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Over the last two years, the world’s economy, Malaysia included, has been weathering out disruptions from multiple movement control orders with shutdowns and re-openings. However, 2022 seems to be the year of recovery for both economic and health perspectives.
As 2022 began with the glimpse of recovery, the world was greeted by the shocking news of Russia invading Ukraine back in February. For that reason and amongst others, both external and internal factors, we are now faced with a new challenge in dealing with rising cost of living as the price of goods and services have all gone up.
Notably, on the home front, price increase and inflation have also been the top conversations in the past few months; where companies have a greater concern i.e., when raw materials and transport costs go up and subsidies go down.
According to a recent article published by *The Edge on 1 June 2022, there is a tremendous upward cost pressures that different supply chains in the country are facing. We just need to examine in greater detail the upward pressure on food and non-alcoholic beverages, where the inflation rate was 4% and 4.1% in March and April 2022. Within this category, there are several essential items that have seen price increases, based on statistics collected by the Department of Statistics Malaysia (DOSM), which far exceed 4% (please refer to the table below).
**Starting 1 May 2002, Malaysia will increase the national monthly minimum wage by 25 percent from 1,200 ringgit (US$276) to1,500 ringgit (US$345). Many companies especially manufacturers and small and medium-sized enterprises (SMEs) have stated that given the rising external risks emanating from the lockdowns in China, the Russia-Ukraine crisis, labor shortages, and surging raw material and commodity prices, the wage increase is ill-timed.
***Since February 2021 the ceiling price of petrol for RON95 and diesel have been readjusted to RM2.05 per liter and RM2.15per liter as compared with RM1.96 and RM2.11 respectively. RON97 petrol is currently at an all-time high at RM4.83 per liter, compared to RM3.00 at the beginning of this year.
****With the discontinuation of the monthly electricity discounts given to consumers under the National People’s Well-Being and Economic Recovery Package (Pemulih) in September 2021, it has further added upward pressure to the cause of inflation.
Just like any consumer and organization for that matter, the rising inflation, widespread shortages, rising material, and labour costs, and juggling with changes in SOPs are concerns that are top of our minds as well.
Between 2020 and 2021, our business has been impacted tremendously due to the pandemic and the world’s over-demand for surfactants, detergents, disinfectants, and the urgency to uphold cleanliness. Coupled with the disruption patterns of numerous lockdowns, our supply chain for cleaning materials has been deeply affected which led to numerous rounds of price increase of these materials.
Throughout the pandemic, our risk assessment and stock control units have worked tirelessly with Maclean’s management to ensure we are able to manage cost efficiently and cushion out the price fluctuations internally without having the need to review our pricing strategy. At Maclean we tried to prevent any price increase for as long as possible as we understand many of our clients’ business have also been affected by the pandemic. During hard times, we want to be able to continue to provide value to our clients.
Beginning 2022, Maclean was hit with rounds of price increase from various suppliers. Several suppliers have also increased their prices at least twice since Jan 2022. Most of Maclean’s suppliers have conveyed their plans of a price increase where the increases are mostly in the double-digit range, with some recording as high as 30%. Coupled with rising labour, fuel prices, logistics, transportation, shipping and import costs; our cost of doing business has been going up and we do expect it to in crease in the coming months.
Amongst the biggest impact for us was that apart from the increase in the minimum wage required for our crew, Maclean will now need to adjust the salaries of our supervisors and team leaders in order to address the narrowing gap between these levels. It is in advertent that we will need to review our pricing strategy. We are currently tracking the rising cost and its impact on our industry as a whole and benchmark it with the Consumer Price Index (CPI).
The circumstances above prompting this change are compelling. Our costs are increasing at a rate that will outpace our income. At Maclean, all price increase is carefully thought through; taken to ensure continued quality. Our intention is always to strike a balance between maximizing the value we give to our clients and sustaining the company’s momentum. We believe the right pricing structure requires a complex, ever-changing calculation that’s derived from constant analysis of the two. Above all we believe in giving value-added services as we are here for business in the long haul. We are ever grateful to our clients for their continued support and understanding in the matter.
1. Managing the Economy: Understanding inflation and supply chain challenges | The Edge Markets
3. Latest Petrol Price Update RON95, RON97 & Diesel in Malaysia (loanstreet.com.my)
“Thank you, Maclean team, for the good support and on time completion of the cleaning activities as required at the Phase 2 cafeteria and Phase 2 new wing office floor without any delays which met client satisfaction.”
“The final cleaning has come to an end today. We appreciate your team's full commitment and cooperation in ensuring the successful completion of the cleaning work at Plot H. Your site person in charge and his team has performed well throughout the cleaning period. Their prompt response and action as well as their workmanship on the end-product satisfied us.”
“I would like to take this opportunity to first, thank you for the 9 years of services to the hospital. Maclean has offered a top-level cleaning service with the magnificent team of client service right down to the cleaner.
I am particularly writing to appreciate the cleaner, namely BAL BAHADUR, M. SUMON and MASLINDAH for their professionalism and exceptional work ethic. They are punctual, dependable and presented with more than what has been asked of them.”
“We are writing to express my sincere appreciation for the exceptional work of the cleaning crew who was responsible for maintaining the cleanliness of our office premises. Over the past few weeks, we have observed the excellent work that Nur Alom has been doing, and we must say that his dedication and professionalism are truly commendable.
I have personally witnessed Nur Alom going the extra miles to ensure that the office is clean and hygienic especially during these challenging times post pandemic. His commitment to maintaining a clean and safe environment has been exceptional, and he has made a significant contribution to keep our workplace safe and healthy for all employees. “
“We would like to express our thanks towards janitor Suriakala for excellent cleaning services rendered during Deep Cleaning activities on 14th and 28th January 2023. As well, we find her job deliverance is excellent and committed on daily routine tasks.
Hereby, we extend our thanks to Bobby, Fahmi for their prompt response of any inquiries and replacement planning during janitor's absence. We are also thankful to be supported by the Maclean team for
“Excellent cleaning services. Prompt response of any inquiries and fast planning during your janitor on leave”
“Excellent service during the summer break for the school opening preparations - efficient, gracious customer service, the level of detail and accountability you have demonstrated on the housekeeping service.”
“I received a verbal compliment from client on Crew’s performance & improvement after we had engagement meeting. Well done and keep up the good work!”
“Services provided by the crew on site was good and amazing, especially the head of the crew obviously showing his excellent performance on managing his team that provided high quality cleanliness service throughout the year. They have shown a great team spirit and hope this can continue and maintained in future. I would also take this opportunity to congratulate Miss Nadia who trained such a good team and of course your good services to our company as well.”
“Thank you very much for the team you lead! Professional and high efficiency!”
“Convey our outmost appreciations for the excellent service provided to our team in Bayan Lepas. Your team, which is Samy and his supportive team, have been doing great jobs & supported us. Samy has been committed to all the tasks given with fast response from him & the teams.”
“Formally and sincerely express our gratitude for the amazing honesty your team shown during recently lost and found case. Nurhayati Binti Abdullah had shown exceptional discipline and dedication to her daily work. Her actions directly impacted our image and Maclean directly benefited the team and company on a greater level. Once again, thank you for the leadership shown by Maclean’s management team – Kak Mis on the diligence and integrity adopted for all the team on the site.”
“Layanan yang sangat baik, berdisiplin, komited, sabar, berbudi bahasa dan sentiasa positif.”
“Thank You for the Good Service. I would like to express my deep appreciation for the women who are doing the cleaning at our premise. I am very satisfied with their work! I would like to thank Diana (supervisor) and Sajib who always monitor and ensure someone to cover when the cleaners go on leave. Good teamwork and dependable.”
“Congratulations “Maclean Team” as all cleaners have successfully passed the EHS training that was conducted on site.
We are satisfied with their service”
“Thanks for your team’s kind support to maintain the cleanliness of our LMM plant during our two important events:
(1) EHS Corporate Audit
(2) EHS Plan Forum Recognition”
“Thank you very much for giving 100% support and for ensuring we followed and maintained proper social distancing amid the events.”
“Gratitude for Maclean’s performance and support during our compliance audit held last October. Maclean’s team has made so much effort in order to keep our business running with full compliance. It's a good image that we comply to every legal requirement that was relevant with Maclean’s help. Maimunah has been key player into this Audit weeks.”
“Many thanks to Zura for the last compliance audit which covered compliance in pharmaceuticals.”
“Our management would like to take the opportunity to sincerely thank you for the excellent service provided to our facility especially for the fresh goods department, for maintaining cleanliness as per our standard.”
“Able to answer questions from Auditor during ISO Audit.”
“We would like to extend our greatest appreciation to you and your team for all the hard work going the extra mile ensuring everything is ready for the event. We know there were a quite a bit of last-minute requests, but you guys managed to extend your excellent service and that made a difference definitely. We appreciate your contribution and management also relay their appreciation and gratitude to all the Janitor team. Thank you so much for being good support for this event and hope this good performance can be maintained.”
“Hope you are doing great. For the past few months Samy Rau has been supervising our Penang location. We are very grateful that he has been showing his interest and helping me to solve a lot of problems. His presence here during the site visit has made us able to voice up regarding most issues directly. Most pending issues have been resolved. We hope that we will make a better team in future.”
“I would like to take this opportunity to thank Samy and the team, especially Ali Raihan, Sajib Sikdar and all Maclean team members for helping our team on the water leaking issue that happened. Their fast respond to our call during midnight and coming to help us to handle the situation. Keep it up and continue to work together and support our Facilities team.”
“They are remarkable with their attitudes. The way they go above and beyond to ensure that all our events are presented well, their sense of collaboration and attention to detail is greatly valued.”
“I would like to extend our appreciation for the amazing work done by your team on site especially team leader, Maimunah in supporting several occasions of main event. They have been supportive in terms of logistic, pre-event preparation and on top of that making the event running smoothly.
Please pass my appreciation to Maimunah, Sulaiman, Susilawati and Haipah for their support.”
In addition to the above, we are proud and grateful to receive 2 awards from CBRE:
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