A recent global macroeconomic and business environment competitiveness report published by the IMD World Competitiveness Centre suggested that Malaysia’s global competitiveness ranking slipped to the 19th position (out of 61 economies) in 2015-16, down from 14th position in 2014-15.

According to the ranking, Malaysia is five spots behind Taiwan and only six ahead of China. Should this be taken as a warning sign that the Malaysian economic fundamentals are shaken?

Change in competitiveness – cyclical or structural?

The IMD competitiveness ranking heavily factors in macroeconomic performances in its criteria. Given the sharp deterioration of the ringgit exchange rate and higher costs of living, and following various domestic cost-push price pressures since 2014, these developments have certainly hurt our economic competitiveness.

However, if the weak ringgit and price pressure situations are transitory and would improve when the domestic economy rebounded, the decline in ranking could just be taken as a cyclical trend.

Therefore, the more important trends to take note of are the core fundamental factors of efficiency in market operations, logistics solutions, market transparency and business friendly policies.

According to a separate competitiveness study by the World Bank which emphasises more on “soft criteria”, i.e. efficiency in registering a property, obtaining credit, enforcing contracts and as such, Malaysia’s ranking in Doing Business 2016 Report fell one spot to 18th out of 189 countries.

Nevertheless, Malaysia (at 14th place) scores favourably in the ease in starting businesses against neighbouring Asean countries such as Thailand (96th) and Indonesia (173rd), and not too far from Singapore (10th).

Relatively less cumbersome procedures and shorter time to register a business is a positive advantage Malaysia has over red-taped laden economies such as Thailand and Indonesia.

While Malaysia’s competitiveness appears good on paper, have these “soft criteria” been translated into actual dollar and cents?

Opportunities during rough times

The proof is in the eating of the pudding. According to the latest report by the International Trade and Industry Ministry, Malaysia received RM12.8bil worth of foreign direct investment in the first quarter of this year, higher than the RM10bil received in the corresponding period in 2015.

Despite the broad slowdown in the international macroeconomic environment, it is a positive sign that foreigners still have confidence in our economy by bringing in capital.

Given the weak ringgit, it is arguably one of the more affordable investment opportunities for foreigners who remain confident in the Malaysian economy.

Notwithstanding the decline in global demand in terms of manufacturing output and oversupply in commodities such as crude oil, foreigners can lock in the value that the Malaysian market can offer at a cheaper exchange rate.

Therefore, it is a laudable effort by the gGovernment and Bank Negara to continue instilling confidence in the Malaysian economy and corporate landscape to ensure that the fundamental soundness of our market is not lost amid the noise of uncertainties and market volatility.

Essential to maintain GDP growth target

However, Malaysia cannot afford to rest on its laurels. The conundrum of the “middle income” trap remains a palpable threat.

Businesses and the authorities must recognise by now that the underlying matter for the economy to graduate into high-income nation status boils down to the rate of gross domestic product (GDP) growth.

The Malaysian labour force has been growing at 3.4% per annum and headline consumer price index has averaged around 2.44% annually since 2010. In order to achieve our economic objectives by the end of the decade, the official Malaysia real GDP growth target in the 11th Malaysia Plan is ideally around 5%-6% per annum between 2016 and 2020.

However, the latest World Bank global GDP forecast suggests that the baseline Malaysian GDP growth could only be 4.4%, 4.5% and 4.7% in 2016, 2017 and 2018 respectively, falling short of official projections.

While there are elements of cyclical slowdown in the World Bank’s projections as global macroeconomic recovery post-Global Financial Crisis remains disappointing, the downside risks of slower GDP growth due to structural issues could pose serious consequences to the economy.

A sluggish economic growth rate might not be able to sustain public debt, household income growth and full employment in the coming years.

Look outward for growth

Those with good business acumen will always keep an eye out to grow top-line numbers. Given that the mining sector makes up about 10% of the Malaysian economy while the manufacturing and services sectors make up 23% and 54% respectively, there should be more emphasis on ensuring continuous manufacturing value-add, while keeping up with innovation in the services sector, particularly on the Internet-of-things.

Ultimately, the Malaysian domestic market is only as big as its 31 million population size and the total nominal value of private consumption GDP generated last year was only RM626.2bil.

In order to enhance opportunities for upside growth, there has to be a wider openness in the economy to trade with foreign countries and also to attract foreign capital as part of the solution strategy to keep GDP growth going afloat.

As mentioned, the Malaysian infrastructure and logistics are of global standards. Furthermore, stable government policies and robust financial market access also ensure connectivity and financial liquidity.

There is no reason for foreign capital to bypass Malaysia as an investment destination and head to neighbouring countries such as Thailand and Singapore, if not for the relative shortcomings within our shores.

The Malaysian economic promises remain commendable on paper, but could be lacking in execution. The Government has already outlined its thoughts on how our economy should grow under the 11th Malaysia Plan and what is left is to execute the ideas wholeheartedly.

Corporates would be responsive to the government plans as long as incentives are good and aligned to economic profit and growth.

In short, Malaysia remains an attractive destination for conducting businesses in an easily accessible market propped up by favourable economic policies. An outward looking economy anchored by steady domestic demand could be the ultimate formula to ensure a sustainable economic growth.

Manokaran Mottain is the chief economist at Alliance Bank Malaysia Bhd.

On June 15, the Morgan Stanley Capital International (MSCI) index added Pakistan’s Karachi stock market in its benchmark MSCI Emerging Markets Index, while Vietnam remained in the MSCI Frontier Markets classification.

Being an emerging market means that Pakistan is able to absorb US$400 million from foreign investors, which is a small proportion of the total $1.5 trillion asset under management allocated for emerging markets compared to only $15 billion for frontier markets.

That has raised concerns for both government agencies, especially SSC, and local enterprises over how to improve market conditions to attract foreign investments and promote it to the emerging market level.

In order to promote Vietnam’s stock market from a frontier market to an emerging one, the country needs to work on its policies to improve the local market toward the standards set by MSCI including increasing the size of market, and enhance the market liquidity and capital flow including the foreign limit and especially the information disclosure in English to ensure the information symmetry for both local and foreign investors.

SSC has been working on some solutions and action plans to achieve conditions for a healthy and credible securities market, Nguyen Thi Lien Hoa, SSC’s Vice Chairwoman, said.

One of those solutions is to improve the market data and information disclosure by public companies toward the international standards if Vietnam wishes to become an emerging market, she said, adding that the country might become an emerging market in the next two or three years.

“Nikkei recently welcomed the Financial Times as a group member and we will cater for anyone involved in global business as an indispensable information and knowledge source and StoxPlus would be also in this global strategy not only in Vietnam but also in South East Asia in the future,” said Yoichi Noor Iwamoto, a representative from Nikkei Group and managing director of Nikkei China (Hong Kong) Ltd.

“It is time Vietnam becomes “a real rising dragon” to stimulate business and economy all over the world and the Trans-Pacific Partnership agreement (TPP) is going to contribute to Vietnam’s rapid development.”

TPP will increase the value of foreign direct investments in the country, and usher in more business opportunities in the stock market, and the Vietnamese economy will expand undoubtedly, according to the director.

“StoxPlus Corp will assist SSC to improve market information and disclosure of public companies and public funds and other technical assistance to assist SSC in market supervision and actions plan to increase market transparency and development toward the upgrade of Việt Nam’s securities market to the emerging status and thus draw more attention from foreign investments into the local market,” Nguyen Quang Thuan, CEO of StoxPlus Corp, said.

“As part of the cooperation, StoxPlus will also help SSC develop high quality design and translation of its annual reports and Vietnam Annual Securities Yearbook in order to provide foreign and local investors with not only SSC’s operation information but also useful statistics and information disclosure addressing the concerns from various market stakeholders.”

“Bali has already become a popular destination for people from Kazakhstan,” I Gde Pitana, deputy minister for overseas promotion at the Tourism Ministry, told The Jakarta Post. “There are already a number of people from Kazakhstan coming to Bali, but the number is very small.”

I Gde Pitana added that he was optimistic the country would see more eastern Europeans visiting Bali and other destinations beyond the island, especially since one of the regions’ airlines has opened a new direct route to Bali.

“We realize that eastern Europe is an emerging market for tourism and there are some possibilities to increase our relationship with the region, especially since our tourism is growing and economic growth in eastern Europe is good,” said I Gde Pitana.

Bali and Beyond Travel Fair 2016, which is held in Nusa Dua until Saturday, welcomes several tour operators from countries in eastern Europe such as Ukraine, Romania, Kazakhstan and Poland. During the event, they meet local tour operators, hotels and Destination Marketing Organizations (DMOs) and learn more about destinations, attractions and opportunities to send visitors to Indonesia.

A company from Kazakhstan said that it planned to send graduating students to visit several cities in Indonesia.

“We have programs on offer for students who pass the exams and get a good score. We want to take them to learn about Indonesian culture and the country,” said Ayupov Valentin, a manager from the Kazakhstan-based Miras Travel Agency.

Valentin said the company had designed travel programs to take graduates to several cities in Indonesia such as Jakarta, Bandung, Semarang, Yogyakarta and Bali. It also plans to include the Borobudur and Prambanan temples to the itinerary in addition to taking participants to Bali during the end of trip.

Valentin himself once visited Bali, but hasn’t explored other cities. Before this trip to Bali for the fair, he and his group from Kazakhstan were invited by the Indonesian Embassy in Kazakshtan to visit those cities.

“For our people in Kazakhstan, Bali is a new destination and it is home to a unique culture and very beautiful nature. In terms of price, traveling to Bali is not so expensive, unlike going to Europe, but the island offers so many attractions: you can see tropical animals, enjoy the culture, eat good food, everything you want you can get,” he added.

MATTA Selangor chapter chairman Akil Yusof said the price of tickets for travel in November and December might not include fuel surcharges or airport taxes.

These charges are imposed when tickets are issued, typically one month before travel, and could increase or decrease depending on the value of the ringgit.

He said there were instances in 2014 and 2015 when these charges were equivalent to or even more than the cost of the ticket.

“So passengers who get tickets costing RM2,000 today may end up paying double that,” he said.

He pointed out that the cost of accommodation, attractions, food and internal travel would also be subject to the ringgit’s value to the pound, which fell to a two-month low of RM5.46 when Britain voted for Brexit before rising to about RM5.60 yesterday.

“Tour companies which book seats in advance from airlines are also faced with these uncertainties,” said Akil, adding that they risked losing deposits if they did not fill these seats.

Many Malaysians, he pointed out, used Britain to enter or exit Europe, but this ease of travel might cease when the country formally exits the European Union (EU) in two years time.

“UK chose Brexit because they wanted to secure their borders and the EU may retaliate by imposing visas which Malaysians may also have to pay to get,” he said.

Travel search site Wego.com in a statement said as a long-serving entry hub to Europe, London might now be increasingly challenged by other key EU hub airports such as Paris, Frankfurt and Amsterdam, which will offer inbound travellers easier onward movement around EU member countries.

Wego chief executive Ross Veitch said although it would take time, it was likely the British government would try to negotiate similar travel agreements to replicate those in place as a member of the EU.

“Regardless of whether you believe that Brexit was a positive or negative move for the UK, there will undoubtedly be repercussions for travellers in light of the decision,” he said.

Regardless of the value of the ringgit, self-admitted local Anglo­phile Kim Lin said she would still visit Britain.

“I have two children studying there and I visit at least once a year,” said the housewife from Kuala Lumpur.

The weaker pound is also boon for those who buy British products online.

Leila Ali Zubir from Shah Alam usually shops for clothing at http://www.lindybop.co.uk or from Asos UK websites but is only able to afford one item a month.

“Usually one item will cost RM200, but now I can get three pieces for about RM350.

“So yeah, I’ll buy the stuff I’ve been aiming for while the low ex­­change rate lasts,” said the 25-year-old writer.

Transport Minister Liow Tiong Lai, who witnessed the event at the ninth Hui Zhou World Convention at Wisma Huazong here, said the cooperation was one of the initiatives to boost trade and economy between Malaysia and China under the One Belt, One Road strategy.

“We are also strengthening our partnership in human capacity training programmes,” he told a press conference.

The first vessel was expected to ply the new route soon.

Besides working with the port authorities, Malaysia was also engaging ship liners and operators to explore more opportunities, he added.

Some 1,500 guests of the Hui Zhou clan from more than 10 countries including Canada, the United States, Holland, New Zealand, Brazil, Thailand and Britain attended the convention.

Also present were Chinese Ambassador to Malaysia Huang Huikang, Federation of Chinese Associations Malaysia president Pheng Yin Huah, Federation of Fui Chiu Association Malaysia president Lee Jin Xian and Kuantan Port Authority chairman Tengku Azlan Sultan Abu Bakar.

In his speech, Lee, who is also Kuantan Port Authority director, praised Prime Minister Najib Razak for bringing the Malaysia-China relationship to a new height.

Under his leadership, he said, investments from China had shown a tremendous increase over the past three years.

To his clansmen from overseas, he introduced Najib as a liberal leader, who leads the country with moderate and practical policies.

“He fights against extremism and terrorism while advocating power-sharing concepts by all races in the common efforts of bringing peace, development and prosperity to the country and its people,” he said.

He also urged his clansmen to set up a Hui Zhou overseas Chinese park and museum to preserve the more than 2,000-year history of the clan and its cultural heritage.

At the event, another MoU was signed to develop 18 parcels of mining concessions in Pahang to become eco-friendly parks for green technology industries and tourism attractions among Mekar Unggul, Supreme Broadway, Vibrant Holding and Angang Machinery Development.

At first glance, all 170 houses have become a discordant chain of primary colours since May when volunteers from the village put up scaffolding and unpacked their paint brushes.

But each day, travellers cruising through Kilometre 3 slowly discover what is actually taking shape at Stonehill: Giant flowers with multicoloured petals.

The mural project was first pitched to the households last year as a simulation of the colourful “favela” murals of Rio de Janeiro and Sao Paulo in Brazil.

Many residents quickly turned to the internet to read up about the favelas, which were slums or shantytowns, until a government pacification program in 2005 emboldened Dutch artists Haas&Hahn (Jeroen Koolhaas and Dre Urhahn) to convert a row of slum houses into a giant painting.

It has been no secret in La Trinidad that the houses were selected for a giant mural project by tourism officials because the low-income settlements were the first structures that travellers see when they drive through the valley.

Stonehill residents welcomed the attention. It prompted the town government to improve services in their area, beginning with the repair of their sewage system, for example.

Many households volunteered relatives to paint their walls with their designated colours. As much as 20 gallons of paint are consumed each day, said Gloria Agasen, a Botiwtiw resident whose house was not included in the project.

“My house was removed from the list because it was not visible along the highway,” said Agasen, who volunteered as coordinator tasked with distributing paint.

But living the next five years as part of a living landscape of flowers and strawberries has just started to sink in for some residents.

A resident, Joan Mangachil, said he was still waiting to see what colour had been chosen for his house. “Maybe I am entitled to yellow or blue or green because my house is part of the giant landscape’s background. That probably means I get 2 gallons of paint because I have a small house,” he said.

Another resident, Antonia Warrey, said her house is now a perfect yellow box. “I help my husband paint. This chore has become a perfect way to bond with him. We have two kids, ages 9 and 5, and they help by taking our photographs every day we set out to paint,” she said.

“We have been painting for a week now. We start early in the morning and end at 2pm when the rains pour. It’s good to be selected for this project. The only part of the house which used to have a coat of paint was our roof,” she said.

Agasen said it was a community undertaking that was not without problems.

“Many complained because all the mural would cover were parts of the house that could be seen from the road. They asked, ‘Why won’t they allow us to paint the rest of the house, too?’ Some households, which were not part of the project, also asked for paint, and I promised them I could only share the excess paint,” she said.

“We’ve always been in furniture, so our growth area is in lighting and accessories, which we haven’t really gone into full blast,” said Cobonpue, who’s also creative director of Hive, a design collective that started 15 years ago, creating lighting and home accessories. (Hive’s pieces can be seen at Cobonpue’s showroom in Makati.)

“We’re developing a lot of them this year. We’ll be launching a lot towards the end of the year,” he added.

Workspace

At the centre of his showroom in Greenbelt Residences were, face to face, two units of his new cocoon-like swivel chair/personal workspace called Savant. But in front of the shop facing Arnaiz Avenue were samplings of his so-called fun pieces.

Hovering above the outdoor-theme indoor showcase were the undulating lines of the Spina hanging lamp—a series of white powder-coated metal sheets on a steel frame, inspired by the form of the vertebrae.

On a curved work desk below sits Spina’s table version, a copy of which was gifted to the emperor of Japan on a recent state visit, said its designer.

Cobonpue also has his eye on the great commercial potential of lighting and accessories, which, he said, are “less difficult” to make, smaller in scale, and don’t require as much technical skill as making furniture.

“People are more experimental with buying lighting,” he said. “It’s not as expensive so you can be as creative in your purchase. “People will think twice about spending on a chair or a piece of furniture.”

He added: “In Manila FAME, there are a lot of interesting lighting designs, but very, very few really interesting furniture designs. In fact, Budji and I have been discussing, is there a really good young furniture designer out there? We can’t put a finger on one yet. But there are a lot of good lighting designers. It’s simpler to make a light. If I take a cardboard box, punch a hole on it and put a bulb, that’s a light. You can’t do that with a chair.”

The Cebuano designer has also updated the color palettes for some of his popular designs, like the Chiquita stool, which now comes in pastel colors. The Yin & Yang sofa, the first design in his collection, is now available in cerulean blue.

“We’re now in the pastel mode. Those were the colours of the furniture in Milan,” he said, adding, with mirth, “we show these things, but people will still buy the most boring ones, anywhere in the world. You show the orange and the red, and they’ll buy the grey or the beige one. It’s safe.”

The local market has been good to Cobonpue’s brand, though he continues to court the global markets, appearing in three back-to-back shows in the United States in May alone. He is also set to show his lighting and accessories in Paris in September.

“Of course, we’re affected by the downturn, even the luxury brands are,” he noted. “It’s not good now, especially as the price of oil has gone down, and there are no Arab buyers. But we’re still growing abroad, we haven’t slowed down.”

Constant reinvention

The core values of the Cobonpue brand—evidently the key to his enduring success—are constant reinvention, coming up with something new and fresh each season.

“The world doesn’t need another chair,” he pointed out. “Always search for a look that’s different, otherwise you can’t make your mark in the world… no one cares about you. Everything has been done. That’s why what we do is to keep reinventing what Filipino design is about, to make sure that there’s nothing like it in the world, and that it can only be produced in the Philippines—at a certain cost, of course.”

It’s easy to see how Cobonpue could be any aspiring Filipino furniture designer’s benchmark, with an impressive list of both commercial and private clientele, from hotels to restaurants and private homes around the world, as well as Hollywood movie sets and now, even popular Korean dramas.

Asked if he sees the next Kenneth Cobonpue in a new breed of furniture designers, he said: “In furniture, there are a few who create hits, but there’s no one that’s consistent. There’s no one that comes out with something nice season after season, year after year.”

Skill, talent, exposure, “a lot of things” could be lacking, he added. “It’s difficult, even for me… You need to mentor with somebody good—Budji was my mentor—because design isn’t a science. It’s very subjective so you need a good eye, you need a good mentor to lead you in the right direction.”

Broadly defined as those born between 1980 and 2000, millennials make up approximately 1.8 billion, or more than 25 per cent, of the world’s population.

“As they enjoy increasing spending power, this is obviously a huge opportunity for the travel industry,” said Martin Rinck, the president of Asia Pacific at hotel and resort chain Hilton Worldwide.

In the past few years, many hotel chains have hopped on the millennial bandwagon and created new brands and experiences to attract this segment.

One of the earliest hospitality brands to focus on millennial guests was Aloft, by Starwood Hotels & Resorts, which launched its first property in 2008.

Vincent Ong, senior director of brand management at Starwood Hotels & Resorts Asia Pacific, said: “Back then, we noticed a strong inclination (among millennials) toward the distinctive passion points of technology, music and design — these now define the Aloft experience.”

Today, there are more than 100 Aloft properties globally, with 20 in Asia and another 25 scheduled to be launched in the region.

Another group that has entered the fray is Shangri-La Hotels and Resorts. It created the Hotel Jen brand which has properties around the region, including two in Singapore.

David Lam is the director of sales and marketing for the Singapore hotels. He said that when the company first identified this gap in the market, research found that the millennial travellers’ preferences differed from those of other generations.

“Their focus on experience, efficiency and authenticity provided us with an opportunity to create a brand that would cater specifically to these needs,” said Lam.

Tru by Hilton, a hotel brand which touts itself as “reinventing the mid-scale market”, is another product of this market segment.

Hilton Worldwide’s Rinck said the creation of the prototype took off mid-2015 with a team who sought to “rip up the traditional playbook”.

Other groups, such as Carlson Rezidor’s Radisson Red, are targeting those with a “millennial mindset”, particularly in China. Its first contract was signed in Shenyang in China’s northeastern Liaoning province in 2014.

Thorsten Kirschke, the Asia-Pacific president of Carlson Rezidor Hotel Group, explained that “Red reflects the tastes of the next generation of travellers” and “often these guests do not wish to be defined by a certain age”.

M Social Singapore is another millennial-oriented concept, which opened its doors on June 9. The brand was created by Millennium Hotels and Resorts, and is positioned as “a meeting place for global citizens with a millennial mindset”.

Inside, the hotel is chockablock with unique elements such as interiors by French designer Philippe Starck, self-check-in kiosks, and communal tables at its Beast & Butterflies restaurant to allow guests to mingle.

Paul James, senior vice-president of global marketing and branding at Millennium Hotels and Resorts, said: “What we do know about millennials is that they were introduced to travel by their parents, and see it almost as a birthright.

“According to Phocuswright, 66 per cent of millennials rate travel as ‘very important’ to them,” he said, referring to the travel market research company.

When millennials hit the road, it is worth remembering that these are “digital natives”. As the first generation to have grown up with the Internet, they are extremely tech savvy and expect to be constantly connected, especially to social media.

Whether it is Facebook, Instagram, WeChat or any other platform, many turn to these to make decisions and share their experiences.

Carlson Rezidor’s Kirschke said: “We have found that 97 per cent will post (photos and writeups) while traveling, and 75 per cent will post at least once a day.”

Naturally, the hospitality groups have launched their own online marketing channels to reach out to millennials. At Hotel Jen, each property has its own regularly updated blog that details eateries, cultural hotspots or advice on what to do.

It also developed a video city guide for each of its hotels, giving ideas on what travellers can do in 24 hours.

“These proved incredibly popular with over 600,000 views across all of our hotels,” said Hotel Jen’s Lam.

A lot of the engagement with the millennials is carried out via mobile technology as well. For instance, Radisson Red has developed an app that allows travellers to check in and out of its hotels and enjoy secure keyless room entry by using their smartphones.

The Red app, as it is known, also allows guests to make requests for the rooms, such as extra pillows or towels. It also has a chat feature that enables guests to connect with each other to receive local nightlife recommendations, or share a ride to the airport.

Another trait of millennial travellers is the value they place on experience and authenticity, to enable them to learn something new when they travel. “Social cachet is the new souvenir,” said Starwood’s Ong.

For instance, Canopy by Hilton is another brand of the Hilton group that targets millennials in Asia. It is designed to reflect the local flavour and culture of each hotel’s location.

“The brand is all about being local, through design, food and beverage, art and know-how. So no two Canopy hotels in any city will be alike,” said Rinck.

The hotels understand that control and autonomy over their travel experiences are equally important for millennials — in short, the freedom to do what they want, when they want.

Radisson Red has a 24-hour access restaurant and bar that offers freshly prepared but pre-packaged options, including sandwiches and salads. The menu items feature locally sourced food and beverages for guests seeking an authentic experience.

In addition, millennials are not afraid to express their individuality, usually through eclectic styles that mix and match.

Ong pointed out that “they buy based on the cool factor, not status”.

Responding to this, many hotel brands have developed rooms with distinctive interior design to appeal to millennials. M Social Singapore has rooms with warm colour tones, luxurious pashmina throws and thick carpets.

Aloft incorporates open, flowing design with an urban-industrial feel, colours that contrast with the surroundings, modern furnishings and crafty touches like scrolling displays on a large video wall.

Beyond the hospitality brands, even business-to-business companies are spying opportunities.

Qooco, an education and technology company, provides mobile language learning and vocational training solutions for employees of the hospitality industry.

Its CEO David Topolewski explained how the industry needs to change how it trains staff, switching from classroom-based to mobile-learning methods.

“Top brands such as Mandarin Oriental, Pullman and Crowne Plaza are all using mobile learning to upskill their staff,” he said. “As hotels leverage technology to reach their guests, they should do the same when reaching out to their own employees.”

Providing successful services for millennial travellers is no easy task, however. Their needs are evolving quickly, which means brands must stay alert to keep up with the new trends.

Ong said he is convinced of a convergence between the speed of travel and connectivity. “The future generations will view traveling to another country just as we view a trip to the movies.”

Millennium’s James noted that the industry will need to embrace change in unprecedented ways. “It will be the only constant in travel,” he said.

“Millennials’ tastes will change, technology will change and Generation Z, well, that will be a different story again,” he said, referring to those born after the millennials.

“For example, farmers in the neighbouring states (of Malaysia) could only sell chilies for 5 ringgit (US$1.24) per kilo. But when they sell it here (in Brunei), they would only need to sell it at about BN$3 (US$2.19) to double their income, whereas local producers sell it at the market rate of around BN$6, even increasing (the price) during certain seasons.

“This is hard on local farmers because consumers only care about the low prices and not about the origins or whether the farms practice proper farming standards. Also, local farmers can’t compete with them on prices as the neighbouring states produce much more volume. But if local produce isn’t bought, how will local farmers ever expand?” he said.

“I sell my produce at local markets, and you can tell if it’s foreign produce as there’s no way that the vegetables can be so cheap under present (farming) conditions and the cost of capital.

“If cigarettes can be smuggled in large numbers into the country, then it must be much easier to bring vegetables into the country without a proper permit,” he said.

Alihan, who is the chairman of a local cooperative of vegetable farmers, suggested the establishment of a national distribution centre for all local produce so that unauthorised foreign produce which was smuggled into the country can be easily identified.

“Most of the members (of the cooperative) would agree that the prevalence of smuggled vegetables whose origins are unknown hurts the revenue of local farmers, so it’s better to have all local produce concentrated in one place. In that way, you can also ensure that the vegetables were grown ethically using proper farming practices which don’t harm consumers,” he said.

One vendor at Pasar Tani Selayun in Mukim Sengkurong, who wished to remain unnamed, told The Brunei Times that the foreign-grown produce would only be given a permit to be imported if the vegetables can’t be grown in Brunei or if there is a shortage of them.

“However, you can still sometimes see foreign-registered vehicles coming here to supply certain vegetables which are widely available in Brunei (but they are offering them) for a fraction of the price,” he said.

(US$1 = BN$1.37)