Investment Opportunities In Malaysia - · PDF fileInvestment Opportunities In Malaysia . 2...

Investment Opportunities In

Malaysia

2 Invest in Malaysia > Your Profit Centre in Asia

CONTENT OUTLINE

• The Aerospace Industry: Global & Regional Outlook

• Aerospace Industry In Malaysia

• Investment Policies & Incentives

• About MIDA

3 Invest in Malaysia > Your Profit Centre in Asia 3

THE AEROSPACE INDUSTRY: GLOBAL & REGIONAL OUTLOOK


Airlines will need nearly 36,800 new airplanes

valued at USD5.2 trillion


Market for new airplanes to become even more

geographically balanced


Air travel growth varies by market


MRO Market Forecast _____________________________________________________________________________________________________

Global MRO market will grow at 3.9% in the next 10 years.

Asia Pacific is projected to grow at 5.7% CAGR in the next 10 years and

will be the largest MRO region by value ($23.14 bil.) by 2022.

Source : Frost & Sullivan


ASIAN AVIATION MARKET _____________________________________________________________________________________________________

Economy

- GDP to grow 4.7% per year over next 20 years, above world average growth rate of 3.3%

- Asia’s share of world’s GDP to expand from 27% to 35% by 2030.

Air Travel

- Traffic to grow 6.7% per year over next 20 years, world traffic growth at 5.1% per year

- Shorter-haul flying, including domestic and inter-regional travel, to grow at 7.0% per year

- One-half of world’s new traffic added during next 20 years will be to, from, or within Asia


Why ASEAN Region ?

› Potential market of over 600 million

› Combined GDP of USD3 trillion, as of 2014

› Already zero tariffs for 99% of products

› ASEAN Economic Community and Single market by 2015

• Free flow of goods; • Free flow of services;

• Free flow of investment; • Freer flow of capital; and • Skilled labor.

China Chile Korea Japan India Australia New Zealand Turkey

Potential market of 2.7 billion

Tariff reduction and elimination mostly by 2016

TPP EU

On-Going

FTA Negotiations

ASEAN Single Aviation Market

by 2015

AEROSPACE INDUSTRY

IN MALAYSIA

11 Invest in Malaysia > Your Profit Centre in Asia 11

MALAYSIA AEROSPACE INDUSTRY

Promoted Activity

Identified as a new source of growth for Malaysian Economy

Supported by :

1st Malaysia Aerospace Industry Blueprint (1997 – 2014)

2nd Malaysia Aerospace Industry Blueprint (2015 – 2030)

Economic Transformation Program


MALAYSIA AEROSPACE INDUSTRY BLUEPRINT (1997 – 2014)


MALAYSIA AEROSPACE INDUSTRY BLUEPRINT (2015-2030)

Incentive package for the aerospace industry 2015-2030

Entry Point Projects under the Economic Transformation Program

Migration of aircraft maintenance licensing systems to EASA Part 66

Aerospace Malaysia Innovation Centre


AEROSPACE ECOSYSTEM - MANUFACTURING

(Senior PLC)

(Senior PLC)


AEROSPACE ECOSYSTEM - MRO

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&docid=ypsLj0S2pSMhgM&tbnid=hGuCntApiqRdeM&ved=0CAgQjRw&url=http://www.airbus.com/presscentre/corporate-information/logo-downloads/&ei=UJcqU5OxOYaYrAfv6YC4Dw&psig=AFQjCNH-ZCbY5dSrmbv16iBaolsu0YkhaQ&ust=1395386577039263

http://www.srtechnics.com/

http://www.ruag.com/


Approved Investment In The Aerospace Industry

Year Project Investment (RM) mil Total (RM)

mil Foreign Domestic

2009 5 159.9 392.0 551.0

2010 4 907.8 30.2 938.0

2011 7 282.6 64.6 347.2

2012 11 1,440.0 860.0 2,300.0

2013 6 196.7 190.6 387.3

2014 7 187.0 495.0 682.0

Total 40 3,174.0 2,032.4 5,205.5


Today, aerospace industry has grown and contributed to the nation’s high income agenda

CURRENT STATUS

Variables Year 2014 RM Bil

Revenue 11.8

Investment 4.7

Export 2.9

Import 15.1

No. of companies 159

Employment 19,500

Source: MIGHT Analysis

Industry Revenue Contribution (2009 – 2015f)


Attract Tier-1 and Tier-2 Aerospace

companies

Nurturing Malaysian companies to

become vendors/suppliers to MNCs

Incentives / DISF

Human Capital Development

Public-Private Partnerships

Obtaining certifications and standards

for Malaysian companies

STRATEGIES TO DEVELOP THE AEROSPACE INDUSTRY


INVESTMENT POLICIES AND INCENTIVES


Repatriation of Funds

Foreign Equity

INVESTMENT POLICIES


Pioneer Status

Income tax exemption ranging from 70% or 100% for a period

of 5 or 10 years

Investment Tax Allowance

60% or 100% on qualifying capital expenditure for 5 years

Reinvestment Allowance

60% on qualifying capital expenditure for 15 consecutive years

Import Duty Exemption

For raw materials/components and Machinery and Equipment

Incentives

MAJOR INCENTIVES PROVIDED


ABOUT


MALAYSIA PRODUCTIVITY CORPORATION

MITI & AGENCIES

23


FUNCTIONS OF MIDA

Promotion

Evaluation

Planning

Follow-up / Monitoring

Foreign Direct Investment Domestic Investment Business matching through E-Connect Manufacturing Services

Manufacturing licenses Tax incentives Expatriate posts Duty exemption Principal Hub and R&D status

Planning for industrial development Recommend policies and strategies on industrial

promotion and development Formulation of strategies, programmes and initiatives for international economic cooperation

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


MIDA as a One Stop Agency : a) Advisory & consultancy b) Approval of projects c) After- care services

Under the National Committee on Investment (NCI)

Evaluation of applications for: • Manufacturing license • Tax incentives • Import duty exemptions on raw

materials, components and machinery • Expatriate posts/work permits • Regional establishments such as Operational Headquarters,

International Procurement Centres, etc

FACILITATION OF INVESTMENT

Tokyo

Osaka

Seoul

Taipei

Shanghai

Guangzhou

Malaysia

Singapore

Sydney

Mumbai

Dubai

Stockholm

Frankfurt

Munich

Milan

Paris

London

Boston

New York

Chicago San Jose

Los Angeles

Houston

23 Overseas Centres

Beijing

Please visit us at www.mida.gov.my [email protected]

27

Investment Opportunities In Malaysia - · PDF fileInvestment Opportunities In Malaysia . 2...

Documents

Transcript of Investment Opportunities In Malaysia - · PDF fileInvestment Opportunities In Malaysia . 2...