Transcript The Benefit of AEC Integration to ASEAN Supporting Industry

The Benefit of AEC
Integration to ASEAN
Supporting Industry
by John Lee, Chairman of International Business Committee,
Federation of Malaysian Manufacturers
Malaysia’s Economic Outlook
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Economic strength of Malaysia:
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Natural resources: Crude Oil, Natural Gas, Tin, Timber, Palm Oil &
Rubber
GDP Growth: 4.7% (2013)
Per capita income: RM31,698 (USD 10,060)
Exports: 67% manufactured goods of total exports
Supportive Government Policies
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Pro-Business policies – Economic Transformation Programme
(ETP)
Responsive government and good public service delivery
Liberal investment policies – manufacturing sector free from
equity conditions
Attractive tax and other incentives
Developed Infrastructure
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Network of 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.
Vibrant Business Environment
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Ease of Doing Business – Major reforms in Immigration,
company laws, registration properties, dealing with
construction permits and starting a business
Market-oriented economy
Well-developed financial and banking sector, including the
Labuan International Business and Financial Centre
Wide use of English, especially in business, legal and accounting
practices based on the British system
Large local business community with a long history in
international business links
Large foreign business community in all business sectors
Extensive trade links - country's total trade was valued at
RM1.37 trillion in 2013
Market Access through
Free Trade Agreements
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Malaysia-Japan Economic Partnership Agreement (EPA)
Malaysia – Pakistan Closer Economic Partnership Agreement
Malaysia-New Zealand FTA (MNZFTA)
Malaysia-Chile Free Trade Agreement (MCFTA)
Malaysia-Australia Free Trade Agreement
Malaysia-Turkey Free Trade Agreement
… and more
Malaysian Companies in ASEAN
ASEAN Companies in Malaysia
AEC for the Manufacturing
Industry
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Reduce or eliminate the barriers of investment and trade
Align national regulations to regional commitments
Operational efficiency and lower operating cost
Gain access to capital, technology and raw materials with little
or no barriers.
Free movement of skilled and unskilled labour
Greater equity participation in infrastructure projects
Opportunities for
Hi-Tech Manufacturing Sectors
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Investment in machinery and equipment continue to be our
primary engine of growth
Malaysia’s main forte in moving manufacturing forward with
sub-sectors such as aerospace, automotive, and shipbuilding
machinery and equipment and electrical machinery
A hub for aerospace manufacturing, with main investors ie.
Honeywell, JMI Aerospace, and Spirit AeroSystems
establishing manufacturing plant.
Malaysia is seeking to capture at least 5 percent of the global
aircraft maintenance repair and operations market by 2015
Opportunities under the Economic
Transformation Programme (ETP)
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Improving water and sewerage systems
Rejuvenating existing fields through Enhanced Oil Recovery
Improving upstream oil palm productivity
Building sustainable energy platform for growth
Revitalising the E&E sectors
Strengthening product quality and marketing efforts to
penetrate global export markets
Strengthening the export capability of the processed food
industry
Upcoming ETP Projects
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Hewlett-Packard (HP) manufacturing facility to produce printer
heads for high-speed inkjet printers – RM 1 billion
Penang-based Globetronics Technology Bhd to develop a new
range of light-emitting diode (LED) chips – RM 40 – 50 million
Boilermech Holdings Bhd to build a new production facility
– RM 60 million
Abbott to build a manufacturing plant in Kedah to make
intraocular lens (IOLs) for use in the treatment of cataract –
USD60 million
Austria’s Semperit AG Holding to build a new plant in Perak to
raise its production capacity – RM 220 million
Benefits of AEC
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Connected to trading partners through Preferential Trading
Agreements
Liberalization of Services in 10 packages covering 12 broad
sectors
Tapping on ASEAN’s Talent Pool
Collaboration in Transport Services
Collaboration in ICT
Collaboration in Energy Sector
Collaboration in the Minerals Sector
ASEAN Chairmanship 2015
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2015 marks a significant year for Malaysia as the chair of
ASEAN
Leading 620 million people into economic integration through
AEC and mandated to:
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improve welfare and achieve the priorities of ASEAN;
be the front runner to overcome challenges for the benefit of all
ASEAN Member States;
represent ASEAN to strengthen and promote closer relations
with Dialogue Partners; and
represent ASEAN at the various regional and global forum
AEC focus areas in 2015
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Single Market – Substantial Elimination of Import Duties on Goods
Substantial Liberalization of Services Sub-Sectors
Comprehensive, Open and Transparent Investment Regime
Improved Logistical Connectivity, Encompassing
Facilitation in Movement of Goods and Open Skies
Transport,
Trade Facilitation through Improved Customs Clearance Procedures
and ASEAN Single Window
Implementation of Self-Certification Scheme for Preferential Trade
Enhanced Cooperation in the Areas of Consumer Protection, IPR and
Competition Policy
Creation of Highly Integrated ASEAN
Conclusion
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ASEAN as a magnet for investment, trade and tourism.
India and the 10-nation ASEAN bloc are setting the new bar
for international manufacturing standards. Malaysia is at the
heart of this trend striking a fine balance between mid and
high-tech manufacturing capabilities and competitive labour
environments. That coupled with the country’s economic
development driven by export oriented manufacturing sector
makes Malaysia a top choice for foreigners to invest in the
industry.
Q & A…
Thank you…