Welcome to Malaysia Dai Harries Leicester 5 September 2007

 Malaysia – Political, Economic and Social  Doing Business in Malaysia - why and how  UK Trade & Investment services in Kuala Lumpur Malaysia: an introduction

Malaysia: a country at a crossroads

Malaysia: geographically diverse

 Multi-ethnic, multi-cultural, multi-religious society  But stable  Bumiputra involvement important Malaysia: ethnically diverse

Malaysia: economic growth GDP growth: ups and downs, but impressive overall 7.1% for 2004, 5.2% for 2005, 5.9% for 2006 with c.6% forecast for 2007 Ringgit peg to dollar scrapped smoothly in July 2006

 Economy more and more developed. Service sector largest (nearly 60%)  But manufacturing (over 30% + of GDP and 80% of exports) important. So are mining and quarrying and agriculture/commodities (both nearly 10%)  Above all an open economy: 18 th biggest trading nation in the world, with exports same size as GDP  E & E accounts for nearly 50% of manufacturing output and over 40% of exports: a strength and vulnerability  China factor – an opportunity and challenge  Skills - including English language Malaysia: economy

UK-Malaysia: trade Source: Department of Trade & Industry, London

 Investment also significant - and increasingly in both directions  Since 1990 cumulative UK investment well over £3 billion  Major current investors: Shell, BP, TESCO, Jardine Matheson, HSBC, Standard Chartered; but also various smaller companies  Significant Malaysian investment in UK: traditionally in hotels and leisure (eg Laura Ashley, Corus Hotels, Crabtree & Evelyn); recently in other sectors (Wessex Water, Petronas, Genting…) UK-Malaysia: investment

 Malaysia – Political, Economic and Social  Doing Business in Malaysia - why and how  UK Trade & Investment services in Kuala Lumpur Malaysia

Why do business in Malaysia?  Close ties with the UK: similar governmental and legal systems; but above all education and the English language. And football!  Robust, generally open economy and buoyant domestic demand  Good infrastructure - IT, roads, airports  A good base for the region and Asia – with incentives on offer

How to do business in Malaysia?  Close to UK…but different, Asian customs, attitudes and rules of the game  Relationships central and key to success. Need to invest time and be patient  Bumiputra issue - especially with Government bodies (eg Petronas, TNB, Telekom Malaysia or TM)  A good local partner almost always essential

How to set up in Malaysia?  Various options to set up a legal presence in Malaysia: from light and easy to full-fledged local company  Other options – with incentives – for bigger companies operating regionally  We can provide more information  But strongly advise to seek advice from reputable business consultants, as well as MIDA if appropriate

Taxation in Malaysia  Tax regime reasonably benign, both corporate (28%) and personal (1% to 28%)  Also Sales (0-25%) and Service (5%) Taxes. Due to be consolidated into GST (= VAT) in 2007  Customs Duties generally low. But wise to check  Withholding Tax complicated, with potential liability of 8% for UK companies  Again, always best to check with business consultants

Useful Websites  UK Trade & Investment:  British High Commission Kuala Lumpur:  Malaysian Industrial Development Authority (MIDA):  Federation of Malaysian Manufacturers (FMM):  Malaysia International Chamber of Commerce & Industry (MICCI):  British Malaysian Chamber of Commerce: