bussiness investment in malaysia

8/3/2019 Bussiness Investment in Malaysia

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BUSSINESS INVESTMENT

IN MALAYSIA


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INTRODUCTION

Population(2007): 27.17 million

GDP (PPP):

(4Q 2008) USD 48, 504 billion

GDP Growth: 0.1%

Per Capita Income:

(4Q 2008) USD 7, 315

Unemployment: 3.1%

Inflation (CPI):

(1Q 2009) 3.7%


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INTRODUCTION

FDI (net inflow): USD 996 million

Exports: Primarily electronic equipment, petroleum and liquefied natural gas,

wood and wood products, palm oil, rubber

Imports: Primarily electronics, machinery, petroleum products, plastics,

vehicles, iron and steel products, chemicals

SOURCES: 1. Bank Negara Malaysia

2. EPU

3. Malaysia Statistics

4. MIDA

5. Ministry of Finance


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OBJECTIVE

Promoting Malaysia to foreigner investors to invest in Malaysia

business. Malaysia is increasingly the preferred choice for investors. A market-

oriented economy and pro-business Government policies provide a

dynamic and vibrant business environment. One that is sustained by

political stability, a well-developed infrastructure and productiveworkforce. Attractive incentives for investors are an added appeal.


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COUNTRY STRATEGY

In 1991, the roadmap for Malaysia to become a developed nation

in its own mould by 2020 was crystallized. Called Vision 2020, thestrategy called for the sustaining of growth and the initiation of

structural changes in the economy, as well as identifying key

challenges for the nation to overcome in order to achieve the status

of being an industrialized and a fully developed nation. The nine

strategic challenges identified were:


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Challenge 1: To form a nation that stands as one, and in full possession of an

economy that is competitive, dynamic, robust and resilient.

Challenge 2: To produce a Malaysian community that has freedom, strength, and

full of self-confidence, robust enough to face all manner of adversity, and be

distinguished by the pursuit of excellence, fully aware of all its potentials,

subservient to none, and respected by the peoples of other nations.

Challenge 3: To develop a mature democratic community, practising a form of

mature consensual, community-oriented Malaysian democracy that can be a model

for many developing countries.

Challenge 4: To form a community that has high morale, ethics and religious

strength.


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Challenge 5: To cultivate a community that is matured and tolerant, in which Malaysians of

all colours and creeds are free to practise and profess their customs, cultures and religious beliefsand yet feeling that they belong to one nation.

Challenge 6: To form a progressive scientific community that is innovative and forward-

looking. One that is both a consumer of technology and a contributor to the scientific and

technological civilisation of the future.

Challenge 7: To cultivate a community rich in values and loving culture, a social system in

which society will come before self, in which the welfare of the people will revolve not around

the state or the individual but around a strong and resilient family system.

Challenge 8: To ensure the formation of a community with a fair economy in which there is

a fair and equitable distribution of the wealth of the nation, where there is full partnership in

economic progress.

Challenge 9: To cultivate a prosperous community that is fully competitive, dynamic, robust

and resilient.


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COUNTRY STRATEGY

The successful instituting of a series of policies, including the

imposition of selected exchange controls, and the establishment ofinstitutions such as Danaharta and Danamodal to address the issues

caused by the crisis resulted in the economy rebounding with a

growth rate of 6.1% in 1999 after recording a negative growth rate of

7.4% in 1998. The fiscal and monetary policies introduced also helped

to stimulate consumption, while containing inflationary pressures.


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REASON TO INVEST IN

MALAYSIA

Over 50 years of political stability and remarkable growth rates helmed by a

democratically elected, pro-business Government which fosters an open economy

and promotes international trade and investment.

Location, location, locationMalaysia lies at the heart of Southeast Asia,

strategically situated along the East-West trade route and between the huge

economies of China and India.

Today, Malaysia is a global player in the export of several products including

rubber, palm oil, electrical and electronics, oil as well as furniture.


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REASON TO INVEST IN

MALAYSIA

Malaysia is the leading producer of palm oil, currently the worlds most widely

produced and traded vegetable oil.

In the 2009 Forbes 4th annual Best Countries for Business, Malaysia is ranked

13th out of 127 economies.

The English gave Malaysia their lingua franca. Over 7.4 million now speak, read

and write like the English.

The system of government in Malaysia is closely modelled on the Westminster

Parliamentary System. Parliamentary elections are held at least once every five years,

with the last general election taking place in March 2008.


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BUSINESS INVESTMENT IN

MALAYSIA

Agriculture

Bio-Tech

Capital market

Convention and Exhibition

Finance

Information technology

Live in Malaysia

Manufacturing

Medical

Oil and gas

Property

Services

Technology


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AGRICULTURE IN

MALAYSIA

Malaysia's biodiversity provides a rich nursery for research and development in

biotechnology, and leading the way is the Malaysian Biotech Corporation.

In business credit, Malaysia is rated the worlds number 1, more helpful than Australia

(5), Brazil (84), China (59), India (28), Indonesia (109), Japan (12), the Philippines (123),

Russia (109), Singapore (5), the UK (2) or the US (5).

In terms of environmental protection and sustainability, Malaysia is ranked by Yale

and Columbia University at number 54 out of 163 countries, ahead of Brazil (62), China

(121), India (123), Indonesia (134), Russia (69), Thailand (67), the US (61) and Vietnam

(85).


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REASON OF INVESTMENT

In terms of market access, border administration, transport and communication

infrastructure, and the business environment to enable trade, Malaysia, amongst

ASEAN countries, is ranked 2nd, ahead of Thailand, Indonesia and Vietnam.

In terms of sectoral contribution, agricultural biotechnology is the largest

revenue contributor at 38.6% with the largest number of companies (143 out of

349 companies). Healthcare biotechnology accounted for 31.6% of total revenue

followed by industrial biotechnology at 29.8%.

Starting a business in Malaysia is far cheaper than in India, Indonesia, thePhilippines or South Korea.


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AGENCIES READY TO

ASSIST

MIDA

Malaysian Industrial Development Authority - Principal agency for

the promotion of the manufacturing and services sectors in Malaysia.

BIOTECH CORP

Malaysian Biotechnology CorporationAn agency made to

identify value propositions in both R&D and commerce and supportthese ventures via financial assistance and developmental services.


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REASONS FOR FINANCIAL

INVESTMENT

Successful economic transformation. From a producer of raw materials, Malaysia

evolved into a multi-sector economy, which has transformed into a service-driven and

knowledge-based economy. Now, Malaysia is taking steps to move up the value chain and

become a high value-added, high-income economy.

Strong checks and balances. Malaysia's debt service ratio forecasted for 2010 is 2.7%.

"Ringgit Malaysia", the countrys currency, is the fourth- best performer among 10

Asian currencies outside Japan, and it has risen 9.3 percent against the USD in 2010, the

best performance amongst Asias most-traded currencies.


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REASONS FOR FINANCIAL

INVESTMENT

Malaysia is the largest Islamic private debt securities (IPDS) market, or

Sukuk, worth over USD34 billion in domestic corporate bonds.

Malaysia is the largest Islamic Banking and Financial Market with

Islamic banking assets totalling over USD30 billion and Takaful assets

amounting to over USD1.7 billion.

Malaysia has an active Islamic money market channelling over USD7

billion to USD10 billion monthly.


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AGENCIES READY TO

ASSIST

BURSA MALAYSIA

Bursa Malaysia is one of Asias largest bourses with just under

1,000 listed companies offering a wide range of investment choices to

the world

Malaysia My Second Home

Malaysia My Second Home (MM2H) is a programme that enablesexpatriates to retire in Malaysia


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CONCLUSION

As an investment destination, the Malaysian capital market offers a wide range of world-class

products. More than 85 percent of the companies listed on the Stock Exchange are Shariah

compliant, representing about 60% of total market capitalisation.

Malaysia is the worlds 10th most competitive out of 58 countries, ahead of nations such as

Brazil (38), China (18), Germany (16), India (31), Indonesia (35), Japan (27), the Philippines (39),

Russia (51), South Korea (23), Spain (36), Thailand (26), The Netherlands (12) and the UK (22).

Malaysia is a veritable United Nations of different ethnic groups, but with one difference.

Here, diversity is strength. Malaysias 27 million people, a potpourri of Malays, Chinese, Indians,

Eurasians, Kadazan, Melanau, Ibans, Dayaks, Bajaus and Dusuns peppered with Americans,Germans, French, Dutch, English, Japanese and Koreans, work as one.

bussiness investment in malaysia

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