Malaysia Your Profit Centre in Asia About MIDA Key Economic Indicators Investment Performance Companies in Malaysia National Key Economic Area (NKEA) Investment Policies & Incentives Investment Opportunities ASEAN & Free Trade Agreement (FTA) Malaysia’s Ranking Why Malaysia? The principal Malaysian Government agency responsible for the promotion of investments and coordination of industrial development in the country First point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia Incorporated as a statutory body under the Malaysian Industrial Development Authority (MIDA) Act, 1967 Our Services Initial Stage • Briefings • Meeting with MIDA HQ • Meetings with State Authorities • Business matching with Malaysian companies • Visit to companies/suppliers • Visit to potential locations • Talent requirements Evaluation and Approval • Manufacturing License • Tax Incentives • Regional Establishments (Representative Office/OHQ/IPC/RDC) • Expatriate Posts • Import Duty Exemptions Project Implementation Stage • Handhold and assist investor until project is implemented 5 Stockholm London San Jose Los Angeles Chicago Boston New York Houston Paris Frankfurt Munich Beijing Seoul Tokyo Shanghai Milan Osaka Dubai Guangzhou Taipei Mumbai Malaysia Singapore Sydney 23 Overseas Centres Alor Setar Headquarter KL Sentral, Kuala Lumpur Kota Bharu Kuala Terengganu Penang Ipoh Kota Kinabalu Kuantan Selangor Seremban Melaka Johor Bahru Kuching 2012 2013 2014 2015 (f) Real GDP Growth (%) 5.6 4.7 6.0 4.5 - 5.5 Inflation (%) 1.6 2.6 2.7 2.0 – 3.0 9,991 10,687 10,426 12,745 3.0 3.1 2.7 3.0 139.7 134.9 116.0 112.0 Per Capita Income (US$) Unemployment (%) International Reserves (US$ bil) Source: Central Bank of Malaysia/Department of Statistics Malaysia/Economic Planning Unit (EPU) RM235.9 billion Approved investments 250 178,360 Jobs Created 150 5,942 Projects Approved 200 Increased by 8% 235,9 219,4 Increased by 100 8% 50 0 2013 2014 Year Source: MIDA 9 Continued investors’ confidence in Malaysia as an investment destination 2013 58.5% FDI 2014 55.1% FDI RM39.6 bil. RM30.5 bil. RM52.1 billion RM71.9 billion 41.5% DDI RM21.6 bil. 44.9% DDI RM32.3 bil. Source: MIDA 70.1% of FDI came from Asian Countries while 24.5% were from EU and the USA Increased by 8% RM million 12 000 10 870 10 000 8 359 8 000 Increased by 7 822 6 000 4 752 8% 4 000 2 000 1 549 1 350 Korea, Rep. USA Japan European Union Singapore China Source: MIDA Domestic investments continue to dominate 12.9% FDI RM19.0 bil. 2013 RM147.7 billion 12% FDI RM17.7 bil. 2014 RM149.6 billion 87.1% DDI RM128. 7 bil. 88% DDI RM131.9 bil. Source: MIDA MNCs in Malaysia 13 14 MAJOR FINNISH COMPANIES IN MALAYSIA (Wiicotec OY) 15 Wholesale and retail Tourism Financial services Greater KL Agriculture Business services Oil, gas & energy NKEAs selected which can materially impact economic growth Electrical & electronics Education Comms Content Infrastructure Palm oil Healthcare Source: Performance Management and Delivery Unit (PEMANDU) Foreign Equity Repatriation of Funds Pioneer Status Income tax exemption ranging from 70% or 100% for a period of 5 or 10 years Investment Tax Allowance 60% or 100% on qualifying capital expenditure for 5 years Incentives Reinvestment Allowance 60% on qualifying capital expenditure for 15 consecutive years Import Duty & Sales Tax Exemption (*) For raw materials / components and Machinery and Equipment * Valid until 31/03/2015 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 • • • • • • • • • Regional Establishments Business and professional services Environmental Management ICT services Education and training Offshore and outsourcing activities Logistics Healthcare Tourism Less Developed Area Industrial Area Management Incentives Automation Capital Allowance Expenditure (ACA) Principal Hub • Implemented AFTA in 2010 • 7th largest economy in the world – combined GDP USD2.4 trillion • Population over 620 million people • Intra-ASEAN trade is 24% of total global trade of USD2.51 trillion in 2013 • Total FDI inflows of USD122 billion in 2013 with intra-ASEAN investments alone contributing 17% • 97.3% of products traded in the region will be duty-free Source : ASEAN Statistical Yearbook 2009 • ASEAN Economic Community 2015, integrated market & production base – freer flow of goods, services, investments, skilled labour and capital REGIONAL / BILATERAL FTAs China Japan Korea India Australia New Zealand Chile Potential market of 2.7 billion Tariff reduction and elimination mostly by 2016 ON-GOING FTA NEGOTIATIONS Turkey global offshoring destination (A.T. Kearney Global Services Location Index™ 2014) protecting investors (World Bank Doing Business 2014 Report) IMD world talent rankings (IMD's World Competitiveness Yearbook 2014) most competitive economy in overall performance (IMD's World Competitiveness Yearbook 2014) most attractive destination for FDI (2014 A.T. Kearney's FDI Confidence Index) in ease of doing business (World Bank Doing Business 2014 Report) most competitive nation in the world (WEF's Global Competitiveness Report 2014-2015) Developed Infrastructure Vibrant Business Environment Economic Strength Supportive Government Policies Quality of Life An Educated Workforce Safe Harbour Malaysia offers investors the following benefits: Safe Harbour • Gateway and connectivity to South East Asia; • Rich natural resources including oil and gas; • Out of typhoon and earthquake belts; • Politically stability and far-sighted government; • Sophisticated modern infrastructure in airports, harbours, transport and road and architecture; • High calibre professionals and skilled English – speaking workforce; • Developed Manufacturing and Industrial sectors. Economic Strength Malaysia offers investors the following benefits: • Natural resources – crude oil, natural gas, tin, timber, palm oil, rubber; • GDP growth – 4.7% (2013); Gross National savings – 32.7% of GNI • Per capita income – RM34,175 (USD$10,337); • Unemployment rate – 3.1% (f); Inflation (CPI) – 2.0%-3.0% (f); • Export of manufactured goods 2012 – 67% of total exports. Supportive Government Policies - Pro-business policies; - Responsive government; - Liberal investment policies; - Attractive tax & other incentives; - Liberal exchange control regime; - Intellectual property protection. An Educated Workforce - Talented, young, educated and productive workforce; - Multilingual workforce speaking two or three languages, including English; - Comprehensive system of vocational and industrial training, including advanced skills training; - Harmonious industrial relations with minimal trade disputes. Developed Infrastructure - Network of well-maintained highways and railways; - Well-equipped seaports and airports; - High quality telecommunications network and services; - Fully developed industrial parks, including free industrial zones, technology parks and Multimedia Super Corridor (MSC). - Advanced MSC Malaysia Cybercities and Cybercentres. - Market oriented economy; Vibrant Business Environment - Well-developed financial and banking sector; including the Labuan International Business and Financial Centre; - Wide use of especially in business, legal and accounting practices based on the British System; - Large local business community with a long history in business links; - Large foreign business community in all business services; - Extensive trade links – country’s total trade was valued at RM1.31 trillion in 2012. - Friendly and hospitable Malaysians; Quality of Life - Safe and comfortable living environment; - Excellent housing, modern amenities, good healthcare and medical facilities; - Excellent educational institutions including international schools for expatriate children; - World-class recreational and sports facilities; - Excellent shopping with international brands. AMENITIES – DOING BUSINESS Invest in Malaysia > Your Profit Centre in Asia 30 AMENITIES - EDUCATION Invest in Malaysia > Your Profit Centre in Asia 31 AMENITIES – FINANCIAL SERVICES Invest in Malaysia > Your Profit Centre in Asia 32 AMENITIES - LIFESTYLE Invest in Malaysia > Your Profit Centre in Asia 33 SHOPPING KUALA LUMPUR ranked 4th as the best shopping location after New York, Tokyo and London - travel.CNN.com • “Three of the world's 10 largest malls are in KL, including 1 Utama, the world's fourthlargest mall with more than 650 shops, Asia's largest indoor rock climbing facility, massive rooftop garden with 500 species of exotic plants and indoor rainforest with koi ponds and freshwater aquarium” Invest in Malaysia > Your Profit Centre in Asia 34 SPORTS & RECREATION Invest in Malaysia > Your Profit Centre in Asia 35 CONTACT IN STOCKHOLM ROSLINA OTHMAN Director Email: roslina@mida.gov.my Mailing/Visiting Address: NIK FAIZAL KAMARUDIN Assistant Director Email: nikfaizal@mida.gov.my MIDA Stockholm Karlavägen 37 SE 100 41 Stockholm, Sweden Tel: (468) 791 7942 Fax: (468) 791 8761 www.mida.gov.my PETER BERTRAND Investment Officer Email: peterbertrand@mida.gov.my Invest in Malaysia > Your Profit Centre in Asia 36 Malaysia : Your Profit Centre in Asia KIITOS 37