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Malaysia Your Profit Centre in Asia
About MIDA
Key Economic Indicators
Investment Performance
Companies in Malaysia
National Key Economic Area (NKEA)
Investment Policies & Incentives
Investment Opportunities
ASEAN & Free Trade Agreement (FTA)
Malaysia’s Ranking
Why Malaysia?
The principal Malaysian
Government agency responsible for
the promotion of investments 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
Incorporated as a statutory body
under the Malaysian Industrial
Development Authority (MIDA) Act,
1967
Our Services
Initial Stage
• Briefings
• Meeting with MIDA HQ
• Meetings with State
Authorities
• Business matching with
Malaysian companies
• Visit to companies/suppliers
• Visit to potential locations
• Talent requirements
Evaluation and Approval
• Manufacturing License
• Tax Incentives
• Regional Establishments
(Representative Office/OHQ/IPC/RDC)
• Expatriate Posts
• Import Duty Exemptions
Project Implementation Stage
• Handhold and assist investor until project is
implemented
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Stockholm
London
San Jose
Los Angeles
Chicago
Boston
New York
Houston
Paris
Frankfurt
Munich
Beijing Seoul Tokyo
Shanghai
Milan
Osaka
Dubai
Guangzhou
Taipei
Mumbai Malaysia
Singapore
Sydney
23 Overseas Centres
Alor Setar
Headquarter
KL Sentral, Kuala Lumpur
Kota Bharu
Kuala
Terengganu
Penang
Ipoh
Kota Kinabalu
Kuantan
Selangor
Seremban
Melaka
Johor Bahru
Kuching
2012
2013
2014
2015 (f)
Real GDP Growth (%)
5.6
4.7
6.0
4.5 - 5.5
Inflation (%)
1.6
2.6
2.7
2.0 – 3.0
9,991
10,687
10,426
12,745
3.0
3.1
2.7
3.0
139.7
134.9
116.0
112.0
Per Capita Income (US$)
Unemployment (%)
International Reserves
(US$ bil)
Source: Central Bank of Malaysia/Department of Statistics Malaysia/Economic Planning Unit (EPU)
RM235.9
billion
Approved investments
250
178,360
Jobs Created
150
5,942
Projects Approved
200
Increased by
8% 235,9
219,4
Increased by
100
8%
50
0
2013
2014
Year
Source: MIDA
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Continued investors’ confidence in Malaysia
as an investment destination
2013
58.5%
FDI
2014
55.1%
FDI
RM39.6
bil.
RM30.5
bil.
RM52.1
billion
RM71.9
billion
41.5%
DDI
RM21.6 bil.
44.9%
DDI
RM32.3 bil.
Source: MIDA
70.1% of FDI came from Asian Countries
while 24.5% were from EU and the USA Increased by
8%
RM million
12 000
10 870
10 000
8 359
8 000
Increased by
7 822
6 000
4 752
8%
4 000
2 000
1 549
1 350
Korea, Rep.
USA
Japan
European
Union
Singapore
China
Source: MIDA
Domestic investments continue to dominate
12.9%
FDI
RM19.0
bil.
2013
RM147.7
billion
12%
FDI
RM17.7
bil.
2014
RM149.6
billion
87.1%
DDI
RM128.
7 bil.
88%
DDI
RM131.9
bil.
Source: MIDA
MNCs in Malaysia
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14
MAJOR FINNISH COMPANIES IN MALAYSIA
(Wiicotec OY)
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Wholesale
and retail
Tourism
Financial
services
Greater KL
Agriculture
Business
services
Oil, gas
& energy
NKEAs selected
which can
materially impact
economic growth
Electrical &
electronics
Education
Comms Content
Infrastructure
Palm oil
Healthcare
Source: Performance Management and Delivery Unit (PEMANDU)
Foreign Equity
Repatriation of Funds
Pioneer Status
Income tax exemption ranging
from 70% or 100% for a period
of 5 or 10 years
Investment Tax Allowance
60% or 100% on qualifying
capital expenditure for 5 years
Incentives
Reinvestment Allowance
60% on qualifying capital
expenditure for 15
consecutive years
Import Duty & Sales Tax
Exemption (*)
For raw materials /
components and Machinery
and Equipment
* Valid until 31/03/2015
High technology, capital intensive &
knowledge driven industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
Industries manufacturing
intermediate goods:
• Machinery & equipment
• Components & parts
• Moulds and dies
Resourced-based industries:
• Oil & Gas
• Food & Agro based
• Value-added products from
natural resources
•
•
•
•
•
•
•
•
•
Regional Establishments
Business and professional services
Environmental Management
ICT services
Education and training
Offshore and outsourcing activities
Logistics
Healthcare
Tourism
Less Developed
Area
Industrial Area
Management
Incentives
Automation Capital
Allowance Expenditure
(ACA)
Principal
Hub
• Implemented AFTA in 2010
• 7th largest economy in the world –
combined GDP USD2.4 trillion
• Population over 620 million people
• Intra-ASEAN trade is 24% of total global
trade of USD2.51 trillion in 2013
• Total FDI inflows of USD122 billion in
2013 with intra-ASEAN investments alone
contributing 17%
• 97.3% of products traded in the region
will be duty-free
Source : ASEAN Statistical Yearbook 2009
• ASEAN Economic Community 2015,
integrated market & production base –
freer flow of goods, services,
investments, skilled labour and capital
REGIONAL / BILATERAL FTAs
China
Japan
Korea
India
Australia
New Zealand
Chile
 Potential market of 2.7 billion
 Tariff reduction and elimination mostly by 2016
ON-GOING FTA NEGOTIATIONS
Turkey
global offshoring destination
(A.T. Kearney Global Services Location Index™ 2014)
protecting investors
(World Bank Doing Business 2014 Report)
IMD world talent rankings
(IMD's World Competitiveness Yearbook 2014)
most competitive economy in overall performance
(IMD's World Competitiveness Yearbook 2014)
most attractive destination for FDI
(2014 A.T. Kearney's FDI Confidence Index)
in ease of doing business
(World Bank Doing Business 2014 Report)
most competitive nation in the world
(WEF's Global Competitiveness Report 2014-2015)
Developed Infrastructure
Vibrant Business Environment
Economic Strength
Supportive Government Policies
Quality of Life
An Educated Workforce
Safe Harbour
Malaysia offers investors the following benefits:
Safe Harbour
• Gateway and connectivity to South East Asia;
• Rich natural resources including oil and gas;
• Out of typhoon and earthquake belts;
• Politically stability and far-sighted government;
• Sophisticated modern infrastructure in airports, harbours, transport and road and
architecture;
• High calibre professionals and skilled English – speaking workforce;
• Developed Manufacturing and Industrial sectors.
Economic Strength
Malaysia offers investors the following benefits:
• Natural resources – crude oil, natural gas, tin, timber, palm oil, rubber;
• GDP growth – 4.7% (2013); Gross National savings – 32.7% of GNI
• Per capita income – RM34,175 (USD$10,337);
• Unemployment rate – 3.1% (f); Inflation (CPI) – 2.0%-3.0% (f);
• Export of manufactured goods 2012 – 67% of total exports.
Supportive Government Policies
- Pro-business policies;
- Responsive government;
- Liberal investment policies;
- Attractive tax & other incentives;
- Liberal exchange control regime;
- Intellectual property protection.
An Educated Workforce
- Talented, young, educated and productive workforce;
- Multilingual workforce speaking two or three languages, including English;
- Comprehensive system of vocational and industrial training, including advanced skills
training;
- Harmonious industrial relations with minimal trade disputes.
Developed Infrastructure
- Network of well-maintained highways and railways;
- Well-equipped seaports and airports;
- High quality telecommunications network and services;
- Fully developed industrial parks, including free industrial
zones, technology parks and Multimedia Super Corridor (MSC).
- Advanced MSC Malaysia Cybercities and Cybercentres.
- Market oriented economy;
Vibrant Business Environment
- Well-developed financial and banking sector; including the Labuan International Business
and Financial Centre;
- Wide use of especially in business, legal and accounting practices based on the British
System;
- Large local business community with a long history in business links;
- Large foreign business community in all business services;
- Extensive trade links – country’s total trade was valued at RM1.31 trillion in 2012.
- Friendly and hospitable Malaysians;
Quality of Life
- Safe and comfortable living environment;
- Excellent housing, modern amenities, good healthcare and medical facilities;
- Excellent educational institutions including international schools for expatriate children;
- World-class recreational and sports facilities;
- Excellent shopping with international brands.
AMENITIES – DOING BUSINESS
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AMENITIES - EDUCATION
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AMENITIES – FINANCIAL SERVICES
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AMENITIES - LIFESTYLE
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SHOPPING
KUALA LUMPUR ranked 4th as the best
shopping location after New York,
Tokyo and London
- travel.CNN.com
• “Three of the world's 10 largest malls are in
KL, including 1 Utama, the world's fourthlargest mall with more than 650 shops, Asia's
largest indoor rock climbing facility, massive
rooftop garden with 500 species of exotic
plants and indoor rainforest with koi ponds
and freshwater aquarium”
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SPORTS & RECREATION
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CONTACT IN STOCKHOLM
ROSLINA OTHMAN
Director
Email: roslina@mida.gov.my
Mailing/Visiting Address:
NIK FAIZAL KAMARUDIN
Assistant Director
Email: nikfaizal@mida.gov.my
MIDA Stockholm
Karlavägen 37
SE 100 41 Stockholm, Sweden
Tel: (468) 791 7942
Fax: (468) 791 8761
www.mida.gov.my
PETER BERTRAND
Investment Officer
Email: peterbertrand@mida.gov.my
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Malaysia : Your Profit Centre in Asia
KIITOS
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