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Strategic platform for making inroads into the ASEAN—Interview with Eng Kin Hoong

Strategic platform for making inroads into the ASEAN—Interview with Eng Kin Hoong

Asu Su

2017 ushers in the 50th anniversary of the founding of the ASEAN region and is also the year that the entire ASEAN region is putting great efforts into promoting family travel.  The entire ASEAN economic zone poses strong, continuously growing demand for family entertainment-oriented indoor and outdoor game and amusement equipment.  The governments of ASEAN countries all go out to introduce proactive policies to promote the industry’s development.

 Group photo of responsible persons, Eng Kin Hoong (second to left) and Tai Lee Chuen (second to right) of the ASEAN GAEPC, and leaders of industry associations in China and Malaysia.

ASEAN Games and Amusement Equipment Promotion Centre formed in response to market trend

Following the country’s per capita income surpassing US$10,000, Malaysia has seen robust growth in the leisure industry covering recreation, gaming and travel.  With 16 theme parks and water parks spread throughout the nation and another 10 theme parks reportedly to open in the next few years, Malaysia is rapidly becoming the “theme park capital of Southeast Asia”.  Multiple theme parks such as 20th Century Fox and Legoland have landed in Malaysia one after another.  Dynamic international and local investments have also poured into a good number of ambitious new FEC projects.  Meanwhile, the first GTI Expo for the ASEAN region took place in Kuala Lumpur, bringing industry members in Southeast Asia exciting Chinese solutions featuring new entertainment experiences as well as letting a wider variety of games and amusement equipment make inroads into the Southeast Asia market.  With such perfect timing, the ASEAN Games and Amusement Equipment Promotion Centre (hereinafter referred to as the ASEAN GAEPC) was formed and has become a grand trade cooperation and economic exchange platform for the game and amusement industries of the two countries, China and Malaysia, to make inroads into the ASEAN region.

 The ASEAN GAEPC provides a consulting service for those industry members who are interested in exploring the ASEAN market.

Strategic platform for making inroads into ASEAN

 

Through joining various regional trade agreements such as the ASEAN Economic Community (AEC), the Regional Comprehensive Economic Partnership (RCEP), the Trans-Pacific Partnership and China’s One Belt One Road Initiative (OBOR), Malaysia has entered into 7 bilateral free trade agreements and 6 regional trade agreements.  As a member nation of the world’s largest tariff-free economic alliance featuring up to US$4.6 trillion in total trade, Malaysia possesses a very powerful tariff advantage and holds an extremely favorable and strategic position in Southeast Asian trade.  Malaysia is the primary gateway of China’s “One Belt One Road” 21st-Century Maritime Silk Road and Silk Road Economic Belt to Southeast Asia and even the global market.  In addition, Malaysia’s diverse cultural backgrounds have greatly benefited its trade communication.

 

Do you want to know which games have the right chemistry for the Malaysia market?

 

Do you want to know what platform can help you deeply penetrate the entire ASEAN region via the Malaysia gateway?

 

Mr. Eng Kin Hoong, one of the responsible persons of the ASEAN GAEPC said that the initial intention to set up the promotion center was based on the core belief of “keeping a foothold in Malaysia while selling to Southeast Asia” and to use it for a B2B trade exhibition.  To facilitate the organization of GTI Kuala Lumpur Expo and eliminate exhibitors’ worries about processing exhibits after the show as well as to let exhibitors rest assured that they can bring their latest and best game and amusement equipment to Malaysia, the ASEAN GAEPC provides the GTI Kuala Lumpur Expo exhibitors four major services.  The services aim to properly relieve exhibitors’ worries about local promotion, marketing and cooperation for goods displayed so as to let exhibits generate economic benefits afterwards and enhance continuity and momentum for cooperation.  In addition, Eng Kin Hoong hoped to take this opportunity to attract more enterprises that intend to tap into the Malaysia market and to penetrate the entire ASEAN region to join them in leveraging this trade platform targeting Southeast Asia, the ASEAN GAEPC to make the huge markets of Malaysia and China thrive!

At GTI Kuala Lumpur Expo, Mr. Eng Kin Hoong illustrated the purpose of forming the ASEAN GAEPC and the functions and services provided in order to gain official support from the Malaysia government

Purchase hub reaches entire Southeast Asia

 

Highlighting four major operational services, namely storage, exhibition & trade, sale, and profit-split operation, the ASEAN GAEPC provides one stop shopping service and the best platform for cooperation and exchange between Chinese and Southeast Asian industry professionals.

Driven by the strong promotion of family recreation and the rapidly increasing local household spending on entertainment in the ASEAN region, the number of families as consumers units and the market scope are enjoying explosive growth.  In addition, the massive influx of international tourists has further stimulated the demand for games and amusement equipment in the region.  Malaysia is a relatively conservative country, so new theme parks tend to be the family entertainment types.  Although the number of family entertainment centers has started to increase, the speed of growth falls significantly behind market demand.  With a huge demand for a greater variety of forms and types of entertainment, the market has brought a golden opportunity for the development of the game and amusement equipment industries of China and Malaysia.

 

Because citizens of ASEAN member countries are entitled to visa-free entry within the region at any time and the transport networks are convenient, many industry members actually travel across the region for business visits and equipment purchases at any time they wish.  However, for Southeast Asian businesspeople who intend to visit China for buying games and amusement products, they would encounter restrictive factors like visa and flight arrangement.  Therefore, to a great extent, their enthusiasm and motivation for purchase would be diminished.  Equipped with a trade promotion center offering a complete range of game and amusement equipment with diverse entertainment functions, the ASEAN GAEPC provides a one stop shopping service that can bring excellent Chinese games and amusement products to the booming Southeast Asia market.  Accelerating the introduction and distribution of Chinese products in Southeast Asia, the promotion center has presented a perfect solution and created a purchase destination for Southeast Asian trade professionals.

 

According to Mr. Eng Kin Hoong, the ASEAN GAEPC is backed by a professional team, which possesses strong technical skills and is specialized in the maintenance of games and amusement equipment for more than 20 years.  With abundant experience and outstanding capabilities, the team can effectively solve after-sale cross-border maintenance issues for high-tech amusement facilities such as VR and AR equipment.  The ASEAN GAEPC is currently trying the dual mode of “business marketing plus experience center”, so the general public can purchase tickets to experience entertainment equipment and the income is shared with equipment providers.  The approach is different from Chinese domestic enterprises’ establishment of branded chain stores that are used for sales operation, brand demonstration, and client research.  The ASEAN GAEPC is simply a platform and does not use operating income as its primary goal to just select high-profit products and equipment.  Instead it accommodates all cooperative enterprises to display and operate their amusement equipment without limitation.  Upholding the goal of reciprocal trade and exchange, the ASEAN GAEPC is committed to providing the best platform for cooperation and exchange between Chinese and Southeast Asian industry members.

 

On September 13-15 the ASEAN GAEPC manned a booth at Asia China Expo to better convey the Southeast Asia market intelligence and government policies to numerous Chinese industry members.  It also delivered more specific promotion and display of the promotion center’s overall image, team capabilities and core businesses.  The ASEAN GAEPC received a lot of attention from attendees and effectively presented its potential.

※The article is published in the GTI Magazine Issue No. 157 in September, 2017

 
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