Investment Opportunities In
Malaysia
CONTENT OUTLINE
• The Aerospace Industry: Global &
Regional Outlook
• Aerospace Industry In Malaysia
• Investment Policies & Incentives
• About MIDA
2
Invest in Malaysia > Your Profit Centre in Asia
THE AEROSPACE INDUSTRY:
GLOBAL & REGIONAL OUTLOOK
3
Invest in Malaysia > Your Profit Centre in Asia
3
Airlines will need nearly 36,800 new airplanes
valued at USD5.2 trillion
4
Invest in Malaysia > Your Profit Centre in Asia
Market for new airplanes to become even more
geographically balanced
5
Invest in Malaysia > Your Profit Centre in Asia
Air travel growth varies by market
6
Invest in Malaysia > Your Profit Centre in Asia
MRO Market Forecast
_____________________________________________________________________________________________________
 Global MRO market will grow at 3.9% in the next 10 years.
 Asia Pacific is projected to grow at 5.7% CAGR in the next 10 years and
will be the largest MRO region by value ($23.14 bil.) by 2022.
7
Invest in Malaysia > Your Profit Centre in Asia
Source : Frost & Sullivan
ASIAN AVIATION MARKET
_____________________________________________________________________________________________________
 Economy
-
GDP to grow 4.7% per year over next 20 years, above world average
growth rate of 3.3%
Asia’s share of world’s GDP to expand from 27% to 35% by 2030.
 Air Travel
-
8
Traffic to grow 6.7% per year over next 20 years, world traffic growth
at 5.1% per year
Shorter-haul flying, including domestic and inter-regional travel, to
grow at 7.0% per year
One-half of world’s new traffic added during next 20 years will be to,
from, or within Asia
Invest in Malaysia > Your Profit Centre in Asia
Why ASEAN Region ?
Potential market of over 600 million
›
Combined GDP of USD3 trillion, as of 2014
›
Already zero tariffs for 99% of products
›
ASEAN Economic Community and Single market by 2015
•
•
Japan
ASEAN Single
Aviation Market
by 2015
›
Turkey
•
•
•
Free flow of goods;
Free flow of services;
New Zealand
India
Chile
Free flow of investment;
Freer flow of capital; and
Skilled labor.
Australia
China
 Potential market of 2.7 billion
 Tariff reduction and elimination mostly by 2016
On-Going
FTA Negotiations
9
TPP
Invest in Malaysia > Your Profit Centre in Asia
EU
Korea
AEROSPACE INDUSTRY
IN MALAYSIA
MALAYSIA AEROSPACE INDUSTRY
Promoted Activity
Identified as a new source of growth for
Malaysian Economy
Supported by :
 1st Malaysia Aerospace Industry Blueprint
(1997 – 2014)
 2nd Malaysia Aerospace Industry Blueprint
(2015 – 2030)
 Economic Transformation Program
11
Invest in Malaysia > Your Profit Centre in Asia
11
MALAYSIA AEROSPACE INDUSTRY BLUEPRINT
(1997 – 2014)
12
Invest in Malaysia > Your Profit Centre in Asia
MALAYSIA AEROSPACE INDUSTRY BLUEPRINT
(2015-2030)
Incentive package for the
aerospace industry 2015-2030
Entry Point Projects under the
Economic Transformation Program
Migration of aircraft maintenance
licensing systems to EASA Part 66
Aerospace Malaysia Innovation Centre
13
Invest in Malaysia > Your Profit Centre in Asia
AEROSPACE ECOSYSTEM MANUFACTURING
(Senior PLC)
(Senior PLC)
14
Invest in Malaysia > Your Profit Centre in Asia
AEROSPACE ECOSYSTEM - MRO
15
Invest in Malaysia > Your Profit Centre in Asia
Approved Investment In The Aerospace Industry
Year
16
Project
Investment (RM) mil
Foreign
Domestic
Total (RM)
mil
2009
5
159.9
392.0
551.0
2010
4
907.8
30.2
938.0
2011
7
282.6
64.6
347.2
2012
11
1,440.0
860.0
2,300.0
2013
6
196.7
190.6
387.3
2014
Total
7
40
187.0
3,174.0
495.0
2,032.4
682.0
5,205.5
Invest in Malaysia > Your Profit Centre in Asia
CURRENT STATUS
 Today, aerospace industry has grown and contributed to
the nation’s high income agenda
Variables
Year 2014
RM Bil
Revenue
11.8
Investment
4.7
Export
2.9
Import
15.1
No. of companies
159
Employment
Industry Revenue Contribution
(2009 – 2015f)
19,500
Source: MIGHT Analysis
17
Invest in Malaysia > Your Profit Centre in Asia
STRATEGIES TO DEVELOP THE
AEROSPACE INDUSTRY
Attract Tier-1 and Tier-2 Aerospace
companies
Nurturing Malaysian companies to
become vendors/suppliers to MNCs
Incentives / DISF
Human Capital Development
Public-Private Partnerships
Obtaining certifications and standards
for Malaysian companies
18
Invest in Malaysia > Your Profit Centre in Asia
INVESTMENT POLICIES AND
INCENTIVES
19
Invest in Malaysia > Your Profit Centre in Asia
INVESTMENT POLICIES
Foreign Equity
Repatriation of Funds
20
Invest in Malaysia > Your Profit Centre in Asia
MAJOR INCENTIVES PROVIDED
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
21
Invest in Malaysia > Your Profit Centre in Asia
Import Duty Exemption
For raw materials/components
and Machinery and Equipment
ABOUT
22
Invest in Malaysia > Your Profit Centre in Asia
MITI & AGENCIES
MALAYSIA PRODUCTIVITY CORPORATION
23
Invest in Malaysia > Your Profit Centre in Asia
23
FUNCTIONS OF MIDA
Promotion
Evaluation
Planning
Follow-up /
Monitoring




Foreign Direct Investment
Domestic Investment
Business matching through E-Connect
Manufacturing Services





Manufacturing licenses
Tax incentives
Expatriate posts
Duty exemption
Principal Hub and R&D status

Planning for industrial development

Recommend policies and strategies on industrial


promotion and development
Formulation of strategies, programmes and
initiatives for international economic cooperation



24
Assist companies in the implementation and operation of their projects
Facilitate exchange & co-ordination among institutions engaged in or
connected with industrial development
Advisory Services
Invest in Malaysia > Your Profit Centre in Asia
FACILITATION OF INVESTMENT
MIDA as a One Stop Agency :
a) Advisory & consultancy
b) Approval of projects
c) After- care services
25
Invest in Malaysia > Your Profit Centre in Asia
Under the National Committee on
Investment (NCI)
Evaluation of applications for:
• Manufacturing license
• 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
Stockholm
London
San Jose Chicago Boston
New York
Los Angeles
Houston
Paris
Frankfurt
Munich
BeijingSeoul Tokyo
Shanghai
Milan
Osaka
Dubai
Guangzhou
Taipei
Mumbai Malaysia
Singapore
Sydney
23 Overseas Centres
Please visit us at
www.mida.gov.my
investmalaysia@mida.gov.my
27