biomass industry networking seminar - funding &...
TRANSCRIPT
BIOMASS INDUSTRY
NETWORKING SEMINAR -
Funding & Business Development
Opportunities
INCENTIVES & INVESTMENT
OPPORTUNITIES IN
THE BIOMASS SECTOR By:
Azlina Hamdan Malaysian Investment Development Authority
(MIDA)
Content Outline
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MIDA in Brief
Performance in the Manufacturing & Biomass
Sector
Incentives & Investment Opportunities in the
Biomass Sector
Economic Transformation Programme (ETP)
Domestic Investment Strategic Fund
Foreign Direct Investment Domestic Investment Manufacturing Services
Manufacturing licenses Tax incentives Expatriate posts Duty exemption OHQ, RDC, IPC and R&D status
Evaluation
Follow-up / Monitoring
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
FUNCTIONS OF MIDA
Promotion
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Based In MIDA
• Immigration Department
• Royal Malaysian Customs
• Department of Environment
• Tenaga Nasional Berhad
• Telekom Malaysia Berhad
• Labour Department
Based Outside of MIDA
• Department of Occupational Safety and Health
• Ministry of Finance
• Ministry of Health
• Ministry of Tourism
• Ministry of Human Resource
• Ministry of Higher Education
• Multimedia Development Corp. (MDeC)
• Construction Industry Development Board of Malaysia (CIDB)
MIDA “ONE STOP CENTRE”
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Functions of Advisory Services
Based In/Outside MIDA
• Advise and assist investors on matters relating to tax, labour, immigration, customs, utilities, occupational, safety and health, and environment
• Coordinate applications for approval and other matters under the purview of the relevant ministries and departments
MIDA “ONE STOP CENTRE”
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ALOR SETAR
KOTA BHARU
IPOH
KOTA KINABALU
KUCHING
JOHOR BAHRU
KUANTAN
SEREMBAN
MIDA
HEADQUARTERS
MELAKA
PENANG
KUALA TERENGGANU
MIDA’S STATE OFFICES
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San Jose
Los Angeles New
York
Boston
Stockholm
Frankfurt
Munich
Milan Paris
London
Dubai
Mumbai
Guangzhou
Taipei
Shanghai
Seoul
Osaka
Tokyo
Sydney
24 Overseas Centres
Chicago
Houston
Singapore
Bangkok
Johannesburg
MIDA WORLDWIDE NETWORK
Electronics & Electrical Industries :
Machinery & Equipment:
• High-technology based products using wireless and convergence technology
• Mobile application
• Solar wafer / cells / modules
• Semiconductors • Automated equipment for semiconductor, solar, medical & automotive industries
• Process machinery for food & beverages and oil & gas
• Packaging machinery
INVESTMENT OPPORTUNITIES IN THE MANUFACTURING SECTOR
Petrochemical Industry :
• Alpha-olefins & fatty alcohols, propylene oxide & caprolactam
• Renewable & biodegradable materials
Aerospace Industry : • Maintenance, Repair and Overhaul (MRO)
•Aerospace Manufacturing
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Food Processsing Industry :
• Processed meat & seafood • Beverages, food ingredients, dairy
products & confectionary
Resourced-based industries :
• Food & Agro based • Value-added products from natural resources
Palm Oil Industry :
• Oleochemicals • Palm-based nutraceuticals,
constituents of palm oil/palm kernel oil & palm biomass
• Palm-based food products – specialty animal fat replacer, mayonnaise & salad dressing
INVESTMENT OPPORTUNITIES IN THE MANUFACTURING SECTOR
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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
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Environmental Management
Energy conservation/efficiency
Energy generation, using renewable energy sources
Storage, treatment and disposal of hazardous waste
Recycling of agricultural waste and agricultural by- products
Business Services
Shared services outsourcing
Research & Development (R&D)
ICT Services
Market Support Services
Film & Video Production & Post Production
TARGETED SERVICES SECTORS
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Education
Technical, Vocational & Science Training Healthcare Travel (Medical Tourism)
Private hospitals
TARGETED SERVICES SECTORS
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Performance of the Manufacturing Sectors Total Approved Manufacturing Projects
( 2011 – Sept 2012)
Year
Number
of Projects
Approved Investments (RM Billion)
Domestic Foreign Total
2011
846 21.9 34.1 56.0
Jan - Sept 2012
582 15.8 16.1 31.9
TOTAL
1428 37.7 50.2 87.9
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Year
Number
of Projects
Approved Investments (RM Billion)
Domestic Foreign Total
2011
48 0.42 0.02 0.45
Jan - Aug 2012
21 1.15 0.23 1.38
TOTAL
78 1.57 0.26 1.83
Performance of the Biomass Sectors Total Approved Investments – Biomass Projects
( 2011 – August 2012)
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POLICIES, INCENTIVES & INVESTMENT OPPORTUNITIES IN THE BIOMASS SECTOR
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Guidelines on Manufacturing Licence
• 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 a manufacturing licence.
Fast Track Approval for Manufacturing Licence
• Approval of manufacturing licence is given within two (2) days for non-sensitive industries.
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Equity Guidelines
• 100 % foreign equity ownership is allowed, irrespective of level of exports
Guideline on Repatriation of Profits
• No restriction imposed on foreign companies investing in Malaysia with regard to: – Repatriation of Capital – Interests – Profits – Dividends
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Incentives for the Manufacturing Sector
• General Promoted Products / Activities
• Small – scale Companies
• High Technology Projects
• Strategic Projects
• Specific Incentives for Selected Industries
Major Biomass Industry in Malaysia:
• Oil Palm Biomass
• Agricultural By-Products/Waste
• Energy Generation from Biomass
BIOMASS INDUSTRY IN MALAYSIA
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Estimation of 80 million tonnes of fibrous biomass (dry weight) yearly from plantation and processing activities.
Shredded and left to biodegrade in the fields i.e. EFB, stems, saps, fronds, etc.
Potential Business Opportunities: Wood-based products such as Plywood, Palm Flooring, Furniture and Furniture Parts, Pellet, Biofuel, Briquettes, Pulp & Paper Biotechnology processing such as Biofuels, Biochemical, Biopolymers, Biopharmaceuticals, etc. Energy Generation from Biomass sources. Agricultural By-Products Waste such as sawdust, rice husk, coconut fibre, sugar cane, palm oil mills, etc.
OIL PALM BIOMASS
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MAJOR INCENTIVES FOR BIOMASS PRODUCTS & RENEWABLE ENERGY
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Pioneer Status (PS) – Tax exemption on statutory income of 70% to 100% for a period of 5 to 10 years.
Investment Tax Allowance (ITA) – 60% to 100% on the qualifying capital expenditure incurred for a period of 5 years to be utilised against 70% to 100% of the statutory income for each year of assessment.
Reinvestment Allowance (RA) – 60% on the qualifying capital expenditure incurred for a period of 15 years; commencing from the 1st year the reinvestment is made.
EXEMPTION ON IMPORT DUTY ON RAW MATERIALS / COMPONENTS
Raw materials / components which attract import duty can be considered for exemption, provided:
Raw materials / components are NOT produced locally; or
Locally produced raw materials / components are not of acceptable quality and price.
Exemption from Import Duty and Sales Tax on Machinery & Equipment
Machinery & Equipment which attract import duty and/or sales tax can be considered for exemption.
For Machinery & Equipment produced locally, sales tax exemption will be given.
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5 INCENTIVES Announced:
• Domestic Investment Strategic Fund • Incentives for Acquiring a Foreign Company for
High Technology • Incentives for Small Scale Companies • Incentives for Companies in Production (Desirous Issue) • Incentives for Merger Among Malaysian
Services Providers
DOMESTIC DIRECT INVESTMENT (DDI) INITIATIVES
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Domestic Investment Strategic Fund 1
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Domestic Investment Strategic Fund of RM1 billion
Domestic Investment Strategic Fund
To accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries
Objectives
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The fund aims to:
• Harness and leverage on outsourcing opportunities created by MNCs operating
in Malaysia
• Intensify technology acquisition by Malaysian-owned companies
• Enable Malaysian-owned companies to obtain international standards/
certifications in strategic industries
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Domestic Investment Strategic Fund
The fund does not offer an outright grant and is contingent on the investments of the applicants
Mechanism
To be granted on a negotiable basis based on the request of the companies and the merits of each case
Provided under the Customised Incentive Scheme, Section 127, Income Tax Act 1967
Matching grants (1:1) on reimbursable basis
Domestic Investment Strategic Fund
The fund will provide matching grants to cater for expenditures incurred for the following activities:
• Training of Malaysians
• R&D activities carried out in Malaysia
• Obtaining international standards/certification
• Licensing or purchase of new/high technology
• Modernisation and upgrading of facilities and tools to undertake
manufacturing or services activities for Multinational Corporations (MNCs)
and Malaysian conglomerates (outsourcing activities)
Scope of the Fund
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Domestic Investment Strategic Fund
New and existing companies in the manufacturing and services sectors with Malaysian equity ownership of at least 60%
Eligibility Criteria
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Incorporated under the Companies Act, 1965
Companies producing promoted products/engaged in promoted activities in the following priority sectors:
• Aerospace
• Medical Devices
• Pharmaceuticals
• Advanced Electronics
• Machinery and Equipment
• Renewable Energy
• Services including design, R&D, testing,
quality and standard certification,
engineering services, technical and skills
training and logistics service providers (3PL)
• Other industries, on a case by case basis
Domestic Investment Strategic Fund
Effective Date of Application
Applications received on or after 3 July 2012 are eligible to be considered for this incentive
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Thank You