Also on the page a large image of two Muslim men with an article about a Mosque opening day, the small caption reading ‘Open Day: Muslims Sufyaan Khalifa and David Verney are keen to share their religion with the community.

The mosque in William Street is having an open day this weekend so if you’ve got questions about Islam in Australia, why not go along and take an inside look… ’ The positive and welcoming tone of the caption was undermined buy the image’s placement next to the much larger and unrelated ‘Letterbox bombing spree hits Mt Lawley’ article (see Figure 1). The headline ‘Letterbox bombing’ next to the image of Muslim men suggests a connection between the two unrelated articles. The press is often accused of stereotyping minorities but even when it does, it usually refrains from identifying groups by their religion.

After the 2005 Cronulla riots the media has was blamed for inciting the violent reprisal attacks. The headline in The Australian ran ‘Revenge attacks in Race war’ ‘Muslims retaliate for riot’ ‘Shots fired’ ‘Residents cars attacked’. The Lebanese-Australians were labeled ‘Muslims’. The captions on the photos accompanying the report all referred to arrested persons as ‘Muslims’. Alan Jones’ talkback radio 2GB told listeners to ‘come to Cronulla this weekend to take revenge’ and even boasted that he had ‘led the charge’.

It can be difficult to demonstrate that such populist racialisation, even incitement, in the media, actually produces racist hate crime. Many of the respondents in a Human Rights and Equal Opportunities Commission research project on racism against Arab and Muslim Australians saw media vilification as causing the racial violence they had been increasingly experiencing since 11 September 2001. Such causal connections, however, can be very difficult to trace; rarely is there such clear-cut causality as demonstrated in the Cronulla riots.

Although the media branded Sydney’s south-west as a home of ‘Lebanese-Muslim’ crime, it selectively fails to link other crimes committed by the gangs of the wider community with their race and religion. Even if the religion of perpetrators were identified, there would have been no suggestion that the crimes were linked to their faith. When, for example, case of child molestation by a Catholic priest or priests is publicised, it is never implied that pedophilia is in any way acceptable or common to Catholics. There is no doubt that a small minority of the world’s 1. billion Muslims is impacting negatively on Western interests. However, by constantly presenting headlines, articles and images that remind readers of this ‘new enemy of the West’, the media reinforces perceptions that all Muslims deserve the label of ‘enemy’. Just as during the Cold War period the media demonised the Soviet ‘Other’, this arbiter of public opinion now focuses on the Muslim ‘Other’. Scott Poynting, et al. , believe that it has become almost a conviction amongst some commentators that we are living in a time of great fear and anxiety.

They argue that media commentators and politicians often talk about the pervasive “fear of crime”, “fears of cultural rift”, “the politics of fear”, “worry about war and terrorism”. There is talk of anxiety, insecurity and lack of safety, uncertainty, and even paranoia. Those who fear loss of freedom through actual invasion are easily convinced that Muslim dress and other customs represent cultural invasion—and that welcoming such difference through multiculturalism will equal the loss of what it means to be Australian. The West Australian news poll also revealed that one out of four people say that Muslims are a terrorist risk.

The Anti Discrimination Board reported that people who pay more attention to television news were more likely to fear terrorist attacks and support limiting the rights of Muslims. In this existing climate of fear, the media’s generalised linking of violence and Muslim’s is counter-productive to any meaningful dialogue between Muslims and the wider community. It is clear that contemporary media representation of Islam and Muslims focuses on Islamic militants, effectively demonising all Muslim people, and does not counter this with balanced coverage.

There does not seem to be any likelihood that this approach will be reassessed and tempered in the future either: the media’s commercial motivation appears to favour irresponsible journalism that does not acknowledge the negative impact that such a focus has on moderate Muslims, but rather exploits anti-Muslim feelings with a barrage of reports and references that keep Islam as the focus of topical discourse. ——————————————– [ 1 ]. Kabir, N (2006) ‘Representations of Islam and Muslims in the Australian Media, 2001-2005’, Journal of Muslim Minority Affairs, 26: 3, 313-328 [ 2 ].

Anti-Discrimination Board of NSW, 2003, Race for the Headlines: Racism and Media Discourse, ADB, Sydney [ 3 ]. Edward Said, Orientalism: Western Conceptions of the Orient, London: Penguin, 1995 [ 4 ]. Kabir, N (2006) ‘Representations of Islam and Muslims in the Australian Media, 2001-2005’, Journal of Muslim Minority Affairs, 26: 3, 313-328, p 316 [ 5 ]. H. V. Brasted, “Contested Representations in Historical Perspective: Images of Islam and the Australian Press, 1950–2000”, in Muslim Communities in Australia, eds Abdullah Saeed and Shahram Akbarzadeh, Sydney: UNSW Press, 2001, pp. 206–207 [ 6 ].

Manning P, 2004, Dog whistle politics and journalism: reporting Arabic and Muslim people in Sydney newspapers, The Australian Centre for Independent Journalism, University of Technology, Sydney, p15 [ 7 ]. Voice News, Perth News, Perth People, Vol 16, No. 314, 19-26 June 2004, p. 1 [ 8 ]. Kabir, N (2006) ‘Representations of Islam and Muslims in the Australian Media, 2001-2005’, Journal of Muslim Minority Affairs, 26: 3, 313-328 [ 9 ]. Kabir, Nahid, 2007, The Cronulla Riot: How One Newspaper Represented the Event, School of Communications and Contemporary Arts, Edith Cowan University, Perth, Western Australia, www. asa. org. au/conferences/conferencepapers07/papers/268. pdf [ 10 ]. Scott Poynting, What caused the Cronulla riot? Race Class 2006, vol 48 no. 1, 85-92, Sage Journals Online, viewed 17 March 2011, http://rac. sagepub. com [ 11 ]. S. Poynting and G. Noble, Living with Racism: the experience and reporting by Arab and Muslim Australians of discrimination, abuse and violence since 11 September 2001 (Sydney, Human Rights and Equal Opportunity Commission, 2004), . [ 12 ]. Kabir, N (2006) ‘Representations of Islam and Muslims in the Australian Media, 2001-2005’, Journal of Muslim Minority Affairs, 26: 3, 313-328 [ 13 ]. S.

Poynting, G. Noble, P. Tabar and J. Collins, Bin Laden in the Suburbs: Criminalising the Arab Other, Sydney: Sydney Institute of Criminology Series, 2004, pp. 211–212. [ 14 ]. Kabir, N (2006) ‘Representations of Islam and Muslims in the Australian Media, 2001-2005’, Journal of Muslim Minority Affairs, 26: 3, 313-328 [ 15 ]. The West Australian, 14 April 2004, p. 5. [ 16 ]. Anti-Discrimination Board of NSW, 2003, Race for the Headlines: Racism and Media Discourse, ADB, Sydney [ 17 ]. Kabir, N (2006) ‘Representations of Islam and Muslims in the Australian Media, 2001-2005’, Journal of Muslim Minority Affairs, 26: 3, 313-328

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Bmw Ag: the Digital Car Project

This case is about a firm that needs to change radically its new product development process. The company has been successful throughout its history by developing high quality new products in a traditional way that extended back for decades. Customer demands are pushing for greater variety of products in shorter times. Competitors are responding to these demands and are on the way to cut their NPD process times by 20-30%.

For the Company to get ahead of competitors and put itself as a leader, it needs to drastically redesign its new product development process. As Gilvan C Souza mentioned,1 the speed to market of new products need to match that of the industry category so the company can be successful. 1. What are the competitive challenges of the automotive industry in 1997 and beyond? How is BMW affected? In general, in the last decade the market has witnessed a power shift from manufacturers to consumers.

The automotive industry did not escape this trend. Customers wanted to have more variety of cars, and more affordable ones without sacrificing quality. In order to meet this demand, automakers started focusing heavily on speeding up their process development as a competitive strategy. Many American and Japanese companies cut the speed to market considerably and were waiting to get into the European market. BMW was lagging behind competitor since its NPD process was very traditional and slow.

The company had a very artistic way to develop new products and there was internal resistance to change it. The threat was clear: either speed up NPD or struggle with competition. 2. How would you evaluate the evolution of NPD at BMW? Although BMW started to change the old process by introducing computer aid technologies at the beginning of 1990s, and even though the NPD process had improved (see page 8 in the case), the engineering lead time didn’t show major improvements.

The competition had much shorter development times than BMW. More importantly, BMW didn’t want to lose the traditional handcraftsmanship that characterized the company. Because of the details they went into the design, NPD was very time consuming and labor intensive. 3. Is BMW top management pacing change in NPD correctly? Too fast? Too slow? I think that the company was in the right track towards the redesign of the NPD process; however, senior management was not completely committed in making the project go.

On page 11 of the case, the author mentions that while engineers and designers were struggling to change development process, top management understood the problem but was more concerned about boosting productivity and efficiency. It passed a year and there was no progress in the new development system. I think it needed to go faster and involve people from executives to every one at the FIZ. 4. As Peter Ratz, what would you recommend to BMW senior management concerning digital and CAS? At this point it is clear that BMW needs to redesign its NPD process to obtain substantial changes in speed to market.

Additionally, it needs to involve engineers, designers, functional managers, senior managers, and executives in the projects. A way to do that is by adopting the innovative CAS NPD process with the flag company car, the 7-series, on the latest and revolutionary platform that was already under development. In this way every body in the company would be committed to make it work. I agree with what John E. Ettlie mentioned in his book (chapter 6, page 9): “there are no ‘failures’ in these cases”.

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Nursing Theories

A. TOPIC This paper will discuss the theories of ethics as they are applied to quality healthcare and the preservation of the principles of confidentiality based on trust existing between patient and nurse. These ethical values are patterned from the Hippocratic oath which is used as the standard of care for physicians and were adopted by Florence Nightengale, founder of the modern nursing practice. The basic ethical values are commitment to patient, respect for human dignity, and patient’s right to privacy.

Ethics are defined as a system of moral principles, the study of values relating to human conduct, and a person’s judgment of what is right or wrong. The Nursing Code of Ethics requires that we, as nurses, provide quality health services to our patients while protecting their right to human dignity and privacy or confidentiality. Ethics are viewed as a way of deciphering between right and wrong and using moral reasoning to make decisions. Is it right to cheat on a test or falsify documents as long as no one knows?

Moral reasoning may be affected by our childhood experiences and training or religious beliefs. We use personal values to make decisions and solve dilemmas such as “what should I do if my baby is sick and needs me at home, but there is a shortage of staff at work and I’m needed there too”. Maternal values say that you should remain with your child, but work ethics say that you should go to work. We often are required to make a choice of two unfavorable alternatives. This presents a stressful situation for the nurse who usually must act promptly and be able to defend her decision if requested. B.

IMPORTANCE OF ETHICAL THEORY AND EXAMPLES -The two types of ethical theories used most often in solving ethical dilemmas are utilitarianism and deontology. Using the system of utilitarianism, also called situation ethics, the nurse will make decisions according to the situation and determine if her decision will create greater happiness for more people than any other alternative. Often she will make comparisons of risks to benefits in any given case. This could probably be successfully used in the case of a patient who had several treatment alternatives and one or more had greater risks but more benefits.

This would not be beneficial in the instant case study because the patient does not desire any treatments and only wants privacy and confidentiality. Therefore, unless the nurse could discuss with her the benefits of treatment and have her recognize the benefits of discussing the treatment plans with her husband, this decision making process would not be effective. The theory of deontology is a system of decision making based on moral rules and unchanging principles. It is based on duty and obligation and does not change according to the situation but remains steadfast in its emphasis on moral obligation to patients.

Other theories of ethics used in nursing practice are consequentialism, ethics of care, and virtue ethics. In consequentialism, we make moral judgments according to the outcome or consequences and believe that it is morally right if it has a favorable outcome. In ethics of care, we consider the importance of caring to build good relationships and friendships. Virtue ethics promotes the character of the nurse and says that nurses should be truthful and honest in their relationship with patients. The basic principles and concepts of medical ethics are autonomy, beneficence, nonmaleficense, justice, fidelity, veracity and confidentiality.

The principle of autonomy means respecting the individual’s right to make her own decision. The patient has the right to make her own decision even though the medical staff may disagree. Autonomy is acceptable except when the patient has a contagious disease and treatment is required by law. In the present case study, the patient is seeking autonomy in making her own decision about her refusal of treatment and seeks privacy and confidentiality in her decision not to inform her family of her illness and the necessary treatment despite cultural beliefs.

Beneficence is derived from the word beneficial and means that the care provider should be kind and helpful or beneficial to the patient. At times, there is a conflict about what provides the most benefit. The principle of beneficence raises issues between the patient and the nurse or the patient and the health care facility. At times, nurses may want to do what they believe is good for the patient and forget about the patient’s rights to choose. The ethical issue here is whether or not it is right for nurses to ignore the patient’s independence and impose that which they believe is good for the patient (Ludwick and Silva, 1999).

In the case at hand, if the nurse respects the right of the patient’s confidentiality knowing that lack of treatment will likely cause pain, suffering and death, is she doing a good deed for the patient? Is the fact that she is respecting the wishes of the patient and protecting her right to privacy doing what is good for the patient? Or should she recommend what she thinks is for the good of the patient forgetting about the patient’s right to choose? The principle of nonmaleficence means that the patient should not be harmed and gives the patient a right to be protected by the nurse.

Harm to the patient may be physical or emotional. The nurse can harm the patient by refusing to answer her call which could cause emotional distress to the patient or physical harm in the event the patient fell while trying to get out of bed without assistance because the call was not answered. Since such harm may either be deliberate or accidental, it is important that care is taken to prevent such harms by ensuring the reliability of the communication system and responding to calls as soon as possible. The resulting dilemma is how do we determine what is best.

While maintaining the privacy of the patient in the present case study is beneficial to her emotionally, it will physically cause harm and destruction to her body and will be shocking to her husband because he is not aware of her illness. Justice means that we must provide equal access to healthcare for all people with no discrimination; and fidelity says we are faithful to commitments and promises. In the instant case study, we have provided the access to healthcare without regard to cultural differences and have made a promise of confidentiality to the patient.

Veracity is simply being truthful to the patient and oneself in order to promote trust and confidence. At times, healthcare providers will use benevolent deception at the request of families because they believe that the bad news will be too devastating for the patient to accept. Confidentiality is the trust which is established between patient and nurse for the protection of the patient’s privacy. C. CONFIDENTIALITY – Maintaining confidentiality shows respect for the patient and encourages the patient to be open and honest with nurses and other healthcare personnel about her private life and anything that might affect her illness.

It provides her with assurance that her medical information may not make her subject to employment discrimination. It enables the patient to maintain self-control and privacy in her life. In the present case study, the patient has never been able to have any privacy and has been controlled by others all of her life. She may believe that this is her one opportunity to exercise her own rights to privacy. REASONABLE LIMITS -In 2003, the federal government issued health privacy regulations, known as HIPPA regulations, as mandated by the 1996 Health Insurance Portability Act.

This was intended to provide patients with privacy of their medical records; however, the privacy and confidentiality is subject to reasonable limitations inasmuch as health insurance companies and their employees have access to all medical records of a patient. Computerized medical records are available throughout the healthcare setting and fax and e-mail provide an opportunity for the patient confidentiality to be broken. Also, nurses and other health care staff may often find it necessary to discuss a patient in hallways, at desks or in elevators and something could be overheard by visitors or other patients.

There are exceptions to privacy rights of the patient for their own protection and these include records relating to abuse of children and elders as well as domestic abuse. Also, third parties are required to be notified in the event of criminally inflicted injuries, infectious diseases including aids, and threats of violence or harm to others. The complete record of the patient is not necessary under these circumstances; therefore, only the essential information is released to authorities or third parties.

The healthcare staff assumes that relatives may be notified about the patient’s condition unless the patient requests that such information be withheld. An advance directive would be useful to the patient in the present case study so that she could make her wishes known regarding her treatment thus avoiding unwanted treatment in the event she becomes unable to communicate her wishes. RATIONALE FOR KEEPING -In the present case study, the nurse should ensure that all treatment options are fully explained to and understood by the patient.

She should discuss with her the cultural differences which exist and that in western civilization, the patient is entitled to privacy and independence in choosing her own treatment or refusing treatment if she so desires. It appears that the patient realizes that she has the right of privacy as a patient insofar as the health care facility is concerned, but if her husband is made aware of her illness, he will exercise his right as the cultural head of the family to take over her rights as a patient and may attempt to force her to receive treatments.

The nurse has the responsibility to keep the patient fully informed so that she understands the nature, extent and general prognosis of her medical condition. She has the duty to protect the privacy of the patient if the patient so requests after being made aware of all of her options. RATIONALE FOR BREAKING -The rationale for breaking the confidentiality is that the nurse knows the patient will suffer and probably die from her illness and at some point will be unable to care for herself, at which time the husband will learn of the illness and the facility’s failure to notify him.

The nurse may believe that the patient’s life could be saved and will feel guilty about not making sure that the patient received the necessary treatment even at the expense of breaking the fidelity and trust bond with the patient. D. (conflicting principles autonomy and do no harm) A culturally sensitive health care system is one that is accessible as well as is respectful of the beliefs, attitudes and cultural lifestyles of its patients. Nursing values in the USA emphasize self-reliance and autonomy as the rights of any competent patient.

Competing moral choices, as in the instant case of family versus individual, present ethical conflicts. Nurses should be able to provide culturally appropriate care of patients by seeking cultural awareness, knowledge, understanding and skills necessary to effectively serve the ever-increasing culturally diverse population in America. The nurse should possess some understanding of the meanings of health and illness as interpreted by varying populations.

In the present case study, the male is the dominant figure and his mother is next in line; therefore, according to the cultural belief, the patient would have no right to make decisions for herself. On the one hand, the nurse owes confidentiality and privacy to the patient, and on the other, she has the duty to do what is good for the patient and causes her no harm. The patient apparently is competent and understands the nature of her illness and the consequences resulting from refusal of treatment. The patient also apparently thinks this decision is best for her.

As the controlling nurse, I would honor the patient’s right, after fully explaining to her the expected prognosis and what to expect from treatment or lack of treatment, and would believe that if she competently requests privacy and confidentiality, it is good that her wishes be honored. E. influence on culture – compare family and nurse values – intervention Because of the increasing population of immigrants in the US, cultural values, beliefs and traditions are having a greater impact on nursing care and decisions.

The values of the Z family differ from those of the nurse and doctor in the belief that the husband is head of the family, the husband’s mother is next in line, and the wife or patient has no individual rights or control in her personal life. The nurse and doctor practice the theory of autonomy wherein the patient has the independent right and control over her own body. She has the right to make her own decisions and is entitled to confidentiality and privacy regarding her medical condition. Intervention) The nurse, when faced with this dilemma, after carefully assessing the options, may counsel with the patient ensuring that she is fully aware of her illness and the probable prognosis with treatment and the lack of treatment. She may offer to discuss the patient’s options with family members with the consent of the patient. She may refer the patient to a counselor if the patient desires to discuss her condition or get another opinion. She should collaborate with other staff members to get ideas, opinions and suggested solutions.

If all else fails, the nurse should intervene on the patient’s behalf to protect her rights to privacy, confidentiality and autonomy. F. Decision making models: The steps involved in the process of making a decision are obtaining all of the pertinent facts and information necessary; determining the nature of the conflicts; determining which ethical principles are involved; seeking alternative solutions or remedies and determining what, if any, ethical violations appear in the alternative solutions; making a choice and preparing to defend the choice; and ending he process by following through with what is determined to be the best decision. In making her decision, the nurse makes a complete assessment of the patient’s illness, her attitude toward treatment, her attitude toward the family’s cultural beliefs, and her rights to confidentiality. She assesses the existing conflicts; the patient wants privacy; the family wants access to her medical records and believes they are entitled to this information based on cultural beliefs.

The principle of autonomy is involved because the patient has the right to act independently and is entitled to privacy and protection of her rights. Under the principle of beneficence, the nurse must do what is good for the patient and all concerned, and under nonmaleficence, she must do no harm. The nurse must decide whether breaking the confidentiality of the patient will do her more harm emotionally than to let the patient decide her own course of treatment, or lack of treatment.

The nurse’s primary obligation is to the patient; therefore, if she has fully educated the patient about her condition, her treatment options, and what will likely occur with no treatment, she should make a decision to protect the patient’s right to confidentiality. Upon making this decision, the nurse should be prepared to defend her choice, both legally and morally, and follow through with her solution as being fair, just and for the good of the patient.

CONCLUSION – In conclusion, the apn should maintain open lines of communication with her patients so that they may educate each other about cultural values and practices. She should ascertain that the patient understands the treatments she needs for her illness and the consequences of refusing treatment. She should advise her patient that in all reasonable probability her condition will deteriorate to a status in which she will be unable to care for herself and at that time her husband will probably take charge.

She should have her execute an advance medical directive so that her wishes with regard to treatment will be honored. In western civilization, a patient is entitled to the standard of care available in the area where she chooses to be treated; therefore, in the present case study, the patient is subject to the regulations of the health care facility, including her privacy and confidentiality privileges, irrespective of cultural differences.

If patient exercises her right to refuse treatment and medical staff disagrees, they have right to terminate the relationship with the patient but do not have right to enforce treatment. The nurse has the duty to explain any procedure and its probable results to a patient and to obtain consent for the procedure if the patient desires to have the procedure. In the present case study, cultural values say that the patient has no individual right to give consent, but western medicine says that she does.

Patients have the sole right to consent to or refuse medical treatment unless they lack the physical or mental capacity to do so, are unable to communicate for any reason as in comatose patients, are unable to understand treatment, or are minors. The patient may exclude any person or persons from participating in her care. Therefore, the patient’s privacy rights should be upheld by the nurse. References: Ethics In Nursing Practice Rumbald, Graham 1999

Nursing and Human Rights McHale, Jean Vanessa Gallagher, Ann 2003 Nursing and the Law, Staunton, Patricia J. Chiarella, Mary 2003 Legal Issues in Nursing Guido GW 1997 ANA NURSING CODE OF ETHICS Chitty and Black 2005 Encyclopedia of Nursing Practice Ludwick and Silva 1999 Journal of Law, medicine and ethics “Advanced Practice Nursing” Mariah Snyder, Michaelene Mirr 1999 “Ethics and Laws In Nursing” Kathleen Fenner 1980 “Conceptual Bases of Professionnal Nursing” Susan Leddy, J. Mae Pepper 1985 The Online Journal of Issues in Nursing

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Collective Effort

We can achieve success through collective effort rather than as Individuals. In mathematics we say One Plus One is equal to two. But when it comes to people, it is only partially true. Most of the times two people can carry out much greater tasks than the sum of the tasks they carryout individually. This is known as the synergy effect. For instance, the Canada Geese are migratory birds that fly in a ‘v’ formation. As each goose flaps its wings it creates an “uplift” for the bird that follows.

The aerodynamic V shape formation reduces the air drag (air resistance) that each bird experiences when in flight in comparison to a bird flying solo. This adds 71% greater flying range than if each bird flew alone. When a goose gets sick, wounded or shot down, two geese drop out of formation and follow it to help and protect it. They stay with it until it dies or is able to fly again. Then, they launch out with another formation or catch up with the flock. . All members of the team plays their part and mutually benefit from this.

This demonstrates how collective effort plays a very imperative and useful role in nature. During World War 2, Despite deep-seated mistrust and hostility between the Soviet Union and the Western democracies, Nazi Germany’s invasion of the Soviet Union created an instant alliance between the Soviets and Great Britain and the United States . National and personal rivalries and Discrepancies had to be put aside for the greater good of all. Thus Allied victory over the Axis powers in World War II exemplified an unprecedented level of international cooperation and teamwork.

Another instance of successful solidarity is portrayed in the Disney Pixar film “Finding Nemo” which is about a father and son clownfish who get separated from each other. the father is accompanied by a blue fish named Dory in the quest for his son. At the end of the movie, the father and son are reunited yet minutes later Dory is captured in a large fishing net that is pulling hundreds of fish into a boat. Nemo, being small and having learned a teamwork method to battle such an attack, slips through a hole in the net to join Dori and lead the fish in the effort to escape.

Before long, the hundreds of fish that were just swimming frantically in every direction begin swimming down together . they make headway, putting an intense amount of pressure on the board that holds the net, until it eventually snaps and frees the gleeful fish. Which bring us to the question- ‘how often do people go in their own direction when faced with a problem rather than collaborating effort? ’ When in school, I was more of a perfectionist and hence an individual worker, preferring to be commended at my work’s own success and liable for my own blunders.

Thus, when I was faced with a Group Project in History I was crestfallen to say the least. At first I raised a lot of concerns and reprimanded people for their shabby work. Soon I realized that I was not the perfect one either. I learnt that It’s good to be individually brilliant and to have strong core competencies; but unless you’re able to work in a team and harness each other’s capabilities, you’ll always perform below average because there will always be situations at which you’ll do poorly and someone else does well.