1. 24th October, 2012
MIDA’s Functions in The Promotion of The Manufacturing and Services Sectors in Malaysia

2. “Malaysian Investment Development Authority”
CONTENT OUTLINE :
Functions
Performance
Policies
Incentives
Development Corridors
“Malaysian Investment Development Authority”

3. MILESTONES
The principal Malaysian Government agency responsible for the promotion and coordination of industrial development in the country
First point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia
2011 : Rebrand as Malaysian Investment Development Authority
27 March 2004 : Government Mandated MIDA to Promote Investments in the Services Sector
Established in 1967 under Act of Parliament, 1965

4. FUNCTIONS OF MIDA Promotion Evaluation Planning Follow-up / Monitoring
Foreign Direct Investment
Domestic Investment
Cross Border Investment
Business matching through E-Connect
Manufacturing Services
Manufacturing licenses
Tax incentives
Expatriate posts
Duty exemption
OHQ, RDC, IPC and R&D status
Evaluation
Planning
Planning for industrial development
Recommend policies and strategies on industrial
promotion and development
Formulation of strategies, programmes and
initiatives for international economic cooperation
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. MIDA WORLDWIDE NETWORK
Stockholm
London
Frankfurt
Munich
San Jose
Chicago
Boston
Paris
Milan
Tokyo
Seoul
New York
Los Angeles
Osaka
Shanghai
Houston
Dubai
Guangzhou
Taipei
Mumbai
Bangkok
Kuala Lumpur Malaysia
Singapore
Johannesburg
Sydney
24 Overseas Centres

6. MIDA’S STATE OFFICES MIDA HEADQUARTERS ALOR SETAR KOTA BHARU
KOTA KINABALU
KUALA TERENGGANU
PENANG
IPOH
KUANTAN
MIDA HEADQUARTERS
SEREMBAN
MELAKA
JOHOR BAHRU
KUCHING

7. MALAYSIAN ECONOMY

8. MALAYSIA’S KEY ECONOMIC INDICATORS
Updated by 1018
MALAYSIA’S KEY ECONOMIC INDICATORS
2009
2010
2011
2012
Real GDP (%)
- 1.7
7.2
5.1
5.0 ~ 5.5
Inflation (%)
0.6
1.7
2.1
2.4
(Jan – Feb)
Per Capita Income (US$)
6,764
8,140
9,508
10,134f
Unemployment (%)
3.7
3.2
3.1
(Julai)
Trade Surplus (US$ bil)
33.6
34.2
39.3
(Jan)
International Reserves (US$ bil)
96.7
106.5
133.6
135.*
Retained Imports Equivalent (months)
9.7
8.5
9.4*
* As at 30th March 2012
Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE 8

9. GDP BY INDUSTRIAL ORIGIN
Sector
GDP Contribution (%)
1970
1990
2009
2010
2011
Agriculture
33.6
19.3
7.9
7.8
7.7
Mining
7.2
9.8
10.5
8.8
Construction
3.8
3.4
3.1
3.0
Manufacturing
12.8
26.5
24.2
25.2
25.1
Services
42.6
42.1
53.2
54.2
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12

10. PERFORMANCE OF THE MANUFACTURING & SERVICES SECTORS

11. TOTAL APPROVED MANUFACTURING PROJECTS (2008 – 2011)
Year
No. of Projects
No. of Employment
Proposed Investment
(US$ billion)
Domestic
Foreign
Total
2009
766
64,330
3.0
6.5
9.5
2010
910
97,319
5.9
9.4
15.3
2011
846
100,533
6.9
10.8
17.7
2012 (Jul)
469
46,137
4.4
8.8
Source: MIDA

12. APPROVED PROJECTS BY MAJOR COUNTRIES JANUARY – DECEMBER 2011
US$ Million

13. Foreign Investment (US$ million)
APPROVED MANUFACTURING PROJECTS BY MAJOR INDUSTRIES, JANUARY – DECEMBER 2011
Industry / Products
Number of Projects
Foreign Investment (US$ million)
Electronics & Electrical 90
5,900.2
Basic Metal 22
1,131.7
Chemicals & Chemical 36
1,016.0
Food Manufacturing 28
810.1
Non-Metallic Mineral 13
461.8
Transport Equipment 40
336.4
Petroleum (Incl. Petrochemicals) 11
305.5
Fabricated Metal 30
253.8
Scientific & Measuring Equipment 5
112.4
Paper, Printing & Publishing
100.5
Source: MIDA

14. APPROVED REGIONAL ESTABLISHMENT JANUARY – DECEMBER 2011
Type of Establishment
No. of Approvals
Investment
(US$ million)
Operational Headquarters (OHQ) 18
38.8
International Procurement Centre (IPC) 6
22.2
Regional Distribution Centres (RDC) 1
3.2
Representatives Offices (RE) 55
7.5
Regional Offices (RO) 32
7.7
Total
112
79.4
Source: MIDA

15. INVESTMENT POLICIES Guidelines on Manufacturing Licence
Policy on Equity Ownership

16. INVESTMENT POLICIES Guidelines on Manufacturing License
The Industrial Coordination Act 1975 (ICA) requires manufacturing companies with shareholders’ funds of RM2.5 million and above or engaging 75 or more full-time employees to apply for manufacturing license.

17. INVESTMENT POLICIES
Foreign Equity
Repatriation of Funds

18. INCENTIVES FOR THE MANUFACTURING SECTOR

19. MAJOR INCENTIVES PROVIDED
Pioneer Status (PS) : Income Tax Exemption of 70 % or 100 % for 5 or 10 years
Investment Tax Allowance (ITA)
60 % or 100 % on qualifying capital expenditure for 5 or 10 years
Incentives
Exemption from Import Duty on Raw Materials / Components
Exemption from Import Duty & Sales Tax on Machinery & Equipment

20. CURRENT FOCUS IN THE MANUFACTURING SECTOR
High technology, capital intensive &
knowledge driven industries:
Industries manufacturing intermediate goods:
Alternative Energy Sources
Biotechnology
Advanced materials
Advanced electronics
Optics and photonics
Petrochemicals
Pharmaceuticals
Medical devices
ICT
Aerospace
Machinery & equipment
Components & parts
Moulds and dies
Resourced-based industries:
Food & Agro based
Value-added products from natural resources

21. INCENTIVES FOR THE SERVICES SECTOR

22. SERVICES SECTOR OPERATIONAL HEADQUARTERS (OHQ)
INTERNATIONAL PROCUREMENT CENTRE (IPC)
REGIONAL DISTRIBUTION CENTRE (RDC)
Full tax exemption for 10 years
REPRESENTATIVE OFFICE (RE)
REGIONAL OFFICE (RO)
RE or RO status given for a period of 5 years
INTEGRATED LOGISTICS SERVICES (ILS)
INTEGRATED MARKET SUPPORT SERVICES (IMSS)
INCENTIVES FOR INTEGRATED CENTRAL UTILITY FACILITIES (CUF)
Eligible for PS or ITA

23. Targeted Services SERVICES SECTOR Regional Establishments
Business and professional services
Logistics
ICT services
Offshore and outsourcing activities
Distributive trade
Education and training
Healthcare
Tourism

24. CORRIDOR OF DEVELOPMENT IN MALAYSIA
NCER : NORTHERN CORRIDOR ECONOMIC REGION
Focus on:
Modern Agriculture
Manufacturing & Design
Tourism
Logistics
Education & Health
SDC : SABAH DEVELOPMENT CORRIDOR
Focus on:
Agro-based Industry
Tourism
Logistics
Manufacturing
ECER : EAST COAST ECONOMIC REGION
Focus on:
Tourism
Oil & Gas
Manufacturing
Agriculture
Education
SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY
Focus on:
Resource Based Industry
Energy
Tourism
IRDA : ISKANDAR MALAYSIA
To be a hub for the services sector:
Creative Industry
Education
Healthcare
Financial Services
Tourism and Logistics Industries
Electrical & Electronics Services 24

25. WHY MALAYSIA ? Political & Economic Stability Pro-business Government
Liberal Investment Policies
Transparent Policies
Policy of Welcome
Sound Banking System
Well Developed Infrastructure
Harmonious Industrial Relations
Trainable & Educated Labour Force
Quality of Life
Good Track Record

26. THANK YOU Please visit us at www.mida.gov.my