1. Domestic direct investment (DDI) initiatives

2. MITI & ITS AGENCIES MITI & ITS AGENCIES
MALAYSIA PRODUCTIVITY CORPORATION
MALAYSIA AUTOMOTIVE
INSTITUTE
HALAL INDUSTRY
DEVELOPMENT CORPORATION

3. MIDA’S NEW ORGANISATION STRUCTURE
Chairman
Chief Executive Officer
Deputy CEO
(Manufacturing & Services Development I)
Senior Executive Director (Strategic Planning & Investment Ecosystem)
Deputy CEO
(Manufacturing & Services Development II)
Manufacturing Development (Resource)
Services Development
(I)
Investment Promotion
Strategic Planning
Investment Ecosystem
Management Services
Manufacturing Development (Non-Resource)
Services Development (II)
Chemical & Advanced Material
Oil & Gas
Foreign Investment Coordination
Strategic Planning & Policy Advocacy
Licence & Incentives Compliance & Monitoring
Finance Mgmt.
E&E
Regional Establishment, Logistics & Supply Chain
Healthcare, Education & Hospitality
Administration
Production & Advanced Engineering
Food Tech. & Sustainable Resources
Domestic Investment
Investment Analysis & Info. Database
Human Resource Mgmt.
Clean Tech. & Environment Mgmt.
IPAs Coordination, ICM Secretariat & Pipeline Tracking
Business & Professional Services
Investment Info. Centre
Building Technology & Lifestyle
Legal & Govt. Relations
Life Sciences & Medical Technology
National Investment Secretariat
R&D and Design
IT & Comm. Services
Investment Comm.
Transportation Technology
Infrastructure, Utilities & After Sales
Internal Audit
Metal & Metal Alloy
Technology &
Business Frontier
Capacity Development Mgmt. & Industry Talent
IT System Development
Tariff

4. Functions of MIDA Promotion Evaluation Planning Follow-up / Monitoring
Foreign Direct Investment
Domestic Investment
Business matching
Manufacturing Services
Promotion
Manufacturing licenses
Tax incentives
Expatriate posts
Duty exemption
OHQ, RDC, IPC and R&D status
Evaluation
Planning for industrial development
Recommend policies and strategies on industrial
promotion and development
Formulation of strategies, programmes and
initiatives for international economic cooperation
Planning
Assist companies in the implementation and operation of their projects
Facilitate exchange & co-ordination among institutions engaged in or connected with industrial development
Advisory Services
Follow-up /
Monitoring

5. * Industrial Master Plan 3 (IMP3) Investment Ratio, DDI:FDI is 60 : 40
The Mission
Investment Targets under Economic Transformation Programme (ETP), by 2020
73% DDI (RM953 billion)
92% (RM1.3 trillion)
Private Investments
RM1.4 trillion
27% FDI
8% Public Investments
* Industrial Master Plan 3 (IMP3) Investment Ratio, DDI:FDI is 60 : 40

6. Domestic Direct Investment (DDI) Initiatives
Domestic Investment Strategic Fund (DISF)
Incentives for Acquiring a Foreign Company for High Technology
Incentives for Small Scale Companies
Incentives for Companies in Production (Desirous Issue)
Incentives for Merger Among Malaysian Services Providers
KKKKKK

7. D.I.S.F RM1 billion for the fund under the 10th Malaysian Plan
Provided under the Customised Incentive Scheme, Section 127, Income Tax Act 1967

8. Objectives of the Fund
To accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries
To enable domestic investors to develop new sources of competitive advantage and to become active participants in the global ecosystems of industries.
To assist capable Malaysian companies to make the quantum leap required in driving the national investment agenda in transforming the economy
The fund is not a business start-up fund but it is applicable to local companies which have new/additional investments

9. Priority Sectors Aerospace Machinery & Equipment Medical Devices
Pharmaceuticals
Advanced Electronics
Renewable Energy
Services including Design, R&D, testing, quality and standard certification, technical and skills training, engineering services, and logistics service providers
Other industries, on a case by case basis

10. Scope of the Fund
The fund will provide matching grants (1:1) on reimbursable basis to cater for expenditures incurred for the following activities:
Training of Malaysians
R&D activities carried out in Malaysia
Licensing or Purchase of New Technology
Obtaining International Standards/Certification
Modernisation and upgrading of facilities and tools to undertake manufacturing or services activities for Multinational Corporations (MNCs) and Malaysian conglomerates (Outsourcing activities)
Definition of Outsourcing: A subcontracting process that involves manufacturing, manufacturing related services, business services and delegation of some/all operations to an external entity, usually specialised in that operation.

11. Eligibility
For Training, R&D, International Standards / Certification and Licensing and Purchase of New Technology:
Incorporated under the Companies Act, 1965
New and Existing companies in the Manufacturing & Services sectors with Malaysian equity ownership of at least 60%

12. Eligibility
For Upgrading and Modernisation of Facilities for Outsourcing activities:
New Company
Existing Company
A company which undertakes reinvestments in the form of expansion / modernisation / diversification;
The company must have the capability and proven track record in the relevant industry;
Effective equity of at least 60% owned by Malaysians
A subsidiary of an existing company operating in the relevant industry
The parent company must have proven track record in the relevant industry
Effective equity of at least 60% owned by Malaysians;

13. Approved Projects under D.I.S.F.
International Standards/Certification
As at 31 July 2013:
RM1.5 million
Licensing & Purchase of New/High Technology
RM238.3 million
RM2.65 million
A total of 40 projects
Electrical & Electronics
Machinery & Advanced Engineering
Services
Training
RM39.1 million
Transport
Life Sciences
ICT
Wood-based
Capital
R&D
RM80.8 million
RM114.2 million
R&D

14. Training of Malaysians
Types of Training
Pre-operational / Operational Training
On-the-job Training
Validation
D&D and R&D
In-house Training (Internal, External or Overseas
Trainers)
External Training (within Malaysia)
Overseas training
Eligible
Not Eligible
Courses such as product technology, process technology, equipment technology, equipment maintenance, quality control, tools & facilities and other training related to the approved project.
Motivational courses / workshops / seminars
Language courses
Management / Marketing courses
Further study (Postgraduate; PHD / Masters)
Training related to safety
Based on Guideline on Training Grant under Strategic Fund

15. Research & Development
Definition of R&D – systematic or intensive study carried out in the field of science & technology
Quality Control of products, or routine testing of materials, devices, products or produce
Research in social sciences or humanities
Routine data collection
Efficiency surveys or management studies
Market research or sales promotion
Eligible
Improvement of materials, devices, products, produce or processes
Design, Development and Prototyping
Not Eligible
Based on Guideline on R&D Grant under Strategic Fund

16. Non-Eligible Expenditure
Purchase of Machinery and Equipment for Modernisation and Upgrading of Facilities and Tools for Outsourcing activities
Eligible Expenditure
Special machinery / equipment which is only used in the relevant industry.
Special production machines can be considered if these are additional machines and not replacing existing machines; whereby these machines are required to penetrate new markets or industries
Special machinery / equipment which is required by MNCs / Malaysian conglomerates for vendors to undertake outsourcing activities
Non-Eligible Expenditure
Normal production machinery / equipment which is used in the general production line
Normal testing machinery / equipment

17. Licensing or Purchase of New/High Technology
The fund covers technology acquisition through:
Technology Licensing; and
Acquisition of Technology
Eligible Cost of Licensing / Acquisition of Technology :
Patent
Design
Blueprints
Manufacturing/Services Know-How
Technical support
Note: Eligibility does not include costs of acquisition of trademark, copyright and proprietary information

18. Submission Submit application form:
- ML 08 or ICA/JA-1 or ICA/JA-3 for New companies ;
- ML 08 or ICA/JA-2 or ICA/JA-4 for Existing companies.
Supporting documents / additional information related to the grant application

19. Thank you