CHORDTELA ACADEMY

REPORT
(6/3/2023 - 9/3/2023)
By: BLYTHE

TEAM MEMBERS:
1 Natasha Estefan 0172-FND-21

2 Norita Anak Biner 0025-FND-22

3 Daphne Yek Siew Mei 0033-FND-22

4 Mohammad Hamizan 0052-FND-22

5 Nursyazana Aqilah 0029-FND-22

6 Sharifah Aimuni Musfirah 0028-FND-22

7 Siti Shahirah 0030-FND-22

8 Dayang Noor Azizah 0067-FND-22

TABLE OF CONTENTS
1.0 ABSTRACT...................................................................................................................... 3
2.0 INTRODUCTION.............................................................................................................. 4
3.0 VISION AND MISSION.....................................................................................................5
3.1 VISION.......................................................................................................................... 5
3.2 MISSION....................................................................................................................... 5
4.0 Business Concept.......................................................................................................... 6
4.1 Chapter 1 Technical......................................................................................................6
4.2 Chapter 2 Economic......................................................................................................7
‘4.3 Chapter 3 Commercial...............................................................................................10
4.4 Chapter 4 Organization...............................................................................................14
4.5 Chapter 5 Political-Social............................................................................................29
5.0 CONCLUSION...............................................................................................................31
6.0 REFERENCE.................................................................................................................32
1.0 ABSTRACT

On this phase which is define phase, we make a discussion

about the suitable location for us to build our music academy. After the
discussion of our team about the location, we decide to choose Saradise
Sarawak as our building location. We choose Saradise Sarawak
because it was a high demand place since the residential area around
this location was T20 and M40 majority.
Next, our team also has discussed about the market targets
for our music academy which is from 3 to 18 years old students and
above that would like to sharpen their skills and fully devoted in music
also targetting the students for this academy will be around 500 students
per year.
Then, we make a comparison and research regarding this by
using the TECOP aspects which is technical, economics, commercial,
organizational, and political or social aspect.
2.0 INTRODUCTION
In this report, we contribute the idea of doing a music and dancing
academy by doing a comparison and research through TECOP aspect.
For the technical aspect we have identified our location which is
Saradise Sarawak due to its familiarity among the people in Kuching. We
sure by choosing this location, we can have a chance to get our target
quantity of students for our academy. We want to build the building for
our academy and still discussing about the budget to build it.
Next, for the economics aspect, we justify our target market and
make a research about our direct and indirect competitors. Our target
market aiming for the student from 3 to 18 years old and above that
consider as T20 and M40 since the residential area has a majority of
them.
For commercial aspect, we have list our academy facility and
estimated cost for our business.
In organizational aspect we include the reason why we choose
private limited company for our business and how to register our
business.
For politic or social aspect, we explain about how does music
affect politic and social.
3.0 VISION AND MISSION

3.1 VISION

Towards creating a fun and stress-free learning environment for

students.

3.2 MISSION

i. Be innovative, creative, and cooperative in delivering the knowledge

ii. To introduce an effective teaching plan
4.0 Business Concept

4.1 Chapter 1 Technical

Location
Location at Saradise Kuching, Sarawak

We decided to build our academy in this area because it is surrounded

by a mix of residential developments where there are some wealthy
families staying there. Then, it overlooks the lively main road,
restaurants, and shopping malls such as Saradise Kuching
4.2 Chapter 2 Economic

Market
Our academy is targeting around 500 students to study in our academy.
The type of students that our academy’s aiming are the ones who are
willing to sharpen their skills and fully devoted into music and dancing.
To be more precise, will be in full interest playing instruments,
understanding music theory and various types of dance genre.

Our academy targets the total of students, which are divided into 400
music students and 400 dance students.

Competitors
After the research that our team makes, we have found and listed out
competitors which will affect our business in Sarawak. These
competitors are the music and dancing school which is the same as our
company business. There are two types of competitors that will affect
our business which were direct and indirect competitors. Our direct
competitors are competitors that teaching music and dancing lesson
while indirect competitors are providing music course in their university.

a) Direct Competitors

1. Ars Nova Music and Arts Academy (BDC)

- exam center of Associated Board of Royal schools of Music, United

Kingdom (ABRSM) and London College of Music, United Kingdom
(LCM)
- Provide syllabus of Trinity College, London
Business Activity
They offer courses in piano, viola, cello, guitar, ukulele, drum and
fine art. They also provide music and art lessons for an adult and
advertise their academy in social media such as Facebook and
Instagram.

2. Patrick & Ngue Music

Business Activity
Patrick & Ngue Music also a music instrument dealer. They sells
music instrument such as guitar, ukulele and keyboard. They also
provide learning of various instruments including drums, guitar, ukulele,
harmony, piano and keyboard.

3. Tyng Dance Academy

- Offering quality dance syllabus certified by worldwide well-known

dance councils such as the Commonwealth Society of Teachers of
Dancing (CSTD) from Austrslia and the Imperial Society of Teachers of
Dancing from the United Kingdom (ISTD).

Business Activity
Their dance syllabus that available in their academy are Classical
Ballet, Latin dance, and Pop dance.
 b) Indirect Competitors

1. UCSI University Sarawak

- Acknowledge as one of Asia’s leading music schools and it actively

collaborates with leading musicians, music schools, and conservatories
around the world.

Business Activity

They offer Bachelor of Classical Music course and this institution

has 31 years of careers in the Malaysia music industry.

2. University of Malaysia (UNIMAS) Sarawak

- UNIMAS connect and interact with their stakeholders and community

members through a vibrant and informative social media presence.

Business Activity

They provide Bachelor of Arts in Music course. This course is

offered to both Local & International Students.
‘4.3 Chapter 3 Commercial

List of academy facilities

1. Classrooms & Rehearsal Rooms located in the main building.

2. Music Rooms provided with music instruments.

3. Dance studio provided with wall to wall mirrors.

4. Recording Studio used for faculty use, concerts and recording

sessions.

5. Lockers to secure precious items, for maximum security locker

combinations are changed every semester.

6. Instrument collection for backup.

7. Well maintained toilets, ventilations & air quality.

8. Lighting and temperature control

9. Shaded outdoor play areas

10. Indoor Multipurpose Stage Hall/Auditorium

11. Indoor Dining area/Canteen

12. Medicare office

13. Storage space

14. Suitable furniture for students

15. Water system, Fire Alarm system, Security system & Electrical
system.

16. Library & Computer Room

17. Smart Board for e-learning.

18. Staff’s Office

We estimated the cost for our business is around RM 300 000 for the
beginning of our business.

We charge RM15, 000 per year for a student.

Equipment Price Per Unit Quantity Total
RM RM
Music Instruments Lead Guitar 8000 2 16000

Rhythm 5000 2 10000

Guitar 

Bass Guitar 7000 2 14000

Piano 33000 2 66000

Keyboard 7000 2 14000

Microphones 2500 2 5000

Other 10000

135000

Furniture For
Academy

Technology PC 2500 10 25000

Wi-Fi 1200 5 6000

 Printer 6000 2 12000

43000

Land / Building 6000 3 lot 18000

(rent)
Wages Guitar tutor 3500 1 3500

Piano tutor 2700 2 5400

Dancing tutor 3000 1 3000

Singing tutor 4500 1 4500

Security 1700 2 3400

Cleaner 1600 6400

Clerk 2500 3 7500

4.4 Chapter 4 Organization
Public Limited (Bhd)

A BHD company must have a minimum of two shareholders, and the maximum
is unlimited; an SDN BHD
company can have two to 50 shareholders. SDN BHD companies are typically
small or mid-sized enterprises
(SME) while BHD companies are the largest companies in Malaysia.
Public limited company characteristics
Establishment and listing. Establishing a company is usually complicated and
expensive because it requires
more requirements and paperwork. In addition, they must publish several
documents such as financial
statements and prospectuses as required by the regulator in the stock market.

Legal entity
The company is registered as a formal legal entity and is recognized as a
separate legal entity from its owners.

Capital
The company has the potential to raise large amounts of funds by selling
shares or bonds.

Owner or shareholder
The company has at least two shareholders and no maximum limit. They can
easily and freely transfer their
ownership in the company. But, then, the original owner may lose control if he
holds less than 50% of the
shares. For example, when selling new shares, the interest in the shares by the
old owners may be diluted.

Limited liability
Shareholders enjoy limited liability. For example, when a business defaults on a
debt, it is not their personal
responsibility to pay it off. And their wealth is not affected.

Compliance
Because of issuing shares on the stock exchange, companies are also bound by
regulations in the stock market,
including the obligation to publish financial reports and other reports. In
addition, information about the company is also widely open to the public.

Management
The owners appoint directors to represent their interests in the company and
carry out day-to-day operations.
Therefore, the board of directors should be responsible and act in the best
interest of the shareholders. But,
conflicts of interest often arise where directors pursue their own personal
interests rather than the owners’
interests.
Independence
Managers and directors have the space to work independently and prove their
expertise in their area of
specialization.

Continuity
The company continues to exist even though the shareholders or director’s
change. It differs from a
partnership or sole proprietorship, where when the owner leaves or dies, the
business may end.

Double tax
The business bears the corporate profit tax, whereas the owner pays the
personal income tax. In contrast, the
owner bears only personal income tax under a sole proprietorship and is not
subject to corporate profits tax.
Public limited company advantages

1. Limited liability

- The company’s assets and liabilities are separate from those owned by
shareholders. It protects the owners’
personal wealth as they are not personally liable for the company’s debts. So,
they don’t need to sell assets or
property just to pay off company debt.

2. Separate legal entity

- Because a business is a legal entity separate from its owners, lawsuits against
companies do not lead to
lawsuits against owners.

3. More significant capital

- Companies could raise large amounts of funds from the capital market. In
addition, because it has a legal entity,
companies can also more easily obtain loans from banks or other financial
institutions, unlike sole
proprietorships. It all allows them to finance expansion more easily and scale
up their operations.
4. Stable structure

- The business continues to exist even though the shareholders relinquish their
ownership of the company.When the director leaves the company, it does not
cause the company to cease operations.

5. Share ownership by employees and management

- This business organization allows management and staff to own shares in the
company through employee
stock ownership plan (ESOP) and management stock ownership plan (ESOP)
programs. Such programs allow
them to be more loyal and responsible for the company’s performance.

6. Return Apart

- from dividends, shareholders also get a return from capital gains, namely
when selling company shares higher than the purchase price. Sales
transactions are also easier than in a private limited company.
Public limited company disadvantages

1. Not necessarily a dividend

Companies may prefer to invest their earnings as capital (retained earnings)
and use them to fund expansion,
which will sustain their growth going forward. So, no money goes into the
owner’s pocket.

2. Conflict of interest
Directors often act in their own interests and benefits, not the best interests of
shareholders. That then raises
the agency problem. For example, shareholders may want profits to be
distributed as dividends, but directors
do not.

3. Larger administrative costs

Set-up and compliance costs are more significant than partnerships or sole
traders. That’s because the
company’s operations are more complex than the two.

4. Vulnerable to speculation
The company’s stock price may fall suddenly due to speculative activity. Stock
prices do not move following the
company’s fundamentals. Then, falling prices can make it difficult to obtain
large funds during the rights issue.
5. Complex decision-making
Decisions take time due to the large business size and the more complex
operating structure.

6. Greater access to sensitive information

The public and competitors can access critical information such as financial and
operational data, for example,
through annual reports, because it is publicly available.

7. Separate ownership and control

The owner has no control over the operations of the business. It was because
they are not involved in the day-to-day operations. In contrast, under a sole
proprietorship, the owner has control over all decisions.
Private Limited (Sdn Bhd)
A private limited company is the most common vehicle to carry on business for
an entity intending to make a
profit and enjoy the benefits of an incorporated entity, particularly limited
liability. Privates limited company as
a separate entity that is held privately and provides limited liability. It does not
freely transfer its shares to the
public like the other public companies. In a private limited company, all
business profits and liabilities belong to
the company itself and stakeholders may not be responsible for debt incurred
by the company.

Advantages of Sdn Bhd Company

1. Foreigners can be shareholder and can fully own the Sdn Bhd
2. Foreigners can be a director so long they have a local residential address
3. Single shareholder company/single person company (“SPC”) is possible
4. Malaysia corporate tax rate (17%/24%) is lower than personal tax rate after
certain threshold
5. There are more tax incentives (e.g., pioneer status, investment tax
allowance) given to Sdn Bhd
company as compared to other corporate structures
6. A company can act as a holding company to own real assets such as
properties etc. This allows property investors have a corporate structure to
better manage their property portfolio
7. Sdn Bhd can have up to 50 shareholders which is sufficient for small
medium-sized businesses. Berhad would be an alternative company structure
if there are more than 50 investors
Disadvantages of Sdn Bhd Company

1. There is more statutory compliance required for Sdn Bhd company as

compared to other corporate
structures such as yearly statutory audits and the appointment of Malaysia
company secretary.
2. Compliance costs could be higher as the Company needs to incur company
secretary’s retainer fee
(approximately RM2,000 a year) and audit fee (approximately RM1,000 to
RM8,000 depending on
revenue).
3. Your company must be in compliance with strict administrative
requirements
Reason why our team choose Private Limited (SDN BHD) for our
project

1.Limited Liability
- The shareholders’ assets are protected if the company goes into
liquidation. If the company goes
bankrupt, the owners are only liable for the amount they have invested in
the company. Meanwhile, any
company’s money remains with the company and does not fall on the
owner’s shoulders as well as it can be a
significant advantage for new business as it protects their assets from
potential business failures.

2.Tax Efficient
- The director can claim corporation tax relief on their profits as for
businesses and increase profits. Private
limited companies can pay dividends to their shareholders, which are
also taxed at lower rates . Plus, there are
several other tax advantage available to companies, such as capital
allowances and R&D tax credits

3.Separate Legal Entity

- The company can contract with other businesses and individuals and is
liable for its debts. Beside that ,
the creditors cannot seek direct payment from the personal assets of the
business’s owners in case of debts or
bankruptcy on behalf of the business. The only money that can be
claimed directly in the company’s obligations and not those incurred by
its owners on behalf of the business is shareholders. In addition, it can
be
essential protection for the shareholders as it limits their liability.

4.Easier to Raise Capital

- This can be done through issuing new shares, taking out loans , or
issuing bonds. It is often easier to
approach high net-worth individuals for funding when operating under a
private limited company because
these potential investors do not require an active role in the day-to-day
management of the business, unlike
shareholders in public companies.

5.Easier To Maintain
- Accounting Software has incorporated these features into their systems
, making maintaining
finances extremely easy with options to set up unlimited bank accounts,
classes, income, and expenditure
items. These include filing annual returns and reports with Companies
House, holding shareholders’
meetings, and keeping proper company records. In addition, private
limited companies must appoint at
least one director and one company secretary to help the small business
that do not have the time or
resources to manage all the administrative tasks themselves.
6.Flexible Management Structure
- For private limited companies, the owners are given complete control
over managing the business and
easily achieved through online systems such as ‘ FreeAgent ’ . It can
allow shareholders to manage the
company via an incorporated board of directors and appoint committees
where necessary.

7.Professional Image
- To attract new customers or investors to show that the industry is
established and has longevity because
private limited companies are more credible and established than sole
traders or partnerships. In addition,
private limited companies often have their website and letterhead , giving
customers and suppliers a sense of
trust in the business.

How To Establish an SDN BHD company

a. companies need to comply with the Companies Act 2016 (SDN BHD companies
or
BHD companies) at least 2 individuals are required to be registered as company
directors.
b. must have characteristics such as an entity that can be used in its own name,
have a
valid residential address, have assets in its own name and are perpetual.
Steps to register a SDN.BHD. company

1. Search 3 sets of SSM company name

- The company name must be closely related to the nature of the business.
- An existing company name cannot be used by the owner who wants to register a
new SDN.BHD company.

2. Draft company establishment document

- Prepared by the company secretary who is registered by the company to register
SDN. BHD company in Malaysia

3. Bank/ Board Resolution

- A written document/ statement that records decisions or action made by the board
of directors during board meetings

4. Sets of Document verification by the company secretary

- The company needs the services of the company secretary as well as document
verification to establish the company
- Confirmed by the company secretary appointed by the company,as well as
representing both parties between the Malaysian Companies Commission and
the company established under it.

5.Sets of complete company documents

- Ensuring that the company’s documents contain explanations regarding the nature
of the business to be carried out, a listing of services offered,assets and liabilities
owned by the company , and documents are complete

6. Set of company share certificates

- A legal document that is considered as proof of ownership of shares in the
company.
- Consists of shareholder information including , the name of the company holder,
the date of publication, the number of shares issued to the holder, a separate
identification number with the seal and signature of the company.

7. Certificate of establishment of the company

- Issued by the Companies Commission of Malaysia (SSM) after complying with the
incorporation procedure of submitting complete Registration Documents

8. Company super form ( section 14)

- Completing the section 14 form contains details :-
● Company information
● Information of the Director/Director of the company
● Member information – company members
● Declaration
● Form Filler Information

9. Sets of Preparation and use of CTC letter (Certificate Through

Copy)
- Is a copy of the original document that is acknowledged to be a true copy of the
document

10. set register books, minutes and certificates with updates

- Once all the above processes have been prepared, the appointed company
secretary will prepare a register book , record the minutes and have the share
certificate that has been updated to the SSM.
Once all the above documents are complete , make an appointment with the
company secretary. The company establishment process at the Companies
Commission of Malaysia (SSM) will take between 5 to 10 days. You are also
required to sign the document at least twice before the SDN BHD company
establishment certificate is obtained.
4.5 Chapter 5 Political-Social

Music
Music has many benefits for people, such as improving emotional,
physical, and mental health. Taking online music lessons can help you
learn music in depth, which can be therapeutic.

Listening to music daily improves learning and memory, allowing us to

memorize the context of what we're reading better and making our daily
tasks more accessible and accurate.

Listening to music is said to make people happier, as it regulates their

emotions and processes their feelings. It also helps them have a lighter
mood.

Music can help people cope with anxiety by calming them down and
improving their mental health.

Music has been beneficial to us in many ways, such as boosting

memory, improving mental, emotional, and physical health.

Dance
Participating in traditional and cultural dance activities can help one gain
a greater appreciation for history and diversity, and bring people
together.

Dancing provides an opportunity for people of all ages to get together

and socialize, creating a sense of connection and community. It also
helps to break down barriers between people by allowing them to
express themselves through movement.

Studies have shown that dance can help reduce symptoms of

depression, anxiety, and stress in both adults and children, as well as
improve self-esteem and confidence.

Dance allows people to express themselves creatively without relying on

words or other forms of communication. It is a great outlet for emotions
and feelings that may be difficult to express.
5.0 CONCLUSION

We decide to build our music academy in Saradise Sarawak because of

the opportunity to make a profit since this location was popular among
the Kuching citizen. We still discussing about our budget to build a
building for our academy and how do we make our strategies to ensure
people from that area to come to our academy. We already identify our
direct competitor which is Ars Nova Music and Arts Academy while for
our indirect competitors is UCSI University Sarawak.
6.0 REFERENCE
1) Business Current Account. (n.d.). CIMB.
https://www.cimb.com.my/en/business/solutions-products/deposit-
investments/current-account/online-business-current-account.html
2) The University. (2023, February 2). UCSI University.
https://www.ucsiuniversity.edu.my/about-us/the-university
3) P. (2022, December 14). Education License in Malaysia. Malaysia
Company Registration Specialist | Paul Hype Page & Co.
https://www.paulhypepage.my/education-license-in-malaysia-what-
to-apply/
4) Malaysian Qualifications Register :: (n.d.-b).
https://www2.mqa.gov.my/mqr/
5) Malaysian Qualifications Agency
www.mqa.gov.my URL: https://www.mqa.gov.my/pv4/index.cfm
6) Ali, Y. (2023, January 31). 15 Reasons For The Importance of
Dance in Society. https://curiousdesire.com/importance-of-
dance-in-society/
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