MALAYSIA AIRLINES- A MODEL TO FOLLOW

PIA to be upgraded on Malaysian Airlines model: Nawaz irked by very poor PIA''s show

September 11, 2013

MUSHTAQ GHUMMAN

Prime Minister Nawaz Sharif has expressed dissatisfaction over the performance of Pakistan International Airlines (PIA) and directed that the national flag carrier be upgraded on the pattern of Malaysian Airlines. He also directed that the money being spent on corruption-tainted PIA be diverted to deal with power crisis. The Prime Minister gave these directives while chairing a special cabinet meeting on Tuesday.

In his remarks he said that economic development was the only way forward but terrorism and extremism were badly hampering the economic turnaround in Pakistan. He said the country was passing through difficult times and we were evolving a consensus strategy to sort out all issues confronting the nation.

He said that during his previous tenures as the Prime Minister of the country his government followed the policy of free market economy which led to faster economic growth. "We have again started with the same policy with an enlarged vision and increased vigour," the Prime Minister added.

The cabinet discussed good management practices to be adopted by the government sector to make it more effective, efficient and accountable. The Prime Minister said that PIA was incurring Rs 3.3 billion monthly losses due to its inefficiency, corruption and malpractices.

"At present we are only dealing with day to day crisis at PIA. Taxpayers'' hard earned money is being paid to PIA to bail it out of economic crises and sustain itself, and this situation cannot continue any more," the Prime Minister added. He said that this money should be invested in power sector and development of other resources instead of sustaining an inefficient PIA. He said that over-employment and low quality services have led to the downfall of the national airline, which once the best in the world. He directed the PIA management to provide a detailed briefing on the present situation of PIA and bring about concrete proposals to reform PIA.

Senator Dato'' Siri Idris Jala, Minister in Malaysian Prime Minister''s Office and CEO Performance Management and Delivery Unit (PMDU), Government of Malaysia attended the Cabinet meeting on special invitation of the Prime Minister. He shared his experiences of Malaysian Economic Programmes and Government Transformation. He informed the Cabinet that Malaysia transformed its economy by devising short term plans within the framework of its larger strategic programmes, and set time-lines for achieving those plans by giving key performance indicators.

The public as well as private sectors were involved, through well defined process, in devising these policies and making them achievable, he added. He informed the Cabinet the procedures were made simple to attract investors, both foreign and domestic. The Prime Minister said that Government of Pakistan was following an economic model whereby key development sectors had been identified and prioritised. Moreover, systems were being simplified. The Prime Minister maintained that his government had prioritized economy, energy and modernising infrastructure all over the country and investment in power sector. He added that a team of experts was working on the reforms action plan and Pakistan could learn from the success stories of Malaysia and replicate the same, he added.

The Prime Minister said that his government looked forward to working closely with Malaysian government. The Prime Minister also recalled his association with Mahatir Muhammad, the then Prime Minister of Malaysia, and said that they had extensive discussions on economic reforms and shared experiences. The Prime Minister said that a high-powered delegation would soon visit Malaysia to further strengthen co-operation particularly in the economic fields between the two countries. 

SHIPPING - DRY BULK CARGO RECOVERY

Recovery of Dry-Bulk Cargo Shipping

By C. Akalanka Samarasena

Jul 27, 2013

Since the start of this year, dry bulk cargo industry is obtaining a fragile recovery from its disastrous four year decline started in 2008, but a new wave of ship orders and a setback of Chinese economy is threatening it. The Baltic Dry Index, a measure of commodity shipping costs, reached its lowest annual average in 26 years in 2012 amidst an oversupply of vessels and slowing demand. Following the trend, dry-bulk shipping rates touched a 14-year low in March 2012, after touching a life-high of 11,793 in 2008. In this period of turmoil several dry bulk shipping companies including Britain’s oldest shipping firm, Stephenson Clarke Shipping, and Italy’s Deiulemar Shipping filed for bankruptcy unable to pay their debts.

In general terms bulk carrier, bulk freighter, or bulker is a merchant ship specially designed to transport unpackaged bulk cargo, such as grains, coal, ore, and cement in its cargo holds.  In 2012, approximately 4 billion tons of dry bulk cargo was transported by sea, comprising more than one-third of all international seaborne trade. The global fleet of 9,490 dry-bulk ships will haul an estimated 4.2 billion metric tons of cargo this year, 5 percent more than in 2012, according to Clarkson Plc, the biggest shipbroker in the industry.

Positive first two quarters

Since the beginning of the year, rates on the iron ore benchmark Capesize route from Tubarao, Brazil, to Qingdao, China have increased by $2.25/t from $17.25 to $19.50/t. Coal freight Capesize rates for Richards Bay to Rotterdam voyage increased to around $8/t in June from $5.90/t in April. These increases were all fuelled by a lower supply of new fleets into the industry in the early parts of the year. The Baltic Exchange’s main sea freight index, which tracks freight rates for ships carrying dry bulk commodities such as coal, iron ore and grain, plunged to a 16-year low of 647 last year. However, many believe that the peak is now over as more and more new orders are recorded by ship makers.

“The supply situation is quite staggering.” Raymond Ching Wei-man, Vice-Chairman of Jinhui Shipping and Transportation, stated to South China Morning Post.

Ship owners have splurged on a raft of new orders, taking advantage of cheaper prices, more fuel efficient designs and money from private equity funds looking for a new home. This oversupply of ships has caused a risk of charter defaults, lower freight rates and a rush for lease payments. Furthermore, this has caused companies such as Jinhui Shipping to report impairment losses on their existing fleet. Last year a staggering number of 256 ships were scrapped by dry bulk cargo operators indicating the overcapacity in this highly competitive segment of shipping.

“The ordering wave is indeed worrying,”  Henning Oldendorff, chairman of Oldendorff Carriers reported to South China Morning Post.

The main worry regarding the new influx of dry bulk cargo carriers is that it happens in a time of economic slowdown in the world. Highlight of this adverse economic situation is the slow economic growth in China and the recession in global steel industry. However, the analysts are divided over the progress made by bulk shipping industry as Maritime-expert reports a positive outlook for dry bulk shipping industry starting from the 3rd quarter of this year.

“Dry-bulk supply and demand is currently challenged, but we believe there is a solid potential for recovery beginning in the second half of 2014,”

 

Earnings for ships that carry dry- bulk commodities are set to start recovering in 2014 despite the fears of slow economy and oversupply of ships as fleet growth slows to keep pace with demand for the first time in four years, said Citigroup Global Markets Inc.

Expansion of ship fleet will weaken to 5 percent amid fewer deliveries of new vessels, compared with an 18 percent average pace in the 2011-13 period, analysts led by New York-based Christian Wetherbee has disclosed to Businessweek. The main challenge is to stay afloat with heavy debts until the fortunes once again favours the dry bulk cargo industry.

WHAT IS A GDP

The GDP data is compiled from thousands of surveys completed by businesses

Continue reading the main story

UK Economy

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GDP, or gross domestic product, is arguably the most important of all economic statistics. It is a measure of all the activity in the UK economy in a particular period, and is published on a quarterly basis.

If the quarterly GDP measure has increased compared with the previous three months, the economy is growing. If the figure is negative, the economy is contracting.

The UK's GDP figures are produced on a rolling monthly basis for each quarter.

Revisions, not mistakes

A first - or preliminary - estimate is produced in the first month after a quarter, a second in month two, and a further revision in the Quarterly National Accounts.

There are later revisions when we do the annual publication of the UK National Accounts - the so-called Blue Book.

Continue reading the main story

“Start Quote

[Is the] preliminary estimate of GDP really - as some have claimed - no more than a 'guess'?”

Revisions to the GDP figures do not usually mean that we have found a mistake - mistakes are actually rare - but rather that we have received new information.

GDP is compiled from thousands of survey returns completed by UK businesses. The main sources used for the preliminary estimate are ONS surveys of manufacturing and service industries.

Information on sales is collected from 6,000 companies in manufacturing, 25,000 service sector firms, 5,000 retailers and 10,000 companies in the construction sector.

Data are also collected from government departments covering activities such as agriculture, energy, health and education. For the second and third estimates, increasing amounts of data become available from other surveys and administrative sources.

There is an urge to define the economy as in or out of recession, Mr Grice says

Early 'guess'?

The preliminary estimate of GDP comes only 25 days after the end of the quarter, it's the quickest publication of a preliminary estimate in any major economy.

Government and businesses want information fast, so ONS produces its early estimates of GDP based on partial information before all the data that will eventually be available is in.

Does that mean that the preliminary estimate of GDP is really - as some have, indeed, claimed - no more than a 'guess'?

Well, no it doesn't. In fact, the preliminary estimates have proven to be remarkably accurate.

Continue reading the main story

“Start Quote

In recent years, the economy appears to have been on a bumpy plateau”

The figure produced in the third month after the end of a quarter - in the Quarterly National Accounts - uses more of the available data. Yet the revision between the first and third monthly estimates is typically only one or two tenths of one per cent.

Nor is it true, as some commentators allege, that the first estimate is biased downwards - that they generally underestimate the strength of the economy and will be revised upwards as later estimates emerge.

In fact, the average revision since the start of 2006 between the first figure and the third month has been minus 0.01%. So revisions have generally been very slightly downwards, albeit by a figure so close to zero it makes no difference.

This means that there would be no benefit in terms of quality, if, as some suggest, we were to delay the production of the preliminary estimate. We'd be losing timeliness but for no gain in quality.

It's like being able to accurately predict the outcome of an election after only the first 20 or so seats declared.

'Bumpy plateau'

One of the reasons the preliminary GDP estimates, and any later revisions, attract so much attention is the urge to define the economy as in or out of recession: especially when the media is speculating about the possibility of an unprecedented so-called triple-dip recession.

Recession is often defined as two consecutive quarters of negative growth - or economic contraction. Yet when growth is close to flat, the difference between, say, estimated growth of 0.1% (no recession on the popular convention) and -0.1% (one quarter contributing to a recession on the same convention) is actually within the known statistical margin of error.

In fact, ONS does not attempt to characterise the economy as in or out of recession. We see no statistical or economic basis for this.

We recommend looking at the path of the economy over a period of time. Overall, in recent years, the economy appears to have been on a bumpy plateau, with an upward trend but at well below historic growth rates.

The latest quarterly estimate adds to the story but movements in one quarter, upwards or downwards, need to be seen in the longer context.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice.

TRANSPORT PLANNING - AIRPORT

Heathrow offers to fund building of third runway

Britain's biggest airport, London's Heathrow, has urged the government to let it build a third runway, saying its plans would provide more flights, less noise and be cheaper and quicker to build than rival proposals.

The UK government and business leaders want to expand flights to fast-growing economies to ensure the country does not miss out on billions of pounds of trade, and with Heathrow operating at 99 percent capacity, more runways are needed, reported Reuters.

However, under pressure from green groups and its Liberal coalition partners, the Conservative-led government overturned a decision to build a third Heathrow runway after it came to power in 2010, and the move is also vigorously opposed by London's Conservative mayor, Boris Johnson, whom many commentators view as a potential rival to Prime Minister David Cameron.

Heathrow submitted its plans to a government commission looking into raising airport capacity, which is due to publish an interim report by the end of next year, with a final verdict due in mid-2015, after the next general election.

The West London-based airport, part owned by Spain's Ferrovial, suggested three options: placing a new runway to the north, northwest or southwest of the hub.

Each option would deliver extra capacity by 2025-29 for US$21
billion to $27 billion, and would be cheaper and quicker to build than rival hub options being proposed by Johnson and Stansted Airport, Heathrow said.

"There will be more pigs flying than aircraft if we are to believe the claim that three runways at Heathrow will make less noise than two," Johnson said after the plans were published.

"Their proposal would be a disastrous outcome for Londoners, nor would it solve our aviation capacity crisis as a fourth runway would need to be in the planning process before a third was even open."

Johnson is backing the development of a rival airport and earlier this week set out his plans, which include a new four-runway hub 40 miles east of central London and the possible demolition of Heathrow.

"Heathrow is not in the wrong place, it's in the right place for business," said Matthews, adding that hundreds of firms were based within 25 miles of the hub because of the links it offers.

"After half a century of vigorous debate but little action, it is clear the UK desperately needs a single hub airport with the capacity to provide the links to emerging economies which can boost UK jobs, GDP and trade."

As well as environmental groups, Heathrow's plans are opposed by local residents. A government report showed noise pollution levels of at least 57 decibels affecting around 260,000 people living near the west London site.

However, Matthews said by 2030 between 10 and 20 percent fewer people would be within Heathrow's noise footprint with a third runway, due to altered flight paths and the benefit of improved air-traffic control technology and quieter planes.

Heathrow said it preferred the two westerly options as they minimised the noise impact on local residents though they would cost more, and take longer to build than the north option.

The southwest runway, proposed to be built over two reservoirs, would be the most expensive and complex to build, but would mean aircraft noise affecting the fewest people.

Heathrow said all three options offered the chance of adding a fourth runway in the future, if needed, and said it would fund the runways itself rather than asking for taxpayers to pay.

Each option would raise capacity to 740,000 flights a year from 480,000 currently, and cater for 130 million passengers, up from the 70 million passengers that used the hub last year.

Johnson has proposed that London should have a four-runway airport, which would be either a new hub 40 miles east of central London on the Isle of Grain, or further out in the Thames Estuary on an artificial island, or at an expanded Stansted airport, to the northeast of the city.

Each of these projects would be deliverable by 2029, costing up to $99 billion, Johnson said.

MASKARGO AND FORMULA 1

The Petronas Syntium Team’s Mercedes-Benz SLS AMG GT3 car is offloaded from a MASkargo flight at KLIA for the 2013 Petronas Motorsports Demo Run that took place in Kuala Lumpur earlier this month.
The event was one of the highlights in the build-up to the 15th edition of the 2013 Formula One Petronas Malaysia Grand Prix that was held at the Sepang International Circuit at the weekend. 
MASkargo sealed a deal with Petronas for the exclusive rights as preferred air cargo partner for the demo run. The carrier transported the Mercedes Petronas Formula One Team’s demo F1 cars and equipment. 
“This is an amazing global opportunity to align two world leading brands of different industries. The cutting-edge technological standards and worldwide reach of Formula One go hand in hand with MASkargo’s business direction,” said Mohd Yunus Idris, CEO of MASkargo.

ENTREPRENEURSHIP - Factors for success

June 11, 2013 12:13 am

Throw away the suit and know execution matters

By Doug Monro

I have five top tips for people thinking of starting their own business.

First, don’t do it! If you do, you’ll be letting yourself in for an immense amount of unrewarded hard graft, a series of failures and the need to keep bouncing back a thousand times when things don’t work.

Next, people matter. Surround yourself with really great people who believe in what you are doing and whom you trust and enjoy working with. Treat them well – and that includes investors.Burning yourself out without knowing if it will ever pay off is certainly not for everyone. If you ignore me and do it anyway, then give it your all. If you start a business halfheartedly, you will not succeed.

Second, it is important to understand your own risk profile. When is the right time for you to a start a company? What financial and personal risk can you afford to take? Do you really know your market? In my case I had corporate experience, an MBA and start-up experience before becoming a founder, so I learnt on someone else’s dime.

Fourth, don’t forget that execution matters. Even if you have five competitors doing the same thing, you can still win if you execute better than them. Luck has nothing to do with it. Spend less time at conferences and coffee mornings, and put more into building and selling a great product. Test, learn, get feedback and iterate fast.

Finally, never wear a suit if you can help it. People who are more concerned about dress code than substance are not worth working with anyway.

Once these rules are established, you will find the UK is broadly entrepreneur friendly.

We have a decent education system, good infrastructure and a flexible labour market. Culturally, we are not as risk hungry as the US, but that is changing.

We now have celebrity entrepreneurs as role models, and even television shows promoting start-up businesses, for all their flaws. We have tax breaks for company founders, such as Entrepreneurs’ Relief, as well as for investors, such as the Enterprise Initiative Scheme.

In the consumer internet sector where Adzuna operates, the UK does not have the history and concentration of start-ups that have developed in Silicon Valley over the past 30 years. But we do have other advantages, including a diverse culture and workforce, and access to London’s media and financial services expertise. For global businesses, London is still the best place to be headquartered.

There is, however, always more the government can do, particularly to reduce the administrative burden on start-ups and their employees. The requirements of Companies House and HMRC remain labyrinthine even to an experienced business manager and qualified accountant like me. What is needed is not rocket science: get everything online, put it in layman’s terms, ask for things only once and only those that are needed, and simplify them.

On taxation, payroll tax breaks to get young businesses going or incentives for employees to profit from stock or options in companies they help create are always welcome.

It is time to tax global corporations properly and challenge their transfer pricing schemes. We need to create a level playing field for all businesses operating in the UK, irrespective of where they are based.

The government should also sort out the banking system to create real competition and customer service, train more computer scientists to fill the talent gap and make the London markets more attractive for technology initial public offerings, to stop us selling so many great British businesses to big US corporations who do not pay UK taxes anyway.

SABAH PORTS CONTAINER TERMINAL (SBCP) @ KOTA KINABALU

Sapangar Bay Container Port (SBCP) is strategically located along the busy shipping routes between the Far East and Europe.  Plans are underway to rationalize the port operations statewide through hubbing to create economies of scale.  SBCP, which has taken over the container operations from Kota Kinabalu Port, is positioned as the premier transhipment hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).  A port of international standing, SBCP boasts of state-of-the-art facilities, the ability to handle more container volume, more efficient and effective operations adn greater competitive freight charges.

Features :

Berthing Facilities
• 500 meter long (outer berth) and 400 meter long (inner berth)
• 12 meter water depth alongside
• capability to handle container vessels of up to 45,000 DWT

Storage Facilities
• Back-up area of 22.5 hectares
• A 15 hectares container stacking area
• A 4,500 m2 Container Freight Station
• Maximum annual throughput of 500,000 Teus.

Cargo Handling Facilities
• State-of-the-art handling facilities including Gantry Cranes, Mobile Harbour Cranes, Reach Stackers, Rubber-Tyred Gantries, Straddle Carriers, Empty Container Handlers, Multi Trailers and Terminal Tractors.

MALAYSIA Economic Growth

MIER set to cut economic growth forecast

Posted on 10 July 2013 - 05:37am

Izwan Idris
sunbiz@thesundaily.com

KUALA LUMPUR (July 10, 2013): Malaysian Institute of Economic Research (MIER) is set to revise its initial economic growth forecast for 2013 at a mid-year review next month on slumping exports and slower private consumption.

The think tank had in January projected that the Malaysian economy will expand 5.6% this year.

"Our export performance in recent months is a major concern,'' executive director Dr Zakariah Abdul Rashid said.

"It would be very difficult for Malaysia to achieve the targeted growth this year if exports continue to shrink,'' he told reporters when met at a conference yesterday.

Zakariah said the growth target would probably be lowered next month after reviewing the country's performance in the first half of the year.

He also said that the latest round of lending curbs by Bank Negara Malaysia announced last Friday would also have a "negative impact" on private consumption.

Exports in May slumped 5.8% from a year ago, worst than what most economists had expected as Malaysian exporters continued to struggle against weak global demand and softer commodity prices.

CIMB Research in a note last Friday predicts that exports growth to remain "soft" until August this year on weak external factors and seasonal slowdown during Ramadan fasting month, which starts today.

In his presentation yesterday, Zakariah noted that one factor that is holding back exports is the lack of "domestic value added" contents to products that are shipped from Malaysia.

"Malaysia is still poor in generating value,'' he said when comparing the export value of products shipped from countries such as Japan, South Korea and Poland.

Manufactured goods accounted for about 75% of Malaysia's total exports. This underlines the importance of the manufacturing sector to our economic growth.

One analysis suggests that Malaysia is still trapped in what experts called a "factory economy" situation. To move up the ladder to what is known as "headquarters economy,'' Malaysian firms need to develop ownership advantages such as indigenous technology that can be exported.

So what is hindering Malaysia's quest to become an exporter of innovation?

One expert pointed out the so called "flexible policy" on foreign workers, especially in the manufacturing sector as one of the stumbling blocks in moving up the value chain.

"This peculiar feature enables firms to hire and fire workers to manage volatility to maintain local equilibrium and also make manufacturers more reluctant to take the risky innovation route,'' said Professor Dr Tham Siew Yean, the deputy director at Institute of Malaysian and International Studies.

She said that Malaysia cannot afford to lose out in the manufacturing industry and called for the deepening industrialisation of the sector.

Tham highlighted the need to attract "the right type" of foreign direct investment into the sector and promote the development of human capital to encourage productivity growth in the manufacturing, as well as in the service sector.

"Whatever ails the manufacturing sector is also a constraint for the service sector,'' she said.

Understanding China Market

USA Today
9 most popular USA brands sold in China
Mike Sauter, 24/7 Wall St.6:01 a.m. EDT May 18, 2013

By 2030, roughly two-thirds of the world's middle class will be in the Asia Pacific region, largely in China, according to a report by Ernst & Young. Currently at around 150 million people, the Chinese middle class is expected to reach 1 billion.

Representing a $250 billion market for American companies today, according to estimates of the U.S.-China Business Council, iconic and newly forged brands alike are looking at enormous opportunity. Some of the nation's biggest brands are already Chinese market leaders in their particular segments. Apple sells more tablets than any competitor in China and Gillette more razors than any other brand. While some of these companies are facing increased competition internationally and from China-based firms, others appear to be pulling away from the pack.

Because China is not an open market, international companies cannot compete in some sectors. According to the U.S.-China Business Council, the Chinese government currently imposes restrictions on about 100 different sectors in both manufacturing and service industries, including much of the agriculture and food production, cloud computing, financial services, petrochemicals and health insurance, among others.

In the sectors that remain more open, companies can strengthen their brand and move ahead of their closest competitors globally. One example of a company capitalizing on its leading position in China is Yum! Brands. The fast-food company is behind global competitors like McDonald's, which had roughly double Yum's worldwide sales in 2012. Nevertheless, Yum! currently has a very strong foothold in China. Its leading chain, KFC, has over 4,200 locations in the country, more than double that of McDonald's, its closest competitor. What's more, the company, despite setbacks, is growing its presence significantly there.

No doubt, the companies that entered the Chinese market planned their foray carefully. But it's also clear that many managed to capitalize on their domestic and international brand dominance outside of China. Companies such as Starbucks, Apple, Nike, and Coca-Cola have thrived in the country — just as they do all over the world. Whether the companies can continue to leverage that value against up-and-coming Chinese brands remains to be seen. Here are the most popular American brands in China today:

1. General Motors:
Auto manufacturer has 14.7% market share, competes against Toyota, Volkswagen
GM has had the largest market share in China of any foreign auto manufacturer going back nearly a decade. The company has access to the Chinese auto market primarily through multiple joint ventures. One of these is Shanghai GM, co-owned with Shanghai Automotive Industry Corp. (SAIC). The venture, 50% owned by GM, sells Chevrolet, Buick, and Cadillac models. According to GM China, the company and its partners sold a total of more than 2.8 million cars in 2012 vs. the 2.6 million cars GM sold in the U.S. last year. Recently, GM announced it was building a $1.3 billion Cadillac plant in China to boost luxury sales.

2. Apple:
PC and gadget maker has 83% market share, competes against Samsung, Microsoft
The maker of iPads and iPhones dominates the tablet market in the world's most populous country. Umeng Analytics Platform reported that in the last quarter of 2012, Apple's iPad and iPad mini accounted for 83% of all tablet sales. Several of Apple's major suppliers operate in China, including Foxconn, which has been criticized for years for its poor working conditions. Developments in the Chinese operations of the company's suppliers are often used as fodder for speculation about the timing of Apple product releases. Most recently, plans by Apple supplier Pegatron to ramp up hiring in China by 40% have fueled rumors about a low-cost iPhone.

3. Nike:
Shoe and sportswear apparel maker has 12.1% market share, competes against Adidas, Reebok
At the end of 2012, Nike still had the largest sportswear market share of any company in China, somewhat of a loose term at 12.1%. But recently, Germany's Adidas has also emerged as a major player in China, picking up market share despite the efforts of Chinese brands such as Li-Ning — which recently signed NBA star Dwyane Wade as a representative. Nike's sales and bottom line have benefitted from its popularity in China. In fiscal 2012, Nike's revenue and earnings in its Greater China segment rose by 23% and 17%, respectively, from the year before, totaling over $2.5 billion and $900 million, respectively. Nike has also had to deal with the differences and problems of operating in China. Michael Jordan, who partners with Nike to market its Jordan Brand sneakers, has accused Chinese company Qiaodan Sports Co. of using his name without his permission.

4. Starbucks:
Coffee producer and retailer has 61% market share, competes against McDonald's, Pacific Coffee
The world's largest coffee retailer opened its first store in mainland China in Beijing in 1998. At the last annual shareholders meeting, according to the China Post, the company has over 800 locations in nearly 60 cities in the country. In the release of the company's fiscal 2012 report, CEO Howard Schultz said, "It's no doubt that one day China will become our second-largest market after the U.S. and it's possible that, over many years, potentially the largest one." Starbucks plans to more than double its headcount in the Asia Pacific region as a whole the next five years to more than 40,000. According to the China Post, however, Starbucks' presence has diminished somewhat, and Chinese companies like Pacific Coffee are setting their sights on the No. 1 coffee retailer spot.

5. Microsoft Windows:
The PC software maker has 91% market share, competes against Canonical (Kylin), Apple, Google
Microsoft has a commanding market share in desktop operating systems in China, according to NetMarketshare. However, the company may face competition in the future, threatening its massive lead in software sales. The Chinese government has worked on an operating system with software firm Canonical. The new OS, called Kylin, was released in April. The BBC noted that the move is regarded as "an attempt by China to wean its IT sector off Western software in favor of more home-grown alternatives." Microsoft has pushed its Surface tablet hard in China, offering it there even before the U.S. However, the company has been criticized for not providing a two-year warranty for the tablet.

6. KFC:
Fast-food chain has dominant market share with 4,260 stores, competes against McDonald's, Subway, Wendy's
the Yum! Brands-owned Kentucky Fried Chicken chain of fast-food restaurants is by far the largest fast-food company in China. Last year, Yum! opened 560 new KFC restaurants there. It plans on opening another 700 restaurants in the coming year to add to the 4,260 KFC stores it had at the end of the fiscal year. Even without the new stores it plans to add, KFC already has more than double the amount of stores of its closest competitor, McDonald's, which has roughly 2,000 stores, according to the Guardian. Aside from the 560 KFCs, most of the remaining stores opening were Pizza Huts. According to Yum!, the China market accounted for 42% of its KFC segment's profit in 2012. The company suffered a setback recently after Chinese food regulators launched an investigation into its poultry supply following media allegations of excessive use of antibiotics and hormones.

7. Gillette:
Shaver and personal products producer has 70% market share (worldwide), competes against Schick
Gillette entered China in 1992, when it was its own company, by joining forces with the Shanghai Razor Blade Factory. Currently, Gillette holds a 70% market share worldwide in men's grooming, as 800 million people use its products each day. Gillette is just one of the products made by Procter & Gamble that dominate the Chinese market place, with other market leaders that include Safeguard, Olay, Pampers and Tide. Between 2002 and 2012, P&G's net sales in China grew by an average 17% annually. The company earned approximately $2 billion in revenue from China in 2012. With Gillette way ahead worldwide, competitors are looking to narrow the gap. Energizer-owned Schick has recently teamed up with Unilever-owned Axe to create Axe razors for the Chinese market.

8. Coca-Cola:
Soft drink producer has 16.6% market share, competes against Pepsi
Euromonitor International says market leader Coca-Cola's soft-drink market share in China was 16.6% in 2012 vs. rival PepsiCo with 5.1% share in second place. In the first quarter of 2013, Coca-Cola, which includes Coke, Sprite and Fanta, reported that volume sales in the country rose by a mere 1% compared to the same period last year. This weakness, blamed by a slowdown in China's economy, is expected to continue. "As we look ahead to the next six months, it is reasonable to expect that China's ongoing economic slowdown may have a short-term effect on our industry and on our business," CEO Muhtar Kent said on the most recent company earnings report call with investors and analysts. In May, Coca-Cola announced plans to invest an additional $4 billion expanding its footprint in China. The company has 42 plants around the country and employs approximately 50,000 workers. A Coca-Cola executive in China, Bai Changbo, told Xinhua news agency that the average person in China drinks 39 bottles of Coke a year, well below the 400 bottles annually consumed on average by Americans.

9. Intel:
Semiconductor manufacturer has 85.2% market share, competes against Advanced Micro Devices, Samsung
As of the first quarter of 2013, Intel had a whopping 85.2% market share of PC semiconductor chips globally. Lenovo, which runs on Intel chips, currently has a nearly 40% market share in China for PCs. Lenovo accounted for 11% of Intel's revenue in 2012. Also, 18% of Intel's revenue came from Hewlett-Packard and 14% from Dell, both of which have a sizable presence in China's PC market. However, Intel could be having problems in the future as more people move away from personal computers in favor of smartphones and tablets. Of all semiconductor sales, which includes those used for tablets and smartphones, Intel had a worldwide leading market share of 15.7% compared to Samsung's 10.1%. But Samsung's revenue rose 6.7%, compared to Intel's 2.4% decline.