Presentation on theme: "TRADE AND INVESTMENT OPPORTUNITIES IN MALAYSIA 7 June 2011."— Presentation transcript:
TRADE AND INVESTMENT OPPORTUNITIES IN MALAYSIA 7 June 2011
MALAYSIA – MULTIRACIAL AND PROGRESSIVE COUNTRY Malaysia is a truly multi-ethnic and multi-religion country Strength in diversity Ethnic Groups Population (m) Malays and Indigenous 17.5 Chinese6.4 Indian1.9 Others0.3 Non-Citizens2.1 Total28.2 Religion % of Population Islam60.4 Buddhism19.2 Christianity9.1 Hindu6.3 Others5.1 Total100.0 Source: National Statistics Department All groups are well represented in Parliament
Why Malaysia is Special? Year-long warm and sunny climate offers plenty of opportunities for sports, leisure and family activities Excellent health infrastructure with many modern hospitals, clinics and medical facilities Well- developed transport and telecommunic ation system Variety of food, 300 malls, deepest reefs, Natural rainforest Over 30 international schools registered with the Ministry of Education Peace and harmony
Major Export Products€ Million% Share Electrical & Electronic Products Rubber Products Wood Products Machinery, Appliances & Parts Manufactures of Metal MAJOR EXPORTS & IMPORTS TO LATVIA (2010) Major Import Products€ Million% Share Rubber Products Processed Food Electrical & Electronic Products Chemicals & Chemical Products Wood Products
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. 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) 10 th Malaysia Plan GOVERNMENT 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. JAPAN3. AUSTRALIA4. 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 Manufacturing License Automatic approval for non-sensitive industries Equity Guidelines 100% foreign equity ownership is allowed Repatriation of Profits No restriction imposed on foreign companies investing in Malaysia
INCENTIVES Pioneer Status Income tax exemption ranging from 70%-100%; 5-10 years Investment Tax Allowance 60%-100% on qualifying capital expenditure; 5-10 years Reinvestment Allowance 60% on qualifying capital expenditure Import Duty & Sales Tax Exemption For raw materials and machinery and Equipment Incentives
INCENTIVES 100% tax exemption for 10 years; or Investment Tax Allowance of 100% for 5 years; and Concessionary tax rate of 20% for another 10 years upon the expiry of the tax exemption period Biotechnology Company MSC Status Company
IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM Set up in February 2007, a high- powered taskforce Co-chaired and comprising representatives from public and private sectors Review and recommend improvements to public delivery system to facilitate business The Special Task Force to Facilitate Business (PEMUDAH)
IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM Starting a business Expedited from 11 to 3 days Trade Facilitation National Single Window: electronic system that enables a secured, safe and efficient electronic exchange of trade-related documents Facilitating Business MyCoID: Single ID for dealing with Government agencies New Commercial Courts Dedicated courts to resolve commercial cases IMPROVEMENTS
IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM Registering Property Transfer of landed properties by Land Offices is reduced to 1 day from 30 days Employing Workers Wholistic review of Employment Legislations & publishing of Guidelines on Retrenchment Management Paying Taxes e-Payment Construction Permit Common technical checklist template for all local authorities and standardisation of procedures IMPROVEMENTS
High technology, capital intensive & knowledge driven industries: Industries manufacturing intermediate 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 Hotel Tourist project Recreational camp Convention 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
19 ECONOMIC CORRIDORS Focus 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
ASEANBilateralUnder Negotiations AFTAJapanEU ChinaPakistanAustralia KoreaNew ZealandTurkey JapanChileTPP Australia-New Zealand IndiaGCC 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 3 rd Attractive Location for Outsourcing Destinations – A.T. Kearney Global Services Location Index th For Investor Protection – Forbes Report th Most Competitive Economy In 2010 – IMD 23 rd 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