API FORUM (21 March 2013) · PDF fileAPI FORUM (21st March 2013) ... Offshore Operations...
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API FORUM (21 st March 2013) MIDA 1
Transcript of API FORUM (21 March 2013) · PDF fileAPI FORUM (21st March 2013) ... Offshore Operations...
API FORUM (21st March 2013)
MIDA
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About MIDA
Oil & Gas Industry in Malaysia
Business & Investment Opportunities
Incentives for Investment
Domestic Investment Strategic Fund
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First point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia
Government's principal agency for the promotion of the manufacturing and services sectors in Malaysia
Assists companies which intend to invest in the manufacturing and services sectors, as well as facilitates the implementation of their projects
Provides information on the opportunities for investments, as well as facilitating companies which are looking for joint venture partners
Evaluates the applications for projects in the manufacturing and its related services sectors (Manufacturing Licence, tax incentive, expatriate post, import duty & sales tax exemption
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1963 - FIDA
1978 – One
Stop Agency
1979 - MIDA
1988 – Centre
of Investment
2004 – Extend
to Services
sector
2010 -
Empowerment
FIDA
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PROMOTION
•Foreign Direct Investment
•Domestic Investment
•Business matching through E-
Connect
•Manufacturing & Services
EVALUATION
•Manufacturing licenses
•Tax incentives
•Expatriate posts
•Duty exemption
•Regional establishment status
PLANNING
•Planning for industrial development
•Recommend policies and strategies on industrial promotion and development
•Formulation of strategies, programmes and initiatives for international economic cooperation
FOLLOW UP & MONITORING
•Assist companies in the implementation and operation of their projects
•Facilitate exchange & co-ordination among institutions engaged in or connected with industrial development
•Advisory Services
Exploration,
Development &
Production
CRUDE OIL
Refining
Petroleum
Products
NATURAL GAS
Processing
Petrochemical
Plant
LPG
PGU System
Liquefaction
LNG
Regassification
Terminal
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UPSTREAM
MIDSTREAM
DOWNSTREAM
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EXPLORATION
DEVELOPMENT
PRODUCTION
SUPPORTING
Environmental & Positional Survey Geological & Reservoir Geophysical Services
Engineering Design Drilling Pipeline Construction Facilities Construction Fabrication / Manufacturing
Marine Operations Offshore Operations Refineries / Gas Processing Petrochemical Plants
Repairs & Maintenance Health, Safety & Environment and Security Tank Terminal Supply Base Underwater Services
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Enhanced oil recovery activities
Development of marginal / mature fields
Development of high carbon dioxide gas /
deepwater / high pressure high temperature
fields
Repairs, maintenance and overhaul activities
Infrastructure projects for petroleum operations
(e.g. supply base, terminals)
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MANUFACTURING SERVICES
UPSTREAM - Exploration, development & production of oil & gas
• Chemicals • Containers • Drilling equipment &
materials • Electrical, instrumentation
& mechanical • Insulations • Linepipes • Marine Vessel • Risers / flowlines • Safety & protection system • Structural • Subsea • Valves
• Structural maintenance • Engineering, repairs and
maintenance • Engineering design • Environmental & positional
survey • Geological & reservoir • Health, safety, environment
& security • Marine support • Offshore facilities • Pipeline services • Production, drilling &
workover services • Tank / tank farms • Underwater services
MIDSTREAM – Crude oil refinery, gas processing & liquefaction
DOWNSTREAM - Petrochemicals plant & regassification terminal
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• Income tax exemption of 70-100% for a period of 5-10
years PIONEER STATUS
• 60-100% on qualifying capital expenditure incurred within
5-10 years can be offset against 70-100% of the statutory
income
INVESTMENT
TAX
ALLOWANCE
• Full exemption from import duty / sales tax on raw
materials/components and machinery & equipment
IMPORT DUTY &
SALES TAX
EXEMPTION
• 60% on the qualifying capital expenditure incurred for the
reinvestment can be offset against 70% of the statutory
income
REINVESTMENT
ALLOWANCE
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In July 2012. YAB PM announced five initiatives to promote direct domestic investment:
Domestic Investment Strategic Fund
Incentives for Acquiring a Foreign Company for High Technology
Incentives for Small Scale Companies
Incentives for Companies in Production (Desirous Issue)
Incentives for Merger Among Malaysian Services Providers
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The fund aims to:
Harness and leverage on
outsourcing opportunities
created by MNCs operating in
Malaysia
Intensify technology acquisition
by Malaysian-owned companies
Enable Malaysian-owned
companies to obtain
international
standards/certifications in
strategic industries
To accelerate the shift of Malaysia-owned
companies in targeted industries to high
value-added, high technology, knowledge-
intensive and innovation-based industries
RM1
billion
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MATCHING
GRANT
(1:1)
Training of
Malaysians
R&D activities
carried out in
Malaysia
Obtaining
international
standards /
certification
Licensing or
purchase of
new / high
technology
Modernisation
and
upgrading of
facilities and
tools
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MECHANISM The fund does not offer an outright grant and is contingent
on the investments of the applicants
Matching grants (1:1) on reimbursable basis
To be granted on a negotiable basis based on the request of
the companies and the merits of each case
Provided under the Customised Incentive Scheme, Section
127, Income Tax Act 1967
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ELIGIBILITY
CRITERIA Incorporated under the Companies Act, 1965
New and existing companies in the manufacturing and
services sectors with Malaysian equity ownership of at least
60%
Companies producing promoted products / engaged in
promoted activities in the following priority sectors
Aerospace Medical Devices Pharmaceuticals Advanced
Electronics
Machinery &
Equipment
Renewable
Energy Services
Others (on case
by case basis)
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Effective
Date of
Application
Application received on or after 3rd July 2012 are
eligible to be considered for this incentive
Submission The application shall be submitted to the relevant
Division in MIDA (based on products / services
undertaken by the company).
