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

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Our Services

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• Briefings • Meeting with MIDA HQ • Meetings with State

Authorities • Business matching with

Malaysian companies • Visit to companies/suppliers • Visit to potential locations • Talent requirements

Initial Stage

• Manufacturing License • Tax Incentives • Regional Establishments

(Representative Office/OHQ/IPC/RDC) • Expatriate Posts • Import Duty Exemptions

Evaluation and Approval

Project Implementation Stage • Handhold and assist investor until project is

implemented

Tokyo

Osaka

Seoul

Taipei

Shanghai Guangzhou

Malaysia

Singapore

Sydney

Mumbai

Dubai

Stockholm

Frankfurt Munich

Milan

Paris

London

Boston

New York Chicago

San Jose

Los Angeles

Houston

23 Overseas Centres

Beijing

Headquarter

KL Sentral, Kuala Lumpur

Johor Bahru

Melaka

Seremban

Selangor

Ipoh

Penang

Alor Setar

Kota Bharu

Kuala

Terengganu

Kuantan

Kota Kinabalu

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

Per Capita Income (US$) 9,991 10,687 10,426 12,745

Unemployment (%) 3.0 3.1 2.7 3.0

International Reserves

(US$ bil) 139.7 134.9 116.0 112.0

Source: Central Bank of Malaysia/Department of Statistics Malaysia/Economic Planning Unit (EPU)

Increased by

8%

219,4 235,9

0

50

100

150

200

250

2013 2014

Year

Increased by

8% RM235.9 billion Approved investments

5,942 Projects Approved

178,360 Jobs Created

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Source: MIDA

Continued investors’ confidence in Malaysia as an investment destination

44.9% DDI

RM32.3 bil.

55.1% FDI

RM39.6 bil.

41.5% DDI

RM21.6 bil.

58.5% FDI

RM30.5 bil.

2013 2014

RM52.1 billion

RM71.9 billion

Source: MIDA

Increased by

8%

Increased by

8%

70.1% of FDI came from Asian Countries while 24.5% were from EU and the USA

10 870

8 359 7 822

4 752

1 549 1 350

-

2 000

4 000

6 000

8 000

10 000

12 000

Japan EuropeanUnion

Singapore China Korea, Rep. USA

RM million

Source: MIDA

Domestic investments continue to dominate

88% DDI

RM131.9 bil.

12% FDI

RM17.7 bil.

87.1% DDI

RM128.7 bil.

12.9% FDI

RM19.0bil.

RM147.7 billion

RM149.6 billion

2014 2013

Source: MIDA

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MNCs in Malaysia

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MAJOR FINNISH COMPANIES IN MALAYSIA

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(Wiicotec OY)

NKEAs selected which can

materially impact economic growth

Greater KL

Agriculture

Palm oil

Comms Content Infrastructure

Education

Electrical & electronics

Oil, gas & energy

Tourism Wholesale and retail

Financial services

Business services

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

Reinvestment Allowance

60% on qualifying capital expenditure for 15 consecutive years

Import Duty & Sales Tax Exemption (*)

For raw materials / components and Machinery

and Equipment

Incentives

* Valid until 31/03/2015

High technology, capital intensive & knowledge driven industries:

Industries manufacturing intermediate goods:

Resourced-based industries:

• Alternative Energy Sources

• Biotechnology

• Advanced materials

• Advanced electronics

• Optics and photonics

• Petrochemicals

• Pharmaceuticals

• Medical devices

• ICT

• Aerospace

• Oil & Gas • Food & Agro based • Value-added products from natural resources

• Machinery & equipment • Components & parts • Moulds and dies

• 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

Automation Capital

Allowance Expenditure

(ACA)

Principal

Hub

Incentives

• 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

• ASEAN Economic Community 2015, integrated market & production base – freer flow of goods, services, investments, skilled labour and capital

Source : ASEAN Statistical Yearbook 2009

Potential market of 2.7 billion

Tariff reduction and elimination mostly by 2016

REGIONAL / BILATERAL FTAs

China Chile Korea Japan India Australia New Zealand

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)

Economic Strength

Supportive Government Policies

Vibrant Business Environment

An Educated Workforce

Developed Infrastructure

Quality of Life Safe Harbour

Malaysia offers investors the following benefits:

• 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.

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.

Safe Harbour

Economic Strength

- Pro-business policies;

- Responsive government;

- Liberal investment policies;

- Attractive tax & other incentives;

- Liberal exchange control regime;

- Intellectual property protection.

- 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.

Supportive Government Policies

An Educated Workforce

- 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;

- 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.

Developed Infrastructure

Vibrant Business Environment

- Friendly and hospitable Malaysians;

- 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.

Quality of Life

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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

• “Three of the world's 10 largest malls are in KL, including 1 Utama, the world's fourth-largest 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”

KUALA LUMPUR ranked 4th as the best shopping location after New York, Tokyo and London

- travel.CNN.com

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SPORTS & RECREATION

Invest in Malaysia > Your Profit Centre in Asia

CONTACT IN STOCKHOLM

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ROSLINA OTHMAN Director Email: roslina@mida.gov.my

NIK FAIZAL KAMARUDIN Assistant Director Email: nikfaizal@mida.gov.my

PETER BERTRAND Investment Officer Email: peterbertrand@mida.gov.my

Mailing/Visiting Address:

MIDA Stockholm Karlavägen 37 SE 100 41 Stockholm, Sweden Tel: (468) 791 7942 Fax: (468) 791 8761 www.mida.gov.my

KIITOS

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