Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
TRADE AND INVESTMENT OPPORTUNITIES IN MALAYSIA 7 June 2011 MALAYSIA’S KEY INDICATORS 2010 Land Area 330,252 sq km Capital Kuala Lumpur Population 28.9 million Real GDP (%) 7.2 Inflation (%) 1.7 Per Capita Income €5,709.23 Unemployment (%) 3.2 International Reserves (€ billion) 74.5 Retained Imports Equivalent (month) 8.5 GDP Composition by sector • Agriculture • Mining • Construction • Manufacturing • Services 7.3% 7.2% 3.3% 27.7% 57.4% 1 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 Chinese 6.4 Indian 1.9 Others 0.3 Non-Citizens 2.1 Total • 28.2 Religion Islam 60.4 Buddhism 19.2 Christianity 9.1 Hindu 6.3 Others 5.1 Total All groups are well represented in Parliament Source: National Statistics Department % of Population 100.0 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 Welldeveloped 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 TRADE PERFORMANCE MALAYSIA'S BILATERAL TRADE WITH PARTNER COUNTRY LATVIA (€ MIL.) 35.00 VALUE (€ MILLION) 30.00 29.53 25.00 20.00 15.00 10.00 5.00 25.46 24.04 22.91 13.49 19.82 18.51 17.46 16.38 14.75 13.62 9.37 4.12 0.00 2005 4.07 1.13 1.13 1.08 2006 2007 2008 YEAR EXPORT IMPORT TOTAL 1.31 2009 2010 MAJOR EXPORTS & IMPORTS TO LATVIA (2010) € Million % Share Electrical & Electronic Products 7.08 27.8 Rubber Products 5.47 21.5 Wood Products 3.50 13.8 Machinery, Appliances & Parts 2.90 11.4 Manufactures of Metal 1.85 7.3 Major Export Products € Million % Share Rubber Products 1.64 40.1 Processed Food 1.40 34.6 Electrical & Electronic Products 0.44 11.0 Chemicals & Chemical Products 0.14 3.7 Wood Products 0.05 1.2 Major Import Products GOVERNMENT INITIATIVES GOVERNMENT INITIATIVES Government Transformation Programme (GTP) Economic Transformation Programme (ETP) 10th Malaysia Plan 2011-2015 Effective delivery of government services Private sector leads, Government facilitates. Specific initiatives and projects driving economic transformation. 12 NKEAs to received prioritized policy and investment focus. .... 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. Source: Economic Planning Unit, Malaysia APPROVED INVESTMENT IN MANUFACTURING SECTOR BY MAJOR COUNTRIES (2008 – 2010) 1. USA € 5.0 billion 2. JAPAN € 3.6 billion 3. AUSTRALIA € 2.8 billion 4. HONG KONG 5. GERMANY € 1.8 billion € 1.4 billion IMPLEMENTED MANUFACTURING PROJECTS (as at 2010) 1. JAPAN 2. USA 3. SINGAPORE 4. GERMANY 5. NETHERLANDS € 13.6 billion € 12.7 billion € 5.4 billion € 4.4 billion € 3.3 billion NOTABLE GERMAN COMPANIES IN MALAYSIA INVESTMENT POLICIES Manufacturing License Equity Guidelines Repatriation of Profits • Automatic approval for non-sensitive industries • 100% foreign equity ownership is allowed • 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 Incentives Reinvestment Allowance 60% on qualifying capital expenditure Import Duty & Sales Tax Exemption For raw materials and machinery and Equipment INCENTIVES Biotechnology Company MSC Status Company 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 IMPROVEMENTS TO PUBLIC DELIVERY SYSTEM The Special Task Force to Facilitate Business (PEMUDAH) Set up in February 2007, a highpowered taskforce Co-chaired and comprising representatives from public and private sectors Review and recommend improvements to public delivery system to facilitate business 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 IMPROVEMENTS Facilitating Business MyCoID: Single ID for dealing with Government agencies New Commercial Courts Dedicated courts to resolve commercial cases 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 IMPROVEMENTS Paying Taxes e-Payment Construction Permit Common technical checklist template for all local authorities and standardisation of procedures CURRENT FOCUS ON THE MANUFACTURING SECTOR High technology, capital intensive & knowledge driven industries: • Alternative Energy Sources • Biotechnology • Advanced materials • Advanced electronics Industries manufacturing intermediate goods: • Machinery & equipment • Components & parts • Moulds and dies • Optics and photonics • Petrochemicals Resourced-based industries: • Pharmaceuticals • Food ( Halal Hub ) • Value-added products from natural resources • Medical devices • ICT • Aerospace TARGETED SERVICES SECTORS 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 byproducts Business Services Shared services outsourcing Research & Development (R&D) ICT Services Market Support Services Film & Video Production & Post Production TARGETED SERVICES SECTORS Education Technical, Vocational & Science Training Healthcare Travel (Medical Tourism) Private hospitals Wellness Zone (Port Dickson) ECONOMIC CORRIDORS Focus on: • Modern Agriculture • Manufacturing & Design • Tourism • Logistics • Education & Health Focus on: • Tourism • Oil & Gas • Manufacturing • Agriculture • Education Focus on: • Agro-based Industry • Tourism • Logistics • Manufacturing Focus on: • Resource Based Industry • Energy • Tourism To be a hub for the services sector: • Creative Industry • Education • Healthcare • Logistics 19 Malaysia and ASEAN 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 STRATEGIC MARKET ACCESS Foreign companies based in Malaysia can enjoy preferential market access via Free Trade Agreements concluded by Malaysia: ASEAN Bilateral AFTA Japan Under Negotiations EU China Korea Japan Australia-New Zealand Pakistan New Zealand Chile India Australia Turkey TPP GCC India 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 3rd Attractive Location for Outsourcing Destinations – A.T. Kearney Global Services Location Index 2010 4th For Investor Protection – Forbes Report 2010 10th Most Competitive Economy In 2010 – IMD 23rd For Ease Of Doing Business In 2010 – The World Bank Group WHY MALAYSIA ? • • • • • • • • • • • 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 CONCLUSION MALAYSIA YOUR STRATEGIC PARTNER IN ASIA PACIFIC YOU CAN COUNT ON!