TRADE AND INVESTMENT OPPORTUNITIES IN MALAYSIA

7 June 2011

2

MALAYSIA – MULTIRACIAL AND PROGRESSIVE COUNTRY

• Malaysia is a truly multi-ethnic and multi-religion country• Strength in diversity

Ethnic GroupsPopulation

(m)

Malays and Indigenous

17.5

Chinese 6.4

Indian 1.9

Others 0.3

Non-Citizens 2.1

Total 28.2

Religion% of

Population

Islam 60.4

Buddhism 19.2

Christianity 9.1

Hindu 6.3

Others 5.1

Total 100.0

Source: National Statistics Department

• All groups are well represented in Parliament

Why Malaysia is Special?

TRADE PERFORMANCE

Major Export Products € 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 EXPORTS & IMPORTS TO LATVIA (2010)

Major Import 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

Source: Economic Planning Unit, Malaysia

12 NKEAs to received prioritized policy and investment focus.

Private sector leads, Government facilitates.Specific initiatives and projects driving economic transformation.

Effective delivery of government services

Government Transformation Programme (GTP)

Economic Transformation Programme (ETP)

10th Malaysia Plan2011-2015

GOVERNMENT INITIATIVESGOVERNMENT INITIATIVES

.... 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.

APPROVED INVESTMENT IN MANUFACTURING SECTOR BY MAJOR COUNTRIES (2008 – 2010)

IMPLEMENTED MANUFACTURING PROJECTS (as at 2010)

€ 5.0 billion € 3.6 billion € 2.8 billion € 1.8 billion € 1.4 billion

1. USA 2. JAPAN 3. AUSTRALIA 4. HONG KONG 5. GERMANY

€ 13.6 billion

1. JAPAN

€ 12.7 billion

2. USA

€ 5.4 billion

3. SINGAPORE

€ 4.4 billion

4. GERMANY

€ 3.3 billion

5. NETHERLANDS

NOTABLE GERMAN COMPANIES IN MALAYSIA

INVESTMENT POLICIES

INCENTIVES

INCENTIVES

IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM

The Special Task Force to Facilitate Business(PEMUDAH)

IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM

IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM

High technology, capital intensive &knowledge driven industries:

Industries manufacturingintermediate goods:

• Machinery & equipment• Components & parts• Moulds and dies

Resourced-based industries:

• Alternative Energy Sources

• Biotechnology

• Advanced materials

• Advanced electronics

• Optics and photonics

• Petrochemicals

• Pharmaceuticals

• Medical devices

• ICT

• Aerospace

• Food ( Halal Hub )• Value-added products from natural resources

CURRENT FOCUS ON THE MANUFACTURING SECTOR

Regional Establishments

Operational Headquarters (OHQ) International Procurement Centre (IPC) Regional Distribution Centre (RDC)

Logistics

Integrated Logistics Services Cold Chain Facilities

Tourism

HotelTourist projectRecreational campConvention 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 by-

products

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)

TARGETED SERVICES SECTORS

20

ECONOMIC CORRIDORSFocus on:• Modern Agriculture• Manufacturing & Design• Tourism• Logistics• Education & Health

Focus on:• Tourism• Oil & Gas• Manufacturing• Agriculture• Education

Focus on:• Resource Based Industry• Energy• Tourism

Focus on:• Agro-based Industry• Tourism• Logistics• Manufacturing

To be a hub for the services sector:• Creative Industry• Education• Healthcare• Logistics

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

Malaysia and ASEAN

ASEAN Bilateral Under Negotiations

AFTA Japan EU

China Pakistan Australia

Korea New Zealand Turkey

Japan Chile TPP

Australia-New Zealand

India GCC

India

Foreign companies based in Malaysia can enjoy preferential market access via Free Trade Agreements concluded by Malaysia:

STRATEGIC MARKET ACCESS

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

• 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

WHY MALAYSIA ?

MALAYSIA

YOUR STRATEGIC PARTNER IN ASIA PACIFIC YOU CAN COUNT ON!

CONCLUSION