DOING BUSINESS
IN MALAYSIA
www.mida.gov.my
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MALAYSIA
Global
Ranking
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 Top 3 growth centres in emerging markets
Deutsche Bank Research 2005
 Top 10 countries as a choice for business location
TNS Global Reputation Survey 2005
 Top 3 countries for Offshore Location Centres
A.T.Kearney – Annual Global Services Location Index, 2005
 Top 5 countries for energy, finance and logistics in
global shared services and outsourcing (SSO)
Frost & Sullivan - SSO Hub Potential Analysis 2005
 23rd most competitive economy in the world
IMD World Competitiveness Yearbook, 2006
 Kuala Lumpur is the cheapest city in the world to live in
UBS Bank of Switzerland, 2006
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MALAYSIA
Images of Malaysia
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The
Location
In the Heart
of South
East Asia
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The City
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The City
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The People
Malaysia truly Asia
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MALAYSIA
Malaysian Economy
GDP Growth
5.8% (2007 est.6%)
Per Capita Income Euro 3,652
Population
26.1 million
Work Force
10.1 million
Unemployment
4%
Inflation
3.7%
Trade Surplus
Euro 19.9 billion
Int.Reserve
Euro 56.8 billion
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MALAYSIA
Strength of the
Manufacturing
Sector
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Multinational corporations from more than
50 countries have invested in over 5,000
projects in Malaysia's manufacturing
sector.
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Foreign Direct Investment In Approved
Manufacturing Projects (Euro Billion)
(Euro Bil.)
6
5
4
3.9
3.8
3.3
2.5
3
4.3
2.8
2
1
0
2001
2002
2003
2004
2005
2006
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Sources of FDI (Top 10 Countries),
2001-2006
COUNTRY
INVESTMENTS
(EURO MILLION)
USA
3,499.6
JAPAN
2,802.3
GERMANY
2,772.2
SINGAPORE
2,039.5
UNITED KINGDOM
955.5
NETHERLANDS
930.8
UNITED ARAB EMIRATES
849.3
KOREA
808.4
TAIWAN
671.2
AUSTRALIA
665.0
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MALAYSIA
Investment
Opportunities
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Targeted Sectors (Manufacturing)
High technology, capital intensive and
knowledge driven industries:
• Biotechnology
• Advanced electronics
• Optics and photonics
• Wireless technology
• Display technology (TFT, LCD, Plasma & parts)
• Petrochemical
• Pharmaceutical
• Medical devices
• ICT
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Industries manufacturing intermediate goods
• Machinery and equipment
• Components and parts
• Moulds and dies
Resourced-based industries
• Food ( Halal Hub )
• Value-added products from
oil palm biomass (particle board,
MDF board, animal feed)
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Targeted Sectors (Services)
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Operational Headquarters (OHQ)
International Procurement Centre (IPC)
Regional Distribution Centre (RDC)
Regional Office (RO)
Representative Office (RE)
Integrated Logistic Services (ILS)
Integrated Market Support Services (IMSS)
Integrated Central Utility Facilities (CUF)
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MALAYSIA
Investment
Incentives
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Services Sector
Foreign companies could consider
the establishment of the following:
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•
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Representative Office
Regional Office
Operational Headquarters (OHQ)
Regional Distribution Centre (RDC)
International Procurement Centre (IPC)
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Incentives Granted for
OHQ, IPC & RDC
Full income tax exemption for
10 years
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Manufacturing Sector
Foreign companies could consider
the establishment of
manufacturing operations in the
promoted areas of:
• High Technology projects
• Strategic Projects
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Incentives Granted
• Pioneer Status (PS) with income tax
exemption up to 100% for 5 to 10 years; or
• Investment Tax Allowance (ITA) up to 100%
for 5 years. Allowance can be offset against
100% of statutory income.
• Customised Incentives - granted on request
of the company and the merits of each case
• Reinvestment Allowance of 60% for a period
of 15 years (For reinvestment).
• Duty exemption on raw materials and
machinery and equipment
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MALAYSIA
Liberal
Investment
Policies
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Equity Ownership
• Foreigners are allowed to hold
100% equity ownership.
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Employment of Expatriates
• Foreign companies are allowed to
bring in expatriate personnel to
hold
-
key posts (posts that are
permanently filled by foreigners)
-
term posts (posts that are filled by
foreigners for a period of 1-5 years)
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Approval Process
• Fast Track approval
• Pre-Packaged Committee
• Cabinet Committee on High Impact
Projects (Chaired by the Hon.
Deputy Prime Minister)
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Implementation of Projects
• Project Implementation Coordination Unit
(PICU) in MIDA will monitor and render
assistance to expedite the implementation
of approved manufacturing and services
projects.
• Special project officers are appointed to
‘hand-hold’ and assist investors in
obtaining all necessary approvals until
projects are operational.
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MALAYSIA
Why Malaysia?
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Political and Economic Stability
Strong Government support including liberal
investment policies and attractive incentives
(Tax and Non Tax)
Liberal Investment Policies
Transparent Policies
Security of Intellectual Property
Well Developed Infrastructure
Multi Racial (Malays, Chinese and Indians)
Trainable, Educated and English Speaking
Workforce
Harmonious Industrial Relations
Quality of Life
Good Track Record
Member of ASEAN
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When you want to
do business in
Asia
Do it in Malaysia
Your Profit Centre in
Asia
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Appendix
MALAYSIA
What Foreign
Investors Says
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FLEXTRONICS * PHILIPS * SHELL * UNILEVER * BASF *
IKEA * NESTLE * AGILENT TECHNOLOGIES * BP AMOCO
HITACHI * ELEKTRISOLA * MOTOROLA * SAMSUNG
KOMAG * ERICSSON * SONY * MATSUHITA * INFENION
BMW * DAIMLERCHRYSLER * MIECO * PHILLIPS
ROBERT BOSCH * IDEMITSU * SHARP * TORAY ……..
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SCHENKER
Reiner Allgeier,
Managing Director,
Schenker Logistics (Malaysia)
Sdn Bhd.
“We believe that a strong
global network is a very
important competitive
advantage in the logistics
industry and Malaysia is a key
market in the Asian Region,
Malaysia's continuous growth
and the transition of the
Malaysian economy into an
export-driven economy,
spurred on by high technology,
knowledge-based and capitalintensive industries proved our
decision to be right."
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BMW
Wolfgang Schlimme
Managing Director
BMW Group Malaysia
“Since entering Malaysia, BMW has
developed a strong platform,
complemented by the professional
support and commitment shown by our
partners here in Malaysia. With a strong
and stable political climate, some of the
best infrastructure in the region and a
large talent pool, Malaysia serves as a
firm base for the BMW Group's growth
plans in Asia.
The establishment of the Regional Parts
Distribution Centre in Port of Tanjung
Pelepas, Johor Darul Takzim in August
2004 represents the introduction of a key
regional role for BMW Group Malaysia.
The Regional Parts Distribution Centre
supports the BMW Group by the speedy
distribution of parts and accessories
throughout the Asia-Pacific markets,
providing premium customer service. “
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SONY
Koichi Nakamura
The Malaysian
Representative of the
Sony Group of
Companies in Malaysia.
“ Malaysia is an excellent place for do
business. The Malaysia government
has shown exemplary support through
excellent infrastructure development
and a good education system that
allows us to employ a high quality
workforce.
There is in existence a large pool of
component suppliers in Malaysia, thus
we have transferred from Singapore
and established an International
Procurement Office here for sourcing
parts to other Sony companies
worldwide.
Malaysia's political and economical
stability has been and will continue to
provide and ideal investment climate
for us to prosper. The establishment of
business-friendly laws and policies
has helped us to remain at the
competitive edge of the local and
global market.”
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DAIMLERCHRYSLER
“DaimlerChrysler Malaysia’s 250 employees
with their unique skills and creativity
provide the high-quality workmanship
expected by our customers. With a welldeveloped infrastructure and an educated
and productive workforce in place, the
company is set to take the Mercedes-Benz
brand and heritage to newer heights.
Frank Steinler
President & CEO
DaimlerChrysler
Malaysia Sdn. Bhd.
Malaysia offers numerous advantages to
investors. The Malaysian government is
committed to improving the investment
environment in the country especially its
continuous support and efforts in
developing the country as one of the
automotive hubs in the ASEAN region. We
have made the right decision to invest in
Malaysia and we look forward to further
expanding our investments to complement
the growth of Malaysia’s automotive
industry.”
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ERICSSON
Mats H. Olsson
President & Country
Manager
Ericsson Companies in
Malaysia
“The governmental policies that
are put in place encourage
growth and promote
investments in a stable political
climate. Malaysia has a welldeveloped infrastructure and
strong industrial linkages with
supporting industries, thus
providing an excellent business
environment. In addition, the
workforce is educated and
productive. All these make
Malaysia an ideal choice for
investments.”
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