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Investment Opportunities In
Malaysia
2 Invest in Malaysia > Your Profit Centre in Asia
CONTENT OUTLINE
• The Aerospace Industry: Global & Regional Outlook
• Aerospace Industry In Malaysia
• Investment Policies & Incentives
• About MIDA
3 Invest in Malaysia > Your Profit Centre in Asia 3
THE AEROSPACE INDUSTRY: GLOBAL & REGIONAL OUTLOOK
4 Invest in Malaysia > Your Profit Centre in Asia
Airlines will need nearly 36,800 new airplanes
valued at USD5.2 trillion
5 Invest in Malaysia > Your Profit Centre in Asia
Market for new airplanes to become even more
geographically balanced
6 Invest in Malaysia > Your Profit Centre in Asia
Air travel growth varies by market
7 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.
Source : Frost & Sullivan
8 Invest in Malaysia > Your Profit Centre in Asia
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
- 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
9 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
• Free flow of goods; • Free flow of services;
• Free flow of investment; • Freer flow of capital; and • Skilled labor.
China Chile Korea Japan India Australia New Zealand Turkey
Potential market of 2.7 billion
Tariff reduction and elimination mostly by 2016
TPP EU
On-Going
FTA Negotiations
ASEAN Single Aviation Market
by 2015
AEROSPACE INDUSTRY
IN MALAYSIA
11 Invest in Malaysia > Your Profit Centre in Asia 11
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
12 Invest in Malaysia > Your Profit Centre in Asia
MALAYSIA AEROSPACE INDUSTRY BLUEPRINT (1997 – 2014)
13 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
14 Invest in Malaysia > Your Profit Centre in Asia
AEROSPACE ECOSYSTEM - MANUFACTURING
(Senior PLC)
(Senior PLC)
15 Invest in Malaysia > Your Profit Centre in Asia
AEROSPACE ECOSYSTEM - MRO
16 Invest in Malaysia > Your Profit Centre in Asia
Approved Investment In The Aerospace Industry
Year Project Investment (RM) mil Total (RM)
mil Foreign Domestic
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 7 187.0 495.0 682.0
Total 40 3,174.0 2,032.4 5,205.5
17 Invest in Malaysia > Your Profit Centre in Asia
Today, aerospace industry has grown and contributed to the nation’s high income agenda
CURRENT STATUS
Variables Year 2014 RM Bil
Revenue 11.8
Investment 4.7
Export 2.9
Import 15.1
No. of companies 159
Employment 19,500
Source: MIGHT Analysis
Industry Revenue Contribution (2009 – 2015f)
18 Invest in Malaysia > Your Profit Centre in Asia
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
STRATEGIES TO DEVELOP THE AEROSPACE INDUSTRY
19 Invest in Malaysia > Your Profit Centre in Asia
INVESTMENT POLICIES AND INCENTIVES
20 Invest in Malaysia > Your Profit Centre in Asia
Repatriation of Funds
Foreign Equity
INVESTMENT POLICIES
21 Invest in Malaysia > Your Profit Centre in Asia
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
Reinvestment Allowance
60% on qualifying capital expenditure for 15 consecutive years
Import Duty Exemption
For raw materials/components and Machinery and Equipment
Incentives
MAJOR INCENTIVES PROVIDED
22 Invest in Malaysia > Your Profit Centre in Asia
ABOUT
23 Invest in Malaysia > Your Profit Centre in Asia
MALAYSIA PRODUCTIVITY CORPORATION
MITI & AGENCIES
23
24 Invest in Malaysia > Your Profit Centre in Asia
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
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
25 Invest in Malaysia > Your Profit Centre in Asia
MIDA as a One Stop Agency : a) Advisory & consultancy b) Approval of projects c) After- care services
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
FACILITATION OF INVESTMENT
Tokyo
Osaka
Seoul
Taipei
Shanghai
Guangzhou
Malaysia
Singapore
Sydney
Mumbai
Dubai
Stockholm
Frankfurt
Munich
Milan
Paris
London
Boston
New York
Chicago San Jose
Los Angeles
Houston
23 Overseas Centres
Beijing
Please visit us at www.mida.gov.my investmalaysia@mida.gov.my
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