BUSINESS AND INVESTMENT OPPORTUNITIES IN MALAYSIA

Investment Approach

QUALITY INVESTMENT

Quality Investment (FDI & DDI)

Strong Linkages with Domestic

Industries

Completing the

ecosystem

Capital Intensive

High Value Added

Utilization of natural

resources Green &

Clean Technology

Skills Intensive

High Income Jobs

Iconic/ Pioneer Project

High Technology &

Knowledge Intensive

Industries manufacturing intermediate goods:

Resourced-based industries:

• Alternative Energy Sources

• Biotechnology

• Advanced materials

• Advanced electronics

• Optics and photonics

• Petrochemicals

• Pharmaceuticals

• Medical devices

• ICT

• Aerospace

• Oil & Gas • Food & Agro based • Value-added products from natural resources

• Machinery & equipment • Components & parts • Moulds and dies

High technology, capital intensive & knowledge driven industries:

PROMOTED ACTIVITIES IN THE MANUFACTURING SECTOR

PROMOTED ACTIVITIES IN THE SERVICES SECTOR

Regional Establishments Operational Headquarters (OHQ) International Procurement Centre (IPC)

Regional Distribution Centre (RDC)

Logistics

Integrated Logistics Services Cold Chain Facilities

Tourism Hotel Tourist project Recreational camp Convention centre

PROMOTED ACTIVITIES IN THE SERVICES SECTOR

ELECTRONICS INDUSTRY IN

MALAYSIA

Simple components, semiconductor parts assembly and SKD electrical products

Consumer electronics parts to full assembly

Office & computer equipment (inc. hard disk drive and hard disks)

Higher value-added products/activities

- R&D

- IC & System Design

- Wafer fab,

- Ingot growing

- Low volume, high complexity and high mixed products (e.g: test instrument, medical, aerospace),

- Digital consumer goods (e.g blu-ray player, HDTV-LED flatscreen, e-book)

EVOLUTION OF ELECTRONICS INDUSTRY

2010

1990

1980

1970

Started in 1970’s with 7 companies

Consumer : Clarion and Bosch

Components : AMD, HP, Intel, Litronix and

National Semiconductor

Future

Fablite

Fabless

Miniaturization

Flexible electronics

Electric Vehicle (EV)

Laser Video Display

Cryogenic

SMART Electronics

-Labour Intensive

- Low Technology Products

- Low value added

-Capital Intensive

- Knowledge Based

- Hi-Tech

- High Value Added

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

Semiconductor Ecosystem

Global or

Reg

HQ

R&D,

Design

Mfg (core

components,

device)

Assembly,

Packaging,

Testing

Sales,

Distrib,

Service

Wafer

Fabrication

Wafer

Processing

Semiconductor

players

operating in

Malaysia

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

Solar Ecosystem

Solar Wafer/

Cells Solar Modules System Integrator

Major

Solar PV

players

operating

in

Malaysia

Polysilicon /

Ingot

Helios Photovoltaic

Raniden Solar

Ultimate Machining Solutions

Supporting

Companies

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

LED Ecosystem

SSL

Value chain

Materials,

Substrates Packaging

& testing

Epitaxy,

wafering SSL systems

integration

Wafer

fabs

Process and

Activity Raw materials

(slicing, polishing) Coating of

wafers

Etching of

wafers,

metalization,

lithography

Bonding of

integrated circuits

to substrates,

encapsulation…

Development of SSL

components (e.g.

thermal, optics) and

applications

Companies

In Malaysia

Supporting

Companies

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

MNC’s In The Electronics Industry With

Foreign Participation

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

WAFER

FABRICATION

SEMICONDUCTOR

LED

ISO TECHNOLOGY

IC DESIGN

‘Home Grown Companies’

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

Malaysia’s Electronics Clusters

Melaka

Johor

Selangor /

KL

Perak

Negeri

Sembilan

Kedah

Semiconductor Front End

Silterra Hamada Infineon

Semiconductor Back End

AIC Intel Fuji

System / Module / Device

Sharp Fuji Akrion

Applied Materials ASML

KLA Tencor Asyst

Celestica Metex Wong

Equipment

Sharp Onkyo Aviza

Axcelis Intevac Varian

Lam Research QT Tech

Semiconductor Front End

S.E.H. MEMC

Semiconductor Back End

Freescale TI Toshiba

Spansion ChipPack NEC

System / Module / Device

Sensata Flextronic Nichia

ChungHua

Equipment

WD Epson Samsung

Panasonic Sony Flextronics

Hitachi Sharp Onkyo

Canon

Semiconductor Back End

ST Micro ST Memory

System / Module / Device

Seagate Mitsui Mitsutoyo

Nemic-Lamda PCA Tech

Ronnie Hokuden FCI

WD Media Pioneer

Equipment

Brother Celestica Sharp

Flextronics Kenwood Sanyo

Mitsubishi Panasonic Podoyo

Mitsumi Seiko

Semiconductor Back End

Carsem Unisem IDS

System / Module / Device

Murata

Semiconductor Back End

On Semi NXP

System / Module / Device

Alps TDK NHK

Equipment

Samsung Xyratex

Semiconductor Back End

Intel AMD Linear

Spansion Marvell Globetronic

Osram Lumileds Altera

IDT Avago ASE

Fairchild Renesas Sumitomo

System / Module / Device

Seagate Plexus Knowles

Smart Mo Molex Jabil

Sanmina Kontron Flextronic

Amphenol WD Media

Equipment

Dell Solectron VDO

Agilent Sanyo LKT

Inventec Ben-Q Pentamaster

Clarion Bosch Vitrox

Penang

Semiconductor Back End

Infineon

Dominant NS

System / Module / Device

TEAC Qualitek

Muhlbeuer Flextronic

Equipment

Panasonic Cubic

Through its strategic initiatives, the Government has created distinct electronics manufacturing clusters which comprise an “eco-system” of semiconductor and components / equipment manufacturers.

Semiconductor Front End

X-Fab

System / Module / Device

Taiyo Yuden Toko

Sanmina HGST

Sarawak

1. Semiconductor

• Front-end activities

- Polysilicon, Ingots, Silicon wafers

- Wafer fabrication

- IC Design

• Back-end activities

- Assembly and testing of semiconductor devices

• Support Services

- Burn-in testing, Wafer probing and testing, Testing of

Semiconductor, Test board.

• Direct Materials

- Ceramic and Organic Substrates, Bonding Wire, Moulding

compound, Leadframe

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

Electronics Industry : Promoted Growth Areas

2. High Brightness Light Emitting Diode (HBLED)

• Front-end activities

– Wafer fabrication

• Back-end activities

– HBLED Assembly and Testing

• Direct Materials

– Semiconductor materials

– Substrates

• Lighting Solutions

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

Electronics Industry : Promoted Growth Areas

• Malaysia has achieved some success as a design center for

integrated circuit (IC), with a mix of MNC IC Design centers as well

domestic IC Design firms.

• Currently there are 26 Companies registered as IC Design House in

Malaysia, such as:

• Key Asic

• Marvell

• Qdos Technology

• SYMMID

• Altera Corporation

• BCT Technology

• SiRES Lab

• Emerald Microsystem

• Renesas Semiconductor Design

• MyMs

IC Design House

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

Wafer Fab

• Pure-play

– Silterra – ASIC devices for communication and networking applications

– X-Fab – ASIC devices for communication and networking applications

– MIMOS – RF and MEMS devices applications

• Integrated Device Manufacturer (IDM) – Infineon Technology Kulim – Power logic devices

(automotive) – Fuji Electric Semiconductor – Power semiconductor

devices for IGBT – OSRAM Opto – LED applications – SCG Industries – automotive and communications

applications

M A L A Y S I A N I N V E S T M E N T D E V E L O P M E N T A U T H O R I T Y

MILESTONES

MEDICAL DEVICE INDUSTRY IN MALAYSIA

MALAYSIA’S ENERGY VISION

ESTABLISHMENT OF 12 NATIONAL KEY ECONOMIC AREAS (NKEAs)

NKEAs selected which can

materially impact economic growth

Greater KL

Agriculture

Palm oil

Comms Content Infrastructure

Education

Electrical & electronics

Oil, gas & energy

Tourism Wholesale and retail

Financial services

Business services

Healthcare

MALAYSIA’S ENERGY VISION MEDICAL DEVICES ENTRY POINT PROJECTS (EPPs)

Medical Devices

Single-Use Devices (SUD)

Medical Devices Contract

Manufacturing

Malaysian Clinical Devices

Champions

Contract Manufacturing Supply Chain

Medical Equipment

Refurbishment Hub

Medical Hardware/ Furniture Cluster

In-Vitro Diagnostics

(IVD) Market

MALAYSIA’S ENERGY VISION Medical Device Companies in Operation

Total: 190 companies in Malaysia (manufacturing, distribution, sales) Source : AMMI

MALAYSIA’S ENERGY VISION Major Foreign Medical Device Companies in Malaysia

MALAYSIA’S ENERGY VISION Medical Device Industry Ecosystem

Consumables Implants &

Surgical Instruments Healthcare Equipment

Technology Latex/ Plastic

Metal Machining Electronics Furniture

Certification Packaging Testing Industry Group

Education Training Regulatory

Products

Companies

Medical Gloves, Contraceptives,

Catheters, woundcare,

Opthalmology, IVD, SUD

Pacemakers, Orthopedics,

Surgical instruments

Electronic Modules

Life Science Instruments

Electrodes, Hospital beds

Sterilization

Supporting Infrastructure

Machinery & Engineering Supporting Industry

Electronic Manufacturing

Services

Medical Compounds

Clinical Research Center

MALAYSIA’S ENERGY VISION

Business Opportunities: Malaysia as a Medical Device Hub in Asia

MEDICAL

DEVICES

Electromedical

equipment

Cardiovascular

devices

Orthopaedic

devices

In-vitro

diagnostic

products

Wound care

products

Contract

Manufacturing

Research/Design

& Development

AEROSPACE INDUSTRY IN MALAYSIA

APPROVED AEROSPACE PROJECTS

Year No. Domestic

Investment

(USD Mill)

Foreign

Investment

(USD Mill)

Total

Investment

(USD Mill)

2008 7 90.8 234.3 325.1

2009 5 128.5 52.5 181.0

2010 5 297.6 9.9 307.5

2011 7 21.2 92.7 113.8

2012 11 468.5 301.6 770.2

Malaysian Aerospace Industry

Key organisations playing vital roles in developing local aerospace industry

Malaysian Aerospace Council

Development is guided by the Aerospace Industry Blueprint launched in 1997 – Malaysia a global player by 2015

Malaysian Aerospace Council (MAC)

Malaysia Aerospace Council

National level steering body for aerospace industry

Chairman - Prime Minister

Deputy Chairman – Deputy Prime Minister

Members - 6 x Cabinet Ministers; Heads of Government Agencies; Captains of Industry

Objectives

Provide vision, direction and overall development plan

Establish policies/guidelines and identify priority areas

Think-tank for procurement of technology

established in 2001 – one of the key recommendations in the National Aerospace Blueprint

MALAYSIAN AEROSPACE INDUSTRY ROADMAP

Source: MIGHT

Aerostructure

Avionics

Engine

In promoting the development of the aerospace industry, specific aerospace hubs were established

Malaysia International Aerospace Centre (MIAC), Subang

Launched in 2005, to strengthen Malaysia’s position to capture growing MRO business

MRO, GA Center, Aerospace Training Centre, Helicopter Center, Aero Tech Park

Senai Aviation Park - A strategic cluster of aviation-related in Iskandar Malaysia

Commenced in July 2007 - targeting Aircraft manufacturers, MROs & GA

Composite Technology City, Malacca

Established in early 90s as an effort to lead the development of Composite Technology

Products are produced for Aerospace, Construction, Maritime & Defence industries

Aerospace Ecosystem - Manufacturing

Parts Manufacturing

Aerospace Companies

Operating in Malaysia

R&D, Design

Supporting Companies

(Aviatron & Meerkat)

EUROALA

Parts Assembly

Policies & Regulations • National Aerospace Blueprint

Aerospace

Value Chain

Domestic Companies

Aerospace Ecosystem - MRO

Engines Components

MRO Companies

Operating in Malaysia

Airframes

Supporting Companies

Airframes Engines Components Aerospace

Value Chain

Domestic Companies

AIROD TURBO

MILESTONES

Machinery and Equipment Sector

Machinery & Equipment and Advanced Engineering

Industry Snapshot – Malaysia (2012)

Production USD10.87 billion*

Exports USD8.4 billion#

Imports USD17.6 billion# Companies

M&E (1031) , ESI (1004)

2,077

Employees 133,859

* Source from Frost and Sullivan at 2008 with consideration of 5% growth # Matrade

M&E

ESI

Sectors

Manufacturing Services Primary

1. Specialised / Process M&E 2. Metal Working M&E 3. General M&E, Modules &

Components 4. Power Generating

1. Mould & Die 2. Forging 3. Machining 4. Surface Engineering 5. Stamping 6. Heat Treatment 7. Casting

4 main categories

Activities/services

MALAYSIA’S ENERGY VISION COMPANIES IN PRODUCTION M&E AS AT 2012

Specialised/ process M&E,

425

Metal Working M&E, 27

Power Generating, 51

General M&E, 528

M&E

Total companies: 1,031

INVESTMENT OPPORTUNITIES IN M&E & ESI

Engineering Supporting Industries –

Solution for Hi-Tech

Manufacturing

Hi Tech M&E

Customized M&E

Targeted Sectors

• Oil & Gas • Semiconductor

Processing • Food & Beverage • Agricultural • Plastic Processing

• Robotics & Automation

• Metalworking Machinery

• Packaging Machinery

• Material Handling Equipment

• Forging • Casting • Machining • Surface Engineering • Heat Treatment • Stamping • Mould, tool & die

I. Moving towards high technology and high value added M&E manufacturing II. Promoting Malaysia as the strategic and cost effective destination for

manufacturing solutions and outsourcing

Oil & Gas Eco-System

Wellhead FPSO SpecialisedM&E

: Exotic Materials, Forging (1), Machining (10) & Surface Engineering (3)

Exploration Appraisal Production Fabrication MRO Abandonm

ent Stages/ Cycle

Jacket Process Module

Topside

– UM, USM, UPM, UKM, UTM, UTP , GMI, NCMTT, ADTECH, INSTEP, Free zone Supply Base

Surveying (Land and Sea Seismic

Equipment)

X-mas Tree,

Umbilical Flexible pipes

Valves

M&E for Services Pigging

Turbo M&E

MNCs with presence in

Mlaysia

Drilling

Down-hole tools

ROV

Research, Training &

Infra

Supporting Services

Solar Alert

Clients PSCs (Production Sharing Contract)

E&E Industry Cluster (Semiconductor processes)

Wafer Processing Wafer Fabrication

TPM, Kulim High Tech, Sirim, PSDC, UTM, USM, UM

Total engineering solutions for high precision – Frencken , Kobay , UMS Group

Automatic Test Equipment (ATE) ,

Back-end processing

Epitaxial Deposition Etching Equipment

PVD, CVD Laser Lithography

Crystal Growth

Slicing & Polishng

Wafer Testing

& Dicing

Assembly &

Packaging (Back-end)

Process

Equipment

Companies

Supporting Services/ Facilities

Research, Training &

Infra

Furnace Crystal Puller

Diamond Wire Saw

Edge Grinding Wafer Polisher

Back-end processes

Photolithography

Etching & Metallisation

Clients

Silterra X-Fab Infineon On Semiconductor Fuji Electric MEMC Tech Intel Infineon Linear Tech. Carsem Unisem ASE Freescale Semiconductor NXP Texas Instrument

Cleanroom Class 1 to 100

Engineering Supporting Services

MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES

Sectors Background Capability Opportunities

1. Mould & Die Established since

1970s

About 400 industry

players

Precision specifications

by international

semiconductor industry

requirements

End-user industry :

Automotive, E&E

High precision mould

and dies for E&E

industry

Large moulds (>10MT)

for automotive and

plastic industries

2. Metal

Casting

About 70 foundries Mass production high-

pressure and low-

pressure die casting

End-user industry :

Automotive,

telecommunication

Large component casting

Custom-made

sandcasting

3. Machining About 170 industry

players

Precision up to 1µ and

size up to 2 mtr

End-user industry :

Semiconductor, E&E,

aerospace, oil & gas

Multi axis/ ultra precision

free form machining

Laser machining

Ceramic grinding

MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES

Sectors Background Capability Opportunities

4. Metal Stamping About 300 industry

players

Precision tolerances

less than 1m, presses

capacity up to 600 tons

End-user industry : E&E,

automotive

Established

5. Surface

Engineering

40 industry players

80% are foreign-

owned or joint-

ventures

Electroplating,

Phosphating, Anodizing

End-user industry :

semiconductor, E&E and

automotive

Services for the oil &

gas, aerospace,

biomedical,

optoelectronics and

photonics industries

6. Heat Treatment 20 industry players Carburizing, nitriding,

vacuum handling,

quenching, annealing,

normalizing, tempering

End-user industry :

Automotive, shipyard,

cement, aluminium

extrusion

Services for the

aerospace, military,

medical, oil and marine

industries

MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES

Sectors Background Capability Opportunities

7. Forging 7 industry players Mostly small parts (less

than 10MT)

Open, drop, press, roll

and cold forging

End-user industry :

Automotive, E&E

Large forgings for the

oil & gas industry

8. Metal

Fabrication

Well established

Over 2,000 industry

players

Simple household items

to steel structure for

skyscrapers and

offshore oil drilling

platform

Electron beam/ laser

welding

• Consistent quality of production and on-time delivery

• Lower cost for high technology products

• High volume, low mix demand for the electrical & electronics, telecommunications and automotive industries

• Low volume, high mix niche products for the medical, machinery & equipment, oil & gas and aerospace industry

• IP protection, laws and regulations

• Financial incentives and operational support

Competitive Edge

• Engineering supporting industry (more than 1,000 cos.)

• Metal fabrication (well established)

• Semiconductor/ electronics components

• Silicon wafer, Wafer fab, IC packaging and testing, IC design house, PCB, PCBA, LED, Other passive components (about 380 cos.)

• Plastic components (480 cos.)

• Rubber components (180 cos.)

Sourcing Capabilities

• Design centres

• Technical facilities

• Specialized colleges

• Research institutions

Infrastructure

MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER