Shah Alam, Selangor | February,1 2021 – Rentwise Sdn Bhd, an accredited remanufacturer by Ministry of International Trade and Industry (MITI) and a registered social enterprise with Malaysian Global Innovation & Creativity Centre (MaGIC), in partnership with Malaysia Digital Economy Corporation (MDEC), announces the sponsorship of 30 refurbished notebooks to Tenom Innovation Centre (TIC), Tenom, Sabah totalling up to RM39,000 under an initiative known as Digital Learning Empowerment Program (DLEP). The DLEP will assist in the implementation of Loan-a-Device Program by TIC where notebooks will be loaned at no cost to benefit the students especially candidates sitting for Sijil Pelajaran Malaysia (SPM).
Leanne Ooi, Chief Executive Officer of Rentwise Sdn Bhd says, the DLEP implementation is also aligned with MDEC’s objective which is to spur assistance in equipping the students with notebook to achieve uninterrupted e-learning. “We are both committed to providing a better digital environment especially for education. The temporary closure of all schools have exposed the importance of digital technologies in people’s lives and the positive impact it can make”, added Leanne.
She added that “Rentwise is in a business of remanufacturing and refurbishing PCs, in which we provide the equipment a second lease of life –which is then leased back to the corporates and public. But what we need is a consistent source of supply of good quality business class (used) computers. The more supply we have, the more we can breathe new life into old PCs and distribute them to needy schools and organizations. We encourage corporate and government bodies to donate computers and to collaborate with Rentwise to play an integral and significant role to bridge the digital divide that Malaysian students suffer from.
As of today, Rentwise Malaysia’s collective efforts have resulted in 765 PCs and laptops donated to over 40 schools and NGOs, impacting more than 21,000 children nationwide. Since DLEP inception, Rentwise has managed to work alongside renowned local organisations such as Sunway Group, Medical Awareness Camp Outreach (MACO) and Spritzer Berhad.
About Rentwise Sdn Bhd
Rentwise, established in 2001, is a certified IT remanufacturer under MITI’s R7KPA assessment conducted by RESPECT in 2017. Remanufacturing and repurposing ICT equipment greatly reduces the environmental impact as compared to the large amount of energy required to manufacture complex electronic components. It means up to 70% of a PC’s carbon footprint can be reduced by adopting remanufactured technology rather than new. Remanufacturing creates impactful economic benefits from consumers gaining access to products at a reduced price. An additional benefit is the creation of skilled jobs in an industry requiring high levels of technical skills.
As part of our community work, we run CSR programs where we have helped created or refreshed the ICT facilities of a number of public schools and NGOs, benefitting more than 21,000 students nationwide.
Being the only Green IT Partner in Malaysia offering a complete End-to-End IT Infrastructure and Asset Lifecycle Management Solution, we constantly look for ways to improve and best deliver our vision. We provide an infrastructure combination (both new and remanufactured platforms) to ensure our clients are able to better manage and utilize their cash resources.
“It is the use of equipment, not the ownership that generates profit”(Beate Pehlchen)
COMPANIES normally use computers for a certain number of years before retiring them and buying a new batch of machines.
Many of these old computers end up collecting dust in stores and may not even be used since they are outdated and cannot run newer software.
Seeing this as a waste of good equipment and bad for the environment, technopreneur Leanne Ooi started a company called Rentwise almost 20 years ago with the goal of giving a “second life” to these computers and to save the environment.
The Penang-born technopreneur said she started Rentwise in 2001 after working for a UK-based IT asset management company that was involved in refurbishing retired PCs from corporations and original equipment manufacturer (OEM) returns.
“That was the time the UK was preparing for the implementation of the WEEE (Waste Electrical and Electronic Equipment) Directive. I realised it was a matter of time before it would be a concern for the Asean marketplace. I also believed it was a good and purposeful business to be in,” said the mother of three girls.
Back then, Ooi was an avid gamer. She bought a couple of the company’s business range PCs and found that they met her requirements.
“The business model intrigued me. I realised it was a sunrise business opportunity,” said Ooi, who has a Management: Operations Management degree from the University of South Australia in Adelaide.
“The business model intrigued me. I realised it was a sunrise business opportunity,” said Ooi, who has a Management: Operations Management degree from the University of South Australia in Adelaide.
OLD IS GOLD
Ooi’s company evolved from doing basic cleaning up of equipment and fixing minor faults to refurbishing equipment by replacing faulty components. These days, remanufacturing is a big part of the business.
“In remanufacturing, functional faults are repaired, major components like the storage device and RAM are upgraded along with the operating system. The unit is fully restored cosmetically and functionally to an as-new condition with a matching warranty.
“It’s a 16-step process and we are very selective of the equipment we choose to remanufacture. We only work with business range equipment. We will first conduct a study, which takes between three and six months. It involves putting trial units out with selected clients for testing and running them extensively in our internal environment,” she explained.
A complete review of the supply chain will also be carried out to ensure that all components and parts will be available over the next three to five years.
Ooi (centre, seated) with her staff.
WHERE THE MACHINES COME FROM
Ooi sources used and retired computers from the market and works mainly with large corporations that have a short (three years) usage cycle for PCs.
“These remanufactured PCs are then leased for a period of three to four years. A small percentage of companies buy them outright.
“The equipment is under warranty and supported for the duration of the lease. Companies that buy the machines outright also have access to the same warranty programme,” she said.
Ooi claimed that companies save between 25 and 30 per cent over buying new computers.
“Beyond monetary savings, by choosing remanufactured PCs over new ones, a staggering percentage of environmentally polluting carbon is shaved off.
“The carbon footprint of 15 notebook PCs is equivalent to that emitted by a car. So it’s really killing two birds with one stone,” explained Ooi.
Rentwise has processed in excess of 55,000 computers in the last three years. It is also big on social responsibility efforts through initiatives like the Digital Learning Empowerment Programme (DLEP).
“Through the programme, we have successfully equipped a number schools and non-governmental organisations with much-needed equipment.
“We want to expand this to benefit more schools as we see a large gap in education needs that has not been addressed for many years. Beyond mere donation, we measure the impact and outcome of the programme by monitoring the achievements of the beneficiaries,” said Ooi.
“We want to expand this to benefit more schools as we see a large gap in education needs that has not been addressed for many years. Beyond mere donation, we measure the impact and outcome of the programme by monitoring the achievements of the beneficiaries,” said Ooi.
CHALLENGES
Like many other start-ups, working capital was the main challenge faced by Ooi in the early stages.
“We started with funding from family members and friends. Later we managed to raise seed capital from a local venture capital firm. Subsequently we brought in an angel investor who has remained with us till today,” she said.
Due to the Covid-19 pandemic, the last eight months have been challenging for Ooi.
“We experienced a halt to some projects as many users have been working from home. Naturally companies are not too keen to proceed when users are remote.
“Our supply chain for parts has also been affected considerably. It now takes longer for us to turn shipments around,” she said.
“On a positive note, we are seeing more and more new enquiries. As companies move more and more towards mobile solutions, we are looking forward to an interesting 2021,” she said.
We are in an age of growing and ever evolving technology advancement. With it comes many programmes and software which is made available online that enhances efficiency. That been said, there are also growing trends of software piracy.
Software piracy is defined as an act of illegally copying or distributing software without being the rightful owner or having legal rights. Thus, if you are copying or sharing software to multiple computers or multiple individuals without having the proper multiple licensing, it is considered piracy.¹
What you need to know:
1. Repercussions Of Fines Or Imprisonment Or Both
Software piracy is considered as cybercrime and theft and it is a felony. Under the Copyright Act 1987, those found guilty of using unlicensed software could be fined up to RM20,000 for each illegal copy of software while senior managers of a company could be imprisoned for up to five years. As reported in The Star on 25th Feb 2020, Malaysia has an unlicensed software rate of 51%. Globally, you will hear people who illegally download software and content online use the same excuses: the prices for the original software is too expensive, downloading pirated versions is so much easier². However, it is still deemed unethical.
2. Viruses and Potential Malware Attacks
Some of the common risks you are exposed to when using unlicensed software include credit card and banking info theft, identity theft, ransomware ( being locked out of your system until you pay the ransom), ad fraud and even risk the quality of your work being compromised. In actuality, individuals that visit piracy sites or download unlicensed software are almost 50% more likely to suffer from malware attacks on their devices or networks. You can expect random crashes while you’re working, not being able to save, and even, corrupted files after you’re done. Once your operating system is compromised, everything, literally everything is compromised!³
Microsoft has stopped support for Win 7 a year back. PCs’ running on Win 7 or older window systems are defenseless to ransomware attacks such as WannaCry, Petya which have effected more than 200,000 computers across 150 countries with damages ranging from hundreds of millions to billions of dollars.4
According to BSA-GSS Report, each malware attack can cost a company up to $2.4 mil and can take up to 50 days to resolve. Think about the business losses – downtime, loss of data, your brand and reputation. As report, IDC estimates companies taking the pragmatic steps to improve their software management can boost their bottom line as much as 11%.5
3. No Updates For Your Software
With unlicensed and pirated software installed on your devices, you may find you will not be able to do the constant updating of the software. Over time, it becomes susceptible to bugs and other malware attacks. Because a pirate program is cracked by illegitimate individuals after certain updates, the software fails to download the legitimate updates for the actual software developer, thus, leaving your devices and networks vulnerable.
Those with legitimate software are worry free as software developers provide constant updates to counter the problem and leave crackers a step behind.6
4. Refurbished or New PCs
It is to the user’s advantage and peace of mind to install licensed software when acquiring new or refurbished PCs. However, many assume that these PCs are with licensed software. Another misconception is that refurbished PCs that had been data wiped retains its licenses. Do you know that the license is only valid for the original user?7
Did you know that the carbon footprint of a single laptop is a staggering 350kg? And that of a desktop is about 800kg? Yet most people use and discard these items without a second thought, contributing to the growing e-waste problem in the country.
This is the challenge that Rentwise Sdn Bhd CEO Leanne Ooi has set herself to address. Her company has been recycling electronics for the past 19 years, eventually maximising their lifespan by up to three lifecycles and making them almost brand new through a process called remanufacturing.
Ooi, who started Rentwise when she was only 24, tells Digital Edge that the company started out cleaning up equipment and fixing minor faults before slowly developing the well-thought-out and complicated process it has today.
Before establishing Rentwise, she was working for a UK-based IT asset management company that refurbished retired PCs from corporate and original equipment manufacturer (OEM) returns.
“At that time, the UK was preparing for the implementation of the WEEE (Waste Electrical and Electronic Equipment) directive and I realised that it was a matter of time before this would be a concern for the Asean marketplace.”
Ooi, a gamer, bought a couple of the company’s business-range PCs and found that they met her requirements. “The business model intrigued me and I thought it a sunrise business opportunity.”
The UK company was in Malaysia through a joint venture but two years after she joined, it decided to spin the company off. “I was heading a business development division and since I held the client relationships, I decided to give it a shot and ventured out on my own.”
She managed to scrape together about RM200,000 in capital from friends and family. Subsequently, she attracted the attention of a venture capital firm and after that, a private equity investor, who is still invested in the company today.
Rentwise moved from simple recycling tasks to actual refurbishment, which involved replacing faulty components and cleaning up the units, Ooi says.
Eventually, it graduated to remanufacturing, where functional faults are fully repaired, major components like the storage device and RAMs are upgraded along with the operating system, and the unit fully restored cosmetically and functionally to an as-new condition with a matching warranty. “Most of our customers say they would assume the machine is new if we did not tell them otherwise.”
Remanufacturing is a fairly complicated proposition. “It is a 16-step restoration process, which has been audited and accredited by the Ministry of International Trade and Industry. We are very selective of the equipment we choose to remanufacture, only working with business-range equipment,” Ooi explains.
Before Rentwise selects a particular unit for mass remanufacturing, it puts out trial units with selected clients for three to six months to test and see whether they are suitable for remanufacturing. The clients will test these units out in Rentwise’s internal environment.
“All commercialised solutions are put to the test within Rentwise first before they are introduced to the market. In addition, a complete review of the supply chain is done to ensure all components and parts we decide to use for production are available over a three- to five-year period,” she says.
Ooi adds that all components ultimately selected are tested for durability and performance. “We also promote a fixed lifecycle of three to four years’ use on a rental platform, after which the equipment is returned to us to ensure we close the loop. This is, in essence, what circular computing is all about.”
This business model has been developed slowly through a lot of trial and error. “We learnt not to focus on consumer-grade models and components as these are not as durable, and we have pivoted from simply distributing IT assets to an end-to-end asset management solution, in which we are able to work with clients to support, maintain, track and secure their IT environment through an array of software solutions.”
It solves a major problem with e-waste that is not being properly addressed in Malaysia at the moment. “In 2019 alone, there were some 2.3 million new PCs shipped into Malaysia, according to Euromonitor. So imagine the staggering environmental impact if these carbon ‘monsters’ aren’t circulated back into the chain,” Ooi points out.
To put the problem in context, she says the carbon footprint of 15 laptops is equivalent to that of one automobile. However, the lifespan of the automobile is four times that of the laptop.
She says research suggests that up to 85% of a computer’s carbon footprint is attributed to what happens during production. “So, by remanufacturing, most of the carbon footprint can be shaved off, as more parts are salvaged than disposed of.”
The Department of Environment (DOE) says on its website that the management of e-waste in Malaysia, especially that generated by non-industrial sectors such as household, commercial and institutional, is not properly regulated under present law. “As a consequence, most of the e-waste generated from these sectors end up in improper recycling and disposal through informal channels.”
A recent article quoted the DOE as saying that the e-waste recycling rate in Malaysia is not more than 25%, which means hundreds of thousands of tonnes of e-waste is disposed of in landfills every year. As such, this is a major problem that needs to be addressed from the top.
In the meantime, companies such as Rentwise are taking the initiative to provide intelligent solutions.
One of the major stumbling blocks faced by Rentwise, however, is the perception that a new machine is superior to a remanufactured one. But Ooi concedes that this is less of a problem today than it was when she first started. “Clients today are a lot more IT-savvy and realise that the need to chase the latest and greatest models is overkill for many operating environments.”
While Rentwise does provide new machines to high-end users, she says this has dropped to only 10% of its total users and consists of those who need the latest technology for things like engineering design.
Although Malaysian companies are largely ignorant of the concept of the circular economy (where among things, products are kept in circulation for as long as possible, before being recycled), Rentwise caught on to it.
It now serves more than 200 organisations from a diverse range of industries, and counts Sunway Group, Malindo Air, AIA and Canon among its clients.
“A number of our clients have been with us for a long period of time, some for as long as four refresh cycles, which is almost as long as we have been in business.
“Our strategy has always been to start with small requirements, ensure we understand their needs and environment, before we scale. This has given clients the comfort that we truly want to do a good job and we want them as clients for the long haul,” Ooi says.
This results in more than just repeat business from that particular company. “When someone we deal with moves, they introduce us to their new company.”
Like every other business in Malaysia, Rentwise has been affected by the Covid-19 pandemic but it is not all bad. For instance, she says, Rentwise has seen an uptake in companies looking for short-term rentals.
“We recently signed on a number of large clients, mainly MNCs (multinational corporations), due to the volume of inventory that we carry. We have also been approached by a number of government agencies to assist in providing equipment to enable remote learning. A lot can be done to enable remote learning through a circular computing approach within government agencies themselves,” she points out.
Ooi adds that being a social enterprise, Rentwise has crafted a Digital Learning Empowerment Programme, where it carries out corporate social responsibility initiatives in collaboration with corporate clients. “This has successfully refreshed or equipped a number of schools and NGOs (non-governmental organisations) with much-needed equipment to facilitate their learning capabilities, and we know we can expand this much wider to benefit more schools.”
But while the pandemic has resulted in some new business coming in, it has also paused some of its regular business. “We have seen a halt in some large equipment-refresh projects we were working on, as most users have been working from home and naturally, companies are not too keen to move on these when users are remote.”
Its supply chain has also been affected and it now takes longer to turn shipments around.
But Ooi feels the company has the right business model and is in the right space to take advantage of the demand that has been created by the present circumstances. “We have been seeing a lot of new enquiries and our sales funnel is building naturally as companies move quickly to mobility solutions. We are looking forward to an interesting 2021.”
An inaugural win for Rentwise Sdn Bhd under the Circular Economy Leadership category of the Asia Responsible Enterprise Awards 2020 at the 6th International CSR & Sustainability Summit ICS Summit 2020. The sole Malaysian winner of the category, this award is an affirmation of Rentwise’s relentless commitment and leadership towards remanufacturing for a sustainable environment whilst bridging the digital gap in our younger generation.
This programme honours Asian businesses for championing sustainable and responsible entrepreneurship through leadership, involvement in communities and protection of the environment amongst others.
This year, over 200 submissions across 19 countries were received from organizations across Asia. Winners were determined not just by their efforts and results, but also by such criteria as effective delineation, nexus to the community, identification of needs, measurability, effectiveness of implementation, ability to reach the target audience, impact, leadership involvement, institutionalization and continuity.
The most coveted Economic, Social and Governance (ESG) event in the region – AREA 2020 are supported by, amongst others, United Nations Economic and Social Commission for Asia Pacific (UNESCAP), World Business Council for Sustainable Development (WBCSD), Circular Economy Club, CSRone Taiwan, Global Reporting Initiative (GRI), Ministry of Science, Technology and Innovation Malaysia (MOSTI), National Institute of Entrepreneurship and Innovation (N.I.E.L) Cambodia, Institute for (IGES) Japan, Taiwan Institute for Sustainable Energy and Vietnam Development.
CEO, Ms Leanne Ooi’s acceptance speech:-
Relevant Links:
1. Profile Write Up & Photograph, and Winners Listing in official AREA
A very proud moment indeed to be awarded the winner under the Circular Economy Leadership category at the 6th International CSR & Sustainability Summit and Asia Responsible Enterprise Awards 2020. This program honours Asian businesses for championing sustainable and responsible entrepreneurship through leadership, involvement in communities and protection of the environment amongst others. This award affirms our commitment towards remanufacturing for a cleaner environment and bridging the digital gap in our younger generation.
We are responsible and are witnesses to the destruction and deterioration of the environment. Before conditions become irreversible and irreparable, being a social enterprise, Rentwise adopted the agenda of Digital 2030 as a call to action to drive transformation towards eradicating poverty, quality education, protecting the planet, just to name a few. Digital technology is the critical tool and a bridge that connects the world, to accelerate momentum and to achieve the same goals for a sustainable environment.¹ Technology is evolving continuously. One of the better option of technology that has emerged is the process of remanufacturing.
To reduce IT carbon footprint in Malaysia.
Not many realise that manufacturing of IT desktop and laptop PCs are one of the contributing factors to environmental issues. It has been calculated that the manufacturing of a new computer and monitor requires an approximate 240kg of fossil fuel, 21.8 kg of chemicals and 1.5 tonnes of water (natural resources angle) which is adding to greenhouse gas emissions.²
The current state of the environment is at an alarming stage with the increased levels of greenhouse gas emissions, loss of habitats, depletion of natural resources that is resulting in global warming (incl. Basel Convention:- “ratify to reduce national carbon footprint by 45% by 2030”). Carbon footprint of a newly manufactured laptop and desktop emits 350kg CO2 and 800kg CO2 respectively. Figuratively, 15 laptops generate as much CO2 of a mid-sized car. ³ In 2019, over 2.34 million PCs were shipped to Malaysia of which over 1 million tonnes of e-waste was recorded. We will see a rise in damages which maybe irreversible, in the years to come unless we relook into avenues to decrease such effects with immediate effect.
Remonetise used PCs to reduce cost of ownership and encourage change out at year 4.
With the explosion of new equipment been manufactured worldwide, the market is flooded with used desktop and laptop PCs as the need arises to refresh and upgrade them. Used equipment can be remanufactured to perform as well as its succeeding model. In this context, corporates who normally refresh their equipment after 3-4 years usage are able to monetise on their used equipment through a trusted IT disposition partner to ensure the by-products are ethically disposed.
The emergence of remanufacturing industries will not only give rise to special skilled labour force but, as a sustainable solution that preserves the environment and at the same time, gives cost efficiencies to the user. At that juncture too, a percentage of used computers can be donated for CSR purposes. These donated PCs can be repurposed for usage in schools benefitting thousands of school children in their ICT studies.
To have all SMEs in Malaysia adopt a new-remanufactured hybrid model.
Many businesses have been re-evaluating their processes, cash flow and staff management post Covid-19. Common office workers’ environment only requires productivity applications hence the need for latest/greatest is not warranted. From experience, >80% falls into such type.
An ideal situation is to encourage SMEs adopt remanufactured desktops and laptops pc (which looks and performs like new). These remanufactured equipment are business grade class which is durable and reliable, can be packaged with an end to end solution which includes a minimum of 3 year warranty, software solutions and support services. In essence, a better option as oppose to new non-business grade PCs should affordability be a critical decision-making factor.
To equip all schools with IT infrastructure.
With the latest Malaysian Education Blueprint (2013-2025), the focus is on quality education. ICT integration will enhance and accelerate collaborative learning skills, developing transversal skills that stimulate critical thinking, problem solving and maximise the students’ abilities in active learning and hands-on activities. These are core values that the students need to achieve in an active teaching and learning environment.⁴
The criteria to a successful implementation of an ICT environment is, the infrastructure, the supply of computers and connectivity in all schools throughout the country. Schools in urban areas enjoy such facilities, however, not all. Moreover, the student-computer ratio is high. Many of the computers and infrastructure sponsored during the initial implementation of this programme has seen better days. To obtain replacements or an upgrade to the IT infrastructure such as bandwidth and even technical assistance, is the main challenge. The situation in the rural areas is beyond comprehension with the very basic or outdated or none at all.
Remanufactured desktop and laptop PCs are an inexpensive solution attached with warranty and support would suffice for another 2 cycles (1 cycle is equivalent to approximately 3 years of usage), at the least, without compromising its quality or technology, thus ensuring the future generation acquire the fundamental ICT skills. This process of reusing will result in one of the ways to reducing the ever increasing carbon footprint.
17th September, 2020 marks the beginning of a social impact collaboration journey between Rentwise Sdn Bhd and Medical Awareness Camp Outreach (MACO).
It was discovered during their ongoing “Meal A Day” project for school children in B40 families that these children were deprived of a computer to further their online learning. Hence, their Computer Empowerment Program was initiated to provide individual students with computers.
“No child should be left behind” – As like-minded partners who share the passion and vision to raise the standard of ICT knowledge especially in school going children, priorities are given to needy schools with basic or lack of ICT equipment.
The current pandemic has caused a worldwide disruption of the educational systems leading to a total closure of schools, universities and colleges. Many primary and secondary schools here are not well equipped with computers, needless to say, some are even without basic infrastructure to support these equipment. Children in the B40 group are affected the most as they are not able to afford connectivity in their homes left alone computers. Education virtually becomes a standstill and these children are left behind.
Seeing a potential in their programme that is aligned to the same cause of bridging the national digital learning gap, Rentwise initiated this collaboration effort with MACO with a donation of 100 thin client computers, to be refurbished by their team of PC repair volunteers. This amplifies the beneficiary outreach of Rentwise’s Digital Learning Programme (DLEP) than working alone. Therefore, instead of a one-off stint, Rentwise has also agreed to continually donate partial of its off-lease retired used computers that is estimated to be in the hundreds per annum, benefitting thousands of school children.
About Rentwise
Rentwise Sdn Bhd, is a provider of Green IT infrastructure, certified remanufacturer by MITI and a registered social enterprise with MaGIC. With 19 years in this industry, Rentwise has been innovating to maximise the lifespan of IT equipment by repurposing retired desktop and laptop computers, making them as good as new, if not better, through a process known as remanufacturing.
Corporate and government bodies are welcome to donate computers and to collaborate with Rentwise to play an integral and significant role to bridge the digital divide that Malaysian students suffer from. To find out more, kindly visit www.rentwise.com/category/csr/
About MACO (Perubatan Dan Kesihatan Awam)
Perubatan Dan Kesihatan Awam, also known as Medical Awareness Camp Outreach (MACO), a registered NGO, was set up to provide free medical services to the poor by a group of specialist and volunteers in Jan 2015. They have since conducted more than 20 medical camps for urban poor communities. Funding these activities are through donations. They recently launched a Computer Empowerment Program to provide refurbished computers to children from families of lower income group to learn online.
Improving IT skills of children has been one of the core passion of Rentwise. Since 2009, through our CSR initiatives and in collaboration with corporates, we have refreshed and deployed remanufactured computers to needy schools and NGOs benefiting over 20 thousand children. As quoted by our CEO, Ms Leanne Ooi “ Education is the way out of poverty”. Reach out to us to continue this effort for a joint CSR initiative to ensure no child is left behind.
