13 th June 2018 CEOE, Madrid INVESTMENT OPPORTUNITIES IN MALAYSIA

Transcription

1 13 th June 2018 CEOE, Madrid INVESTMENT OPPORTUNITIES IN MALAYSIA 1

2 The principal Malaysian Government agency responsible for the promotion of investments and coordination of industrial development and selected services sectors in the country Established in 1967 under Act of Parliament, st point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia Foreign Direct Investment Domestic Investment Manufacturing & Selected Services PROMOTION EVALUATION Manufacturing Licenses Tax Incentives Expatriate Posts Duty Exemption Principal Hub & selected services MONITORING Assist companies in the implementation & operation of their projects Facilitate exchange & coordination among institutions engage in or connected with industrial development Advisory Services PLANNING Planning for industrial development Recommend policies & strategies on industrial promotion and development Formulation of strategies, programmes and initiatives for international economic cooperation 2

3 G L O B A L & L O C A L N E T W O R K S 23 overseas offices and 12 state offices Dubai Beijing New York San Jose Chicago Los Angeles Boston Houston London Stockholm Munich Frankfurt Milan Paris Mumbai Guangzhou Shanghai Taiwan Seoul Tokyo Osaka 12 state offices Singapore Sydney 3

4 Based in MIDA MIDA as a One Stop Centre Immigration Department Royal Malaysian Customs Labour Department Telekom Malaysia Berhad Based outside MIDA 4

5 KEY ECONOMIC DATA 2017 GDP $ billion $1.890 trillion Real GDP Growth 5.8% 3.1% Per capita Income $11,237 $29,800 Total Population 32 million 46.5 million Unemployment Rate 3.6% 17.2% Source: Bank Negara Malaysia/IMF 5

6 Malaysia s Economic Development Journey SECTOR GDP CONTRIBUTION (%) Agriculture Mining Construction Manufacturing Services Malaysia has successfully transformed from a predominantly agriculture-based economy in the 1970s, to a more diversified economic structure. 1960s 1970s 1980s Import Substitution 1990s 2011s 2000s Export Oriented & Labour Intensive Technology Intensive Resource-based & heavy industries Innovation, ETP & High Income Economic Corridors & Services Source : Department of Statistic Malaysia, BNM 6

7 Investment Agenda NEM (New Economic Model) High Income Target USD 15,000 to USD 20,000 per capita by 2020 Re-energise the private sector to drive growth Cluster - and - corridor based activities Enhance the sources of growth Create a competitive domestic economy Develop a quality workforce 11 MP (11 th Malaysia Plan) MIDA - Taking the Lead Real GDP growth between 5%-6% per annum Private investments growth of 9.4% or RM291 billion per annum Catalytic and Growth (3+2) Sub-Sectors NON-NKEAs Aerospace Machinery & Equipment Transport Equipment Advanced Materials Logistics Environmental Management ETP (Economic Transformation Programme) NKEAs 11 industry sectors and Greater KL Total investment target USD444 billion (RM1.4 trillion) Private sector led economy USD410 billion (92%) 73% Domestic Direct Investment (DDI) Increased services sector contribution to GDP (67% by 2020) 7 7

8 Eleventh Malaysia Plan ( ) 3 CATALYTIC SUBSECTORS Chemicals Electrical and Electronics Medical devices Machinery and Equipment 2 HIGH GROWTH SECTORS Aerospace Three (3) catalytic subsectors namely Chemical, E&E and M&E industries; and two (2) subsectors of high potential growth namely Aerospace and Medical Devices have been identified in the 11th MP to drive the growth of the manufacturing sector. 8

9 TOTAL APPROVED INVESTMENTS IN 2017 Overall approved investment in 2017 dropped by 7.4% corresponding to a slight dipped in the services sector. However, the year 2017 recorded a rise of 5.8% in number of projects approved. US$48.5 bil 2016: US$47.4 bil 5,466 projects 2016: 5,166 projects 139, : 154,491 US$48.5 bil FDI US$13.5 bil (27.8%) 2016 : US$13.1 bil (27.6%) DDI US$35.1 bil (72.2%) 2016 : US$34.3 bil (72.4%)

10 US$ Million Approved Projects By Major Countries, Jan- Dec 2017 (Manufacturing) 949,4 602,0 568,2 501,0 373,6 368,1 322,8 312,8 272,7 186,1 10

11 Approved Projects By Industry, Jan Dec 2017 (Manufacturing) Industry No. Total Capital Investment (US$ Million) Petroleum Products (Incl.Petrochemicals) 5 4,026.2 Natural Gas 1 2,291.9 Transport Equipment Non-Metallic Mineral Products Chemicals & Chemical Products Machinery & Equipment Food Manufacturing Electronics & Electrical Products Rubber Products Fabricated Metal Products

12 A P P R O VED P R O J E CTS I N M A N U F A C T U R I N G SE C T O R BY M AJ OR E U C O U N T R I E S (DEC, 2017) Germany continue to spearhead investment from EUcountries Germany Netherlands US$ Billion 12.3 United Kingdom France 3.2 Spain 1.3 Ireland Sweden Italy 0.7 Denmark Belgium Spanish is the 5th Largest Investor from EU with 13 projects (USD1.3 Billion) 4

13 PROMINENT SPANISH COMPANIES - www. mida.gov.my - INVEST IN MALAYSIA > YOUR PROFIT CENTRE IN ASIA

14 MALAYSIA SPAIN BILATERAL TRADE In 2017, Malaysia was ranked as the 32 nd import source for Spain. In 2017, Malaysia s total trade with Spain increase by 17.9% amounting to 1,06 billion. Sourced : Matrade

15 MALAYSIA S EXPORT TO SPAIN In 2017, Malaysia s exports to Spain amounted to 543 million. Malaysia s Exports from Spain in 2017 Euro million

16 MALAYSIA S EXPORT TO SPAIN Top 5 exports to Spain in 2017 were:

17 MALAYSIA S IMPORTS FROM SPAIN Malaysia s total imports from Spain in 2017 amounted to million. Malaysia s Imports from Spain in 2017 Euro million ,6 512,

18 MALAYSIA S IMPORTS FROM SPAIN Top 5 imports from Spain in 2017 were:

19 Areas of collaboration/investment for potential Spanish companies to Malaysia:- Clean Technology Food Processing (Halal) Chemical & Oleochemical Machinery & Advanced Technology Regional Establishment Tourism Transport Equipment Healthcare 19

20 ECOSYSTEM APPROACH OIL & GAS HALAL INDUSTRY e AUTOMOTIVE Chai n Manufacturing Manufacturer

21 Approved Investments in the Manufacturing Sector in Q FDI DI USD656.9 Mil. Q1 2017: USD548.9 Mil. (37%). USD2.58 Bil. Q1 2017: USD950 Mil. (63%). Approved investments increased by 89% indicating that capital intensive projects dominated Malaysia s manufacturing landscape USD3.24 Bil. Q1 2017:USD1.48 Bil. 89% 137 projects Q1 2017: 144 projects 16,437 Job opportunities Q1 2017: 8,985 job opportunities 21

22 Approved Projects By Major Countries, Jan- March 2018 (Manufacturing) USD Mil. China France Indonesia Japan Singapore USA Hong Kong India Switzerland Rep. of Korea 153,10 148,20 142,60 79,40 78,70 67,10 52,80 52,60 41, ,50 22

23 Over 5,000 companies from more than 50 countries 23

24 Investment Policies Equity Ownership Foreigners are allowed to hold 100% equity ownership in the manufacturing and selected services sectors Repatriation of Income Freedom to repatriate capital, interest, dividends and profits. No restrictions Employment of Expatriates Key posts (posts that are permanently filled by foreigners) Term posts (posts that are filled by foreigners for a period of 1-5 years) Intellectual Property Protection Malaysia s IP laws are in conformance with international standards - Member of the World Intellectual Property Protection Organisation (WIPO) - Signatory of the Paris Convention and Berne Convention which govern IP rights - Signatory of the Agreement on Trade-Related Aspects of IP Rights (TRIPS) under the WTO Business Friendly Policies Investment Guarantee Agreements (IGAs) Malaysia has signed IGAs with more than 60 countries 24

25 Promoted Activities Investment Opportunities in the Services Sector Logistics Hub ICT Services Hotel &Tourism Education & training 45 Sub Sectors liberalised since 2009 Regional Establishment Offshore & Outsourcing Activities Environmental Management Medical Tourism Investment Opportunities in the Manufacturing Sector Resourced-based industries Oil & Gas, Food & Agro based and CValue-added products from natural halal resources. High technology, capital intensive & knowledge driven industries Machinery & equipment, components & parts and Moulds & dies Industries manufacturing intermediate goods Alternative Energy Sources, Biotechnology, Advanced Materials, Advanced Electronics, Optics and Photonics, Petrochemicals, Pharmaceuticals, Medical Devices, ICT & Aerospace 25

26 Pioneer Status Investment Tax Allowance Reinvestment Allowance Import Duty Exemption Income tax exemption ranging from 70% or 100% for a period of 5 or 10 years 60% or 100% on qualifying capital expenditure for 5 years 60% on qualifying capital expenditure for 15 consecutive years For raw materials / components and machinery and equipment Principal Hub Automation Capital Allowance Expenditure Less Developed Area Independent Conformity Assessment Bodies (ICAB) 26

27 Budget 2018 Highlights Incentives for Hotel Extension of PS and ITA for New 4 and 5 Star Hotel in Peninsular Malaysia, Sabah and Sarawak from year of assessment (YA) 2018 until Incentives for Healthcare Sector Extension of ITA of 100% of qualifying capital expenditure from year of assessment (YA) 2018 until 2020 Incentives for Industry 4.0 Domestic Investment Strategic Fund (DISF) Accelerated Capital Allowance (ACA) of 200% Capital Allowance for ICT equipment 27

28 Entering the Malaysia Market Services provided: 1. Pre-Investment Briefings Data on Industries Meetings with MIDA HQ/ Foreign Chambers of Commerce/Foreign Companies Visits to Production Facilities & Service Providers Visits to potential locations 2. Evaluation and Approval Manufacturing License Tax Incentives Expatriate Posts Import Duty Exemptions Principal Hub (Operational Headquarters, Procurements Centres, Distribution Centres) 3. Implementation of Project Steps and Options for Investors: Representative Office Principal Hub Regional Office Regional and global businesses and operations to manage, control, and support key functions including management of risks, decision making, strategic business activities, trading, finance, management and human resource. Production/R&D Centre Facility e-bizmatch: Free online registration for Business Matching An online business matching service connecting businesses worldwide. 28

29 Setting Up a Representative Office/ Regional Office in Malaysia Activities Allowed Eligibility Criteria USD75,300 (RM300,000) operational expenditure per annum financed by funds emanating from sources outside Malaysia. Expatriate Posts Expatriates will be considered for managerial and technical posts. 33 SPANISH COMPANIES HAVE BEEN APPROVED RE/RO STATUS Representative Office/ Regional Office Gathering and analysis of information feasibility studies on investment and business opportunities in Malaysia and the region; Planning or coordination of business activities; Identifying sources of raw materials, Undertake research & product development; Not allowed to be engaged in any trading (including import and export), business or any form of commercial activity. Act as a coordination centre for the corporation's affiliates, subsidiaries and agents in the region 29

30 Regional Operations & Principal Hub A locally incorporated company Uses Malaysia as a base for conducting its regional or / and global business and operations to manage, control and support its key functions. ELIGIBILITY CRITERIA :- Local incorporation under the Companies Act 1965 Paid-up capital : > RM2.5 Million Approval for Principal Hub 28 Projects USD7.0 Bil. (RM28.57 Bil.) Total Business Spending Management of risk Finance Key Functions Strategic Business Activities Management & Human Resource Trading Decision Making 2,020 Jobs 30

31 The Role of Government: National Policy on Industry 4.0 Study on Future of Manufacturing: Industry 3+2 Industry 4.0 Taskforce * Infrastructure and Ecosystem * Funding and Incentives * Talent and Human Capital * Technology and Standards * SMEs and Industry 4.0 Launching of National IoT Strategic Road Map Malaysia Digital Economy for year 2017: To implement programme including e-commerce systems, digital maker movement including new location for Malaysia Digital Hubs. Embracing Industry 4.0 in Malaysia Establishment of Digital Free Zone to stimulate internet based innovation A blueprint created to address productivity challenges holistically in order to boost economic growth Building Analytics Capabilities: 20,000 data professionals and 2,000 data scientists by

32 Penang Science Park Bayan Lepas Industrial Park Batu Kawan Industrial Park Kulim Hi Tech Park Tok Bali Supply Base South China Sea Sipitang Oil & Gas Industrial Park (SOGIP) Lumut Industrial Park Serendah Tech Park Malaysia Kemaman Heavy Industry Park Gebeng Integrated Petrochemical Complex (GIPC) Gebeng Industrial Estate Malaysia-China Kuantan Industrial Park (MCKIP). Labuan IBFC Samalaju Palm Oil Integrated Complex (POIC) Enstek Pengerang Integrated Petroleum Complex (PIPC) Bio Excell Park ISKANDAR Puteri Senai Airport City Chemical/Bio-tech Developed Industrial Parks Over 200 industrial estates or parks 18 Free Industrial Zones (FIZs) Specialised parks (Kulim Hi-Tech Park, Technology Park Malaysia, Rubber City, etc) 23 Halal Parks in Malaysia O&G/Petroleum Industrial/ Tech /ICT Park 32

33 Kudat Dermaga Tanjung Lembung Teluk Ewa Jetty Penang Port Lumut Port Kuala Perlis Kota Bahru Tumpat Kertih Kemaman Telok Intan Kuantan Port Klang Port Dickson Mersing Sg Udang Port Melaka Port Muar Johor Port Tg. Pelepas Sepangar Bay Oil Terminal Kota Kinabalu Port Labuan Port South China Sea Miri Port Bintulu Port Rajang Port Kuching Port Lahad Datu Kunak Sandakan Semporna Ports: Port Klang (10 million TEUs) 2nd busiest ports in Southeast Asia Port of Tanjung Pelepas (7 million TEUs) - 3rd busiest ports in Southeast Asia Both ranked among the top 20 container ports in the world. Highway: North-South Expressway East-Coast Expressway Pan Borneo Highway in 2022 Noted: The port in Sabah and Sarawak are under the jurisdiction of the State Government of Sabah and Sarawak respectively. 33

34 Penang Langkawi Sultan Ismail Petra Kota Kinabalu Sandakan Sultan Azlan Shah Sultan Mahmud South China Sea Labuan Lahad Datu KLIA KLIA 2 Sultan Abdul Aziz Shah Melaka Sultan Ahmad Shah Senai Kuching Sibu Bintulu Miri Limbang Mulu Tawau Source: MOT International Airports: 7 International Airports in Malaysia KLIA (capacity of handling 40 million passengers and more than 1.2 million tonnes of cargo per year) International Airport (7) Airport (16) Others: 18 airport aerodrome (short take off landing ports -STOLports) 34

35 ASEAN in 2030 Currently 6 th Largest economy ASEAN Source: ASEAN Now insights for Australian Business 35

36 MALAYSIA IS CONNECTED TO THE WORLD THROUGH FTA s MALAYSIA IS THE STRATEGIC GATEWAY TO KEY MARKETS LEVERAGING ON FTAs Market size: 2.7 billion people Tariff reduction and elimination: 2016 Malaysia Malaysia has implemented 13 FTAs: ASEAN 1. ASEAN Free Trade Area (2002) 2. ASEAN-China (2004) 3. ASEAN-Korea (2006) 4. ASEAN-Japan (2008) 5. ASEAN-India (2009) 6. ASEAN-Australia-New Zealand (2009) BILATERAL 1. Japan (2005) 2. Pakistan (2007) 3. New Zealand (2009) 4. Chile (2010) 5. India (2011) 6. Australia (2012) 7. Turkey (2015) Malaysia is still negotiating Regional Comprehensive Economic Partnership (RCEP), Malaysia-EU, Malaysia-EFTA and ASEAN-Hong Kong. 36

37 Best countries to invest (BAV Consulting and the Wharton School of the University of Pennsylvania. 2017) Destination of the Year (International Medical Travel Journal (IMTJ) 2017) Most attractive emerging market in the World (Bloomberg 2018) The Most Developed Islam Economy (Thomson Reuters November. 2017) Protecting investors (World Bank Doing Business 2017 Report) Most attractive investment destination (Baseline Profitability Index (BPI) 2015) Dominant position in Islamic Finance Development Indicator (ICD- Thomson Reuters) Global offshoring destination (A.T. Kearney Global Services Location Index 2016) KL Most visited city in the World (Euromonitor International 2017) Manufacturing Value Added (Bloomberg Innovation Index 2017) Most competitive economy in overall performance (IMD's World Competitiveness Yearbook 2017) Global Competitiveness (Global Competitiveness Report (GCR) ) 37

38 W H Y M A L AY S I A? ENGLISH Multi-cultural society Young, trainable workforce Quality of life Well developed infrastructure Excellent convention and conference centers CONNECTIVITY World class logistic hub PRO-BUSINESS Political and economic stability Liberal investment policy Harmonious industrial relation Good track record 11

39 YOUR NEAREST CONTACT MIDA PARIS (COVERING SPAIN) Ms. Noorhazlina Binti Mohamad Nor Director 42 Avenue Kleber Paris France Tel: (331) / 3689 Fax: (331) paris@mida.gov.my noorhazlina@mida.gov.my - www. mida.gov.my - INVEST IN MALAYSIA > YOUR PROFIT CENTRE IN ASIA 39 39

40 YOUR NEAREST CONTACT MATRADE MILAN (COVERING SPAIN) Mr. Faizal Haris Consul and Trade Commissioner MATRADE Milan Via Albricci 9, 20122, Milan, Italy T: F: W E : : milan@matrade.gov.my 40 40

41 CONTACT US URL : URL : URL : URL : URL : 41

42 Thank you MALAYSIA Your Profit Centre in Asia Malaysia is a vibrant economy. Talk to MIDA and discover how Malaysia can be your Profit Centre in Asia For more information, please visit or to investmalaysia@mida.gov.my 42