The Journey of Malaysia MEWP Market. Asia Conference July - Kuala Lumpur

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1 The Journey of Malaysia MEWP Market Asia Conference July - Kuala Lumpur

2 Malaysia Daredevils Workers

3 Malaysia Daredevils Workers

4 Introduction KANG HAN FEI Malaysia Member of Group

5 Introduction

6 Introduction 2016

7 3 Phases of MEWPs Development THE PAST THE PRESENT THE FUTURE

8 The Past s to 2008 New Emerging Market Lack Awareness Lack of Machines Lack or non existence of Safety Standards MEWPs Introduced Limited No. of Machines 1980s 1990s Construction Boom Time Asian Financial Crisis Y2K Recovery Stagnant Market 2000

9 The Past s to 2008 Scaffolding is the choice of access at heights New Emerging Market Lack Awareness Lack of Machines Lack or non existence of Safety Standards Mostly scissors and old machines Rental Concept not well received by End Users Strong Presence of Truck Mounted (Skylift)

10 The Present Stimulus Package + 10 th Malaysian Plan The Crisis turn into Opportunities Established Emerging Market Growing Adoption Growing Fleet Size Safety Pull from Large Contractors or Project Site

11 The Present MRT and LRT Projects PIPC (Pengerang Integrated Petroleum Complex) better known as RAPID Established Emerging Market Growing Adoption Growing Fleet Size Safety Pull from Large Contractors or Project Site

12 The Present Characteristic of Mega Project Timelines to Complete Stringent Safety Requirement Established Emerging Market Growing Adoption Growing Fleet Size Safety Pull from Large Contractors or Project Site Shortage of Labor Push for the use of MEWPs THE MARKET RESPONDED TO THE DEMAND

13 The Present More Established & Professional Rental Co. Safety & Operator Training is made Available Established Emerging Market Enter of Small & Medium Rental Co. Large Fleet of MEWPs Available with Affordable Rental Price Growing Adoption Growing Fleet Size Safety Pull from Large Contractors or Project Site

14 The Present Malaysia MEWP Industry MEWP Fleet New MEWP Sales Source: AEM Reports and Local MEWP Rental Fleets Survey on 34 Rental Co; exclude Truck Mount

15 The Present Below 10 12% Rental Co Fleet Size 500 Above 6% 300 to % 10 to 50 34% 100 to % 50 to % Source: MEWP Rental Fleets Survey on 34 Rental Co

16 Development of MEWPs Market THE PAST THE PRESENT THE FUTURE

17 The Challenges Facing Pricing Gov t Initiative Technical Knowhow Safety Awareness Rental Concept

18 The Future Looking Forward Mature Market High Adoption Right Size Fleet Safety Standards

19 The Future Looking Forward Rental Company Who Provide Equipment Emphasize Safety Believe in Training Focus on Service Invest in New Machine Create Differentiation Service Company Who Provide Total Solutions

20 The Future Looking Forward March 2018 MBAM launched Industrial Guidelines for MEWP with CIDB, JKKP and IPAF Mature Market Mega Projects Will continue to fuel the industry High Adoption Right Size Fleet Safety Standards

21 The Future Looking Forward No. of Construction MEWP United States 6.6million Construction Workers Singapore 500,000 Construction Workers Malaysia 1.2million Construction Workers 1 MEWP for Every 12.5 Workers 1 MEWP for Every 42 Workers 1 MEWP for Every 240 Workers

22 Development of MEWPs Market THE PAST THE PRESENT THE FUTURE

23 Our Suggestions to the Stakeholders Manufacturers Authority Rental Companies Users

24 Our Suggestions to the Stakeholders Established Manufacturers: Manufacturers Rental Companies Closer working relationship with the Rental companies. Understand what the market wants Provide good technical supports and educate the industry with the right practices New Entrants: Authority MEWP is for Safety and Productivity Understand and Serve the Market Needs Users Be a Great Maker not a Big Maker chasing for numbers.

25 Our Suggestions to the Stakeholders Authority Simplify and Centralize the process in PMA renewal Promote the Use of MEWPs Rental Companies Encourage Operator s Training Stringent Enforcement against unsafe practices Manufacturers Educate the Public about Important of Safety Set Timeline for the development of MEWPs Users

26 Our Suggestions to the Stakeholders Rental Companies Rental is a matrix of decisions Understand the essence of Rental TCO, Time Utilisation, Fleet Mix. Manufacturer Choose and understand your market it helps you to have the right mix of machines Create Your Own Market and Be Different Invest in Service & Training Authority Beware of Maintenance, get rid of very old machines they are your liabilities to operations and financials. Understand your costing Users Profit keeps your business growing. Understand your costing will avoid enter Price War

27 Our Suggestions to the Stakeholders Rental Rate index - 12m Scissors Malaysia Vietnam Thailand Europe

28 Our Suggestions to the Stakeholders Rental Companies Create Your Market and Be Difference. Manufacturer Authority Users

29 Our Suggestions to the Stakeholders Users Choose the Right Rental Companies Rental Companies Do not make choice based on price alone Authority Manufacturers

30 Our Suggestions to the Stakeholders Its Expensive. Can it Be Cheaper? Respect the Price when Seeking for Quality Sure! The finer the rope, the cheaper! We have rope of $500 and $1,000. I can even do it OK. I will for free if without have the rope! Deal? $5,000 rope.

31 Our Suggestions to the Stakeholders Users Choose the Right Rental Companies Rental Companies Do not make choice based on price alone Give time to Rental co to prepare their machines thru forecast. Fast won t be cheap, and definitely won t be good. Authority Manufacturers

32 Our Suggestions to the Stakeholders Not Good # REALITY CHECK Not Fast

33 Our Suggestions to the Stakeholders Users Choose the Right Rental Companies Rental Companies Do not make choice based on price alone Give time to Rental co to prepare their machines thru forecast. Fast won t be cheap, and definitely won t be good. Reject & Report any Unsafe Machines & Practices Authority Ensure Competency of your Operators thru Training And More importantly. Manufacturers Pay Your Suppliers Promptly

34 Our Suggestions to the Stakeholders

35