2016 CRM 19th Annual General Meeting
Friday, May 20, 2016
Macomm Management Services – Conference Room
Good afternoon Council Members,
Thank you for making an effort to attend this yearly event – the 19TH ANNUAL GENERAL MEETING of CRM.
In May 2014 I was elected the Vice President of CRM and in October 2015 with the sudden resignation of Cik Kudsia Kahar, was nominated to take over the President post. Encik Malek Ali was moved up to the Vice President post while Mr. Jeffrey Raymond was appointed the Honorary Treasurer.
I wish to put on record CRM Council’s appreciation to Cik Kudsia Kahar, a legend in the radio industry for her leadership and milestones achieved during her tenure as the President.
Early this year I relinquished my role as COO of MPTN and now fully concentrate on the group’s enlarged Radio Networks. Thus fully focused and committed to Radio and CRM an Association to ensure commercial viability of all its members and that the industry remains protected.
It has been a challenging year, a season of change and a year of reflection and goal setting.
Let’s now reflect together on what has transpired since the last AGM and way forward.
The Council met 10 times in 2015/16 (as of May 2015-April 2016). The second quarter of the year is almost over and plans for the third quarter are well underway, finances recalibrated and the technology required for the survey decided.
CRM functions to organize outreach programs and share resources for research ratings aside from coordinating regulatory issues. Despite a seemingly endless supply of new digital media competing for audience time, a record number of people still listen to commercial radio through their radios, PCs, TVs, mobiles and tablets.
I would like to reiterate that this report evidences commercial radio to remain a significant communication and entertainment platform in Malaysia. Commercial radio will continue to enrich the lives of individuals, producing wider public value and service content, reinforcing a sense of local community and an excellent medium for increasing awareness of social action in Malaysia.
Quoting Malek in one of his interviews, “Radio still continues to be the first source for audio entertainment as it offers reach, relevance, accessibility, frequency, engagement and above all trust”. I totally agree and am sure you too, that people want to get invested in conversations and want to be part of the radio discussion and stay connected.
CRM is proud to have reached its 19th year and trust its member stations continue to be a valuable part of people’s lives in Malaysia. Most importantly offering a relevant mix of entertainment and music as well as playing a significant economic role promoting local businesses and consumers by providing them a powerful source of high value national and local news, travel, sport, traffic and weather reports to millions of listeners that become the core of Malaysia’s cultural uniqueness.
Radio stations in Malaysia, large or small, rooted in their communities, have an outstanding record of promoting charities and inciting support for social action campaigns. Funding raised for good causes would not have occurred had it not been for the passion and willingness of commercial stations to go that extra mile.
The following three key objectives were proposed for CRM in 2016:
- To increase share of revenue for the industry;
- To protect and improve the interest of radio, e.g. to stand united as one voice to defend and elevate awareness the presence of radio;
- To build strong network and relationship among the industry players and also with stakeholders, e.g. ministry, private bodies, media buyers, agencies and key clients.
A team of CRM Council members led by Cik Kudsia Kahar and Encik Malek Ali met with TM on October 16, 2015 and presented a proposal seeking sponsorship to fund both the Planet Radio and Boot Camp. Initial request was turned down but subsequently led by the newly appointed President and Vice President met with Encik Wan Ahmad Kamal, EVP of TM on January 2016 and the re appeal received positive response on March 7th from TM confirming a reduced sum of RM100K to fund both events. CRM is thankful to TM for their continued support of both events.
Planet Radio’s main objective and rationale is to attract creative young talents towards the radio industry to ensure radio’s sustainable growth amidst rising competition from alternative media platforms. Hence the challenge was to showcase a forum that would feature radio as relevant in this day and age.
Though planning began in August 2014 led by Encik Faisal Khalil of Star Radio Group and several meetings after that, due to staff shortage at SMRG Encik Faisal resigned as the lead in October 2015. Since sponsorship was also not confirmed by TM at the time, the discussions halted.
SMRG team led by Ms. Erin Hwang Bin Bin and Ms. Loke Yin Ling resumed planning in January 2016. A meeting with Encik Abdul Lazi Nordin, Head of Corporate Communication’s Unit, Multimedia University, a wholly owned subsidiary of Telekom Malaysia and an Advisor to the MMU Radio DJ Club took place in April. Encik Abdul Lazi expressed their interest in partnering MNPA to administer the 2016 Planet Radio to be held on August 17, 2016.
A letter to the President, MMU seeking sponsorship of the venue for the Planet Radio was received positively. The Organizing Committee led by Ms. Loke Yin Ling and Ms. Erin Hwang met with the TM staff on April 29th to update the progress in the planning thus far. TM has agreed to release the 100K upon noting the program contents. The Planet Radio theme agreed this year is “Radio Today”.
I wish to thank Council members in advance for the full support in participation in terms of panel discussion, cruises and donating merchandize to be distributed to the students.
The Boot Camp planning discussions began in February 25, 2015 led by the then Honorary Treasurer, Encik Malek Ali. A number of ideas and topics were proposed for consideration with the emphasis that radio and digital are related and hence feasible to attract participation.
Several potential speakers such as John Abbot, Paul Kemp Robertson, Rita Sim, Asma Abdullah, Vijay Anand, S.Y Lau, Zara Khan, Hando Sinisalu and Kiran Bedi were identified and discussed.
A free SurveyMonkey was proposed to tailor the program to meet agency interest by seeking their inputs on topics that would be conducive to the industry. It was evident that the Stefan Sagmeister program organized some years back had set the bar high attracting 300 over participants. Thus selection of speakers’ was critical to accord the same success.
On January 15, 2016 Council agreed to upgrade the Boot Camp to a Conference style program to encompass a larger audience and a platform to showcase radio annual research returns plus speakers addressing relevant topics to build the brand as well as address ways in which radio embraces digital engagements. As TM sponsorship confirmed, planning is underway. The conference has been postponed to take place in Q3 of 2016.
After many months of debating on the issue of payment of performer’s royalties, a meeting was held in October 2015 between CMOs, MyIPO and the Minister of Domestic Trade (MDTCC) and the following was decided:
- A new one stop CMO to be formed with each of the 4 music CMOs (PPM, MACP, PRISM and RPM) to have equal board representation in the NewCo;
- MDTCC Sec Gen to be the non-executive Chairman for a 3 year transition period and the Minister to write/meet with the respective user groups (e.g. hotels, associations and CRM) to discuss the tariff fee.
It is most discouraging that there are still no transition arrangements, tariffs rationalization and operational technicalities in relation to the NewCo. The two issues ongoing since 2014 relating to the choice of licensing fee collection body and the decision on the licensing fee tariff has yet to be resolved.
CRM stand remains the same, one collecting body and equal tariffs from both parties said to represent artists’ interests in the matter.
CRM welcomes on board three new members who joined CRM in 2015/16:
- iMalaysia For Youth (iM4U FM)
- Cense Media Sdn Bhd (Kupi Kupi FM) and
- Husa Network Sdn Bhd (Manis FM).
whilst Media Prima acquired full entity interests in Copyright Laureate that operated two stations Pi Mai FM and Ultra FM. These two stations has ceased operations and rebranded as a single radio station, namely Kool FM effective March 1, 2016.
The membership of CRM now stands at its highest with 18 members representing 24 commercial radio stations. They are:
National (17 stations)
Fly FM/Hot FM/One FM/Hitz FM/Mix FM/Era FM/Lite FM/MY FM/Sinar FM/THR Raaga/THR Gegar/ Melody FM/Suria FM/Red FM/988 FM/IKIM FM/Kool FM
Regional (7 stations)
BFM/Cats FM/Best FM/Kupi Kupi FM/iM4U/Capital FM/Manis FM
CONTENT FORUM (CMCF)
CRM continues to actively participate in the CMCF council meetings. From January 2016, as the newly appointed President, decided to be the principal CRM representative at their CMCF monthly meetings and Puan Mediha Mahmood as the alternate who also represented ASTRO. This is to ensure a continued reporting on CMCF at the CRM council meeting.
CMCF continues its efforts in industry development conducting its in-house training program which has been well accepted.
CMCF approved and launched the new industry guidelines for the advertisement of slimming products and services on 25 January 2016. The new guidelines can be downloaded at http://www.cmcf.my/download-centre. It assists industry practitioners intending to create, construct, produce, disseminate and distribute any form of advertisements including but not limited to any form of broadcasting, uploading or make available such content that falls within the meaning of electronic networked medium.
Visit CMCF website (www.cmcf.my & www.stickswithyou.com) for latest news and events, awareness materials, Content Code (downloadable), Complaints Bureau decisions, CMCF’s in-house article and various other announcements.
CMCF met with the Strategy and Policy Review Department, MCMC on 11 November 2015 that mandated to review the Code in 2016. The process has begun.
CMCF to create awareness and cultivation of self-regulation exercise to control the degree of safety in the electronic content environment and delivering talks on the Content Code and Internet Safety as well as creating special activities tailored to students from educational institutions at various age groups in promoting “Responsible Content Standards”.
CMCF’s newsletter “Reaching Out” (English & Bahasa) in digital format was relaunched in March 2016. It will be published quarterly and is available to download on their www.stickswithyou.com website.
Waves PR Consultancy contract was discontinued as of December 2015 and Council decided that PR consultancy be enlisted on an ad hoc project basis. The decision was made to reduce the CRM operational cost.
Malaysian Communications & Multimedia Commission Dialogue
Several attempts have been made to seek an audience with the MCMC Chairman in 2015 but with no success. This meeting is a courtesy call to update on latest development on radio industry scene and most importantly to discuss digital radio. A letter dated April 25, 2016 was sent to follow up on this request.
An invitation to a friendly bowling game with the Council and member staff also did not receive any response and thus the idea was aborted.
Commercial Radio Australia (CRA) Visit
A visit to CRA scheduled from February 1-4, 2016 immediately after my appointment as the President accorded me the opportunity to renew relationship, exchange knowledge and expertise for advancement of the radio industry between CRA and CRM. The meeting with Ms. Joan Warner, President cum CEO, Ms. Kathryn Brown, Head, Strategic Development and Dr. Les Sabel, Consulting Engineer was most beneficial as the discussion included the industry survey and learned from their best practices.
Research – Transparency and Credibility
In the first quarter of 2016, CRM arranged the pitching sessions with GfK and Nielsen. This is a historical significant milestone and major breakthrough for CRM. In unity appointed GfK as its research partner in the second quarter of 2016 for a two and half year contract for 6000 samples 2 waves.
GfK was commissioned because of their strong track record in radio engagement who is the official partners in Australia and New Zealand. GfK is a service provider of relevant market and consumer information equipped with more than 13,000 market researchers and is qualified to deliver a common undisputed currency to be used nationwide.
GfK an innovative and technology-based research company in response is honored to be chosen to collaborate with CRM in the inaugural initiative and offers their optimal support in servicing the country’s competitive radio industry.
20 stations concurred to the agreement to conduct the Peninsular Radio Measurement study. Participating Members are: National – Astro (9 stations); Media Prima (4 stations); SMRG (2 stations); Ikim (1); Regional – BFM, iM4U, Suara Johor, Husa Network.
A very exciting period for the industry amid very interesting times in the current landscape. I am certain this partnership with GfK will continue to make our industry insights and research more compelling for our other business partners and definitely the industry to use and further strengthen our presence amongst the listeners.
The current adex spending in radio is around 4% to 5% of the total adex. It used to be 2% x 3% about 15 years ago. Thus there is hope that this research would be relevant and resourceful tool in terms of reaching out to the public. Especially, in this digital age, where radio is accessible and popular through online websites, pod castings and social media. It is also a lower entry point for advertises compared with other mediums. I believe radio will continue to grow and be relevant especially leveraging on digital and the strength of our engagement and emotional connection.
Ms. Selinna Chin, Managing Director, GfK has promised to deliver credible and robust insights to broadcasters, advertisers, media owners and buyers the ability to successfully attract the right audiences.
Benefits to members include revenue share of 65% to CRM member stations in accordance to contribution paid by each station. This is a momentous landmark year for CRM and its members.
CRM agreed to embark aggressively in 2016 to market radio through ad campaigns. Clients and agencies are shifting budget from TV and newspapers to online digital platforms and some even bypass radio which is a great concern. The key objective of this campaign is to reinforce notion the strength of radio and a reminder that radio is still relevant.
United in this campaign, members agreed to run a CRM commercial in all their stations. 3 scripts were produced by Media Prima, BFM and iM4U. Media Prima was tasked to review and script a common message for all stations to air the month of May, 5 times a day in English, Malay and Chinese that showcase CRM championing the industry.
Engagement with Partners in The Industry
I believe engagement with partners in the industry e.g. MSA/MAA/4As to build relationship, share CRM plans for the year and source potential speakers for the CRM conference is essential.
Hence on February 23, 2016, a luncheon meeting was held at the Dancing Fish, Bangsar attended by 5 CRM council Members and members of the MSA Council comprising Mr. Bala Pomaleh (P), Mr. Andreas Vogiatkias (VP), Ms. Sherene Mak (Hon Secretary), Ms. Kagee Chew (Hon. Treasurer) and Mr. Girish Menon, (former P and currently Council member).
A similar luncheon meeting was held with MAA Council on May 17, 2016 at the Eyuzu Japanese Restaurant, Eastin Hotel attended by Ms. Margaret Au Yong (P), Ms. Chan May Ling (VP), Mr. Navin Stanislaus(Baba), Encik Faisal Akhtar Rana (Nestle), Mc. Chan Mey Fung (Unilever), Mr. Ong Yuh Hwang and Puan Sharifah Nadiah (P & G) and 8 CRM council members. A meaningful dialogue ensued in an informal setting.
Similar meeting with 4As office bearers is planned to take place in Q3.
CRM Website Upgrade – www.commercialradio.my
4Thirteen Media Sdn Bhd was appointed to upgrade the CRM website to perform the base Search Engine Optimization procedures to achieve higher exposure and traffic from search engine queries. The contract includes content management that requires new news uploaded every month and website maintenance.
The revamped and upgraded website was relaunched in March 2016 with a complete redesign of the landing page as well as reconfigured and streamlined navigation buttons for the entire site that are now user friendly. Visuals have been replaced to relate to the page contents plus relevant current new contents have been uploaded. Career and internship opportunities for students and professionals at member companies are also linked to the site.
I am pleased with the website now which is fully responsive and mobile friendly. Members are encouraged to send relevant articles or station happenings to be promoted at the site.
The Accumulated Fund of the Association as at 31.12.2015 was RM371,973. The Association incurred a Deficit of Income over Expenditure after Taxation of RM62,544 for the financial year ended 31.12.2015.
The Associations’ finances had been controlled and with the dedicated attention of the Honorary Treasurer, Encik Malek Ali and Mr. Jeffrey Raymond who took over as of December 2015, were able to keep the finances in good standing thus far.
An increment of 5% as professional service fee to the Secretariat MACOMM as per their letter dated February 15, 2016 was approved for the year 2016 beginning January.
Over the years of working with Macomm they have been very dependable and supportive. However I would like to give special thanks to Ms Kala Kovan who has been very passionate about CRM and has been working very closely with CRM members to ensure we achieve our plans for this year. Her persistence and effort has made the journey for me great so far. Thanks Kala.
In closing, I would like to specially thank the Vice President, Encik Malek Ali, Honorary Secretary Yusry Abu Samah, Honorary Treasurer, Mr. Jeffrey Raymond and all fellow Council members for their unstinting hard work, devotion and contribution to what has been a challenging program of change and renewal over the past months. I commend the work carried out by the members and encourage member stations to continue to play an important role both in the communities they serve, and as everyday companions for their devoted listeners.
As this report makes clear, CRM will remain an important platform for the industry in the future, growing strength to strength as it has been for the last 19 years. I enjoyed my association with each one of you and am pleased that much has been achieved the last 6 months. It is so good to witness 100% attendance at this 19th CRM AGM.