Transcript MALAYSIA

TRADE AND INVESTMENT
OPPORTUNITIES IN MALAYSIA
7 June 2011
MALAYSIA’S KEY INDICATORS
2010
Land Area
330,252 sq km
Capital
Kuala Lumpur
Population
28.9 million
Real GDP (%)
7.2
Inflation (%)
1.7
Per Capita Income
€5,709.23
Unemployment (%)
3.2
International Reserves (€ billion)
74.5
Retained Imports Equivalent (month)
8.5
GDP Composition by sector
• Agriculture
• Mining
• Construction
• Manufacturing
• Services
7.3%
7.2%
3.3%
27.7%
57.4%
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MALAYSIA – MULTIRACIAL AND
PROGRESSIVE COUNTRY
• Malaysia is a truly multi-ethnic and multi-religion country
• Strength in diversity
Ethnic Groups
Population
(m)
Malays and
Indigenous
17.5
Chinese
6.4
Indian
1.9
Others
0.3
Non-Citizens
2.1
Total
•
28.2
Religion
Islam
60.4
Buddhism
19.2
Christianity
9.1
Hindu
6.3
Others
5.1
Total
All groups are well represented in Parliament
Source: National Statistics Department
% of
Population
100.0
Why Malaysia is Special?
Year-long warm
and sunny
climate offers
plenty of
opportunities
for sports,
leisure and
family activities
Excellent
health
infrastructure
with many
modern
hospitals,
clinics and
medical
facilities
Welldeveloped
transport and
telecommunic
ation system
Variety of
food, 300
malls,
deepest
reefs,
Natural
rainforest
Over 30
international
schools
registered
with the
Ministry of
Education
Peace and
harmony
TRADE PERFORMANCE
MALAYSIA'S BILATERAL TRADE WITH PARTNER
COUNTRY LATVIA (€ MIL.)
35.00
VALUE (€ MILLION)
30.00
29.53
25.00
20.00
15.00
10.00
5.00
25.46
24.04
22.91
13.49
19.82
18.51
17.46
16.38
14.75
13.62
9.37
4.12
0.00
2005
4.07
1.13
1.13
1.08
2006
2007
2008
YEAR
EXPORT
IMPORT
TOTAL
1.31
2009
2010
MAJOR EXPORTS & IMPORTS TO LATVIA
(2010)
€ Million
% Share
Electrical & Electronic Products
7.08
27.8
Rubber Products
5.47
21.5
Wood Products
3.50
13.8
Machinery, Appliances & Parts
2.90
11.4
Manufactures of Metal
1.85
7.3
Major Export Products
€ Million
% Share
Rubber Products
1.64
40.1
Processed Food
1.40
34.6
Electrical & Electronic Products
0.44
11.0
Chemicals & Chemical Products
0.14
3.7
Wood Products
0.05
1.2
Major Import Products
GOVERNMENT
INITIATIVES
GOVERNMENT INITIATIVES
Government Transformation
Programme (GTP)
Economic Transformation
Programme (ETP)
10th Malaysia Plan
2011-2015
Effective delivery of government
services
Private sector leads, Government
facilitates.
Specific initiatives and projects
driving economic transformation.
12 NKEAs to received prioritized
policy and investment focus.
.... As at date, 60 EPP projects has been announced with an estimated
amount of € 23.1 million value of investment & offering about 230,000
job opportunities.
Source: Economic Planning Unit, Malaysia
APPROVED INVESTMENT IN MANUFACTURING SECTOR BY MAJOR
COUNTRIES (2008 – 2010)
1. USA
€ 5.0 billion
2. JAPAN
€ 3.6 billion
3. AUSTRALIA
€ 2.8 billion
4. HONG KONG
5. GERMANY
€ 1.8 billion
€ 1.4 billion
IMPLEMENTED MANUFACTURING PROJECTS (as at 2010)
1. JAPAN
2. USA
3. SINGAPORE
4. GERMANY
5. NETHERLANDS
€ 13.6 billion
€ 12.7 billion
€ 5.4 billion
€ 4.4 billion
€ 3.3 billion
NOTABLE GERMAN COMPANIES IN MALAYSIA
INVESTMENT POLICIES
Manufacturing
License
Equity
Guidelines
Repatriation of
Profits
• Automatic approval
for non-sensitive
industries
• 100% foreign
equity ownership is
allowed
• No restriction
imposed on foreign
companies investing
in Malaysia
INCENTIVES
Pioneer Status
Income tax exemption ranging
from 70%-100%; 5-10 years
Investment Tax Allowance
60%-100% on qualifying
capital expenditure; 5-10
years
Incentives
Reinvestment Allowance
60% on qualifying capital
expenditure
Import Duty & Sales Tax
Exemption
For raw materials and
machinery and Equipment
INCENTIVES
Biotechnology
Company
MSC Status Company
100% tax exemption for 10 years; or
Investment Tax Allowance of 100% for 5 years; and
Concessionary tax rate of 20% for another 10 years upon
the expiry of the tax exemption period
IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM
The Special Task Force to Facilitate Business
(PEMUDAH)
Set up in February 2007, a highpowered taskforce
Co-chaired and comprising
representatives from public and private
sectors
Review and recommend improvements
to public delivery system to facilitate
business
IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM
Starting a business
Expedited from 11 to 3 days
Trade Facilitation
National Single Window:
electronic system that
enables a secured, safe and
efficient electronic exchange
of trade-related documents
IMPROVEMENTS
Facilitating Business
MyCoID: Single ID for dealing
with Government agencies
New Commercial Courts
Dedicated courts to resolve
commercial cases
IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM
Registering Property
Transfer of landed properties
by Land Offices is reduced to
1 day from 30 days
Employing Workers
Wholistic review of
Employment Legislations &
publishing of Guidelines on
Retrenchment Management
IMPROVEMENTS
Paying Taxes
e-Payment
Construction Permit
Common technical checklist
template for all local
authorities and
standardisation of procedures
CURRENT FOCUS ON THE MANUFACTURING
SECTOR
High technology, capital intensive &
knowledge driven industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
Industries manufacturing
intermediate goods:
• Machinery & equipment
• Components & parts
• Moulds and dies
• Optics and photonics
• Petrochemicals
Resourced-based industries:
• Pharmaceuticals
• Food ( Halal Hub )
• Value-added products from
natural resources
• Medical devices
• ICT
• Aerospace
TARGETED SERVICES SECTORS

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
TARGETED SERVICES SECTORS
 Environmental Management
 Energy conservation/efficiency
 Energy generation, using renewable energy sources
 Storage, treatment and disposal of hazardous waste
 Recycling of agricultural waste and agricultural byproducts
 Business Services
 Shared services outsourcing
 Research & Development (R&D)
 ICT Services
 Market Support Services
 Film & Video Production & Post Production
TARGETED SERVICES SECTORS

Education


Technical, Vocational & Science Training
Healthcare Travel (Medical Tourism)

Private hospitals

Wellness Zone (Port Dickson)
ECONOMIC CORRIDORS
Focus on:
• Modern Agriculture
• Manufacturing & Design
• Tourism
• Logistics
• Education & Health
Focus on:
• Tourism
• Oil & Gas
• Manufacturing
• Agriculture
• Education
Focus on:
• Agro-based Industry
• Tourism
• Logistics
• Manufacturing
Focus on:
• Resource Based Industry
• Energy
• Tourism
To be a hub for the services sector:
• Creative Industry
• Education
• Healthcare
• Logistics
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Malaysia and ASEAN
ASEAN
• Implemented AFTA in 2010
• A total of 97% of products
traded between ASEAN at
tariffs of between 0-5%
• Population of 590 million
consumers
• Combined GDP of €1.1
trillion
• ASEAN Economic
Community 2015
STRATEGIC MARKET ACCESS
Foreign companies based in Malaysia can enjoy
preferential market access via Free Trade Agreements
concluded by Malaysia:
ASEAN
Bilateral
AFTA
Japan
Under
Negotiations
EU
China
Korea
Japan
Australia-New
Zealand
Pakistan
New Zealand
Chile
India
Australia
Turkey
TPP
GCC
India
MALAYSIA –EU FTA
Coverage:
Coverage broad spectrum i.e. Goods, Services, Investment and
others
• So far, 2 rounds of negotiation held
• Targeted to be completed within 18 months from December 2010
• Expected to bring benefits both EU and Malaysia in all economic
areas.
MALAYSIA’S INTERNATIONAL RANKINGS
3rd Attractive Location for Outsourcing Destinations –
A.T. Kearney Global Services Location Index 2010
4th For Investor Protection – Forbes Report 2010
10th Most Competitive Economy In 2010 – IMD
23rd For Ease Of Doing Business In 2010 – The World
Bank Group
WHY MALAYSIA ?
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Political & Economic Stability
Pro-business Government
Liberal Investment Policies
Transparent Policies
Policy of Welcome
Well Developed Infrastructure
Sound Banking System
Harmonious Industrial Relations
Trainable & Educated Labour Force
Quality of Life
Good Track Record
CONCLUSION
MALAYSIA
YOUR STRATEGIC PARTNER IN ASIA
PACIFIC YOU CAN COUNT ON!