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Presentation by: Malaysian Investment Development Authority (MIDA)
28 January 2014
INVESTMENT ENVIRONMENT IN MALAYSIA
Investment Opportunities & Attractive Incentives
CONTENT OUTLINE
2
Malaysian Economy
Functions of MIDA
Why Malaysia
Strategic Gateway to Regional Market
Investment Trends & Policies
Malaysian Investment
Development Authority
3
1968
1979
2012
FIDA
MITI’S AGENCIES
マレーシア
MALAYSIA PRODUCTIVITY CORPORATION
HALAL INDUSTRY
DEVELOPMENT CORPORATION
MALAYSIA AUTOMOTIVE
INSTITUTE
MALAYSIAN INVESTMENT
DEVELOPMENT AUTHORITY
4
• Foreign Direct Investment
• Domestic Investment
• Planning for Industrial
Development
• Recommend policies
and strategies on
industrial promotion and
development
RESEARCH &
PLANNING
EVALUATION
• 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
PROMOTION
FOLLOW-UP / MONITORING
• Manufacturing
license
• Tax incentives for
manufacturing and
services activities
• Expatriate posts
• Duty exemptions
• Regional
Establishments
MIDA CORE FUNCTIONS
5
6
Malaysian Economy
6
7
MALAYSIA’S KEY ECONOMIC INDICATORS
2010 2011 2012 1H
2013
Real GDP (%) Growth 7.2 5.1 5.6 4.2
Inflation (%) 1.7 3.2 1.6 1.6
Per Capita Income (US$) 8,140 9,508 9,974 10,134f
Unemployment (%) 3.2 3.1 3.0 3.1
Trade Surplus (US$ bil) 34.2 39.3 30.7 8.0
International Reserves (US$ bil) 106.5 133.6 139.7 136.6*
Retained Imports Equivalent (months) 8.5 9.7 9.5 9.7*
* As at 14 Oct 2013 Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE
8
GDP BY INDUSTRIAL ORIGIN
Sector
GDP Contribution ＧＤＰ
1970 1990 2000 2010 2012
Agriculture 33.6 19.3 8.8 7.3 7.3
Mining 7.2 9.8 6.7 7.0 8.4
Construction 3.8 3.4 3.4 3.3 3.4
Manufacturing 12.8 26.5 32.6 27.6 24.9
Services 42.6 42.1 53.0 57.7 54.6
Source: Economic Planning Unit Malaysia/Department of Statistics Malaysia, 2013
TOTAL APPROVED MANUFACTURING PROJECTS (2009 – SEP 2013)
10 Source: Malaysian Investment Development Authority
Year No. of
Projects
No. of
Employment
Proposed Investment
(US$ billion)
Domestic Foreign Total
2009 766 64,330 3.0 6.5 9.5
2010 910 97,319 5.9 9.4 15.3
2011 846 100,533 6.9 10.8 17.7
2012 804 76,631 6.6 6.8 13.4
Jan – Sep
2013 530 57,373 4.3 6.4 10.7
TOTAL 3,856 396,186 26.7 39.9 66.6
APPROVED PROJECTS BY MAJOR COUNTRIES JAN – SEP 2013
11
0
500
1,000
1,500
2,000 1,759.0
1,152.0
846.0 735.9 713.0
469.9
142.2
USD Million
Source: Malaysian Investment Development Authority
APPROVED PROJECTS WITH PARTICIPATION FROM JAPAN (2008 – SEP 2013)
12 Source: Malaysian Investment Development Authority
Year No. Of Projects Employment Investment
(US$ Million)
2008 63 8,934 1,617.0
2009 54 5,592 2,058.9
2010 61 8,135 1,308.2
2011 77 11,018 3,186.7
2012 62 5,804 912.7
Jan – Sep
2013 40 3,698 735.9
Total 357 43,181 9,819.40
Source: MIDA
No. Country Investment
(US$ 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 1.2
REALISED INVESTMENT IN THE MANUFACTURING
SECTOR BY MAJOR COUNTRIES, AS AT 2012
13
Source: MIDA
IMPLEMENTED PROJECTS FROM JAPAN
BY INDUSTRY, AS AT 2012
TOTAL NO. OF PROJECT : 2,451
INVESTMENT VALUE : US$ 21,958.2 million
14
Investment
POLICIES
15
MANUFACTURING LICENSE
CRITERIA
MANUFACTURING LICENSE
• The Industrial Coordination Act 1975 (ICA) requires manufacturing companies with shareholders’ funds of
RM2.5 million and above or engaging 75 or more full-time employees to apply for manufacturing license.
Guidelines on Manufacturing License
• 1975年工業調整法(ICA)により、株主資本が RM250万以上または、75人以上のフルタイム従業員を雇用する製造業企業は、製造ライセンスに申請することが必要とされます。
16
Repatriation of Funds
Foreign Equity
INVESTMENT POLICIES INVESTMENT POLICIES
17
SERVICES LIBERALISATION
18
INVESTMENT POLICIES
19
INVESTMENT POLICIES
8 Broad Sectors - 27 sub-sectors with no
equity condition imposed
Business
Services
Rental/Leasing
Services
Sporting &
Other
Recreational
Services
Transport
Health &
Social Services
Tourism
Supporting
& Auxiliary
Transport
Services
Computer &
Related
Services
1ST ANNOUNCEMENT – 22 APRIL 2009
INVESTMENT POLICIES
20
INVESTMENT POLICIES
7 Broad Sectors - 18 sub-sectors allowed up to
100% foreign equity
Healthcare
Distributive
Trade
Professional
Services
Education
Telecomm.
Services
Courier
Services
Environmental
Services
2ND ANNOUNCEMENT – 7 OCTOBER 2011
Investment
OPPORTUNITIES
21
INVESTMENT POLICIES
22
CURRENT FOCUS IN THE MANUFACTURING SECTOR
High technology, capital intensive & knowledge driven industries:
Industries manufacturing intermediate goods:
Resourced-based industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
• Food & Agro based • Value-added products from natural resources
• Machinery & equipment • Components & parts • Moulds and dies
23
AEROSPACE MANUFACTURING - ECOSYSTEM
MEDICAL DEVICES - ECOSYSTEM
24
Consumables Implants &
Surgical Instruments Healthcare
Equipment
Supporting Infrastructure
Sterilization Certification Packaging Testing Industry
Group
Education
Training Regulatory
Products Medical Gloves, Contraceptives,
Catheters, woundcare,
Opthalmology, IVD, SUD
Pacemakers, Orthopedics,
Surgical instruments
Electronic Modules
Life Science Instruments
Electrodes, Hospital beds
UKM
Bio
compatibility
Lab
UM, USM
UKM
Medical
Device
Act 2012
Clients
Source : AMMI
Machinery/
ESI
Companies
Halal Sectors :
Food, Pharmaceutical, Cosmetics, Logistics, Travel and Tourism, and Islamic Finance
Strengths
Muslim country – high appreciation on Halal products
Member of OIC and a respected and influential Muslim country
Halal logo and verification and certification system – highly recognized worldwide
Strong support by the Government
25
STRONG HALAL PLATFORM
26
BUSINESS OPPORTUNITIES IN SERVICES SECTOR IN MALAYSIA
Telecommunication
Services
ICT Services
Logistic Services
Market Support Services Healthcare & Tourism
Services
Engineering
Services
Solar & Renewable
Energy
Environmental
Management
Education
27
Attractive Incentives
27
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
Import Duty & Sales Tax Exemption
For raw materials/components and Machinery and Equipment
I n c e n t i v e s
INCENTIVES – MANUFACTURING SECTOR
28
Full tax exemption for 10 years
RE or RO status given for a period of 5 years
Eligible for PS or ITA
• OPERATIONAL HEADQUARTERS (OHQ)
• INTERNATIONAL PROCUREMENT CENTRE (IPC)
• REGIONAL DISTRIBUTION CENTRE (RDC)
• REPRESENTATIVE OFFICE (RE) • REGIONAL OFFICE (RO)
• INTEGRATED LOGISTICS SERVICES (ILS) • INTEGRATED MARKET SUPPORT SERVICES (IMSS) • INCENTIVES FOR INTEGRATED CENTRAL UTILITY
FACILITIES (CUF)
INCENTIVES – SERVICES SECTOR
29
MALAYSIA - Strategic
Gateway to Regional
Market
30
Malaysia is strategically located in the very heart of Southeast Asia; between India and China:
MALAYSIA
31
Strategic location: Malaysia is a gateway to other markets with preferential
access through Free Trade Agreements (FTAs)
ASEAN Potential market of 600 million
Already zero tariffs for 99% of products
ASEAN Economic Community and
Single Market by 2015
REGIONAL / BILATERAL FTAS
China Japan Korea India
Australia New Zealand Chile
Potential market of 2.7 billion
Tariff reduction and
elimination mostly by 2016
ON-GOING FTA NEGOTIATIONS
Potential market of
1.08 billion TPP EU Turkey
GATEWAY TO ASEAN AND ASIAN ECONOMIES
32
WHY
MALAYSIA
33
Political and Economic Stability
Pro-business Government
Liberal Investment Policies/ Attractive
Investment Incentives
Well Developed Infrastructure/
Connectivity
Young, Trainable and Educated
Human Resource
Sound Banking System
Quality of Life Track Record
SUCCESS FACTORS
34
INTERNATIONAL RANKINGS
15th most
competitive economy
- World Competitiveness
Yearbook, IMD 2013
6th in ease of
doing business
- World Bank
Doing Business
Report 2014
3rd most
preferred services location
- A.T. Kearney’s Global Services Location Index
2011
4th in Asia as a
destination for
investment by global
multinational companies
(MNCs)
- Asia Business Outlook
Survey (ABOS), The
Economist Corporate
Network, 2013
35
THANK YOU Please visit us at
www.mida.gov.my [email protected]
TOKYO, JAPAN
Mr. Mohd Hashim Abdul Ghani
Director MIDA
32F, Shiroyama Trust Tower
4-3-1,Toranomon, Minato-ku
Tokyo 105-6032, Japan.
Tel: 81 (3) 5777-8808
Fax: 81 (3) 5777-8809
E-mail: [email protected]
36
