Transcript Malaysia - Confindustria

BUSINESS AND INVESTMENT OPPORTUNITIES
IN THE MACHINERY & EQUIPMENT,
SUPPORTING ENGINEERING AND
MEDICAL DEVICES SECTORS IN MALAYSIA
Table of Contents
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Malaysia and Italy: Key Economic Data
Malaysia’s Visibility
Malaysia’s Economic Development Journey
Malaysian Economy
Malaysia Investment Performance
Investment From Italy
Malaysian Machinery & Equipment Industry
Malaysian Medical Devices Industry
Malaysia – Strategic Gateway To Asia
International Competitiveness Rankings
Why Malaysia?
MIDA’s Functions
Malaysia and Italy: Key Economic Data
Land Area
Capital
Population
GDP
GDP Per capita
Malaysia
Italy
320,252km²
301,340km²
Kuala Lumpur
Rome
29.5 million
61.5 million
US$278.67 billion
US$1.83 trillion
US$10,466
US$30,100
Source: World Factbook
Malaysia’s Visibility
Diversity
Multiracial, multicultural
and multilingual
Malaysians living in
harmony
Silicon Valley of Malaysia
High-tech manufacturing
hub
Petronas
68th
Ranked
in FORTUNE
Global 500®, with revenue
over US$97 billion
Islamic Banking
Over 30 years of experience
and world leader in Islamic
banking with a strong legal and
regulatory Framework
Palm Oil
39 % of world’s palm oil
production and 44% of
world’s exports
Gloves
Malaysia is the largest
supplier of
examination and
surgical gloves - 50%
of the global demand
The Malaysia’s Economic Development Journey
Innovation, ETP &
High Income
2011
Technology
Intensive
1990s
Export-Oriented &
Labour-Intensive
1980s
1970s
Resource-Based &
Heavy Industries
1960s
Import
Substitution
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12
2000
Economic Corridors
& Services
National Key Economic Areas (NKEAs)
Wholesale
and retail
Tourism
Financial
services
Healthcare
Greater KL
NKEAs selected
which can
materially impact
economic growth
Agriculture
Oil, gas
& energy
Electrical &
electronics
Education
Comms Content
Infrastructure
Palm oil
Business
services
Malaysian Economy
MALAYSIA’S KEY ECONOMIC INDICATORS
2010
2011
2012
Real GDP (%) Growth
7.2
5.1
5.6
Inflation (%)
1.7
3.2
1.2
8,100
9,700
9,970
3.3
3.1
3.3
106.5
138.3
139.7*
8.5
9.6
9.7*
GNI Per Capita (USD)
Unemployment (%)
International Reserves (USD bil)
Retained Imports Equivalent (months)
* As at 29th March 2013
Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE
GDP BY INDUSTRIAL ORIGIN
Sector
GDP Contribution (%)
1970
1990
2000
2010
2011
2012
Agriculture
33.6
19.3
8.8
7.3
7.3
7.3
Mining
7.2
9.8
6.7
7.0
6.3
8.4
Construction
3.8
3.4
3.4
3.3
3.2
3.3
Manufacturing
12.8
26.5
32.6
27.6
27.5
24.9
Services
42.6
42.1
53.0
57.7
58.6
54.5
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12
Malaysia Investment
Performance
Total Investment Approved 2012
USD 53.1 BILLION
6,442 PROJECTS
182,841 JOBS
Total Investment Approved By Sectors In 2012
USD 53.1 billion
Primary
2.4%
Services
72.4%
Manufacturing
25.2%
REALISED
INVESTMENTS
IN MANUFACTURING
SECTOR SECTOR
REALISED
INVESTMENTS
IN MANUFACTURING
BY MAJOR
AS AT 31 DEC AS
2012
BYCOUNTRIES
MAJOR COUNTRIES
AT 31 DEC.2011
No.
Country
Investment
(USD billion)
1.
Japan
22.0
2.
USA
18.9
3.
Singapore
8.0
4.
Germany
6.2
5.
Taiwan
5.3
6.
Netherlands
4.6
7.
South Korea
4.0
8.
United Kingdom
1.8
9.
Hong Kong
1.6
10.
India
1.1
Source: MIDA
REALISED INVESTMENT IN THE MANUFACTURING SECTOR
BY MAJOR SECTORS, AS AT 2012
Fab. Metal
4%
M&E
3%
Others
15%
E&E
30%
Natural Gas
4%
Food
4%
Transport
6%
Non-Metallic
5%
Chemicals
8%
Basic Metal
10%
Petroleum
11%
Total
Investment
US$ 156.1 bil
Total Foreign
Investment
US$ 86.9 bil
Total Projects
18,148
Source: Malaysian Investment Development Authority
Investments from Italy
APPROVED PROJECTS & INVESTMENT IN THE
MANUFACTURING SECTOR WITH ITALIAN PARTICIPATION
Year
Potential
Employment
No.
Total Investment
(US$ million)
1980 - 2000
79
7,981
174.95
2005
2
114
10.92
2006
9
610
61.93
2007
2008
2009
2010
2011
4
2
2
3
4
310
302
17
247
64
15.76
20.44
13.21
9.58
27.32
2012
3
76
7.50
TOTAL
108
9,721
341.61
Source: Malaysian Industrial Development Authority (MIDA)
APPROVED PROJECTS & INVESTMENT IN THE MANUFACTURING SECTOR
WITH ITALIAN PARTICIPATION BY INDUSTRY, 1980 – 2012
Investment (US$ Million)
Rubber Products
20.19
Machinery & Equipment
8.16
5.79
19.02
114.84
31.03
33.32
34.59
53.05
Chemical & Chemical
Products
Fabricated Metal products
Non-Metallic Mineral
Products
Electronics & Electrical
Wood & Wood Products
Plastic Products
Leather & Leather Products
Source: Malaysian Industrial Development Authority (MIDA)
APPROVED
REGIONAL ESTABLISHMENT
APPROVED REGIONAL
ESTABLISHMENT
WITH ITALIAN
PARTICIPATION, 2006 - 2011
PARTICIPATION, WITH
2006 –USA
2012
Type of Establishment
No. of Approvals
Regional Offices (RO)
6
Representatives Offices (RE)
2
Operational Headquarters (OHQ)
-
International Procurement Centre (IPC)
-
Regional Distribution Center (RDC)
1
TOTAL
Source: Malaysian Industrial Development Authority (MIDA)
9
MAJOR ITALIAN MANUFACTURING COMPANIES OPERATING
IN MALAYSIA
MALAYSIA’S GLOBAL TRADE PERFORMANCE
Total Trade from 2010 – 2012(USD)
2011
414.7 bil
2010
362.5 bil
Source: Malaysia External Trade Development Corporation, MATRADE
2012
430.7 bil
TRADE
PERFORMANCE
2012(USD)
Exports
230.9 bil
Imports
199.8 bil
Total Trade
430.7 bil
%Total Trade to
GDP
154.5%
MALAYSIA MAJOR TRADING PARTNERS, 2012
Value
(US $ Billion)
Percentage
(%)
ASEAN
117.8
27.3
China
59.41
13.8
Japan
47.8
11.0
EU
42.0
9.8
USA
19.9
4.6
Country
Source: Malaysia External Trade Development Corporation, MATRADE
Investment Policies & Incentives
PROMOTED ACTIVITIES IN THE MANUFACTURING SECTOR
High technology, capital intensive &
knowledge driven industries:
Industries manufacturing
intermediate goods:
• Alternative Energy Sources
• Machinery & equipment
• Biotechnology
• Components & parts
• Advanced materials
• Moulds and dies
• Advanced electronics
Resourced-based industries:
• Optics and photonics
• Oil & Gas
• Food & Agro based
• Petrochemicals
• Value-added products from
• Pharmaceuticals
natural resources
• Medical devices
• ICT
• Aerospace
PROMOTED ACTIVITIES
INACTIVITIES
THE SERVICES
SECTOR
PROMOTED
IN THE
SERVICES SECTOR
 Regional Establishments
 Operational Headquarters (OHQ)
 International Procurement Centre (IPC)
 Regional Distribution Centre (RDC)
 Logistics
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Integrated Logistics Services
Cold Chain Facilities
 Tourism
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Hotel
Tourist project
Recreational camp
Convention centre
INVESTMENT POLICIES
Foreign Equity
Repatriation of Funds
Liberal Expatriate Post Approvals
MAJOR INCENTIVES PROVIDED
Pioneer Status
Income tax exemption ranging
from 70% to 100% for a period
of 5 to 10 years
Investment Tax Allowance
60% to 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
MILESTONES
Machinery and Equipment Sector
Machinery & Equipment and Advanced Engineering
Industry Snapshot – Malaysia (2012)
Production
Exports
RM 25.2 billion#
RM32.6 billion*
Imports
RM52.9 billion#
Companies
M&E (1073) , ESI (1004)
2,077
Employees
133,859
4 main categories
1. Specialised / Process M&E
2. Metal Working M&E
3. General M&E, Modules &
Components
4. Power Generating
M&E
Activities/services
1.
2.
3.
4.
5.
6.
7.
Mould & Die
Forging
Machining
Surface Engineering
Stamping
Heat Treatment
Casting
ESI
* Source from Frost and Sullivan at 2008 with consideration of 5% growth
# Matrade
Sectors
Manufacturing,
Services,
Agriculture,
Mining,
Construction
COMPANIES
IN PRODUCTION
M&E ASVISION
AT 2012
MALAYSIA’S
ENERGY
M&E
General M&E,
528
Power
Generating, 51
Specialised/
process M&E,
425
Metal Working
M&E, 27
MAJORMALAYSIA’S
M&E MANUFACTURED
IN MALAYSIA
ENERGY
VISION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Assembly & test equipment for electronic industry
Production equipment for oil and gas industry
Natural rubber/latex/palm oil processing machinery and equipment
Factory automation equipment
Vibratory road rollers, C-frame for tractors, buckets & arms for excavators,
hydraulic cylinders, bushes & pins
Filling/wrapping/strapping machine
Concrete mixers & asphalt batching plants
Cranes, lifts & escalators
Refrigeration plants/cold room equipment
Plant/packaged air-conditioners & cooling towers
Pressure vessels & industrial boilers
Blowers & fans
Dehumidifiers & compressors
Power/hydraulic presses & shearing & bending machines
Welding machine
Oil & Gas Eco-System
Clients
PSCs
(Production Sharing Contract)
Stages/
Cycle
Surveying
SpecialisedM&E
(Land and Sea Seismic
Equipment)
Drilling
Down-hole tools
ROV
X-mas Tree,
Wellhead
Umbilical
Flexible pipes
Valves
Topside
FPSO
Jacket
Process
Module
M&E for Services
Pigging
Turbo M&E
MNCs with
presence in
Mlaysia
Solar Alert
Supporting
Services
: Exotic Materials, Forging (1), Machining (10) & Surface Engineering (3)
Research,
Training &
Infra
– UM, USM, UPM, UKM, UTM, UTP , GMI, NCMTT, ADTECH, INSTEP, Free zone
Supply Base
E&E Industry Cluster (Semiconductor processes)
Wafer Fabrication
Wafer Processing
Process
Clients
Equipment
Crystal
Growth
Slicing &
Polishng
Photolithography
Etching &
Metallisation
Back-end processes
Wafer
Testing
&
Dicing
Assembly
&
Packaging
(Back-end)
Silterra X-Fab Infineon On Semiconductor Fuji Electric MEMC Tech Intel Infineon Linear Tech.
Carsem Unisem ASE Freescale Semiconductor NXP Texas Instrument
Furnace
Crystal Puller
Diamond Wire
Saw
Edge Grinding
Wafer Polisher
Epitaxial
Deposition
Laser
Lithography
Etching Equipment
PVD, CVD
Automatic Test
Equipment (ATE) ,
Back-end processing
Companies
Supporting
Services/
Facilities
Research,
Training &
Infra
Cleanroom Class 1 to 100
Total engineering solutions for high precision – Frencken , Kobay , UMS Group
TPM, Kulim High Tech, Sirim, PSDC, UTM, USM, UM
Medical Devices Eco-System
Consumables
Implants &
Surgical Instruments
Medical Gloves, Contraceptives,
Catheters, woundcare,
Opthalmology, IVD, SUD
Pacemakers, Orthopedics,
Surgical instruments
Healthcare
Equipment
Clients
Products
Electronic Modules
Life Science Instruments
Electrodes, Hospital beds
Machinery/
ESI
Companies
Supporting Infrastructure
Sterilization
Packaging
Certification
Testing
UKM
Bio
compatibility
Lab
33
Source : AMMI
Industry
Group
Education
Training
Regulatory
UM, USM
UKM
Medical
Device
Act 2012
INVESTMENT OPPORTUNITIES IN M&E & ESI
Targeted
Sectors
Customized
M&E
• Oil & Gas
• Semiconductor
Processing
• Food & Beverage
• Agricultural
• Plastic Processing
Hi Tech
M&E
•
•
•
•
Robotics &
Automation
Metalworking
Machinery
Packaging
Machinery
Material Handling
Equipment
Engineering
Supporting
Industries
•
•
•
•
•
•
•
Forging
Casting
Machining
Surface Engineering
Heat Treatment
Stamping
Mould, tool & die
SPECIAL INCENTIVES FOR M&E
Pioneer Status
• Up to 10 years full income tax exemption
Investment Tax Allowance
• Up to 100% of qualifying capex incurred within 5 years for
income tax exemption

Incentive Quantum Criteria:− Targeted Machinery & Equipment
− Level of Investment
− Level of Technology and R&D
− Transfer of Technology
− Spin off/ Outsourcing
MILESTONES
MEDICAL DEVICE INDUSTRY IN
MALAYSIA
MedicalMALAYSIA’S
Device Companies
in Operation
ENERGY
VISION
Total: 190 companies in Malaysia
(manufacturing, distribution, sales)
Source : AMMI
Major Foreign
Medical Device
Companies
in Malaysia
MALAYSIA’S
ENERGY
VISION
MedicalMALAYSIA’S
Device Industry Ecosystem
ENERGY VISION
Products
Consumables
Implants &
Surgical Instruments
Medical Gloves, Contraceptives,
Catheters, woundcare,
Opthalmology, IVD, SUD
Pacemakers, Orthopedics,
Surgical instruments
Healthcare
Equipment
Electronic Modules
Life Science Instruments
Electrodes, Hospital beds
Companies
Latex/
Plastic
Technology
Metal
Machining
Electronics
Furniture
Supporting Infrastructure
Sterilization
Packaging
Machinery & Engineering
Supporting Industry
Certification
Electronic
Manufacturing
Services
Testing
Industry
Group
Education
Training
Medical
Compounds
Clinical Research
Center
Regulatory
Business Opportunities:
MALAYSIA’S
ENERGY
VISION
Malaysia
as a Medical Device
Hub in Asia
Electromedical
equipment
Research/Design
& Development
Contract
Manufacturing
Wound care
products
Cardiovascular
devices
MEDICAL
DEVICES
In-vitro
diagnostic
products
Orthopaedic
devices
Engineering Supporting Services
MALAYSIAN
ENGINEERING
SUPPORTING CAPABILITIES
MALAYSIA
– YOUR MANUFACTURING
SOLUTION PROVIDER
Sectors
Background
Capability
Opportunities
1. Mould & Die
 Established since
1970s
 About 400 industry
players
 Precision specifications
by international
semiconductor industry
requirements
 End-user industry :
Automotive, E&E
 High precision mould
and dies for E&E
industry
 Large moulds (>10MT)
for automotive and
plastic industries
2. Metal
Casting
 About 70 foundries
 Mass production highpressure and lowpressure die casting
 End-user industry :
Automotive,
telecommunication
 Large component casting
 Custom-made
sandcasting
3. Machining
 About 170 industry
players
 Precision up to 1µ and
size up to 2 mtr
 End-user industry :
Semiconductor, E&E,
aerospace, oil & gas
 Multi axis/ ultra precision
free form machining
 Laser machining
 Ceramic grinding
MALAYSIAN
ENGINEERING
SUPPORTING CAPABILITIES
MALAYSIA
– YOUR MANUFACTURING
SOLUTION PROVIDER
Sectors
Background
Capability
Opportunities
4. Metal Stamping
 About 300 industry
players
 Precision tolerances
less than 1m, presses
capacity up to 600 tons
 End-user industry : E&E,
automotive
Established
5. Surface
Engineering
 40 industry players
 80% are foreignowned or jointventures
 Electroplating,
Phosphating, Anodizing
 End-user industry :
semiconductor, E&E and
automotive
Services for the oil &
gas, aerospace,
biomedical,
optoelectronics and
photonics industries
6. Heat Treatment
 20 industry players
 Carburizing, nitriding,
vacuum handling,
quenching, annealing,
normalizing, tempering
 End-user industry :
Automotive, shipyard,
cement, aluminium
extrusion
Services for the
aerospace, military,
medical, oil and marine
industries
MALAYSIAN
ENGINEERING
SUPPORTING CAPABILITIES
MALAYSIA
– YOUR MANUFACTURING
SOLUTION PROVIDER
Sectors
Background
Capability
Opportunities
7. Forging
 7 industry players
 Mostly small parts (less
than 10MT)
 Open, drop, press, roll
and cold forging
 End-user industry :
Automotive, E&E
Large forgings for the
oil & gas industry
8. Metal
Fabrication
 Well established
 Over 2,000 industry
players
 Simple household items
to steel structure for
skyscrapers and
offshore oil drilling
platform
Electron beam/ laser
welding
MALAYSIA
– YOUR–MANUFACTURING
SOLUTION
PROVIDER
MALAYSIA
YOUR MANUFACTURING
SOLUTION
PROVIDER
Sourcing Capabilities
• Consistent quality of production
and on-time delivery
• Lower cost for high technology
products
• High volume, low mix demand for
the electrical & electronics,
telecommunications and
automotive industries
• Low volume, high mix niche
products for the medical,
machinery & equipment, oil & gas
and aerospace industry
• IP protection, laws and
regulations
• Financial incentives and
operational support
Competitive Edge
• Engineering supporting industry
(more than 1,000 cos.)
• Metal fabrication (well established)
• Semiconductor/ electronics
components
• Silicon wafer, Wafer fab, IC
packaging and testing, IC design
house, PCB, PCBA, LED, Other
passive components (about 380
cos.)
• Plastic components (480 cos.)
• Rubber components (180 cos.)
• Design centres
• Technical facilities
• Specialized
colleges
• Research
institutions
Infrastructure
Why Malaysia ?
WHY MALAYSIA?
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Political & Economic Stability
Pro-business Government
Liberal Investment Policies
Transparent Policies
Policy of Welcome
Sound Banking System
Well Developed Infrastructure
Harmonious Industrial Relations
Trainable & Educated Labour Force
Quality of Life
Excellent Track Record
MALAYSIA
& ASEAN
MALAYSIA
AND ASEAN
Malaysia is strategically located in
the very heart of Southeast Asia;
between India and China:
PREFERENTIAL MARKET ACCESS
 Foreign companies based in Malaysia can enjoy preferential market
access via Free Trade Agreements concluded by Malaysia:
Potential market of
600 million
Combined GDP of
USD2.3 trillion, as of
2012
Already zero tariffs
for 99% of products
ASEAN Economic
Community and
Single market by
2015
GATEWAY TO ASEAN AND ASIAN ECONOMIES
 Strategic location: Malaysia is a gateway to other markets with
preferential access through Free Trade Agreements (FTAs)
ASEAN
REGIONAL / BILATERAL FTAS
China
Japan
Korea
India
Australia
New Zealand
 Potential market of 2.7 billion
 Tariff reduction and
elimination mostly by 2016
ON-GOING FTA NEGOTIATIONS
TPP
EU
 Potential market of 1.08 billion
Turkey
Chile
INTELECTUAL
PROPERTY
PROTECTION
IN MALAYSIA
INTELECTUAL
PROPERTY
PROTECTION
IN MALAYSIA
Malaysia:
• Member of the World Intellectual Property
Organisation (WIPO)
• Signatory to the Paris Convention and Berne
Convention
• Signatory to the Agreement on Trade Related
Aspects of Intellectual Property Rights
(TRIPS) signed under the auspices of the
World Trade Organization (WTO)
• Intellectual property laws are in
conformance with international standards
and have been reviewed by the TRIPs Council
periodically
• Removal of Malaysia from IP violations
‘watch list’- United States Trade
Representative (USTR) ‘Special 301 Report’
on IP Rights
Establishment of Intellectual
Property Court in Malaysia:
 to remove Malaysia from
the IP international watch
list;
 to reduce backlog of
intellectual property (“IP”)
cases;
 to provide better remedies
to the owners of the IP
rights and to
 eradicate IP infringement
INTELECTUAL
PROPERTY
PROTECTION
IN MALAYSIA
INTELECTUAL
PROPERTY
PROTECTION
IN MALAYSIA
Intellectual Property Protection in Malaysia Comprises of:
Industrial designs - Industrial Designs Act 1996 and
Industrial Designs Regulations 1999
Copyright - The Copyright Act 1987
Layout designs of integrated circuits - Layout Designs
of Integrated Circuits Act 2000
Geographical indications - Geographical Indications
Act 2000
Patents - Patents Act 1983 and the Patents Regulations
1986
Trademarks - Trade Marks Act 1976 and the Trade Marks
Regulations 1997
Malaysia’s Ranking in the World
RECENTRemain
POSITIVE
DEVELOPMENTS
Malaysia
an Attractive
Investment Location
World Bank
Doing Business 2013 Report
Malaysia ranked 12th most business-friendly country
Malaysia is ranked ahead of other highly regarded economies such
as Sweden (13th), Taiwan (16th), Germany (20th), Japan (24th) and
Switzerland (28th)
Malaysia is first in terms of ease of getting credit
Malaysia is fourth in the world for protecting investors
Malaysia ranked among the top 10 economic reformers in the APEC
region