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Promotion of Domestic Investment inthe Manufacturing & Services
Sectors
Tuesday 19 August 2008
By:
Onn AbdullahDirector
Domestic Investment Promotion,
MIDA
The Familiarisation Programme for Officials of
Investment Promotion Agencies of South South Countries
18 – 29 August 2008
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MIDA Board
Chairman
Deputy Director General II
Senior Director(Services)
• IndustrySupport
- State Offices• Business &Other Services
• Logistic &RegionalOperations
• Resource CentreManagement
• Secretariat
Senior Director(Resource Industry)
• Agro-Based Industry• Chemicals & Life
Science Industries• Petrochemical &
Polymer Industries
Senior Director(Investment)
• ForeignInvestmentPromotion:- Americas
- Asia Oceanic- Europe• DomesticInvestment
• Cross BorderInvestment
• OverseasOffices
Senior Director (Non-ResourceIndustry)
• ICT & Electrical Industries• Electronics Industries• Transport & Metal Industries• Machinery & Engineering
Supporting Industry• Textiles & Minerals
Industries
• Strategic Planning•
International Cooperation
• Communications & Media• Information Management& Statistics
• Corporate Mgmt• HRD• Finance Mgmt• Internal Audit Unit
MIDA ORGANISATION CHART
Advisory Services CentreDirector General
Deputy Director General I
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THE ORGANISATION STRUCTURE OFDOMESTIC INVESTMENT PROMOTION DIVISION
Director
Deputy DirectorDomestic Investment
Initiatives
Deputy DirectorDomestic Investment
Initiatives
Economic AffairsOfficers
(2)
Economic AffairsOfficers
(2)
Personal
Assistant
Clerk
(2)
Machine Data EntryOperator (1)
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• Plan, implement and coordinate
programmes to promote domesticinvestments.
• Formulate programmes and
strategies to promote domesticinvestment in high value addedmanufacturing & services sectors.
•
To assist local and foreign investorsto identify suitable joint-venturepartners via enterprise connect (E-connect).
DOMESTIC INVESTMENT PROMOTION
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Promotion Functions
• Domestic investments
• Planning and arranging visits of delegation from
domestic companies/ Chambers of Commerce &Industry/ Association
• Conducting briefing outside MIDA
• Addressing enquiries related to domesticinvestments
• Facilitate joint-venture
Functions Of Domestic Investment PromotionDivision
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Development Functions
• Database on Domestic Investment
• Investment promotion programmes
• Targeted companies, industriesand countries
Functions Of Domestic Investment Promotion Division
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• Intensify Promotion of Domestic Investment in
the promoted industries
• Greater emphasis on domestic investment
• Promotion of manufacturing services
• Improving the cost-competitive environment
- Quality & lower cost of utilities- Skill workers- Productivity- Government Delivery system
- Grants & Incentives
OVERALL STRATEGIES
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• Expanding and improving SMIs capacity inhigher value-added products
• Creating green field investments in industrieswhich have the potential for local companies
• Obtaining the strategic and suitableknow-how
• Enhancing the institutional support andfinancial assistance
• Realizing greater domestic contribution tototal investment
PROMOTION OF DOMESTIC INVESTMENT
STRATEGIES
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• Domestic/Specific Industry Seminar
- Master schedule : annual seminarorganized by region
- Briefings on investments relatedtopics by other relevant departments/agencies in the seminar
- Technical workshops e.g. on projectfinancing facilities for seminar
participants.
PROGRAMMES FOR DOMESTIC INVESTMENT PROMOTION
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• Domestic/Specific Industry Seminar
- To update Malaysian investors on
policies and investment opportunitiesin the manufacturing & services sectors
- Dialogue session with Minister ofInternational Trade & Industry
……continued
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….. continued
• Dialogues with local Chambers/Industry
Associations
Discuss on investment matters e.g.:
- facilitating new/ expansion/diversification projects
- source of technology upgrading
- new market
- contract manufacturing/joint venture
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• Meeting with Local Multinationals
Companies
- identify locally-owned MNCs
- profile of MNCs
- partnership work programme
- investment opportunities
….. continued
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• Pro active and effective follow-up
programmes
- post domestic seminars
- post specific seminars- post dialogues session
•
Handhold approved domestic investors
- Federal level
- State level/ Local authority
….. continued
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SEMINAR PROGRAMMES 2008
KLANG VALLEY INVESTMENT SEMINAR, KL28 & 29 JANUARY 2008
NATIONAL SEMINAR ON BUSINESS OPPORTUNITIES IN THEMACHINERY & EQUIPMENT INDUSTRY, KL8 & 9 MAY 2008
INTERNATIONAL SEMINAR IN THE ELECTRONICS INDUSTRY,
PENANG3 & 4 JUNE 2008
SEMINAR ON BUSINESS OPPORTUNITIES IN MEDICAL DEVICE2008, KL8 JULY 2008
SARAWAK INVESTMENT SEMINAR, KUCHING, SARAWAK17 & 18 JULY 2008
SABAH INVESTMENT SEMINAR, KOTA KINABALU, SABAH
20 & 21 AUGUST 2008
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• Facilitate Joint-Venture
- Enterprise Connect (E-Connect)
-Disseminate information oncontract manufacturing, JV andtechnical collaboration
….. continued
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E-Connect
•Objective:-
To assist local and foreign manufacturers toidentify suitable joint-venture partners forprojects in Malaysia
To assist Malaysian contract manufacturers inforging business links to supply to world markets
As at 30th June 2008, 573 companies havebeen registered with E-Connect which 330(58%) are Malaysian companies.
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Business Matching for Foreign and Local
Companies - Enterprise Connect
E-Connect
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Issues and Challenges
● Malaysian companies’ participation in the manufacturingsector is still small
● To realise the 60% domestic contribution to totalinvestments
● A need for Malaysian SMIs to further expand andimprove its capacity in higher value added products
● A need to create industries which have the potential for
Malaysian
● A need to enhance the institutional support and financialassistance
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Total Approved Manufacturing Projects( 2006 –2008*)
Performance of The Manufacturing Sector
YearNo. of
projects
Approved Investments
(RM billion)
Domestic Foreign Total
2006 1,077 25.8 20.2 46.0
2007 949 26.5 33.4 59.9
2008* 417 9.3 23.2 32.5
Total 2,287 61.6 76.8 138.4
* Period of January – June 2008
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THANK YOU
Total Implemented Manufacturing Projects( As At 31 December 2007)
No. of
projects
Implemented Investments
(RM billion)
Domestic Foreign Total
14,757 142.0 171.95 313.98
Foreign Investment In Manufacturing Projects Implemented
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Country No ofProjects Total Investments(RM billion)
Japan 2,215 43.3
USA 635 35.1
Singapore 2,408 16.5
Taiwan 1,454 15.1
Germany 303 14.8
Netherlands 131 10.0
Korea 270 6.2
United Kingdom 344 4.13
Hong Kong 401 2.0
Foreign Investment In Manufacturing Projects Implemented
By Major Country (As at 31 Dec 2007)
Approved Domestic Investment In Manufacturing
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THANK YOU
Industry
Total Investments
(RM Billion)
Basic Metal Products 17.3
Electronics & Electrical Products 5.8
Transport Equipment 1.5
Chemical & Chemical Products 1.5
Food Manufacturing 1.2
Non Metallic Mineral Products 1.1
Petroleum Products
(Including Petrochemical Products) 0.8
Machinery & Equipment 0.7
Approved Domestic Investment In Manufacturing
Projects By Major Industry ( January – June 2008)