Prospect & Opportunities in Malaysia · Greater KL Agriculture Palm oil Comms Content...

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8th NOV 2010

Prospect & Opportunities in Malaysia

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MALAYSIAN ECONOMY

MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY

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GDP GROWTH IN MALAYSIA

Source : Economic Reports/Bank Negara Annual Report, Malaysia 09/10

• Malaysia’s GDP is expected to grow at 7% in

2010

• First Quarter growth : 10.1%

• Second Quarter growth : 8.9%

• Expected annual growth up to 2020 : 6 %

RECENT ECONOMIC

DEVELOPMENT

4Source: Economic Planning Unit, Malaysia

Smooth implementation of

government’s development programme

New Economic Model – A high income,

inclusive and sustainable nation

Effective delivery of government servicesGovernment Transformation

Programme (GTP)

Economic Transformation Programme (ETP)

10th Malaysia Plan

GOVERNMENT GOVERNMENT INITIATIVES INITIATIVES

5

NEW ECONOMIC MODEL (NEM)NEW ECONOMIC MODEL (NEM)

5Source: National Economic Advisory Council

• Three guiding principles to propel Malaysia forward to become a developed status nation in 10 years:

– high income - per capita income rise from the present US$6,700 (RM23,770) to US$15,000 (RM48,000);

– sustainability – in economic activities and impact of economic development on the environment and natural resources; and

– inclusiveness – no one is left out in contributing to and sharing in the creation of wealth.

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NKEAs selected which can materially

impact economic

growth

Greater KL

Agriculture

Palm oil

Comms Content Infrastructure

Education

Electrical & electronics

Oil, gas & energy

TourismWholesaleand retail

Financialservices

Business services

Healthcare

ESTABLISHMENT OF 12 NATIONAL KEY ECONOMIC AREAS (NKEAs)

Source: Economic Planning Unit, Malaysia

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ECONOMIC TRANSFORMATION ECONOMIC TRANSFORMATION PROGRAMME (ETP)PROGRAMME (ETP)

� 131 Entry Points Projects (EPPs) worth US$ 138 billion

� 60 business opportunities worth US$ 112 billion

� Majority of the investment will come from private

sector

� Creating additional 3.3 million jobs by 2020

Source: Performance Management and Delivery Unit (PEMANDU)

US

D (

bil

lio

n)

US

D (

bil

lio

n)

INVESTMENTS IN

MANUFACTURING &

SERVICES SECTORS

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INVESTMENT IN MANUFACTURING PROJECTS (2006 – August 2010)

• Total Investments : US$ 63.5 Billion

• Number of Projects : 4,330

Source: MIDA

10Source: National Economic Advisory Council

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

E&E Basic Metal Petroleum Chemicals Non-

Metallic

Food Transport Machinery

13,875

12,624

8,545

6,860

2,8922,537

2,002 1,604

US

$ m

illi

on

INVESTMENTS BY INDUSTRY 2006-August 2010

MAJOR SOURCES OF FDIIN MANUFACTURING SECTOR

Source: MIDA

• JAPAN

• USA

• SINGAPORE

• GERMANY

• TAIWAN

• NETHERLANDS

• REPUBLIC OF KOREA

• UNITED KINGDOM

• SPAIN

• INDIA

TRADE WITH AUSTRIATRADE WITH AUSTRIA

1313Source: Malaysia External Trade Development Corporation

MALAYSIA – AUSTRIA TRADE PERFORMANCE (2009)

(2009)In 2009 Total Trading value at USD 0.48 billion.

• Major Export : USD 0.08 billion

• Electrical & Electronic Products

• Machinery, Appliances & Parts

• Textiles & Clothings

• Major Import :USD 0.40 billion

• Electrical & Electronic Products

• Machinery, Appliances & Parts

• Chemicals & Chemical Products

INVESTMENT OPPORTUNITIES IN THE INVESTMENT OPPORTUNITIES IN THE

MANUFACTURING SECTORMANUFACTURING SECTOR

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INVESTMENT OPPORTUNITIES IN THE MANUFACTURING SECTOR

High technology, capital intensiveHigh technology, capital intensive& knowledge driven industries:& knowledge driven industries:

ResourcedResourced--based industriesbased industries::

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

• Oil & Gas •Food Products• Wood-based products• Rubber-based products

•• Electrical & Electronics

• ICT

• Solar Modules (PV)

• Silicon / Polysilicon

• Aerospace

• Petrochemicals

• Pharmaceuticals

• Medical devices

• Biotechnology

•

intermediate intermediate goods: goods:

INVESTMENT OPPORTUNITIES IN THE INVESTMENT OPPORTUNITIES IN THE

SERVICES SECTORSERVICES SECTOR

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� 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

INVESTMENT OPPORTUNITIES INTHE SERVICES SECTOR

Source: Malaysian Industrial Development Authority

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� Environmental Management � Energy conservation/efficiency

� Energy generation, using renewable energy sources

� Storage, treatment and disposal of hazardous waste

� Recycling of agricultural waste and agricultural by-products

� Business Services� Shared services outsourcing

� Research & Development (R&D)

� ICT Services

� Market Support Services

� Central Utility Facilities

� Technical & Laboratory Testing

� Film & Video Production & Post Production

INVESTMENT OPPORTUNITIES ININVESTMENT OPPORTUNITIES INTHE SERVICES SECTORTHE SERVICES SECTOR


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INVESTMENT OPPORTUNITIES INTHE SERVICES SECTOR


� Education

� Technical, Vocational & Science Training

� Healthcare Travel (Medical Tourism)

� Private hospitals

� Wellness Zone

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� Ownership

Manufacturing & selected Services sectors can be wholly foreign-owned

�Capital

Freedom to Repatriate Capital, Interest, Dividents and Profits – No Restrictions

� Liberal Policy on Employment of Expatriates

INVESTMENT POLICIES


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� Pioneer Status (PS)

� Income tax exemption, ranging from 70% to 100% ofstatutory income for a period of 5 to 10 years

� Investment Tax Allowance (ITA)

� ITA of 60% to 100% on qualifying capital expenditurefor a period of 5 to 10 years

� Reinvestment Allowance (RA)

� 60% on qualifying capital expenditure for15 consecutive years commencing from the year thefirst reinvestment is made

MAJOR INCENTIVES


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� CUSTOMISED INCENTIVES

� Strategic Projects :

� To be negotiated with MIDA

MAJOR INCENTIVES


GROWTH CORRIDORSGROWTH CORRIDORS

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MULTIMEDIA SUPER CORRIDOR

� Malaysia is also an important hub for Shared Services, Data Centres, Back Office Operations and Customer Service Centres.

� Malaysia was ranked 3rd most competitive for offshoring and outsourcing activities by A.T Kearney for 4 consecutive years (2006 – 2009).

IRDA : ISKANDAR MALAYSIA

NCER : NORTHERN CORRIDOR ECONOMIC REGION

SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY

ECER : EAST COAST ECONOMIC REGION

SDC : SABAH DEVELOPMENT CORRIDOR

REGIONAL ECONOMIC CORRIDORS IN MALAYSIA

2525

2626

� Tourism related services

� Education services

� Healthcare

� Logistics

� Creative industries

� Financial advisory and consulting services

� Focus on the services sector

as the key economic driver.

Promoted activities are :

� Focus on the services sector

as the key economic driver.

Promoted activities are :

ISKANDAR MALAYSIA

2727

Area of Coverage : 17,816 sq km

� The key Investment Opportunities sectors are :-� Agriculture, � Manufacturing� Tourism & Healthcare � Education & Human capital � Social Development

NORTHERN CORRIDOR ECONOMIC REGION (NCER)

2828

� The key Investment Opportunities sectors are :-� Tourism � Oil, Gas & Petrochemical � Manufacturing � Agriculture� Education

EAST COAST ECONOMIC REGION (NCER)


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� The key Investment Opportunities are :-� Tourism� Logistics� Agriculture� Manufacturing


SABAH DEVELOPMENT CORRIDOR (SDC)

3030

SARAWAK CORRIDOR OF RENEWABLE ENERGY (SCORE)

� The core of the corridor is the energy resources, particularlyhydropower (28,000 MW), coal (1.46 billion tonnes), and naturalgas (40.9 trillion square cubic feet) found abundantly within theCentral Region.


MALAYSIA – GATEWAY TO

REGIONAL MARKETS

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MALAYSIA – GATEWAY TO REGIONAL MARKETS

Malaysia is strategically located in the very heart ofSoutheast Asia; between India and China:

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ASSOCIATION OF SOUTHEAST ASIANS NATION (ASEAN)

ASEAN

• Implemented AFTA in 2010

• A total of 97% of products traded between ASEAN at tariffs of between 0-5%

• Population of 592 million consumers

• Combined GDP of USD 1.5 trillion, as of 2009

• ASEAN Economic Community 2015

Source : ASEAN Statistical Yearbook 2009

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PREFERENTIAL MARKET ACCESS

Foreign companies based in Malaysia can enjoypreferential market access via Free TradeAgreements concluded by Malaysia:

ASEAN-Free Trade Agreement (AFTA) ASEAN-China FTA

ASEAN-Korea FTA

ASEAN-India FTA

ASEAN-Australia-New Zealand / Malaysia-New

Zealand FTA

ASEAN-Japan FTA

Source : Ministry of International Trade & Industry, Malaysia

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Foreigners can own land and real estate

Repatriation Of Income Is Allowed

Transparent Land Administration

System

No Inheritance Tax

PROPERTY INVESTMENT

MALAYSIA FOR PROPERTY INVESTMENT

Source: Malaysia Property Inc.

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16,422

12,884

11,324

10,265

6,960

5,251

4,848

4,736

3,072

2,668

2,033

1,424

1,381

0 5,000 10,000 15,000 20,000

Hong Kong

Japan

Singapore

India

Australia

Taiwan

South Korea

China

Thailand

Cambodia

Philippines

Malaysia

Indonesia

Source: Global Property Guide : Asia

US$ per sq. m.

Average per square metre (sq. m.) prices in US$ of 120-sq. m

EXAMPLES OF PRICES OF APARTMENTS IN PREMIER CITY CENTRES

FACILITATION FACILITATION

OF INVESTMENTOF INVESTMENT

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MIDA AS ONE-STOP CENTRE

for :

FACILITATION OF INVESTMENT

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• Pre-investment facilitation

• Evaluation of application for Licence &

Incentives

• Approval of Investment

• Follow-up on Implementation of Investment

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� Political Stability

� Strong Economic Fundamentals

� Pro-business Government

� Liberal Investment Policies

� Attractive Investment Incentives

� Good Infrastructure / connectivity

� Harmonious Industrial Relations

� Young & Educated Labour Force

� Paradise for Expatriates

� Excellent Track Record

WHY MALAYSIA ?

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Please visit us at

www.mida.gov.my

[email protected]

Please visit us at

www.mida.gov.my

[email protected]

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