SPEAKERS - SPSB · (Managing Partner Malay, Roland Berger Strategy Consultants) DEVELOPING FREE...
Transcript of SPEAKERS - SPSB · (Managing Partner Malay, Roland Berger Strategy Consultants) DEVELOPING FREE...
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MODERATOR
Dr. Anthonie Versluis
(Managing Partner Malay, Roland Berger Strategy Consultants)
DEVELOPING FREE TRADE ZONE TO SPUR INVESTMENTS
SPEAKERS
Mr. Andrew Hoad
(Chief Executive Officer & Managing Director, DP World’s,
Asia Pacific Region, Hong kong)
Dr. Simon Su
(Founder & Managing Director, ASA Projects,
Hong Kong)
Mr. Prakash Thurairasasingam
(Head of Commercial, Port of Tanjung
Pelepas Sdn Bhd, Malaysia)
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2nd Sabah Port Forum:Developing Free Trade Zone (FTZ) to Spur Investments
1st - 2nd October 2019, Kota Kinabalu, Sabah
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During the last decade, global maritime trade has grown slower than in the past
International seaborne trade [bn tonnes loaded]
Source: UNCTAD, Roland Berger
2.8(30%)
2.9(31%)
2.7(33%)
2.1(25%)
2.8(31%)
2.7(20%)
2.7(35%)
2.5(28%)
2.8(33%)
2.3(28%)1.8
(24%)
2.4(34%)
1.7(24%)
2.7(34%)
2.0(24%)
2.8(32%)
2.6(34%)
2.1(27%)
4.6%
1) Main dry bulk: iron ore, grains, coal, bauxite/alumina, phosphate
4.8%
2.0%
1.6%
2.1(26%)
2015
2.8(33%)
2009
1.9(24%)
8.4
1.3(15%)
8.2
2013
2.2(25%)2.3
(28%)
10.0
3.1(30%)
1.1(14%) 2.3
(25%)
2.7(33%)
1.8(17%)
2008
2.8(32%)
2.0(26%)
10.3
2.6(34%)
1.3(15%)
2.5(24%)
2.1(25%)
2.8(29%)
2.3(27%)
2010
1.5(16%)1.4
(16%)
2.4(27%)
2011
1.5(16%)
2.6(28%)
2.8(31%)
2012
2.4(25%)
1.6(16%)
2.4(24%)
3.0(30%)
2.9(29%)
2.8(29%)
2014
1.7(17%)
2.5(25%)
10.7
9.81.7
(17%)
2.5(24%)
3.0(30%)
9.5
2016
3.2(30%)
3.0(30%)
2017
2.8(30%)
7.9
8.89.2
3.1(29%)
3.0%
Container
Other Dry Cargo
Main dry bulk 1)
Liquid bulk
CAGR
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The maritime industry is facing an environment that is becoming increasingly challenging – in particular to shipping lines
Source: Roland Berger
12 mega-trends/ challenges for the maritime industry
New ship types & shipping systems
Hinterland expansion & on land connectivity
Rise in short sea shipping
Digitalization
Green shipping req'ts
Green ports
Automation & robotics
BRI, dry ports Logistics industry transformation
Regionalization
E-commerce going global
Port sector reform
12 Key trends
3
910
11
1
12
2
8
7
5
6
4
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Free Trade Zones in Malaysia are divided into 2 segments: Free Industrial Zone and Free Commercial Zone
Malaysia's Free Trade Zone terms and definitions
Free Trade Zone
Free Commercial ZoneFree Industrial Zone
> Intended to promote investment in manufacturing and exports
> To qualify for location in a FIZ, a company has to export at least 80% of its output and its raw materials/ components are mainly imported, even though the government does encourage the use of local raw materials/components.
> A company has the ability to obtain an approval from the Ministry of International Trade and Industry to reduce its export condition to 60%
> Formed for the promotion of commercial and trading activities in Malaysia, including entrepot trade, in line with the promotion of the services sector
> FCZs are normally located near the country’s ports due to the nature of the activities, which can include re-distribution, bulk breaking, repackaging of products, re-labelling and other ancillary activities geared for the export market
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Benefits of a Free Trade Zone
Overview
A designated area where normal trade barriers are reduced to attract new businesses and foreign investments
> Typically a fenced-in area of > 10 ha
> Developed in geographically advantageous areas for trade (at or near port or airport)
> Used as a manufacturing and/ or processing hub for exports
Benefits Duty deferral, reduction or elimination on goods brought into FTZ
Relief from inverted tariffs – eliminate raw materials import costs
Duty exemption on re-exports from the FTZ
Duty elimination on waste and yield loss
Improved compliance, inventory tracking, quality control, bio-security, tracking
Waived customs duties on zone-to-zone transfers during transshipment or crossdocking
Streamlined logistics
There is currently no Free Trade Zone in Sabah
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Port-based Free Trade Zone, aimed at the agri/food/fish sector
Spatial concept
Source: Expert interviews, Team analysis
Supplies & Utilities (ice storage, ice
factory, net repair, etc.)
Fish processing: Cleaning, weighing, sorting, etc.
Cold storage
Processing industries
Cold storage/
warehouse
Container freight station
Parking
Containers
Resting & Docking
Cold storage
Processing industries
Slaughter house/ Processing industries
Cold storage
Feeder/export Export
Offices & public facilities
Fishing port
Fish landing terminal.
Free Trade Zone boundaries
> Trade, processing and exporting hub for all types of agriculture, fish, food products
> "Plug-and-play" model – standard facilities AND customer-made
> Shared facilities (eg.inspection labs)
> Managed by port authority/operator
> Customs at gates
> Container facilities mainly for export
Sample only
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Sabah could potentially benefit from maritime trade and export flows from and in between Indonesia and the Philippines
Brunei
Indonesia
Malaysia
Philippines
Timor-Leste
Kuala Lumpur
Jakarta
Manila
Brunei
Sabah
Surabaya
10.0
0.0
20.0
1.82.21.9 1.7 1.9 1.9 1.8 2.4
+15.3%
Brunei PhilippinesIndonesiaMalaysia
20.0
0.0
10.0
14.8 15.112.6
14.6 13.711.6 12.5
15.2
+14.1%
2015-2017 CAGR
Opportunity to direct transshipment from Jakarta & Surabaya to Sabah
Source: UNCOMTRADE, Mindanao Development Authority, Roland Berger
Intra-regional exports of Philippines & Indonesia [bn USD]
28% 17% 12% 12% 26%
Fruit NickelFood oil
100%
2%5.2
OthersFinished productsAlcoholFishery
3%
>60% of N. Mindanao top export is in food & agri
Mindanao Export [in USD bn]
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Today's panel on FTZ
> Company provides services to support the public & private sectors covering transport & infrastructure planning, economic & financial assessment and tourism & leisure development:
– State-of-the-art strategic advice
– Innovative thinking and effective solutions,
Dr. Simon SuFounder & Managing DirectorASA Projects
Mr. Andrew HoadCEO & Managing DirectorDP World Asia Pacific
Mr. Prakash Thurairasasingam Head of CommercialPort of TanjungPelepas
> 30 years experience in the maritime sector
> Asia Pacific, Middle East, Europe, Americas
> Previously Executive Vice President of Asian Terminals Inc., DP World’s terminal portfolio Philippines
> Graduate of Cambridge University
> Logistics qualifications from the Institute of Chartered Shipbrokers
> BSc Information Technology from University Southern Queensland
> MBA from Nottingham Trent University, UK
> Previously IT Executive with Westport
> Also with Johor Port, developing new projects eg.bunker fuel supply expansion and international expansion
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Moderated by Anthonie Versluis
> 35 years experience, mostly in strategy consulting
> Focus on transport infrastructure, maritime trade, regional economic and industrial development, logistics, ports, shipping and shipbuilding
> Led hundreds of port projects around the world, covering all aspects of port policy, port planning, construction, business and operations
> Prior to Roland Berger, Mr. Versluis worked with several other leading international consulting firms
> MSc. in Industrial Engineering and Management from the Technical University Twente, Netherlans
> BSc. in Mechanical Engineering from the University of Technology Delft
Anthonie VersluisHead of Global Ports PracticeManaging partner MalaysiaRoland Berger
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SPEAKER
Mr. Prakash Thurairasasingam
(Head of Commercial, Port of Tanjung Pelepas Sdn Bhd, Malaysia)
DEVELPING FREE TRADE ZONE TO SPUR INVESTMENTS
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PELEPAS FREE ZONE DEVELOPMENT
2 October 2019
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2
PTP A REGIONAL TRANSHIPMENT HUB FOR SOUTH EAST ASIA
Strong Shareholder
PTP OVERVIEW
Commenced Operation
2
2000
3Core
Businesses
300PortCalls
30Shipping Lines &
Box Operators
60Government
Concession
110Million TEU
Handled
WorldRanking
18
3,500Acres For Container
Terminal & Free Zone
1998Free Zone Authority
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3
12.0 MIL TEUS CAPACITY TERMINAL
TERMINAL PHASE 12.160m of quay, 26 QC’s,
max (design) depth 16.5m
TERMINAL PHASE 22.880m of quay, 32 QC’s,
max (design) depth 19.5m
FREE ZONE PHASE 1 FREE ZONE PHASE 2
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FREE INDUSTRIAL ZONES(FIZ), FREE COMMERCIAL ZONES(FCZ)INTEGRATED FREE ZONES IN MALAYSIA
1 FCZBukit Kayu Hitam
1 FIZ, Kulim Hi Tech Park
K E D A H
02
01 1 FCZLabuan
S A B A H
01 1 FIZSamar Jaya (Kuching)
S A R A W A K
062 FIZsSenai, Tg. Bin2 FCZStulang, Tg. Langsat2 Integrated FZsPasir Gudang, PTP
J O H O R
29 Free Zones in Malaysia : 12 FIZs, 14 FCZs and 3 Integrated FZs
02 2 FCZsPengkalan Kubur, Mukim Rantau Panjang
K E L A N T A N
2 FIZsPerai, Seberang Perai,
Bayan Lepas 2 FCZs
Dermaga Air Penang Port (Butterworth), Mukim 12
Barat Daya
P E N A N G
04
2 FIZsHulu Kinta, Kinta
P E R A K02
10
3 FIZsTelok Panglima Garang, Ulu Klang (Gombak),
Damansara (Sungai Way)6 FCZs
Mukim Kapar (Northport), Pelabuhan Barat (Westport), KLIA Sepang, South Point (Northport),
MILS Logistics Hub, Pulau Indah 1 Integrated FZ
PKFZ
S E L A N G O R
4
01 1 FIZBatu Berendam
M E L A K A
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PONTIAN
BATUPAHAT
MUAR
KLUANG
KOTA TINGGI
MERSING
PASIR GUDANG&
PENGERANG
NUSAJAYA
PTP
KULAIJAYA
SEGAMAT
SINGAPORE
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OPPORTUNITIES - FOCUS ON JOHOR ECONOMIC CLUSTERS
PTP
1
23
4
5 6
Furniture Hub
Food & AgroProcessing Hub
Electrical & Electronics Hub
Processed Food, Bio-Product and
Engineering
Petrochemical & Oleo Chemical
Hub
FMCG’s, Commodities E-goods &
Bio-products
CLUSTERS’ ANNUAL THROUGHPUT– 1.5 MIL TEU
SingaporePopulation - 5.8 MilGDP - 3.2%
JohorPopulation - 3.7 MilGDP - 4.5%
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INTRODUCTION
FZ5-250 Acres
FZ4-356 AcresFZ3-332 Acres
FZ2434 Acres
FZ1214 Acres
• 60-year government concession
• 1,500 acres land area with 5 phases
• Accorded Free Zone status in 1997 and Free Zone Authority in 1998
• Integral part of Port of Tanjung Pelepas business
Terminal Area
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6.5 million square feet of warehousing space
RM 2.8 billion investment
Over 40 warehousesfrom 16 countries and local companies
Volume Up To
100,000 TEUs Per Annum
15 years fully occupied by various warehouse and logistics operators
Creation of more
than 11,000 workers
FZ2
FZ1
PTP FREE ZONE - INTEGRATED IN TERMINAL ECOSYSTEM
Warehouse Owners / Operators
3PL Logistics Companies Cargo Owners
Global Operations/Manufacturers
Regional Distribution
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Note: 2018 FZ Volume@90,000 TEUs
18%
15%
14%
13%
12%
11%
7%
10%
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Apparels
Commodities
Food Products
General Cargoes
Furniture
Solar Panels
Electronics/Electrical Appliances
Machineries/Parts
FMCGs
Automotive Parts
Medical Devices
Recycling (Metal/Others)
Toys
Oil & Gas Equipment
Contact Lenses
PTP FREE ZONE VOLUME IN 2018 BY PRODUCT
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NO. OF COMPANIES (BY COUNTRIES) THAT INVESTED IN PELEPAS FREE ZONE
12
9
2
6 4
1
5
1 3
1
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RouteFrequency(per week)
Intra-Asia >50
Europe/Mediterranean 10
India Sub Continents 5
Middle East/Red Sea 3
Africa 13
US 2
Oceania 7
30 shipping lines and box operators calling PTP
Connected to over 300 port of calls globally with >90 weekly services
Sailing Frequency
MTT
SHIPPING
MALAYSIA’S PREMIER CONTAINER HUB
http://images.google.com.my/imgres?imgurl=http://www.exportplus.co.nz/CMA_CGM.jpg&imgrefurl=http://www.exportplus.co.nz/partners.htm&usg=__XPuPskOOpm2BgE0TeQCU7kFSCc0=&h=214&w=320&sz=45&hl=en&start=10&tbnid=yak7EsfKvkmKOM:&tbnh=79&tbnw=118&prev=/images?q=cma+cgm&gbv=2&hl=en&sa=G
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EXCELLENT MULTI-MODAL LINKAGES
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Rail services• PTP – Kempas – Pasir Gudang• PTP – Kempas – Port Klang• PTP – Kempas – Padang Besar(Southern Thailand)
Air Services• PTP – Senai Airport (30 mins)• PTP – Changi Airport (90 mins)• PTP – KLIA (3.5 hours)
Expressway• PTP – Singapore via 2nd Link• PTP – Pasir Gudang via EDL and Kempas• PTP – KL – North/East Malaysia via PLUS
http://www.senaiairport.com/index.asphttp://www.johorport.com.my/
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Gate • 24/7• Dedicated lane for
bonded trucks
PTP as Free Zone Authority• Nil Customs declaration• Single internal window for cargo
declaration• Paperless transaction
Terminal & Free Zone Integration • 24/7 Internal trucking
services controlled and provided by PTP
• Faster turn around time
• Competitive trucking costing
Customs Green Lane access to Singapore• Dedicated lane for bonded and
container trucks• Truck levy exempt
Import Duty Exemption
Container Repair & Storage Yard • 24/7 in house
container cleaning, maintenance and repair
• 24/7 dedicated empty container area
Tax Incentives from Malaysian Investment Development Authority (MIDA)• Income tax exemption for Pioneer Status• Investment tax allowance on qualifying CAPEX• Reinvestment allowance on qualifying CAPEX
VALUE PROPOSITIONS – PTP FREE ZONE
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Thank you
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SPEAKER
Mr. Andrew Hoad
(Chief Executive Officer & Managing Director, DP World’s,
Asia Pacific Region, Hong kong)
BUSINESS PARKS & FREE TRADE ZONES
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Business Parks & Free Trade Zones
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Andrew Hoad
CEO & Managing Director, DP World Asia Pacific
02 October 2019
2nd Sabah Port Forum
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DP World
DP World A Trade Enabler
01
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78 Terminals and 12 Business Parks
Business Parks
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Indonesia – Surabaya• Grezik Container Terminal and
Business Park Project from 2020
Korea – Busan
• Pusan New Port Co. Ltd. (PNC)
China – Qingdao• Qingdao Qianwan Container
Terminals
China - Yantai• Yantai International Container
Terminals Ltd. (YICTL)
Vietnam –Ho Chi Minh City• Saigon Premier Container Terminal
Thailand – Laem Chabang• Laem Chabang International
Terminal (LCIT)• Laem Chabang 1-stop logistics
Philippines – Manila• Asia Terminals Inc. (ATI): container &
general stevedoring terminals
Philippines – Batangas• container, passenger, CBU & general
stevedoring terminals.
Philippines – Laguna• ICD
Philippines – Cavite• Barge Terminal project
China – Hong Kong• Container Terminal T3
• ATL Logistics Centre (ATL) –Largest Industrial Building in the world with 55.7ha leasable space.
Portfolio Overview – Asia Pacific Region
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China – Yiwu
• Yitidong Distribution Hub
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12 Business Parks in Operation or Development
Business Parks
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We want to be the Leading Enabler of World Trade
Optimise the Core
Extend the Core
Build the new
1 2 3Offer our customers an integrated port centric industrial and logistics platform
Synergy between our port & economic zones
Creates sustainable business for both port and economic zone
Improves export competitiveness & attractiveness of the country for FDI
Key Benefits
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DP World
DP World Free Trade & Economic Zones
02
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Our flagship: Jebel Ali Free Zone
Properties
14,000+
Companies
7,000+
Employees
130,000+
Contributes in excess of 20% Dubai GDP
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Jebel Ali Freezone
Land
Retail, Office Buildings &Other Customized Solutions
Warehouses
Specialized Parks (Food, Chemical)
Over 78 Sq km Industrial & Logistics Zone▪ Hub for logistics companies
▪ Base for global companies▪ Hassle-free & cost effective business setup▪ Smooth cargo movement▪ Sea-air connectivity within customs-bonded transport corridor
National Industries
Park
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Growth in Jebel Ali Port and Jafza Free Zone
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TEU
s h
and
led
by
DP
W D
ub
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Mill
ion
s)
No
. of
Co
mp
anie
s in
Jaf
za (
tho
usa
nd
s)
TEUs handled by DPW Dubai
No. of Companies in Jafza
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Some Examples
Posorja
Caucedo
South Carolina
Dakar
Kigali
Ain Sokhna
Berbera
Jafza
Mumbai
Chennai
Khorgos
London
Jafza - Dubai
90 haLogistics ParkPort Centric
London Gateway
Sokhna - Egypt
7500 haSEZ
Port CentricDakar - Senegal
1280 haSEZ
Port Centric
Posorja - Ecuador
100 haSEZ
Port Centric
160 haLogistics ParkPort Centric
Caucedo – Dominican Rep.
36
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Yitidong - China
Integrated Services
• Trade between Yiwu and Dubai is abt. USD 5 billion – 100,000 TEU
• Growing by 5% pa
• Yiditong provides a seamless, door to door, cargo flow from Yiwu to Dubai and from Dubai to other destinations, in particular Africa
• This will become a superior product based on Customs Integration, Cost and Service Efficiency (one bill from China to Dubai) and all Services under one roof: storage, packing, transport, freight, final delivery
• Total investment of RMB 1 billion
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Traders Market Joint Venture
agreement with CCC
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First Smart Freezone Market in Mid East
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• 26th August 2019: DP World & Zhejiang China Commodity Group (CCC) announced partnership to develop the “Traders Market” in Jebel Ali Freezone (JAFZA), Dubai, UAE.
• The region’s first free-zone hybrid marketplace (Wholesale/Retail)
• 80 hectares project total ; phase 1 capex 22 hectares at US$150m.
• Construction commences Q4 2019; 2 years to complete.
Strategic Rationale
1. Mid East/Africa/Indian Subcon region critical for BRI Chinese traders : 2bn people in less than 6 hours airtime.
2. Aligned with Dubai government strategy to transform city into hub for international investors and traders. JAFZA becomes a market place as much as a logistics area.
3. Enable small enterprises to enjoy JAFZA benefits while retaining
ability to serve local market without leasing two establishments
4. Ease international buyers accessibility to procure bulk products
through Dubai at discounted wholesale price and with shortest
delivery time.
5. Flexible Customs regime: traders pay duty after sellingin local market.
Phase 1 cluster 7&8
Expo Site
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1. Part of national economic strategy with commitment from economic zone authority, relatedministries and investment promotion agencies
2. Strategy must be supported by the necessary regulatory framework to provide the necessaryconducive environment for investment and trade
3. Relevant and none discriminatory incentives must be provided to create a competitiveenvironment
4. Today economic zones have evolved into economic pillars in their own rights: Mixed use, livework play environment ( logistics, industrial, residential, hospitality, to create mixed use, work liveplay environments); multiple activities
5. Must target wide range of investors (SMEs and MNEs), allow range of activities and range of facilities
6. The zone must be considered as a business hub where goods and services can be traded freely( export, import, local market etc)
Critical success factors for economic zones
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1. Over thirty years of experience in developing and managing Jafza, one of the largestand most successful economic zones in the world
2. Experience in developing a successful network of ports, container terminals & portcentric industrial and logistics zones globally
3. Network of 7000+ customers approachable for our new economic zones projects
4. Economic zones form an integrated part of our global strategy to create logistics andindustrial infrastructure in the country where we operate
5. We work closely with government authorities to adopt a unique customer centricecosystem based on the Jafza model to create a better environment forinvestment and trade
6. We are not real estate developers but trade enablers.
7. MOST IMPORTANTLY: We are open to discuss investment opportunities inAsia
DP World’s Unique Value Proposition
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DP World
DP World Innovation
03
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High Bay: Revolutionary Project being tested in Dubai
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• Containers stored up to 11 storeys, delivering the capacity of a conventional terminal in a third of the surface area.
• 50 ton weights in racks 50m high.
• Eliminates unpaid & unproductive shuffling.
• Energy efficient.
• Safer.
• Less operating cost.
• Previewed Global Expo in Dubai 2020.
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Cargospeed: Hyperloop technology
• JV between DPW and Virgin Group.
• Electric power & magnetics technology working in a near vacuum.
• Nevada tests successful: 28ft pod @300km/hr
• Time sensitive cargo at the speed of flight for the cost of trucking.
44
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Cargospeed: Hyperloop technology
Indian Government has declared the Pune-Mumbai hyperloopproject as a public infrastructure product.
If it is awarded as a concession, construction will start on 11 km test loop.
Travel time from Mumbai to Pune reduces from 4 hours to 25 minutes.
45
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Thank you
Contact [email protected]
www.dpworld.com
mailto:[email protected]
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SPEAKER
Dr. Simon Su
(Founder & Managing Director, ASA Projects, Hong Kong)
WHY DOES KK NEED A FREE ECONOMIC ZONE?
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DEVELOPING FREE TRADE ZONES TO SPUR INVESTMENTS
WHY DOES KK NEED A FREE
ECONOMIC ZONE?
Dr Simon SU
Managing Director
ASA Projects Ltd.
Kota Kinabalu, Sabah
02 Oct 2019
ASAP rojects
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TOC
1. General Concept of a FEZ
2. Why Sabah?
3. Key Success Factors for a FEZ
49
1. Introduction
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TOC
1. General Concept of a FEZ
2. Why Sabah?
3. Key Success Factors for a FEZ
50
1. Introduction
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Types of FEZs
There is no single and universally accepted classification of the term
“Free Economic Zone (FEZ)”.
In reality, there are many different types of FEZs:
Fee Ports (FP) or Free Zones (FZ)
Free Trade zones (FTZ)
Export Processing Zones (EPZ)
Free Border Zones (FBZ)
Science Parks (SP), Technology Parks (TP), Industrial Parks (IP) or
Industrial Estates (IE)
Bonded Warehouses (BW) or Bonded Logistics Parks (BLP)
Other urban enterprise zones
51
-
General Concept of a FEZ
52
Domestic Overseas
Customs Supervision
Foreign
Companies
Local
Companies
Manufacturing
Export processing
Storage
Re-export
Warehousing
Consolidation
Distribution
Customs
No tax, customs dutiesTax, customs applicableDeem as exported,
export rebate applicable
Regional Distribution
Centre (RDC)
KKIP FEZBonded Area & Customs Free
Manufacturing &
Integrated Logistics Hub
Border
A Free Zone refers to:
“a part of the territory of a Contracting Party where any goods introduced are generally regarded,
insofar as import duties and taxes are concerned, as being outside the Customs territory”.
- World Customs Organisation (1999).
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Purposes of a FEZ
Sustainable development, focus ing on creation of
Econom ic, Social and Environmental Benefits :
▪ Value-added and job creation
▪ Environmentally friendly production
▪ Industrial ecology cultivation
▪ Contam ination & waste management
▪ Social harmony and social respons ibility
▪ Work-life balance
In particular,
▪ To stimulate the local economy by creating employment and attracting FDI;
▪ To encourage local production by providing financial incentives and special
economic and/or administrative initiatives;
▪ To facilitate free flow of commodities, services and personnel between the zones
and the global economy;
▪ To enhance local competitiveness by participating in free trade, including
transhipment with the rest of the world economy.
▪ To encourage innovation & technology and improve productivity
▪ To meet international standards by introducing FDI which helps promote the
transfer of new technology and know-how into the local industries. 53
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TOC
1. General Concept of a FEZ
2. Why Sabah?
3. Key Success Factors for a FEZ
54
1. Introduction
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KK’s Strategic Location – Sea & Air gives potential to become:
• The gateway of the BIMP-EAGA
Region
- SBCP Port to become the
transshipment hub, to accommodate
more than 5,000 TEU vessels’ direct
calls
1. Strategic Location – Sea & Air
KK’s Strategic Location – Sea & Air gives potential to become:
• The Centre of business activities
- 2-6 hours’ flight away to major cities
within the BIMP-EAGA, Southeast
Asia and Far East Region
Spoke
Network
Hub
Network
Hub & Spoke Strategies
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P
R
O
F
I
T
P
R
O
F
I
T
Company’s Value Chain in Manufacturing (Porter’s
Value Chain Model)
P
R
O
F
I
T
Education
Greater KK
Palm Oil
Manufacturing
Tourism
Oil & Gas
Agriculture
Legend
Location of Proposed Investment Projects
Largest production of CPO, Aquaculture
Largest Oil Offshore Reserve
Resource-based indus tries :
- Palm oil industry
- Timber processing
- Rubber processing
- Fruit (e.g., Banana, etc)
- Aquaculture (Kudat)
Global manufactu ring relocation
(e.g., from Ch ina):
- Textile industry
- Electronics industry
- Automobile
- Steel industry
Consumption
- Consumer consumption
- Business consumption
- Public consumption
- Tourism & Hospitality industry
In tegrated Logis tics Hub
- Loading & unloading
- Cross-docking
- Packaging & repackaging
- Warehousing & distribution
- Just-in-time operation
2.Sabah Needs an Accelerator for
Industrial Development
-
57
*On Sep 1, 2019, US imposed new 10% tariff on first part of $300 bn ($112 bn)
3. Sabah Needs to Seize the Global
Opportunities
-
4. Sabah Needs to Benefit from Federal
and State Development Plans
58
Sector Policies
EV • National Electric Mobility Blueprint (EMB) aiming to make Malaysia the
marketing hub for Evs.
• National Automotive Policy (NAP) 2019 will place emphasis on electric
vehicles and new technologies.
Green-tech
(PV)
• Net Energy Metering project and Large-Scale Solar (LSS) to promote
industrial development.
• The Malaysian Government expected to increase to the solar power capacity
to 1,356MW by 2020.
Bio-tech • The 11th Malaysia Plan is embarking on Green Growth.
• The National Biomass Strategy (NBS) 2020
• Incentives for the Biotechnology industry (company awarded BioNexus Status
by the Malaysian Bioeconomy Development Corporation Sdn Bhd)
❑ The Federal and State Governments are both committed to carry out various
development plans in Sabah.
❑ In particular, MITI & SEDIA are devoted to turn Sabah into a regional
economic powerhouse in BIMP-EAGA.
For example:
-
5. SBCP’s Masterplan to Become the
Transhipment Hub of BIMP-EAGA
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Existing Situation – No MLO Direct Calls Targeted Situation - With MLO Direct Calls
Unlocking the Bottleneck of Sabah’s Logis tics Network:
- time & cost saving
Source: SBP
-
6. Logistics Costs Are Expected to
Reduce Significantly
60
• Currently, cargoes from the region normally go to
Singapore/PTP/Port Klang first before onwards movement
to their final destinations or vice versa.
• However, if Main Line Operators (MLOs) operate direct
calls to Sabah, SBCP can serve as a gateway to reduce the
high logistics cost for exports from Sabah.
• As a result, the cost saving for shipping Sabah’s export to
some of the destinations in Far East, such as Shanghai, is
estimated to reach as high as nearly 40%.
• This is beneficial not only to Sabah but also the BIMP-EAGA
region.
-
7. Creating a Virtuous Cycle for Sabah’s
Economic Development
61
→ A Virtuous Cycle to
be triggered by SBCP’s
Transform ing into a
Transhipment Hub
Port, where a FEZ
plays a very critical
and important role in
generating cargoes.
FEZ
FEZs & Local
Industrial
Development &
Consumption
-
8. A FEZ is a Timely and the “Must-
have” Solution for Sabah
• It has been widely recognised that a FEZ is a very effective and
powerful tool for the growth and development of a less-
developed economy. Many countries have returned to the concept
of creating FEZs as a core element in their development
strategies for economic growth.
• Sabah urgently needs a FEZ to create:
- “backward and forward linkages”
- technology transfer and skills development
• A FEZ is not a new concept in Malaysia where several free
zones (free commercial zones / free industrial zones) already
exist for many years (e.g., Pasir Gudang, Port Klang, Kulim,
Tanjung Pelepas and Bayan Lepas).
- However, none of them are in Sabah. 62
-
TOC
1. General Concept of a FEZ
2. Why Sabah?
3. Key Success Factors for a FEZ
63
1. Introduction
-
Key Success Factors (1)
SUPPORTIVE POLICY: Supportive policy always tops the list when it comes to
success factors. Attractive incentive packages are often being offered with strong
support from various government levels. (e.g., Thailand, in particular, provides very
attractive incentives which allow it to gain first mover advantage in EV industry).
CLUSTERING & SYNERGY: It allows industrialists, suppliers and service providers in
the same value chain to be clustered in one location. Companies achieve
econom ies of scale & created opportunities for industry collaboration . → closer
to their customers in the same industry, and more potential to secure new business
from other investors.
RELIABLE TRANSPORTATION SYSTEM, PROXIMITY TO KEY TRANSPORTATION
FACILITIES: The past experiences have pointed out that it is important for the FEZ to
be located close to main highway & key infrastructure, e.g., seaports & airports.
So that the overall logistics costs can be greatly reduced to facilitate exports.
PROFESSIONAL ONE-STOP SERVICES AND BUSINESS FRIENDLY
ENVIRONMENT: There are often excellent one-stop services provided – with
industrial estate authority, customs and government agency for key licenses
required. Helping tenants to sort out license and permit issue and help liaise with
government authorities – Be Proactive.64
-
Key Success Factors (2)
A CITY CONCEPT: A FEZ’s tenants do not only view the zone as the production
base, but also a place for working, liv ing and recreating – like a m ini city and
community – which also helps retain good talents and quality workers to work for
the tenants.
BE CUSTOMER CENTRIC: Regularly conduct customer satisfaction surveys and
send the management staff to communicate w ith the tenants directly to listen to
the needs of the customers, and also to foster the good relationship with the
customers. (e.g., EDB in Singapore finds out from the industrialists what they value
and, as a consequence, EDB can demonstrate an understanding of the industry).
HIGH QUALITY WORKFORCE: Since the targeted industries require certain skill
level, the governments have to be very supportive in developing local talents. A
proactive role bringing together univers ities, colleges and training institutes to
jointly develop courses coaching necessary industrial-sector skills would contribute
to success.
ROBUST & RELIABLE FEZ’S INFRASTRUCTURE: The FEZ should provide various
options of space, e.g. industrial land, purpose-built, office and commercial space,
catering to different spatial needs of the tenants & stable utility supply (power
supply, clean water, organised logistics and infrastructure system, CCTV systems,
etc.65
-
Thank you
66