Presentation is loading. Please wait.

Presentation is loading. Please wait.

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Ministry of International Trade and Industry (MITI) Malaysia DIALOGUE WITH BUSINESS COUNCILS 21 JANUARY.

Similar presentations


Presentation on theme: "MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Ministry of International Trade and Industry (MITI) Malaysia DIALOGUE WITH BUSINESS COUNCILS 21 JANUARY."— Presentation transcript:

1 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Ministry of International Trade and Industry (MITI) Malaysia DIALOGUE WITH BUSINESS COUNCILS 21 JANUARY 2011 REINVIGORATING AND TRANSFORMING THE BUSINESS ENVIRONMENT

2 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 1: MALAYSIA - OVERVIEW 2

3 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA GROSS DOMESTIC PRODUCT GROWTH OF MALAYSIA, 2009 – 2011 (%) 3 Source: EIU Country Report January 2010, World Bank Malaysia Economic Monitor November 2010, IMF World Economic Outlook October 2010 and MOF Economic Report October 2010 Notes: 2009 (actual data), 2010 (estimates), 2011 (forecasts), MOF forecast Malaysias GDP growth will be %.

4 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA TRADE PERFORMANCE OF MALAYSIA 2009 – Source: MOF Economic Report October 2010 Notes: 2009 (actual data), 2010 (estimates), 2011 (forecasts), US$1 = RM3.52

5 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA MALAYSIA: INFLATION AND UNEMPLOYMENT RATE 2009 – 2011 (%) 5 Source: EIU Country Report January 2011 and IMF World Economic Outlook October 2010 Notes: 2009 (actual data), 2010 (EIU estimates), (EIU forecasts)

6 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA MITI DIRECTIONS IN 2011 MITI to continue capitalising opportunities in fast- growing markets and new markets. FTAs expected to significantly enhance trade growth in 2011 Manufacturing sector - leading export sector with E&E products (the largest contributor to total exports by 40%). Other major exports include crude and refined petroleum, LNG, palm oil, chemicals and chemical products as well as machinery appliances and parts. 6

7 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA MITI DIRECTIONS IN 2011 The services sector to leverage on healthcare, education, outsourcing services in manufacturing and ICT, construction, engineering services, and services for O&G. Increasing the contribution of DDI with growth in FDI. Given the uphill challenges in the economic recovery globally, raising FDIs a big challenge, thus the need to raise DDI to stimulate growth. Improving business environment, investment policies and other incentives in the country. The 131 entry point projects under the ETP require both local and foreign investments. The Cabinet on 15 October 2010 approved the establishment of ETP Investment Committee to oversee investment-related issues under ETP. 7

8 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 2: TRADE AND INVESTMENT PERFORMANCE 8

9 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Malaysias Trade Performance (2005 – Nov 2010) 9

10 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 10 RM 73.7 BillionRM 60.1 BillionRM 55.8 Billion RM 31.2 BillionRM 29.7 Billion ChinaJapanUSA Thailand Hong Kong TOP 5 TRADING PARTNERS

11 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Summary of Malaysias Global Trade 11 Jan - Nov 2010 (RM billion) % Change (Jan - Nov 2010 / 2009) 2009 (RM billion) Exports Imports Trade Balance Total Trade 1,

12 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 12 RM 11.7 BillionRM 4.0 BillionRM 2.8 Billion RM 2.1 BillionRM 1.9 Billion USAJapanHong Kong Singapore Germany MAJOR FOREIGN INVESTORS

13 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 13 APPROVALS IN MANUFACTURING AND SERVICES SECTORS 2010

14 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 3: MALAYSIAS INTERNATIONAL RANKING 14

15 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Malaysias International Ranking for Investor Protection - Forbes Report 2009 for Investor Protection - Forbes Report st Attractive Location for Outsourcing Destinations - A.T. Kearney Global Services Location Index 2009 Attractive Location for Outsourcing Destinations - A.T. Kearney Global Services Location Index rd Most Competitive Economy in Institute Management of Development Most Competitive Economy in Institute Management of Development 10 th 15

16 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA IMD World Competitiveness Yearbook Ranking 16

17 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA World Bank Doing Business Ranking 17

18 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Annual conference organised by Forbes Asia. Main aim: to enhance Malaysias position as an attractive business and investment destination through networking amongst the CEOs and business personalities. FGCC 2009 (9 th series of the Conference): o Held on September 2009 in Kuala Lumpur with the theme GAME CHANGE o Attended by 479 delegates (include 69 speakers, prominent businessmen, politicians) FGCC 2011 (11 th series of the Conference): FGCC 2011 (11 th series of the Conference): o To be held on September 2011 in Kuala Lumpur o Proposed theme: AT THE CROSSROADS o Target of 400 delegates to attend FGCC Forbes Global CEO Conference (FGCC) 18

19 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 19 INITIATIVES TO REINVIGORATE AND TRANSFORM THE ECONOMIC LANDSCAPE

20 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 4: TRADE AND ECONOMIC FACILITATION 20

21 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Snapshots of Initiatives in

22 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA The deregulation of FIC guidelines include: The repeal of guidelines covering the acquisition of equity stakes, mergers and takeovers. Listed companies will no longer be subject to equity conditions post-IPO. No equity conditions will be imposed on any share transactions. Investment made under relevant sector regulators, it will still be applicable. Upon IPO, the equity condition will be subsumed as part of the public spread requirement. Announced by YAB Prime Minister on 30 June 2009 Announced by YAB Prime Minister on 30 June 2009 Deregulation of Foreign Investments Committee (FIC) Guidelines 22

23 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA MALAYSIAS NATIONAL SINGLE WINDOW (NSW) NSW - one-stop trade facilitation portal that provides secure, safe and efficient electronic exchange of trade-related documents through a single point of entry to expedite smooth flow of information of goods for import, export or transit. 5 NSW services - operationalised since 19 November 2009 and available through MyTradelink online portal (http://www.mytradelink.gov.my).http://www.mytradelink.gov.my NSW implementation is under the purview of Ministry of finance (MOF) Malaysia. 23

24 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Online duty payment service to Customs. 3 Modes of e-Payment: i.Electronic Funds Transfer (EFT) – supported by 8 banks. Available weekdays, 8:45am – 8:00pm; ii.DutyNet – provided by CIMB Bank Berhad (available 24/7); and iii.Financial Services Payment Gateway (FSPG) – web-based system connected to 3 banks (available 24/7). Web-based application for online approval of electronic Preferential Certificate of Origin by MITI. MITI operates e-PCO for the following schemes: i.ASEAN Industrial Cooperation (AICO); ii.Common Effective Preferential Tariff (CEPT); iii.Free Trade Agreement (FTA); iv.ASEAN-Korea Free Trade Area (AKFTA); v.ASEAN-China Free Trade Area (ACFTA); vi.Malaysia-Japan Economic Partnership Agreement (MJEPA); vii.Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA); viii.Generalised System of Preferences (GSP); and ix.Certificate of Origin for Textiles. Web-based application for online application and approval of import / export permits. 19 Permit Issuing Agencies (PIAs) including MITI are implementing e-Permit while 11 PIAs (8 PIAs from Sabah & Sarawak) will be connected to e-Permit. NSW Services 24 Web-based application for online submission of Customs declaration. Available at all Malaysian ports and entry points. Web-based application that allows Shipping Agents to submit vessel information and cargo report to Customs.

25 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 5: LIBERALISATION OF SERVICES 25

26 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA WHERE ARE WE AND WHAT WE HAVE DONE? 26

27 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA WHERE ARE WE AND WHAT WE HAVE DONE? 27

28 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA WHERE ARE WE AND WHAT WE HAVE DONE? 28

29 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA WHERE DO WE GO? 29

30 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIAWHY? 30 Structural changes needed to sustain development and economic growth; Private led initiatives to attract foreign investors; To increase productivity and to attract and retain talent, companies and capital; Developing small and medium enterprises (SMEs) as an engine of growth and innovation; and To compete globally. Structural changes needed to sustain development and economic growth; Private led initiatives to attract foreign investors; To increase productivity and to attract and retain talent, companies and capital; Developing small and medium enterprises (SMEs) as an engine of growth and innovation; and To compete globally.

31 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 6: ASEAN 31

32 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Malaysias engagement with ASEAN and its Dialogue Partners and the realisation of ASEAN Economic Community remains high priority. Expansion of intra-ASEAN trade & investment. Elimination of tariffs and NTBs. Harmonisation of product standards and regulatory framework. Creating a network of efficient industries and SMEs.ASEAN 32

33 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Services Liberalisation Creating opportunities for services sector. Reduction/elimination of barriers to all 4 modes of supply. Enhance movement of skilled workforce in ASEAN. 33

34 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Role of ASEAN Private Sector Strengthening the role of existing ASEANs industry associations / clubs and business councils (Example; ABAC, EABC, ACCI etc.) –inputs on current problems and issues related to development of business and investment in ASEAN. –To encourage co-operation between the private sector/companies. –To promote joint ventures in specific sectors of common interests. –To utilise the expertise of the councils members to identify and develop opportunities for SMEs 34

35 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 7: MALAYSIAS FTAs 35

36 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA ASEAN FTAs Strengthening linkages through ASEAN Plus FTAs and key trading partners: –ASEAN(570 million population) –ASEAN+China(1.9 billion population) –ASEAN+Korea(618.2 million population) –ASEAN+Japan(697.8 million population) –ASEAN+India (1.7 billion population) –ASEAN(595.5 million population) +Australia-NZ 36

37 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 37 MALAYSIAS FTA INVOLVEMENT STATUS/TYPEREGIONALBILATERAL CONCLUDED Regional: 6 Bilateral: 5 Total: 11 ASEAN Free Trade Area (AFTA) ASEAN-China ASEAN-Republic of Korea ASEAN-Japan Comprehensive Economic Partnership or AJCEP (Trade in Goods) ASEAN-India (Trade in Goods) ASEAN-Australia-New Zealand Malaysia-Japan Economic Partnership Agreement (MJEPA) Malaysia-Pakistan Comprehensive Economic Partnership Agreement (MPCEPA) Malaysia-New Zealand Free Trade Agreement (MNZFTA) Malaysia-Chile Free Trade Agreement (MCFTA) Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) UNDER NEGOTIATIONS Regional: 3 Bilateral: 4 Total: 7 ASEAN-Japan (Investment and Services) ASEAN-India (Investment and Services) Trans-Pacific Strategic Economic Partnership (TPP) Malaysia-Australia Malaysia-Turkey Malaysia-EU UNDER INITIATION Regional: 2 Bilateral: 2 Total: 3 ASEAN+3 (Japan, China and Korea) ASEAN+6 (Japan, China, Korea, Australia, New Zealand and India) Malaysia-Bangladesh Gulf Cooperation Council (GCC)

38 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Significant Achievements Malaysia started recording trade surplus with Japan since 2009, reversing the trade imbalance trend. A result of the implementation of MJEPA and AJCEP. In 2010, Malaysia recorded a trade surplus with China for the first time since the implementation of the ACFTA. Significant increase in trade with non-traditional trading partners i.e. trade with Pakistan has been averaging 30% increase since implementation of MPCEPA. Investments from Japan increased from RM5.6 billion in 2008 to RM7.0 billion in Malaysia benefiting from cooperation projects e.g MAJAICO. 38

39 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 8: FACILITATING EXPORT CONTROL 39

40 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA THE STRATEGIC TRADE ACT 2010 Facilitating Trade in a Secure Trading Environment MITIS as custodian of the STA Focal point – Strategic Trade Secretariat in MITI WHY? –To fulfill requirements of United Nations Security Council Resolution 1540 (UNSCR 1540) –Curb the proliferation of weapons of mass destruction (WMD) through control over export, transit, transshipment, brokering and other activities of: strategic items (goods and intangible technology) unlisted items 40

41 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA TIMELINE FOR IMPLEMENTATION June 2010 Gazette of the Act 10 June 2010 Gazette of the Act 31 December 2010 Gazette of Regulations and Orders 31 December 2010 Gazette of Regulations and Orders 1 January 2011 Operationalisation of the STA Export permits issued for Category 0 item Nuclear Materials, Facilities and Equipment by AELB 1 January 2011 Operationalisation of the STA Export permits issued for Category 0 item Nuclear Materials, Facilities and Equipment by AELB 1 April 2011 Enforcement of STA provisions for Category 0 item Export permits for Military Items and Category 1-9 items by relevant authority – MITI, AELB, Pharmaceutical Services Department & MCMC 1 April 2011 Enforcement of STA provisions for Category 0 item Export permits for Military Items and Category 1-9 items by relevant authority – MITI, AELB, Pharmaceutical Services Department & MCMC 1 July 2011 STA provisions enforced for all strategic items 1 July 2011 STA provisions enforced for all strategic items

42 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA KNOW YOUR PRODUCTS AND ENGAGE WITH US NOW Strategic Items include: a)military items (Category ML) b)dual-use items: nuclear materials, facilities and equipment (Category 0)\ special materials and related equipment (Category 1) materials processing (Category 2) electronics (Category 3) computers (Category 4) telecommunications and information security (Category 5) sensors and lasers (Category 6) navigation and avionics (Category 7) marine (Category 8) aerospace and propulsion (Category 9) Strategic Items List and procedures to register and apply for export permits are available on MITIs website 42

43 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 9: INVESTMENT FACILITATION 43

44 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 2011 INDUSTRIAL POLICY DIRECTION IN 2011 Creating conducive investment environment through business facilitation and addressing companies issues and concerns Implementation of related EPPs under E&E and NKEA eg -developing integrated circuit design firms -Increasing the number of silicon producers Further liberalisation of manufacturing sector through: Commitments in various FTAs; and Review of import licensing, e.g. review on APs 44

45 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 2011 INDUSTRIAL POLICY DIRECTION IN 2011 (cont..) Promotion of high value- added, high technology and capital-intensive activities Monitor and facilitate implementation of mandatory standards Support establishment/formulation of standard to promote production of high quality, international standard compliance and competitive products for global market 45

46 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA INVESTMENT FACILITATION 46

47 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 47 QUALITY INVESTMENT

48 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA PART 10: ROLE OF BUSINESS COUNCILS 48

49 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA ROLE OF BUSINESS COUNCIL (BC) IN PROMOTING TRADE AND INVESTMENT ROLE OF BUSINESS COUNCIL (BC) IN PROMOTING TRADE AND INVESTMENT 49

50 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA ROLE OF BUSINESS COUNCIL (BC) IN PROMOTING TRADE AND INVESTMENT ROLE OF BUSINESS COUNCIL (BC) IN PROMOTING TRADE AND INVESTMENT 50

51 MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Ministry of International Trade and Industry (MITI) Malaysia THANK YOU


Download ppt "MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA Ministry of International Trade and Industry (MITI) Malaysia DIALOGUE WITH BUSINESS COUNCILS 21 JANUARY."

Similar presentations


Ads by Google