INVESTMENT OPPORTUNITIES IN MALAYSIA. GMRT, March, Frankfurt 2018

Transcription

1 INVESTMENT OPPORTUNITIES IN MALAYSIA GMRT, March, Frankfurt 2018

2 Who Are We? 1st point of contact Foreign Direct Investment Domestic Investment Manufacturing & Selected Services Assist companies in the implementation & operation of their projects Facilitate exchange & coordination among institutions engage in or connected with industrial development Advisory Services The principal Malaysian Government agency - mandate for the promotion of investments and coordination of industrial development and selected services sectors in the country Established in 1967 under Act of Parliament, PROMOTION MONITORING EVALUATION PLANNING for investors who intend to set up projects in the manufacturing and services sectors in Malaysia Manufacturing Licenses Tax Incentives Expatriate Posts Duty Exemption Principal Hub & selected services Planning for industrial development Recommend policies & strategies on industrial promotion and development Formulation of strategies, programmes and initiatives for international economic cooperation 2

3 Based in MIDA Immigration Department Royal Malaysian Customs Labour Department Based outside MIDA Telekom Malaysia Berhad MIDA as a One Stop Centre 3

4 Our Networks around the world HQ, KL Sentral Los Angeles Tokyo Houston Osaka New York Beijing Boston Guangzhou San Jose Shanghai Chicago Seoul London Mumbai Stockholm Singapore Munich Taiwan Frankfurt Sydney Milan Paris Dubai 12 State offices Alor Setar Penang Ipoh Selangor v Seremban Melaka Kota Bharu Johor Bahru Kuala Terengganu v Kuantan Kota Kinabalu Kuching Address: MIDA Sentral No. 5 Jalan Stesen Sentral 5 KL Sentral Kuala Lumpur Tel: Fax:

5 Malaysia s Economic Development Journey 2050 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 5

6 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 TAKING THE LEAD 11 MP (11 th Malaysia Plan) 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 (National Key Economic Areas) 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) Industry 4.0 *oil, gas and energy; palm oil and related products; financial services; wholesale and retail; tourism; communications content and infrastructure; education; electrical and electronics; business services; healthcare; agriculture; and greater Kuala Lumpur. 6 6

7 Eleventh Malaysia Plan ( ) Chemicals Machinery and Equipment 3 CATALYTIC SUBSECTORS Electrical and Electronics 2 HIGH GROWTH SECTORS Medical devices 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. Aerospace 7

8 Promoted Activities Investment Opportunities in the Services Sector Logistics 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 8

9 Quality Investments In Targeted Industries Advanced Electronics Specialty Chemicals Aerospace - MRO Machinery & Equipment Food Technology Pharmaceuticals Biotechnology Advanced Materials Medical Devices Oil and Gas Transport Technology Green Technology 9

10 FDI bil. Projects Employment 28% 5, % 139, bil. (RM197.1 bil) 72% Project Employment Inv. ( Mil.) Manufacturing ,421 12, DDI bil. Services 4,731 82,172 24, Primary , US$1: RM

11 US$ Million Approved Projects By Major Countries, Jan- Dec 2017 (Manufacturing) Scientific & Measuring Equipment Rubber Products mill. 18 Food Manufacturing Chemical & Chemical Products Fabricated Metal Products Electronics & Electrical Products Textiles & Textile Products Machinery & Equipment Petroleum Products (Inc. Petrochemicals

12 Approved Projects By Industry, Jan Dec 2017 (Manufacturing) Industry No. Total Capital Investment (Euro ) Petroleum Products (Incl.Petrochemicals) 5 3,266,441,483 Natural Gas 1 1,859,427,423 Transport Equipment ,439,325 Non-Metallic Mineral Products ,530,637 Chemicals & Chemical Products ,751,330 Machinery & Equipment ,739,622 Food Manufacturing ,376,908 Electronics & Electrical Products ,871,695 Rubber Products ,817,823 Fabricated Metal Products ,446,916 12

13 Implemented Projects By Major Countries, As at December 2017 (Manufacturing) US$ Billion bill

14 Over 5,000 companies from more than 50 countries 14

15 E&E and Machinery Chemical, Medical Devices, Metal & O&G Automotive Services 15

16 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. 16

17 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 17

18 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) 18

19 Setting Up a Representative Office/ Regional Office in Malaysia Activities Allowed Eligibility Criteria RM300,000 ( 62,000) operational expenditure per annum financed by funds emanating from sources outside Malaysia. Expatriate Posts Expatriates will be considered for managerial and technical posts. 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 19

20 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 Management of risk Finance Key Functions Strategic Business Activities Management & Human Resource Trading Decision Making USD7.0 Bil. (RM28.57 Bil.) Total Business Spending 2,020 Jobs 20

21 Implementation of Project In MIDA, we handhold the companies till their successful implementation. Implementation of Project Infrastructure & Industry Support Division, MIDA Assist companies in the implementation and operation of new projects; (including electricity, communication, land) Extend support to existing companies in their expansion, diversification and re-investment projects; Undertake periodic reviews of issues and formulate appropriate measures for the smooth implementation and operation of industrial projects. 21

22 Northern Corridor Investment Authority (NCIA) Financial Services Petrochemical and Maritime Healthcare Tourism and Logistic Industry Manufacturing & Services Tourism Manufacturing & Design Modern Agriculture Logistics Education & Health Iskandar Region Development Authority (IRDA) East Coast Economic Region Development Council (ECERDC) Tourism Oil & Gas Manufacturing Agriculture Education Sabah Economic Development Investment Authority (SEDIA) Regional Corridor Development Authority (RECODA) Agro-based Industry Tourism Logistics Manufacturing Resource Based Industry - Aluminum, Glass, Steel, Oilbased Industry, Palm Oil, Fishing & Aquaculture, Livestock, Timber-based, & Marine Energy Tourism Now, Malaysia s investment environment consists of multiple national, regional and state investment promotion agencies Previously known as Biotechnology Corporation InvestPerak Johor State Investment Centre Pahang State Development Corporation Negeri Sembilan Investment Centre InvestPenang Invest Kedah Sarawak Economic Development Corp Invest Selangor 22

23 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 (1992) 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 ( ) Malaysia is still negotiating Regional Comprehensive Economic Partnership (RCEP), Malaysia-EU, Malaysia-EFTA and ASEAN-Hong Kong. 23

24 ASEAN in 2030 Currently 6 th Largest economy ASEAN Source: ASEAN Now insights for Australian Business 24

25 Malaysia As A Hub For ASEAN 4 th largest Economy by MILLION Population by 2030: US$6.7 Trillion GDP:2030 target GDP: US$ 2.55 trillion (2016 GDP Growth: 4.8% (2016) Per capita: US$ 4,021(2016) 634 MILLION Current Population 109 MILLION (2015) Tourist Arrivals Intra ASEAN: 46 million ASEAN Dialogue Partners: Australia Korea Canada New Zealand China EU India Russia Japan USA 25

26 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) ) 26

27 Well Developed Infrastructure/ Connectivity Pro-business Government Liberal Investment Policies Liberal Business Environment Young, Trainable and Educated Labour Force 50 years -Strong Industry Base Stable Banking System Harmonious Industrial Relations Quality of Life IP Protection Political and Economic Stability Excellent Facilities - Convention and Conferences STRATEGIC LOCATION Home to Tropical Paradise We Embrace Multiculturalism An Unsurpassed Lifestyle English speaking language Capital: Kuala Lumpur Population: 31.7 Mil. Land Area: 330,399 sq km 27

28 The First Point of Contact for Investors Be With Us On Mobile: Opening hours: Mon - Fri 8.30 a.m p.m. Thank you Contact us MIDA Frankfurt 17 th Floor, Kastor Platz der Einheit Frankfurt Am Main Tel: +49 (0) frankfurt@mida.gov.my URL : URL : 28

29 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 29