MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 1 DOING BUSINESS...

Malaysian Industrial Development Authority 11

MALAYSIA – Your Profit Centre In Asia

DOING BUSINESS IN MALAYSIA

Your Profit Centre in Asia

S.Siva - Director MIDA Germany



Malaysia’sRanking



Deutsche Bank Research 2006

Second, after India, as Asia's "growth stars" for the 2006-2020

with China in third position.

A.T.Kearney – Annual Global Services

Location Index, 2007

One of the top 3 countries for Offshore Location Centres

and Outsourcing



Why Malaysia?



• Political and Economic Stability• Strong Government Support• Liberal Investment Policies• Transparent Policies• Security of Intellectual Property• Well Developed Infrastructure• Excellent Financial Institutions• Strong Supporting Industries• English Speaking Workforce (Educated,

Trainable and Multi Racial)• Quality of Life • Good Track Record• Member of ASEAN



Images ofMalaysia

Seeing is believing


MALAYSIA – Your Profit Centre In AsiaLocation

1. In the very heart of South East Asia2. Between India and China3. Borders 5 countries (Thailand, Singapore,

Indonesia, Brunei and Philippines)



The City – Kuala Lumpur (KL)


MALAYSIA – Your Profit Centre In AsiaPutrajayaGovernment’s New Administrative Centre



MALAYSIA Investment

Opportunitiesin SelectedIndustries

The People (…the young ones)



Malaysia truly Asia

…and the not so young ones

Multi racial and multi cultural



ForeignInvestment



2,53,3

2,8

3,84,3

7

3,9

0

1

2

3

4

5

6

7

2001 2002 2003 2004 2005 2006 2007

Foreign Investment In Approved Manufacturing Projects (Euro Billion)

(Euro Bil.)



Country No. FDI (Euro)

Japan 60 1,358,904,008

Germany 26 782,666,686

Iran 3 639,116,617

USA 33 629,162,726

Singapore 108 615,036,659

India 8 609,107,804

China 13 392,331,657

Netherlands 9 352,169,835

Major Investors in 2007



Major ForeignCompanies From

Europe



In 2007For the Very First Time

A Project from Czech Republic

Spolchemie



Promoted Sectors



ManufacturingHigh technology, capital intensive and knowledge driven industries:

• Machinery and Equipments• Biotechnology• Advanced electronics• Optics and photonics• Photovoltaic • Wireless and display technology• Chemical• Petrochemical• Pharmaceutical• Medical devices• ICT



Services

• Operational Headquarters (OHQ)• Regional Distribution Centre (RDC)• International Procurement Centre (IPC)• Regional Office (RO)• Representative Office (RE)



Incentives Offered



Manufacturing Sector

• Full income tax exemption for a period up to 10 years; or

• 100% Investment Tax Allowance (ITA) for 5 years to be offset against 100% of statutory income.

• Reinvestment Allowance of 60% for a period of 15 years (For reinvestment).

• Customised Incentives - granted on request of the company and the merits of each case. Negotiable.



Facilities

Exemption from import duty and sales tax on raw materials/components

Exemption from import duty and sales tax on production machinery and equipment

Free Zone (FZ) / License Manufacturing Warehouse (LMW)

Free Commercial / Industrial Zone



Services Sector(OHQ, IPC & RDC)

Full income tax exemption for 10 years



InvestmentPolicies



• Foreigners are allowed to hold 100% equity ownership in the manufacturing and related services sectors.

Equity Ownership



Employment of Expatriates

• Foreign companies are allowed to bring in expatriate personnel to hold

- key posts (posts that are permanently filled by foreigners)

- term posts (posts that are filled by foreigners for a period of 1-5 years)



• Project Implementation Coordination Unit (PICU) in MIDA HQ will monitor and render assistance to expedite the implementation of approved manufacturing and services projects.

• MIDA State Directors are appointed to ‘hand-hold’ and assist investors in obtaining all necessary approvals until projects are operational.

Implementation of Projects



Whom to Contact?



• MIDA is the first point of contact for investors who intend to set up projects in the manufacturing and related services sectors in Malaysia.

• The principal agency responsible for the promotion and coordination of industrial development in the country.

MIDA Malaysian Industrial Development Authority



Services Provided by MIDA (Free of Charge) Services (Initial Stage)• Briefing by MIDA HQ• Meetings with State Authorities• Business matching with Malaysian companies • Visit to companies/suppliers• Visit to potential location

Evaluating & Granting Approval

• Manufacturing License• Tax Incentives• Expatriate Posts• Import Duty Exemptions

Project Implementation Stage• Handhold and assist investor until project is implemented



COLOGNE

MIDA, 6th Floor, Rolex Haus, Dompropst-Ketzer. 1-9, D 50667 Cologne

Tel:0049 (0) 221124008 Email: [email protected]

MIDA’s Worldwide Network



Thank you for your kind attention

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 1 DOING BUSINESS...

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