Making The Pakar Transformation Programme A Reality

BANDAR BARU BANGI, Feb 9 (Bernama) -- One of the twelve National Key Economic Areas (NKEAs) under the Economic Transformation Programme (ETP) sets out to transform the modus operandi for the wholesale sector, retail outlets, and farmers' markets to those in a high income nation by 2020.

The government has identified 13 entry point projects (EPPs), three of which are specifically targeted to modernise the wholesale sector and small retail outlets via a transformation programme (TUKAR); amalgamate the farmers', night, and weekly Sunday markets into a community market at locations where conditions are conducive; and promote the use of caravan vehicles at these venues so that they evolve into caravan markets (PAKAR).

Both these transformation programmes aim to provide a more appealing environment for business and would attract and induce more customers to spend.

It calls for the creation of 60,000 mobile caravans consisting of a mix of 15,000 of 3 and 5-ton trucks each, and 30,000 1-ton trucks, to be put on the road over the next 10 years. This means rolling out 6,000 mobile caravans each year, beginning 2011.

In addition, some 1,000 small, medium and large caravan markets will be established over the same period.

Putting mobile caravans on the road involves a string of interconnecting processes ranging from sourcing for suitable base vehicles, modification design and fabrication work, securing vehicle financing package and insurance coverage for these fabricated vehicle and others.

If conformity and standards are to be the order of the day, the design and fabrication work should preferably contracted out to competent and qualified professionals rather than 'backyard' operators as is the prevalent practice.

The thought of having to endure this marathon of bureaucratic red tape is enough to douse the flame of enthusiasm in any small retailer who wants to transform his/her canopy business into a 'business on wheels' mode.

However, vehicle fabrication specialist Perez Design Sdn Bhd has picked up the mantle to meet the objective of the PAKAR transformation programme by coming up with a comprehensive package to alleviate these concerns.

The company was awarded the exclusive right by Fama to supply caravans to interested participants at the launch of the Caravan Market during the Farmers' Market Convention 2009 at the Putra World Trade Centre.

Since then, its team of professionally qualified and experienced fabricators has designed 17 different caravan configurations to suit a wide range of business requirements. These fabrications are certified to conform to international safety standards.

Perez Design received numerous enquiries from farmers' market participants and small retailers - some 300 enquiries at the Farmers' Market Convention 2009, and over 400 more during the recent MAHA 2010.

For the PAKAR transformation programme, Perez Design partners DRB-HICOM Malaysia to provide a comprehensive '9-in-1' package which comprises of entrepreneurial training programme, access to membership in a choice of the top 100 cooperative societies in the country, financing facilities, base vehicle; and fabrication design and modification to suit the desired business model.

It also involves providing support and assistance in obtaining caravan-insurance cover, PUSPAKOM road worthiness certification, caravan licence from the Road Transport Department, commercial vehicle driving licence from Commercial Vehicle Licensing Board, business permit from the relevant municipal or town council; and the supply of trading stock in the form of pre-packed chilled and frozen food products among many others.

Nevertheless, it will be quite a while before the public gets to see these mobile caravans plying their wares on the streets.

There is a disconnect between what is promulgated in the ETP and the reality on the ground.

"Confusions, ambiguities and contradictions in perception exist among various players in the industry," Perez Design Managing Director Professor Datuk Dr Abdul Razak Omar said to Bernama.

'Financial institutions remain overly cautious; response for financing facilities continues to be highly inadequate and lukewarm at best. Farmers' market traders are considered a high credit-risk group as they cannot provide financial track records. Therefore the banks give them a wide berth," he lamented.

Of the 300 applicant in 2009, only one trader had succeeded in obtaining financing. Thus far only 6 of those who applied during the MAHA 2010 have found lenders.

To alleviate the applicants' predicament Prof Abdul Razak, who is a qualified corporate trainer, conducts basic entrepreneurial training programme for these traders.

"We imbibe them with proper management skills, business knowledge, and implant a sense of responsibility towards servicing their loan. They are then provided with access to membership in a choice of top 100 cooperative societies in the country.

As members of cooperative societies they stand a better chance of success at securing financing facilities. However, this is not in line with the purpose of the ETP, which is to uplift and transform the small traders and not cooperative societies," he elaborated.

At the same time, vehicle manufacturers and assemblers need to ensure that there are sufficient stock of base models in the volume required, be it in the form of  completely knocked-down (CKD), completely built-up (CBU) or reconditioned vehicles.

Going by the Performance Management and Delivery Unit (Pemandu) 'ETP Open Day' Handbook, only 240 entrepreneurs would ply their trade at the 1,000 caravan markets available in 2020. This means that the majority of the 60,000 caravan owners would have to do business elsewhere.

Consequently, local municipal and town councils need to step up efforts to identify suitable locations, draw up the necessary rules, regulations and by-laws, and stand ready to issue trading permits for these traders to carry out their mobile businesses.

These teething problems should be resolved quickly least the target of creating 60,000 caravans remains a pipe dream.

People tend to gravitate towards the familiar when confronted with something new. But sticking steadfastly to existing practices is the greatest stumbling block to change; transformation cannot mean business as usual.

The ETP calls for root and branch changes that may require a dramatic shift in the way we normally do things. In his speech at the launch of the ETP, the prime minister assured that all the stops would be pulled out wherever and whenever necessary to make the ETP a success.

Banks should take heed of the prime minister's assurance and shift their risk-averse mindset and reassess their risk management policies to accommodate the objectives of the ETP with regards to the PAKAR transformation programme.

There is a need to fine tune hire-purchase and motor vehicle insurance regulations and procedures, to conflate the vehicle chassis and fabrication as a single unit with regards to financing and insurance coverage for the caravans.

Admittedly, the 'to-boldly-go' route espoused by the ETP is not without some bumps along the way.

Lending institutions, industry leaders and government agencies should come to the bargaining table with an open mind, and sieve through the labyrinth of policies, outdated regulations, and cumbersome bureaucratic red tape; to chisel out a workable compromise for a plan of action to make the PAKAR transformation programme a reality.

CUSTOM DESIGN...If conformity and standards are to be the order of the day, the design and fabrication work for a mobile caravan market vehicle should be contracted out to competent and qualified professionals rather than 'backyard' operators as is the prevalent practice.Pic: Courtesy of Perez Design

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