Dato’ Azman Mahmud
Deputy CEO I, MIDA

investmalaysia@mida.gov.my
Recent Economic
Developments in
Malaysia
Investment Trends Investment
Opportunities in the
Manufacturing &
Services Sector
Investment Policies
& Incentives
Malaysia – Gateway to Regional Markets
Malaysia : Your Hub for Mining and
Energy
Facilitation of
Investment

investmalaysia@mida.gov.my

investmalaysia@mida.gov.my
Real GDP (%)
Inflation (%)
Per Capita Income (US$)
Unemployment (%)
Trade Surplus (US$ bil)
2011
5.1
3.2
9,508
3.1
39.3
2012 Q1 2013
5.6
1.6
4.1
1.5
9,974 10,134 f
3.0
30.7
3.2
5.4
International Reserves (US$ bil) 133.6
139.7
141.4
*
Retained Imports Equivalent (months) 9.7
9.3
9.5
*

investmalaysia@mida.gov.my

investmalaysia@mida.gov.my

REALISED INVESTMENT IN THE
MANUFACTURING SECTOR BY MAJOR
COUNTRIES, AS AT 31 DEC 2012
No.
Country
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
Japan
USA
Singapore
Germany
Netherlands
Taiwan
South Korea
United Kingdom
Hong Kong
Spain investmalaysia@mida.gov.my
Investment
(US$ billion)
5.3
4.0
1.8
1.6
1.2
22.0
18.9
8.0
6.2
4.6
Source: Malaysian Investment Development Authority

REALISED INVESTMENT IN THE
MANUFACTURING SECTOR BY MAJOR SECTORS,
AS AT 31 DEC 2012
Total Investment : US$ 132.6 bil
Total Projects : 11,921 Natural Gas
4%
Food
5%
Transport
7%
Fab. Metal
4%
Machinery
4%
E&E
35%
Non-
Metalic
Mineral
7%
Chemical
9%
Basic Metal
12%
Petroleum
13%
Source: Malaysian Investment Development Authority investmalaysia@mida.gov.my

14
12
10 9.1
12
9.4
Services Activities
25%
Agriculture, Forestry and Fishing
1%
Mining and Quarrying
(including oil and gas)
33%
8
6
4
2
3.0
Construction
1%
Manufacturing
40%
Data As at 2012
CONTRIBUTOR TO FDI INFLOWS
BY SECTOR
0
2010 2011 2012 Q1 2013
Source: World Investment Report 2013, UNCTAD

MALAYSIA - MINING, OIL & GAS AND ENERGY
SECTOR IN FIGURES
FDI in Mining and Quarrying (incl. Oil and Gas)
US$ 3.1 Billion
US$ 2.4Billion
2011 2012
Source: Department of Statistics, Malaysia
US$ 1 Billion
Q3 2013
Major Exports (US$ Billion)
Group
Liquefied Natural Gas
Crude Petroleum
Petroleum Products
2012
24.2
14.9
17.8
Jan-May 2013
23.3
12.7
21.7
Major Imports (US$ Billion)
Group
Mineral Fuels, Lubricants, etc
2012
34.7
Employment / Labour Force
88000
86000
84000
82000
80000
78000
76000
80,600
2012
86,200
Q1 2013
Jan-May 2013
41.7

INVESTMENT OPPORTUNITIES IN THE
MANUFACTURING AND SERVICES SECTOR investmalaysia@mida.gov.my

High technology, capital intensive & knowledge driven industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
Industries manufacturing intermediate goods:
• Machinery & equipment
• Components & parts
• Moulds and dies
Resourced-based industries:
• Oil & Gas
• Food & Agro based
• Value-added products from
natural resources investmalaysia@mida.gov.my

 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 investmalaysia@mida.gov.my

 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
 Research & Development (R&D)



Market Support Services
Central Utility Facilities
Technical & Laboratory Testing
 Film & Video Production & Post Production investmalaysia@mida.gov.my

investmalaysia@mida.gov.my

Ownership
• Manufacturing & selected services sectors can be wholly foreign-owned
Capital
• Freedom to Repatriate Capital, Interest,
Dividends and Profits – No Restrictions
Expatriate Post
• Liberal policy, based on merit of each case investmalaysia@mida.gov.my

investmalaysia@mida.gov.my

2020 Total new jobs:
40,000
Aberdeen Stavanger
Houston
What it takes to make it happen
▪ Attract major international OFSE companies to bring a sizeable share of their global operations to
Malaysia
▪ Build regional champions
– Rationalize fabricators
– JVs with world class players investmalaysia@mida.gov.my
2020 GNI impact:
USD4.5
Billion

PS Contractors
Process/
Products/
Components
Exploration and
Production
Process
Equipment/
Fabricated
Parts
Integrators/
Assemblers
•
FMC
•
Halliburton
•
Aker
•
Cameron
•
Asiaflex
•
Schlumberger
•
Baker Hughes
• KNM
• MMHE
•
Sime Sembawang
•
Tepat Teknik
•
Kencana HL
•
Dialog
Supporting
Services
Machining
•
UMS
•
Kobay Tech
•
Upeca
-
•
Gebeng Industrial
Park, Pahang
•
Pasir Gudang –
Tanjung Langsat
Industrial Parks,
Johor
•
Kerteh Integrated
Petrochemical
Complex,
Terengganu
•
Zurah Industrial
Park (ZIP)
Research &
Training
• Standard and
Industrial
Research Institute of Malaysia
(SIRIM)
• Petronas
University of
Technology
• Malaysia, France,
British, Spain,
Japan, German
Institute
• Advance
Techology
Technical Centre
Infrastructure & Shared
Facilities

 Foreign companies based in Malaysia can enjoy preferential market access via Free Trade Agreements concluded by
Malaysia:
ASEAN
 Potential market of 600 million
 Combined GDP of USD1.8 trillion, as of 2010
 Already zero tariffs for 99% of products

ASEAN Economic Community and Single market by 2015
REGIONAL / BILATERAL FTAS
China Japan Korea India Australia New Zealand
 Potential market of 2.7 billion
 Tariff reduction and elimination mostly by 2016
Chile
ON-GOING FTA NEGOTIATIONS

Potential market of 1.08 billion
TPP EU Turkey investmalaysia@mida.gov.my

TMC
OHQ
SUKUK
(ISLAMIC
BOND)
IPO
IP
PROTECTION
PRIVATE
EQUITY ARBITRATION

OPERATIONAL HEADQUARTERS (OHQ)
• An OHQ refers to a locally incorporated company that carries on a business in Malaysia to provide qualifying services to its offices or related companies in and outside
 Full tax exemption for 10 years
TREASURY MANAGEMENT CENTRE (TMC)
• An TMC refers to a locally incorporated company that provides centralised treasury management services of Cash, Financing and Debt Management, Investment Services and Financial
Risk Management for its group of related companies within or outside the country.
 70% tax exemption for 5 years

ISLAMIC CAPITAL MARKET: SUKUK
• Malaysia is the largest issuer of sukuk representing 73% of the global outstanding sukuk as at 31 Dec 2012; a total value exceeding US$ 92.0 billion.
• It is considered to be the world’s top listing destination for sukuk and the most liquid sukuk market in the world.
INITIAL PUBLIC OFFERINGS (IPOs) ON
BURSA MALAYSIA
• Felda Global Ventures Holdings Bhd (FGV), the world’s largest crude oil palm producer, debuted on Bursa Malaysia in June
2012.
• It is the world’s second largest IPO this year, raised US$ 3.2 bil, after Facebook Inc’s US$ 16.0 billion offering. investmalaysia@mida.gov.my

INTELLECTUAL PROPERTY (IP)
PROTECTION
• Malaysia is a member of the World Intellectual Property Organisation
(WIPO) and a signatory to the Paris Convention and Berne Convention which govern these intellectual property rights
• Malaysia's IP laws conform to the requirements of the World Trade
Organisation’s Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS), and other international standards investmalaysia@mida.gov.my

ALTERNATIVE DISPUTE RESOLUTION
• Kuala Lumpur Regional Centre for Arbitration (KLRCA) is internationally recognised arbitration institution since 1978 that has a panel of nearly 700 experienced domestic and international arbitrators from diverse fields of expertise.
• Malaysia is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral
Awards which enable KLRCA’s arbitral awards to be enforceable in countries that are also signatories to the
Convention.
• Costs of arbitration proceedings in KLRCA are comparatively lower than other established arbitral jurisdictions – Singapore and Hong Kong. investmalaysia@mida.gov.my

NUMBER OF REGIONAL ESTABLISHMENTS
AND SUPPORT SERVICES APPROVED,
AS AT 31 DEC 2012
No. Category
1. Operational Headquarters (OHQ)
2. International Procurement Centre (IPC)
3. Regional Distribution Centre (RDC)
4. Regional Office (RO)
5. Representative Office (RE)
6. Integrated Logistics Services (ILS)
7. International Integrated Logistics Services (IILS)
No. of Companies
Approved
232
232
29
836
1,539
33
12 investmalaysia@mida.gov.my

MAJOR REGIONAL ESTABLISHMENTS
OPERATING IN MALAYSIA
Mining
Companies
Oil & Gas and Oil & Gas
Service Companies
Energy & Energy
Related Companies

More than 65
International Schools
20 Public Universities
28 Private Universities
21 University Colleges
366 Colleges
30 Polytechnics
2012
About 69,000
Engineering Graduates engineering disciplines ) investmalaysia@mida.gov.my

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 licence
• 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

Political & Economic
Stability
Transparent Policies
Well Developed
Infrastructure
Pro-business
Government
Policy of Welcome
Harmonious
Industrial Relations
Liberal Investment
Policies
Sound Banking
System
Trainable & Educated
Labour Force
Good Track Record Quality of Life

Please visit us at www.mida.gov.my investmalaysia@mida.gov.my