POS MALAYSIA

1. Background
Pos Malaysia Berhad is Malaysias premier postal service provider. We have a widespread
network of over 1,000 touch points countrywide that includes Pos Malaysia Outlets, Pos
Minis, Pos24 (Self Service Terminals), Post-On-Wheels (Mobile Outlets), postal agents and
stamp agents, making it one of the most extensive retail network in Malaysia.
Pos Malaysia's 5 Business Clusters, aimed to provide quality, reliable, timely and innovative
solutions to our customers, encompasses the following :
Communication and
Distribution Solutions
(CDS)

Supply Chain Solutions

(SCS)

One-Stop Solutions
(OSS)

Digital Solutions (DS)

International Business
Solution (IS)

Extending the scope of mail services, CDS leverages on the

strength of our extensive physical delivery network to provide
customers with total communications and distribution solutions.
The conventional mail business forms the core component of
CDS followed by other strategic initiatives such as PosEdaran
and Direct Mail.
SCS is formed to strengthen our domestic courier business,
pursue international courier segment and venture into niche
logistics.
PosLaju brand will drive the growth for both domestic and
international courier businesses, whilst Al-Ajwa, logistics &
warehousing business will complement and complete the
services under SCS.
OSS focuses on providing convenience to customers by offering
financial and insurance products and services as well as other
retail offerings under one roof.
OSS products and services will be identified, designed and
delivered through PosNiaga, Pos Insurance, Ar-Rahnu@POS
and Bank@POS.
All our digital based offerings including our wholly-owned
subsidiaries, Datapos Sdn. Bhd. and Digicert Sdn. Bhd. will be
consolidated under DS to ultimately offer total digital solutions.
This new cluster aims to strengthen our current businesses and
explore to capitalization of digitization opportunities and trends.
IBS manages the operations for cross-border mail and parcel
services, as well as enhancing relationship with other
international postal operators and aims to position Pos Malaysia
as the leading international hub in the region.

Pos Malaysia International and Asia Xpress are part of the

solutions provided under IBS.

Throughout the years, Pos Malaysia has grown from strength to strength and is
progressing from being a mail and postal services provider towards becoming a dynamic
communications, financial services and supply chain solutions provider. Moving forward, Pos
Malaysia will continue to transform and innovate itself in order to maintain its relevance and
competitive edge as well as continue to connect Malaysians with the rest of the world.
2. Core Businesses
Pos Malaysia company only consist of three core business which is Mail Business, Courier
Business and Retail Business. This all core business gives certain revenue, and achievements
in 2013 such as :
Mail Business

Revenue : RM 724.5 million

Revenue Contribution: 57.1%

The mail business segment of the postal services is addressed by Pos Malaysia's strategic
business unit, PosMel. Mail business posted strong performance for the year. Although the
challenges of technologies are threatening traditional mail business, PosMel successfully
grew its volume by 2.6% to 1.4 billion items handled. Currently, Pos Malaysia mail business
network encompasses 32 Mail Processing Centres (MPC), 396 delivery branches, 4,980
delivery beats with a total of 4,870 posting boxes. In year 2012/13, many accomplishments
achieved by Mail business such as earned the UPU Expedited Mail Service (EMS) Gold
Certification for the second year running in 2012, introduced the Direct Mail service to
further enhance promotional efforts of customers' products and service and etc.
Courier Business

Revenue: RM 322.7 million

Revenue Contribution: 25.4%

Pos Malaysia operates its courier business through its strategic business unit PosLaju and
subsidiary PSH Express Sdn Bhd, under the brand name AsiaXpress. PosLaju remains as the
second biggest revenue contributor to Pos Malaysia's. PosLaju also offers international
courier services via Expedited Mail Service (EMS) to numerous international destinations
including International Time Certain Service to Tokyo and Singapore. Furthermore, PSH
Express, under the brand name of AsiaXpress, demonstrated steady growth from year to year.
In year 2012/13, courier business have achieved some award such as awarded the "Reader's
Digest Trusted Brand Gold Award in The Airfreight/Courier Service Category in Malaysia for
2012", strategic collaboration between PosLaju and MPH Bookstore to expand the
distribution channels and provide convenience to public and etc.
Retail Business

Revenue : RM 175.3 million

Revenue Contribution : 13.8 %

Retail business is addressed by Pos Malaysia's strategic business unit, PosNiaga. Similar to
courier business, retail business exceeded its internal financial targets. Its revenue also grew
up to year by year. Agency and retail services offered by Pos Malaysia via its retail network
are in line with its Universal Service Provider status. Aside from the conventional over the
counter services, PosNiaga also provides a virtual platform for greater reach and accessibility
to the masses. Its online platform, PosOnline, hit a milestone of more than 400,000. Under
the Transformation Plan, PosNiaga strives to achieve sustainable net income growth by
implementing 3 key strategies :

Enhance revenue contribution from its existing business

Generate new revenue sources
Undertake cost optimization measures

Achievements that retail business achieved in year 2012/13 such as opened 36 Ar-Rahnu
outlets operating conveniently within Pos Malaysia Outlets (Post Offices) to offer Islamic
microcredit financing facility, deployed dedicated corners for Insurance business at selected
outlets and etc.
3. Property Holdings and its assets
a. Types of property assets
Types of real estate assets that are available and use by Pos Malaysia is post offices, the
center of courier and mail delivery center. these assets are estimated to be more than 1000
units. it consists of 704 post offices, 68 centers of courier and 331 delivery center unit.
b. Type of property ownership
Types of property ownership by Pos Malaysia were lease, rent and some properties are owned
by the company
c. Flagship assets
Pos Malaysia major assets were post offices, center of courier and mail delivery center
around Malaysia that support its core business.
d. Asset require for business
Pos Malaysia needs real estate asset and vehicle assets to run their business. real estate asset
is for office of their three core business and vehicle asset for delivery and post items
transport.
4. Property stategies
Strategies used by the post in expanding their business are divided into several parts
which are, mail business, courier business and retail business. For mail business, Pos

Malaysia will continue to further expand PosEdaran offerings with My Shopping, which
would allow customers to shop from home and introduce flexi pack for enhancing the
features of our Small Packet product by introducing a new flexible prepaid pack known as
Flexi pack which comes in 2 sizes. Besides that, Pos Malaysia will embark on development
of a new track on system for Pos Daftar to keep abreast with business requirements and
technological changes.
Strategies for courier business, Pos Malaysia will develop the integrated track and
trace system for expanding their channel of distributions by introducing the kiosks business
model in high traffic areas to provide convenience to our customers and introduce portable
counter at Pos Laju Branch to serve the customers and reduce the congestion during peak
hours. Besides that, for retail business, Pos Malaysia will upgrade their selected outlets to the
new retail design for expand International Express Money Order (IEMO) services to other
countries such as Vietnam, India, Bangladesh, Cambodia and Laos and collaborate with
Takaful Principal to promote Family Takaful Products. Pos Malaysia will expand Ar-Rahnu
outlets to a total of 100 by end tof financial year and expand Pos services to rural
communities in Sabah and Sarawak via additional 6 new units.
In addition, strategies for the property to the post of Corporate Malaysia is not much
concern for Malaysian companies only focuses on mail-business, courier business and retail
business. But after Malaysia was acquired by DRB HICOM, Pos Malaysia began to make
plans for venturing into real estate investment. For now, only property management manages
and troubleshoots the post office only. The property out to tender for works in the post office
refurbishment, approved the construction of a new post office, look at the consequences
prospect of building a new post office, and approve matters relating to rehabilitation. So for
now, the real property only works for a property management company only.
However, for future planning Pos Malaysia, they have seen in the property
development prospects and their plans to venture into the add and contribute to the company.
They not only focus on the business mail only on the future.
5. Crem strategy to improve the company
a) Acquire the right talent now.
Talent for analytics and Big Data is in high demand. Talent shortages may become more of a
barrier to analytics implementation as more companies use data to drive more processes and
decisions.
b) Tie analytics to decision-making.
Better data and analysis don't necessarily result in better decisions. Specific initiatives to
improve decision cultures and processes, along with changing the understanding and
behaviours of front-line workers, lead to better decisions, the report say.
c) Apply analytics to marketing and customers.
Finance operations are the most frequent area of analytics investment, with implementation
by 79% of respondents. Marketing and sales groups, at 55%, are the second-most frequent

analytics users, and the report says the best financial returns from analytics often come from
marketing and customer-oriented applications.
d) Coordinate and align analytics.
There is little consistency among companies with regard to who oversees analytics initiatives.
Business units or division heads (23%), no single executive (20%), CFOs (18%) and CIOs
(15%) were most commonly cited. More co-ordination may be needed to realize the full
benefits of data throughout the organization.
e) Create a long-term strategy for analytics.
While current analytical processes are being implemented, a multi-year plan for the growth of
analytical capabilities - linked to strategy development - will help organizations better use
data over time, the report says.
6. Summary
For a summary, CRE add value framework that contributes most of the company was the
increase employee satisfaction, increase flexibility and reducing cost. These frameworks
contribute more because by increase employee satisfaction will drive worked well and
concentrate fully on the job. When employees are satisfied with the services that provided by
manager, it will give good productivity for the company and it will affect company income.
Furthermore, increase productivity also contributes more to the company that related with
employee satisfaction. We know that workplace will affect the productivity of company and
the main element that important to employees' productivity is office building. Comfortable
area will help employees to increase their productivity. Reducing cost also contributes more
to the company with minimize their operating expenses by reduce marketing and advertising
expense and Pos Malaysia does a rental to the land they lease to others if it is stated that the
land is not strategic in their business. By using this method, it will reducing cost of the
company and it also give company side income.
Conclusion, for now Pos Malaysia only focuses to their three main businesses and not
much focus in corporate real estate. In real estate, they just focus how to support their main
business which is take care of building and land that they had rent and lease. But after
Malaysia was acquired by DRB HICOM, Pos Malaysia began to make plans for venturing
into real estate investment. So for now, the real property only works for a property
management company only but for future planning Pos Malaysia, they have seen in the
property development, property investment and give more focus to corporate real estate that
also can give profit to company.

AXIATA
1. Background
Axiata is one of Asia's largest telecommunications companies focused on high growth low
penetration emerging markets. A Malaysian-based holding company, Axiata has controlling
interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia as
well as significant strategic stakes in operators in Singapore and India, which is one of the
fastest growing telecommunications markets in the world. In addition, the company has
stakes in non-mobile telecommunication operations in Pakistan and Thailand.
The Group's mobile subsidiaries and associates operate under the brands of 'Celcom'
in Malaysia, 'XL' in Indonesia, 'Dialog' in Sri Lanka, 'Robi' in Bangladesh, 'Smart' in
Cambodia, 'Idea' in India and 'Ml' in Singapore. Collectively, the Group serves over 215
million mobile subscribers in Asia and provides employment to over 20,000 people. The
Group's annual revenue in 2012 was RM17.7 billion (USD5.7 billion). Its market
capitalisation stood at over RM56.1 billion (USD18.4 billion) at end 2012.
Axiata's vision is to be a regional champion by 2015 by piecing together the best
throughout the region in connectivity, technology and talent, uniting them towards a single
goal: advancing Asia. Axiata was awarded the Frost & Sullivan Asia Pacific ICT Award for
Best Telecommunications Group for four consecutive years (2009-2012) and the Telecoms
Asia Best Regional Mobile Group 2010 and 2011 for its operations in multiple Asian
markets. In 2011, Axiata was the only Malaysian company to make the Forbes Asia Fab 50
List.
The Axiata story has been a remarkable one - incorporated in Malaysia on 12 June
1992 as a private limited company under the name of Telekom Malaysia International Sdn.
Bhd. (TMI), operating as a division within Telekom Malaysia Berhad (TM). The initial focus
was on expanding the Group's footprint, primarily through mergers and acquisitions, building
a portfolio which balances interest in emerging markets with low mobile penetration rates and
Best-in-Class and innovation driven subsidiaries in mature markets.
In 2008, the TM Group completed a strategic demerger exercise that saw the
separation of the mobile business from TM. The demerger resulted in an enhanced TMI,
which was merged with Celcom, enabling it to focus on its own core business and accelerate
operational improvements and growth initiatives; emerging as an independent entity in the
regional mobile telecommunications market. TMI was subsequently listed on Bursa
Securities on 28 April 2008, marking a new chapter in its transformation towards becoming a
regional giant in the mobile communications market.
In March 2009, TMI changed its name to Axiata Group Berhad and launched a new
identity, as part of are branding exercise aimed at enhancing its position as a leading regional
mobile operator. The move was a requisite step to reinforce the Group's new business

philosophy and its commitment to advancing Asia by addressing the unfulfilled

communication needs of local populations with affordable and innovative products and
services. Axiata has blazed a path across the region; from 6 million customers to over 215
million across 9 countries, in a matter of 8 years, making Axiata one of the largest mobile
players in South East Asia.
2. Core Business
Axiata Group Berhad, an investment holding company, provides telecommunication and
consultancy services. The company provide mobile telecommunication passive infrastructure
leasing, interconnect, leased, pay television transmission, and other data services; and
telecommunication network capacity, infrastructure, and services. It also offers international
gateway, electronic and mobile commerce, and telecommunication infrastructure; cable
television and multimedia services; information technology, including software development;
network services, application services, and content; and over-the-top and other on demand
content delivered through multiple Internet connected devices.
In addition, the company provides fibre optic transmission network and electronic
wallet services; fixed communications services; constructs high rise office complex with
telecommunication tower; offers financing; operates television broadcasting network,
including cable and pay television transmission; and provides international voice,
international private leased circuit, and managed services. Further, it is involved in dealing of
marketable securities; trading and distribution of communication devices and its related
products; setting up and managing of concept retail stores; property investment; and preschool education, kindergartens, child nurseries, child development centres, and other related
activities.
The company has approximately 215 million mobile subscriber in Asia. It operates
primarily under the brands Celcom Malaysia, XL in Indonesia, Dialog in Sri Lanka, Robi in
Bangladesh, Smart in Cambodia, Idea in India and M1 in Singapore. The company was
formerly known as TM International Berhad and change its name to Axiata Group Berhad in
March 2009. Axiata Group Berhad was incorporated in 1992 and is headquartered in Kuala
Lumpur, Malaysia.
Brand of the company
A company's brand signature is a representation of who we are and what we stand for. As a
diverse group with a unique footprint across Asia, the company was needed a name that has
allusion to the Asian heritage, yet had a global sound and modern edge. As susch, Axiata is
the company's proud new name and is pronounced a-zee-ata.
The new logo is called the Axiata prism and along with its exciting new name, the
new identity mirrors the Group's rich heritage and cultural diversity. It is as colourful as the
countries that it serves and displays the Group's vibrant energy, reflecting how Axiata views
situations from every perspective, uniting partners and connecting customers throughout Asia
and the rest of the world.
2011 marks a momentous occasion for Axiata with the launch of Prisms by Axiata',
one of the tallest steel structures in Malaysia. Standing at 24.2 metres high, it represents
Axiata's brand and it is hope that it will also become an iconic landmark in Kuala Lumpur.

Celcom in Malaysia
Celcom is Malaysia's premier and most experienced mobile telecommunications company
with the widest coverage in the country. It provides both prepaid and postpaid mobile
services to more than 12.7 million subscribers and is the leading mobile broadband service
provider in the country with over 1 million subscribers.
Celcom is also growing its position in content and value-added services (VAS),
enterprise solutions, bulk wholesale services, digital services and machine-to-machine
(M2M) solutions in line with evolving technologies and the changing consumer behaviour in
Malaysia.
With the country's widest network, Celcom covers 95.2% and 83.7% of the Malaysian
population with its 2G and 3G networks respectively. Celcom continues to invest in network
coverage, capacity and performance. Its aim is to maintain its technology leadership and
position as the country's best mobile service provider.
Celcom has also been a pioneer in industry leading partnerships which include
MVNOs, domestic and international roaming, and infrastructure sharing. Currently, Celcom
has five MVNO partners riding on its mobile network. These partnerships provide Celcom
with additional channels to reach niche segments with strong growth potential.
Its long-standing partnerships with local as well as leading global operators have
resulted in economies of scale, optimised network coverage, and unrivalled mobile
experience for its customers. As an Axiata company, and through its collaboration with
Vodafone, Celcom customers enjoy great rates and consistent coverage while roaming. Today,
Celcom subscribers enjoy roaming services in 193 countries with over 550 partner networks.
Through initiatives such as its industry-leading consumer lab, Celcom has a firm
focus on customer needs that has led to higher levels of product and service innovation,
cusjemer service excellence, and industry accolades at both local and regional levels.
3. Asset for the company
Basically, the assets owned by Axiata are including all the related infrastructure, mechanical
and electrical works elements, which support the proper installation and commissioning of
Radio Base Station (RBS), Base Transceiver Station (BTS), Exchanges or Tandems.
Infrastructure and Green Technology (IGT), which a unit in the Network Planning
Department, Celcom Transmission (M) Sdn. Bhd, was functioned as a Project Manager in
delivering those related assets. IGT shall interface with consultants, contractors, vendors, and
suppliers in ensuring the required facilities are delivered in accordance to the timeline and
comply with specifications required.

The types of infrastructures under IGT jurisdiction are towers, AMPs, monopoles, lamp
poles, minarets, RAMOs, RAPOLEs, room renovations, roof tops, cabins, air conditioning,
power supply, generators sets, solar systems, UPS/DC systems, and other green technology
systems.
Meanwhile, assets for land site are including exchanges, tower (TW), monopole
(MP), aesthetic monopole (AMP), lamp pole (LP), minaret (MN), Guyed Mast (GM), selfsupporting mast (SSM), RAMO, and RAPOLE. All this assets are functioned as mounting
platform for Transmission and Radio antenna, and microwave dishes.
For roof top or room reno, the assets consists of pole/ boom, tripod, mini structure,
unipole, and camouflage. Pole/boom, tripod, mini structure, and unipole are functioned as
mounting platform for Transmission and Radio antenna, and microwave dishes, while
camouflage was functioned to conceal Transmission and Radio antenna panels, microwave
dishes from public visual. Others assets are including cabin, caging, drainage, genset, and so
on. All this assets are very important to Axiata as all this assets help to generate profit for the
company and represents the value of Axiata Group Berhad.
At the same time, a real estate department was newly formed within the company.
This department was named as Engineering Property Department and only formed one years
ago. The main reason for this department to be formed is to make it easier for the company
when carrying out task that related to valuation of property. The department will need to deal
with every party, especially the land owner, for example when comes to a situation where the
company need to build a telecom tower above a land by renting the land area. They are
responsible to negotiate with every party regarding the activities that related to the property
of the company in order to enable the continuation of development projects of company. As
such, this department will plays an important role for the company in the future through their
expertise in real estate industry as well.
4. Property Strategy
a) Sustainability at Axiata
With over 215 million customers within the emerging Asian economies, Axiata has a very
real opportunity to transform lives and societies. While their mobile technologies and services
continue to address the communication needs of their customers, Axiata, as a leading Asian
corporation, has always been mindful of operating responsibly and upholding a high level of
governance.
One thing that has remained constant since the time of their incorporation is that
Axiata is committed to its sustainability efforts. This has been a central practice throughout
the Group, where each of the OpCos is championing sustainability in their respective
countries and markets.
Axiata fully embraces the belief that operating responsibly is critical to achieving
their vision of becoming a regional champion. In doing so, the company wish to earn the trust
of their stakeholders, improve the wider society they serve and continue to deliver sustainable
long term growth and success. In line with the promise of advancing Asia, Axiata aims to
further strengthen its commitment to its sustainability efforts.

b) Refined Sustainability Framework

Focusing on an integrated approach towards sustainability, one where financial, social and
environmental concerns are equally looked after, refined Axiata sustainability framework was
designed for this purpose.
As a Group, Axiata aim to do this through two focused and strategic pillars; operating a
responsible business and developing the communities that they serve. Axiata see talent
development, environmental management, sustainable supply chain and community
assistance as the four focus areas for the company to achieve their sustainability goals and
vision. This is all held together with Axiata's strong corporate ethics and governance.
c) Benchmarking against Global Standards
As an industry leader, Axiata intends to benchmark its sustainability progress against global
reporting standards. By reporting transparently and with accountability, Axiata hope to
increase the trust the stakeholders have in Axiata and their business.
i) Talent Development
Talent development cuts across both their sustainability strategic pillars of being a
responsible business and developing communities. Axiata's talent development efforts are
spread wide, within the organisation as well as reaching out to the communities in their
markets.
ii) Environmental Management
Axiata are aware of the impact the telecommunications industry at large has on the
environment, particularly in energy consumption. Keeping to their focus of operating
responsibly, being environmentally cognisant and establishing a long term sustainable
business, the company strive to strike a balance between their carbon footprint and their
services reach.
iii) Sustainable Supply Chain
As part of building a long term sustainable business focused on growth, it is important for
Axiata to develop a sustainable supply chain network that embodies the Group's values and
practices. Axiata also see it as a moral obligation to their customers to ensure all the products
and services are secured through a responsible supply chain process. At the same time,
priority was made to ensure Axiata develop local suppliers and entrepreneurs within the
markets they serve.
iv) Community Development
The company's humanitarian assistance and community development programmes enable
them to transform the lives of millions of people within our communities. It is practiced
across the Axiata group and will continue to be a focus area in their sustainability efforts,
particularly with their business focus in emerging markets.
5. CREM Strategy

To have a competitive advantage, a company must create an edge over its competitors. In the
aggressive business world, especially in today's economy, every advantage counts to establish
a company business in the top of its related industry. Competitive advantage can come in one
or combination of the following factors: Price, service, quality, location, or imbedded
customer base. An effective corporate real estate strategy can produce a competitive
advantage in attracting and retaining outstanding people. The better a business performs
against one of these factors, the more likely the company will be succeeded. Well, gaining a
competitive advantage takes strategic planning and extensive research.
Axiata Group Berhad, especially Celcom, can improve their competitive level by
identifying and analyzing their competitor. The competitors of Celcom are including of Digi,
Maxis, and PI. In this case, Axiata should use the competition occurred as a learning tool and
assess their business model. The company should learn their competitors' strengths and
weaknesses imitate their strengths, and use their weaknesses to the company's advantage.
The business information learned from the rivals will help Axiata to develop the competitive
edge that the company need to surpass them in telecommunication industry.
Trying to compete with competitor can enhance the company strength as well as
improve its competitive advantage. For example, provide several of high tech products and
services in the aftermath of different needs of clients, ranging from economics, business and
family satisfaction and pleasure. The new transforming IT enable Axiata to run its call centre
operation more efficiently than other competitor. At the same time, the company should
provide more advanced and high tech service that their competitors don't. Axiata should try
making its product rarer, more efficient or better quality than competitive offerings. Only
then, more and more customer would support for the product or service provided from the
company.
Besides that, intimate customer knowledge is equally important as competitor
knowledge. Gaining in-depth insights about the customer portfolio will allow Axiata to
maximize revenue potential, increase customer retention, and boost prospective customers.
The company can use a mix of many tools and methods to measure consumer insight and
both the company's position in the market and the positions of their competitors as well.
Along with traditional company information resources, consider social media analysis tools
that allow consumer insight mining on a large scale. In an addition, identify what and how
customer rank the Axiata company is one of the useful method to measure the satisfaction of
customer's experience on using the service or product of the company. Thus, the company
position in the market can be identified through the approaching of this method as well.
Furthermore, Axiata should be speedy in responding to their clients. Often consumers
will weigh up a number of different solutions offered by different companies when
considering the purchase of a product/service. Thus it is key that the company respond to
them in a timely manner, ideally very soon after their initial enquiry - being the first out the
door with a follow-up mail or call to an initial query will reflect well on their business and the
company business' name will likely stick in the mind of the prospect as a strong contender for
them to purchase the product/service from. For example, if you are able to follow up with a
client by email immediately after a meeting, you will be showing that you are accessible,
timely and professional.

Last but not least, once company have gained competitive advantage, company still
need to maintain its competitive advantage by predicting future market trend, adapting to its
customer's wants or needs, and constantly researching and monitoring its competitors.

6. Summary
As businesses strive to improve their competitive position in an ever more crowded
marketplace, strategic use of all their resources, including real estate is necessary to succeed.
Each firm must assess its position in the market and select the proper strategies to support its
objectives. In order to support the revenue growth and profitability growth of a corporate
company, the firm must need to choose from among the seven general real estate strategies,
for their business environment and organisational goals.
The telecommunications industry is constantly undergoing transformation and headed
for convergence where there is a marriage of smartphones, fixed and mobile broadband
services, service delivery platforms and social networking. As demand for products and
services increases, and technology continues to innovate, change is inevitable.
Axiata has always been ahead of the curve, quickly adapting to change and
positioning its business model to capitalise on these developments. As an organisation, Axiata
is transforming from being a holding company to a multinational company with a purpose.
The Group is committed to the countries it operates in by playing a core role in nation
development by piecing together affordable connectivity, innovating technology and
developing human talent.
Parallel to its investments in network and technology modernisation over the years,
Axiata has also evolved its business to embrace the digital age and fast growing demand for
data. In advancing Asia, Axiata remains committed to its role in nation development, to make
a difference to people's lives and help transform the countries in which it operates in.
Regarding to the successful of Axiata, corporate real estate (CRE) add value
framework was implemented within the company in order to contribute to the development of
Axiata nowadays. The seven general real estate strategies, including increase the value of
assets, promoting marketing and sales, increase innovation, increase employee satisfaction,
increasing productivity, increasing flexibility, and reducing costs, had been used wisely to add
value to the company as well. Based on CRE add value framework implemented by Axiata, it
can be said that there are 3 main element that contribute most to the company, which are
increase the value of assets, increase innovation, and reducing cost.
To increase the value of assets, the company had used their own system to manage all of their
real estate assets and facilities as well. The system helps to make it easier for the work of
valuation and enable the company to forecast the fair market rental value of land. Thus, time
and cost for disposal of properties can be saved as well. Meanwhile, innovation is very
important for a company, especially for a telecommunication company to stand ahead from
other competitors in the telecommunication market. As such, Axiata is trying to encourage

innovation from their employees through interior design of the workplace that fulfil the needs
of their employees, and policy that allowing their employees to work at where they want, as
long as they able to work with efficiently and happily.
Furthermore, the company also focusing on the strategies in reducing cost for
company. So, a real estate department had been created, named as Engineering Property
Department. By creating own real estate department, it had helped the company in saving the
cost to outsource the real estate activities to other valuation firms. As such, extra cost for
hiring valuer regarding to the property management works of the company can be reduced as
well.
As a whole, CRE add value framework implemented by Axiata had brought a
progressive improvements for continuous growth of the company. In an addition, successful
implementation of the selected real estate strategies will require the development of a
comprehensive performance management system to provide a feedback loop to assess
progress and make adjustments as needed. At the same time, the company must choose from
the list of potential measures those that are practical and appropriate to the business, its core
objectives, and its information availability. Only then, corporate real estate management can
move more squarely into the strategic planning process and live up to its potential to add
value to the firm.

GAS MALAYSIA
1. Company Background
Gas Malaysia Berhad was incorporated on May 16, 1992 as a joint venture between
MMC-Shapadu Holdings (55%), Tokyo Gas-Mitsui & Co. Holdings (25%) and PETRONAS
(20%). It was established to promote, build, and operate a natural gas distribution system in
Peninsular Malaysia. In December 2000, Gas Malaysia has expanded its business include the
reticulated liquefied petroleum gas (LPG). By December 2004, the natural gas pipeline
network Gas Malaysia has covered more than 1 100 km. The industrial sector accounted for
99% of total gas sales. Natural gas customers are in the chemical, rubber, non-metallic
mineral materials, glass, food, beverages and tobacco. Gas supply to the commercial sector
was channelled mainly to hotels, shopping malls and hospitals, as well as natural gas vehicle
stations. Besides that, GPC, which are supplied to domestic and commercial customers
through a bulk tank or manifold system, usually used for cooking, water heating and drying
clothes. This company supplies gas to more than 380 industrial customers, 579 commercial
and 29,360 domestic.
Gas Malaysia Berhad's headquarters is located in Shah Alam, Selangor and there are
three regional offices in Prai, Gebeng and Pasir Gudang, and seven branch offices throughout
Peninsular Malaysia to provide efficient customer service and operations and maintenance of
effective and high quality. Gas Malaysia has positioned itself as an integrated energy
solutions provider in abd to 21 and is committed to providing innovative solutions more
persistent in order to enhance business profitability and lifestyle of the people in Malaysia.
Role of Gas Malaysia as the preferred energy supplier is to supply the most energy is clean,
safe, cost-effective and sustainable to all customers. Therefore, Gas Malaysia has played a
proactive role in introducing and promoting new technology, that Combined Heat and Power
(CHP), which is an efficient and effective way to increase the use of natural gas as well as
save costs and increase energy efficiency for customers of Gas Malaysia Berhad.
2. Core business, including property division
Gas Malaysia Berhad is one of the two companies in Malaysia to he granted a license to
distribute natural gas and liquefied petroleum gas (LPG) in peninsular Malaysia. I he
company's main activity is the selling, marketing and distributing natural gas to consumers.
To expand their business, the management has listed, company on the main market of Bursa
Malaysia. To date this stock flotation is on June 11, 2012. With the IPO offer price, which is
RM2.20 per share, the market capitalization of the company will increase to RM2.82bn. In
February 2012, Gas Malaysia Berhad (GMB) has signed a cooperation contract with
Petronas. In the contract, Petronas agreed to increase gas supplies to the GMB from 328juta

cubic feet per day to 442 million cubic feet per day by 2013 and 492 million cubic feet in
2015 and onwards. The new contract is seen as giving an advantage to the GMB to expand
their market. In this new agreement also GMB and Petronas agreed that customers who use 2
cubic feet of gas will be rendered down to the GMB and TNB customers who use more than
2 cubic feet will be taken by Petronas Gas. Income from sales and distribution to Gas
Malaysia Berhad is expected to increase each year as a result of an agreement signed with
Petronas . Increase in the supply of raw gas will be an opportunity for the GMB to expand
their market. In addition, demand for gas is also increased as a result of the government's
move to make Malaysia a high-income nation by introducing the Economic Transformation
Programme (ETP). Under this program, many mega-projects will be developed. Indirectly, it
will contribute to the on-going gas demand as an alternative to generate energy.
As Gas Malaysia Berhad move into their 21st year of operations, they at Gas Malaysia
continuously aim to stay ahead of the energy solutions industry. While generating revenue is
a prime concern for any corporation, they believe that there is more to business than just sales
and products. They hope that their provision of total energy solutions will benefit the nation
in terms of enhanced living standards and profitability. Energy supply for homes, businesses
and industries which was Gas Malaysia provides efficient, clean and uninterrupted energy
supply for more than 36.000 residential and commercial customers, and for approximately
740 industrial customers. In the year 2013, total gas sold by Gas Malaysia was 138.5 million
mmbtu throughout Peninsular Malaysia. Their network of gas pipeline, which is about
2,000km in length, is constantly expanding to reach a larger population.
3. Property holdings and its assets
Gas Malaysia's commitment to Corporate Social Responsibility (CSR) focuses sustainability
and good governance. The group has put in efforts to include stakeholders in all business
activities to maximise its positive impact on society greater accountability. Corporate giving
that was Gas Malaysia Berhad is mindful of the needs of underprivileged Malaysians who
lack the basics necessities and educational opportunities. In light of this, they made social
contributes through company funds in support of public educational efforts and for the
benefit of those who were significantly less well-off. Staff fundraising in Gas Malaysia
Berhad Company allows staff to raise momey for an agreed company-wide cause as well as
for individual staff members' cause. Such activities increase staff retention and help with
team building. As with volunteering, a well-planned giving policy maximises the impact on
staff, community and organisation. Payroll giving is a way for our employees to make regular
payments to charity directly from their pay. Donations given from their pay is tax deductible,
thus maximising the benefits for staff and the intended charity. Gifts in kind make a huge
difference to charitable organisations. It is also part of our environmental drive to donate
useable items rather than disposing it.
Workforce diversity that used by Gas Malaysia Berhad to appreciate diversity by
demonstrably valuing and respecting employees, clients and the community from all identity
groups. This is done through setting up network groups and accommodating religious and
non-religious practices such as diets, prayers and holidays. Work life balance practiced in
GMB to ensure that our staffs social, physical and psychological health is facilitated through
workplace harmony and providing facilities and programmes that improve productivity and
creativity. Supplier diversity in the Company ensures that supply chains are managed in an

open and transparent manner, so that all types ot potential suppliers have an opportunity to
compete for work and contracts.
Ethical procurement is achieved in Gas Malaysia by making purchasing decisions
that, at a minimum, do not negatively impact the environment or society and, at a maximum,
make a positive impact. They do this in a manner which takes into account the best cost and
quality available. Energy consumption improved by installing energy saving equipment
which reduced our electricity bill by a further 26%. Last but not least, the most important
property strategies adopted by this company are health & safety at work; they are committed
to ensure that all employees work in a safe and healthy environment. Our Health, Safety &
Environmental and Quality (HSEQ) Policy is communicated to all employees and is made
available to any interested parties. To facilitate effective management, the Board of this
company has delegated certain of its function various Board Committees. The following of
diagram provides an overview of the corporate governance framework of the company as
bellows.
4. Property strategies used by company
Gas Malaysia Berhad corporate leaders in many firms still does not recognize the strategic
potential of their real estate. They classify property as a cost of doing business rather than a
value adding opportunity. Part of the reason for this view is that few corporate officers come
from the real estate field or have any experience with strategic property decision making. It
falls to the corporate real estate manager to educate the top decision makers about the
potential contributions their real estate decisions can make to the overall success of the core
business. Corporate real estate mangers, in turn, need to be able to easily illustrate and
explain how property decisions directly and indirectly affect the profitability of the firm.
Otherwise, real estate will continue to be classified as just a cost that should be minimized
rather than optimized.
Globalization of business, changes in technology, movement to a service economy,
and innovations in workplace design create both threats and opportunities for firms to
evaluate how property fits into their strategic plan. To meet the challenges businesses are
facing today, firms need efficient and productive work environments with physical,
functional, and financial flexibility. Human resources managers and operations supervisors
want modern workspaces in attractive locations that can be modified to adjust to changing
workspace needs. Meanwhile, the finance department is interested in minimizing costs and
reducing long-term financial exposure. Property decisions will contribute to the success or
failure of the firm in each of these areas. Research has illustrated the importance of the
physical workspace in attracting and retaining workers, improving their performance and
satisfaction.
Retailers and manufacturers can prove the importance of site selection in their
success. It is more difficult to quantify the effect of a positive property image on corporate
Image or to estimate the dollar value of a flexible lease clause. The objective of this paper is
to identify the components of corporate real estate management that create added value to the
core business. The goal is to develop a framework that will assist corporate real estate
managers to better understand the direct and indirect ways property can add value to the core
business performance. This will then enable real estate managers to better communicate to
the top corporate decision makers how property adds value to their firms.

Ways to measure added value are the metrics used to determine the contribution of
real estate are primarily focused on cost reduction or capital minimization. What is often not
recognized is that properties also help to improve revenues. Both avoiding costs and enabling
others in the organization to improve their services and consequently increasing revenues
contributes to profitability and add value to the firm. One way of looking at how real estate
can add value to the firm is using the framework shown in Kaplan and Norton's (1996, 2000,
2004) balanced scorecard (BSC). In their model, organizations can increase economic value
through revenue growth and/or productivity. Revenue growth comes from new markets, new
products, new customers, and expanded sales to existing customers. Productivity results from
reducing expenses and using assets more efficiently. Burns (2002) translates the BSC view to
show how corporate real estate can add value through growth and profitability. Most firms
only consider how property decisions can improve profitability through space efficiency, cost
reduction, and capital minimization. Performance measures focus on cost per square metre
and space per employee. However, real estate decisions can contribute to increased revenues
as well. Measuring the value of corporate real estate decisions is much more difficult than
calculating the financial return on traditional "investment" real estate.
Corporate real estate outputs are usually internal outputs to another part of an overall
process. In addition, differently structured and focused firms want different results from their
real estate assets, so there is no one indicator of good performance by real estate. Rather,
the firm should develop a performance measurement system of valid and reliable measures
that match their objectives and are reasonable considering available data and resources. Gas
Malaysia Berhad is a business that provides power in homes and businesses with innovative
energy solutions, cost-effective and environmentally friendly. The company continually seeks
to stay ahead of the industry total.
5. CREM strategic planning
Based on our discussion we are proposed CREM strategies to improve the Gas Malaysia
Berhad company competitive advantage are overall cost leadership, differentiation, and focus
can be used to apply in Gas Malaysia Berhad management. Gas Malaysia Berhad should
practice overall cost leadership. If this company keep their costs lower than anyone else's,
they can sustain profits. Differentiation can be improve from this company, if they can create
something that is valued as unique , they can succeed in making more money than others in
the industry. By focusing on the unique needs of a particular group of buyers, a particular
geographic region, or a particular segment of the product line, they may be able to earn
above-average returns. The corporations' primary aim is to add to the wealth of
investors/owners. In order to achieve this aim the corporation sets specific objectives for it
business activities. Strategies should then be developed to provide a roadmap to reach these
objectives.
Strategic planning will only contribute to the financial success of the firm if it
identifies the critical drivers of success and develops functional strategies that incorporate
these drivers. Unfortunately, all too often corporate strategy is not directly translated into a
real estate strategy to guide property decisions. Moreover, the flow through which corporate
real estate strategies should be developed and implemented. If corporate real estate managers
produce real estate strategies that address the business units' objectives (efficiency, customer
satisfaction, productivity, etc.), they can then demonstrate property's value and provide a
platform for being involved in the broader corporate planning process. Because every
organization has different objectives and strategies, a set of real estate strategies is nccessary.

Managers can choose the most suitable strategy for their business environment and the
organization's overall goals, thereby adding value to the firm. These strategies should guide
real estate tactical decisions in support of the firm's overall objectives.
However, it can be difficult to determine whether the real estate decisions are having
the desired effect. Some property decisions have an immediate and direct impact on the firm selling land results in a cash inflow and removal of the property from the firm's assets. Other
real estate decisions have an indirect and lagged effect on the firm's financial performance.
The impact of selecting of a workplace that increases employee morale, satisfaction, and
productivity while reducing turnover may go unmeasured or at least go unattributed to the
real estate decision.
6. Summary
Corporate aim is adding value to the wealth of investor/owners. Strategic planning normally
contributes to the financial success. The planning should directly translate into real estate
strategies to address business unit's objectives. Every business is different; CREM can choose
the most suitable strategy for their business environment and organisational goals. As
businesses strive to improve their competitive position in an ever more crowded market
place, strategic use of all their resources, including real estate is necessary to succeed.
Maximizing the contribution of property to the wealth maximization of the firm's
shareholders requires development of an organizational strategic plan that drives a supporting
real estate strategy. Each firm must assess its position in the market and select the proper
strategies to support its objectives. Firms may choose from among seven general real estate
strategies to support the two main corporate strategies of revenue growth and profitability
growth.
Successful implementation of the selected real estate strategies will require the
development of a comprehensive performance management system to provide a feedback
loop to assess progress and make adjustments as needed. Each firm must choose from the list
of potential measures those that are practical and appropriate to the business, its core
objectives, and its information availability. Development of a strategic plan with the
associated operating decisions and a performance measurement system as outlined in this
paper provides the corporate real estate manager with a framework that is easily explainable
and defensible to the top level decision makers in the firm. In this way, corporate real estate
management can move more squarely into the strategic planning process and live up to its
potential to add value to the firm.
Lastly, these strategies should guide real estate tactical decisions. However, it can be
difficult to determine whether the real estate decisions are having the desired effect. Some
property decisions have an immediate and direct impact on the lirm selling land results in a
cash inflow and removal of the property from the firms assets. Other real estate decisions
have an indirect and lagged effect on the firm's financial performance. The impact of
selecting of a workplace that increases employee morale, satisfaction, and productivity while
reducing turnover may go unmeasured or at least go unattributed to the real estate decision.