South East Asia’s First Rubber Industrial HubV8
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South East Asia’s First Rubber Industrial Hub
Kota Putra Rubber City
w w w. k o t a p u t r a r u b b e r c i t y . c o m . m y
CONTENT• Location of Kedah
• Kedah Connectivity & Strategic Location
• KPRC Overview & Mardec
• Mardec’s Asian Presence
• Rationale in Targeting Chinese Investors
into KPRC
• Salient Features of Kota Putra Rubber City
• Existing Infrastructure & Facilities
• Potential Industries
• KPRC Masterplan
• KPRC Overall Zoning
• Key Design Parameters
• Conclusion
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Langkawi
Hat Yai
Penang Island KEDAH
KOTA PUTRA
Singapore
Thailand
Indonesia
Kuala lumpur
MALAYSIA
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Kedah is located on the northwest cornerof Peninsular Malaysia, bordered byThailand in the north, by the Straits ofMalacca on the west, and by Penang andPerak in the south. Kedah hastransformed its economy from anagriculture-based to an industrial-basedwith concentration on hi-tech,hydrocarbon, manufacturing, tourism andservices.
Kedah is an attractive investment destination:
• Common border / international boundary with Songkhla and Yala provinces of Thailand.
• Strategically located at the entrance to the Straits of Malacca.
• Centre of the Indonesia, Malaysia, Thailand Growth Triangle (IMT-GT).
LOCATION OF KEDAH
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KEDAH STATE CONNECTIVITYROAD AND RAIL
AIRPORT AND PORT
Kedah is well connected by road and rail.
The NORTH-SOUTH EXPRESSWAY, Peninsular Malaysia’s main transportation artery, traverse Kedah in the north-south direction.
The ELECTRIFIED DOUBLE TRACK RAILWAY runs through the state of Kedah. It connects Padang Besar in Perlis to Ipoh in Perak and eventually to the Klang Valley.
AIRPORTS in the northern region:
• Sultan Abdul Halim Airport domestic airport in Alor Setar
• Penang International Airport about 2 hours drive from Alor Setar
• Langkawi International Airport venue for the Langkawi International Maritime and Aerospace Exhibition (LIMA)
PENANG PORT
RAILWAY LINE
NORTH SOUTHHIGHWAY
AIRPORT
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PENANGINTERNATIONAL
AIRPORT
LANGKAWIINTERNATIONAL
AIRPORT
RAILWAY LINE
TEKIH HIGHWAY
NORTH SOUTHHIGHWAY
BORDER GATEWAYS
KPRC
ALORSETAR
AIRPORT
PENANGPORT
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STRATEGIC LOCATIONOF KPRC
• Borders Ban Pra-Korb in Songkhla Province, Thailand. • 62 km Northeast of Alor Setar/Alor Setar Airport/Railway station• 155 km North of Penang.• 89 km South of Hat Yai. integrated border town.
• Surrounds Kota Putra Customs Immigration and Quarantine (CIQ) Complex.• 2,450 acres to be developed into a resource based integrated border town.• Proposed land bridge project connecting Penang Port & Songkla Port
81. Songkla2. Hat Yai3. Kota Perdana4. Kota Putra6. Langkawi Island7. Penang Island8. Alor Setar
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KOTA PUTRARUBBER CITY OVERVIEW
Objective• To develop KPRC as an integrated Rubber City with modern facilities• To offer a unique eco friendly township development with a rubber research facility, with ample supporting amenities to serve a working – living population.
Why Kota Putra Rubber City (KPRC)?• KPRC is a strategic project to rejuvenate and elevate Malaysia’s competitiveness within the global rubber industry• KPRC acts as catalyst in accelerating new economic growth centers for the rubber industry• KPRC acts as a conduit to the MOU signed between the Governments of Malaysia a Thailand in cross border economic collaboration with its strategic location between both nations and the rubber belt.• A private led initiative to complement the Goverment’s proposed Rubber City @ Bukit Ketapang.
Mardec Berhad is a world renowned player with 51 years of experience in rubber processing, trading and manufacturing value-added rubber & polymer products. We are global in our outlook and employ the most up-todate technology to ensure our products meet international specifications from buyers all over the world.
WHY MARDEC
Why is Mardec and KPRC advantageous and attractive? - With Mardec’s years of experience it would be the ideal partner to co-develop KPRC - Mardec’s expertise in midstream and downstream would add value in dominating market share - The advent of TPPA will make us an ideal partner for the Chinese - Abundant labor and rubber supply across the rubber belt - Surrounded by rubber industrial players - R&D and One stop testing facility
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2A
2B
VIETNAM
INDONESIA
KPRCMARDEC R.K. LATEX PVT. LTD.Processing of Latex Concentrate
MARDEC YALA CO. LTDProcessing of Latex Concentrate
MARDEC SAIGON RUBBER CO. LTDProcessing of Latex Concentrate,
PT. MARDEC MUSI LESTARIProcessing of Standard Indonesia Rubber
PT. MARDEC SIGER WAY KANANProcessing of Standard Indonesia Rubber
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Malaysia NR Processing Centres
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Our operations span over 5 countries across Asia
MPSB BalingProduce of rubber:•SMR 10 & 20•MARUB 10CV & 20CVRated Capacity:30,000 tonnes/year
MPSB Kuala PilahProduce of rubber:•SMR 10 & 20Rated Capacity:18,000 tonnes/year
MPSB BotaProduce of rubber:•SMR 10 & 20•MARUB 10CV & 20CVRated Capacity30,000 tonnes/year
MIL Ulu AraProduce of rubber:•Latex Concentrate•PV Latex•Specialty RubberRated Capacity:840 tonnes/year
MIL TapahProduce of rubber:•Latex Concentrate•PV Latex•Specialty RubberRated Capacity:12,000 tonnes/year
MPSB Kuala BerangProduce of rubber:•SME 10 & 20Rated Capacity:30,000 tonnes/year
MPSB MentakabProduce of rubber:•SMR 10, 20 & CRRated Capacity:42,000 tonnes/year
TerengganuPerak
Kedah
Pahang
Negeri Sembilan
Malaysia NR Processing Centres
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Rationale in Targeting Chinese Investors into KPRC
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China has a vested interest to protect their rubber industry.China is the largest consumer of natural rubber and yet the grow no rubber. China’s uncertainties on natural rubber production could be bridged by their joint investment in KPRC to meet their all time high rubber consumption of 4,760 kt representing 39.1% of the world’s total consumption.
China wants to be the world trading hub for rubber By exporting 44.451 Million tyres in 2015, China is gearing to become a global market hub for rubber commodities (Malaysia Rubber Board, 2016).
China and Malysia can jointly control the midstream industry and lock up long term supply as the rubber prices are all time low. With China’s rising consumption of natural rubber (39.1%), China and Malaysia could lockup on Partnership focusing on Midstream to bridge the Gap on Supply & Demand.
Transfer Rubber industry form China to Malaysia KPRC gives platform for these top player in China to expand in very strategic location where it can be catalyst for development of midstream and downstream rubber industry growth.
Control & DominanceComplete control of supply chain across natural rubber industry in KPRC will help to yield high quality finished goods
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In line with China’s One Belt One Road Initiative, which refers to the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road”, Kota Putra Rubber City would be an ideal investment for China’s development initiative.
Among the agreements and deals that have been made under the One Belt One Road Initiative (ASEAN Region) include:
• The setting up of the Asian Infrastructure Investment Bank• Infrastructure projects include the Jakarta-Bandung Railway in Indonesia; the Kunming- Vientiane Railway & the Kunming-Bangkok Railway.
One Belt One Road Initiative
TPPATPPA
Primary Effects of TPPA
1. Reduction of Tariff Measures2. Reduction of Non Tariff Measures 3. Increased market access
Key Effects of Malaysia’s participation in the TPPA are:
1. Sectors contributing over 20% of Malaysia’s GDP in 2014 are expected to higher output growth2. Efficient export oriented firms will benefit greater market access, particularly in high value manufacturing of:
• Textiles• Automotive components (especially
rubber based)• Electrics and Electronics• Plastics • Woods
Industries of suited for Kota Putra Rubber City
Based on the above projects, we see synergy with the development of Kota Putra Rubber City that would be a nucleus for the rubber industry between China, Malaysia,
Thailand & Indonesia.
Comparative Advantage to Chinese Firms
1. Chinese firms can set up manufacturing facilities in KPRC to capitalize on TPPA. 2. Combine this advantage with existing incentives offered by the Malaysian Government.3. Provides reduction in TM and NTMs to large markets in Japan, Mexico, United States and
Canada.
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Fiscal incentives Non-Fiscal
A. Manufacturers
B. Eco-System Industries – (Infrastructure providers)
Tax Incentives (Corporate)i. Pioneer status or investment tax allowanceii. Stamp duty exemptioniii. Deduction from pre-commencement expenses
Note: Investor can also tap on other existing non-tax incentives such as the Technology Acquisition Fund.
Tax incentives (Corporate)i. Pioneer status or investment tax allowanceii. Stamp duty exemptioniii. Deduction from pre- commencement expensesiv. Real Property Gains Tax exemptions
Non-Tax Incentivesi. Grants for R&Dii. Flexibility to recruit foreign knowledge workersiii. Flexibility from foreign exchange administrative rules set forth by Bank Negara Malaysiaiv. Financial support for capital- intensive projects
C. Eco system industries excluding infrastructure – Upstream and midstream suppliers, Education & training providers, auxiliary service providersTax incentives (Corporate)i. Pioneer status or investment tax allowanceii. Stamp duty exemptioniii. Deduction from pre-commencement expenses
Note: Educational institutes located outside the Rubber City may apply grants / financial support for specific projects supporting the Rubber City on a case to case basis.
Non-Tax Incentivesi. Grants for R&Dii. Flexibility to recruit foreign knowledge workersiii. Flexibility from foreign exchange administrative rules set by Bank Negaraiv. Financial support for capital intensive projects
•100% of income up to 5+5+5 years or 100% ITA for 10 years•Stamp duty exemption, withholding tax exemption, import duty exemption of raw materials and machinery
Tax exemptions
Tax incentives provided
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Salient Features of Kota Putra Rubber City
1. Power, water, sewer & telecommunication/data lines to all plots
2. Decent road infrastructure throughout the city for ease in logistics
3. Hospital, Police Station, Fire Station, Power Substation and a Waste Management Area to satisfy all infrastructure & security needs
4. Police Station & Army Border Camp within vicinity of city to ensure optimum security
5. State of the art R&D Centre & Incubator for entrepreneurs operating within the city
6. Free Trade Zone & Special Economic Zone status for ease in conducting business ower, water, sewer & telecommunication/data lines to all plots
7. Ample parking facilities with beautiful landscaping features
8. Several public eateries & washrooms throughout the city
9. Modern retail entities within city to provide multiple services
10. Bus terminal to provide transport services from nearby towns & cities to Kota Putra Rubber City
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Kota Putra Rubber City Infrastructure
Security
Telecommunications
Electricity
Water Supply
Overall est. water•Demand @ 16.3 MGpd•Low Zone Tank @ 7.02 MGpd•High zone tank @ 9.22 MGpd•Low zone serving platforms 100 – 130 m ODL•High zone serving platforms 130 – 150 m ODL
Sourch : Tenaga Nasional Berhad•Main Supply (275/132V)•Features: Reliable, stable, uninterruptible, near constant quality•100% underground cable networks•Closed loop operations
•Police station•Fire station•Army Border camp
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The Federal Government had constructed and completed the main infrastructure and facilities in Kota Putra.
EXISTING INFRASTRUCTURE
AND FACILITIES
The Kota Putra – Ban Prakorb Gateway
Government Quarters, Police Station, Clinic
Water Treatment Plant/Sewerage Treatment Plant
Existing Roads
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KPRC TargetIndustries
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POTENTIAL INDUSTRIES
Cutting Edge Technology
Traditional Technology
Green technology Automotive
Nano technology Marine
IT Technology
Railways / MRT
Biotechnology
Electrical & Electronics
Building & Construction
Mining and Industrial
Defence
Mobile technology
Infrastructure & Roads
Healthcare technology
Advance 3D printing technology
Oil & Gas
Robotics technology
Aviation
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POTENTIAL PRODUCTS
Consumer Products• Household Items• Rubber Fins
Extruded RubberProducts• Infrastructure• Food• Medical Industry• General Applications
Moulded Rubber Products• Automotive Industry• General Application• Defence• Oil & Gas• Plastic Products• Hoses• Utilities
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KPRC MASTERPLAN
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Industry 487.78ac
PBT 26.11ac
Hill Park 143.59ac
Other Infra 534.82ac
TOTAL 2618.13ac
Trading 567.99ac
Housing 857.84ac
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KPRC ZONING
HILLPARK
R&D Center
Tyre Factory100 acres
Mardec SuperFactory 57acresMidstream rubber factory
Mardec Polimer Sdn Bhd45 acresDownstream rubber
Industry 487.78ac
PBT 26.11ac
Hill Park 143.59ac
Other Infra 534.82ac
Trading 567.99ac
Housing 857.84ac
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KEYDESIGN PARAMETERS6
A. Development Period : 15 yearsB. Phased Development : 4 NosC. Infrastructure Development : 2 NosD. Water : Overall est. water Demand @ 16.3 MGpd Low Zone Tank @ 7.02 MGpd High zone tank @ 9.22 MGpd Low zone serving platforms 100 – 130 m ODL High zone serving platforms 130 – 150 m ODL
E. Sewerage : 240,000 PE with 1 centralized STPF. Electricity : 80 mW MDL 1 No. Transmission Main Intake S/S 4 No. Main Distribution S/SG. Telecommunication : To be provided by various telcos
Land Details
• Land Owner - Kota Putra Rubber City Development Sdn Bhd Level 9, Menara HLA No,3, Jalan Kia Peng 50450 Kuala Lumpur
• Area - 2,448.69 acres (990.95 hectares)• Exising - Rubber Tree• Land form - Ranges from 95 to 220m
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KPRCCONCLUSION 7
This initiative is a collaboration between the public & private rubber industry players which will result in the creation of a catalyst that will revive the global rubber industry.
It is our hope that this collaboration with China will take Malaysia from its current status of a just a rubber commodity exporter to a leading expert in providing rubber solutions in all fields.
www.kotaputrarubbercity.com.my
South East Asia’s First Rubber Industrial Hub
DISCLAIMER
This brochure is not intended to form the basis of any investment decision with respect to Tradewinds Plantation Berhad (TPB). Neither does this brochure nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This brochure is solely based upon Information of TPB. No representation or warranty, express or implied, is or will be made by TPB in relation to, and no responsibility or liability is or will be accepted by TPB as to the accuracy and completeness of, the Information made available, and any liability therefore is expressly disclaimed. This brochure contains “forward-looking statements”. Forward-looking statements by their nature involve known and unknown risks, uncertainties and other factors that are in many cases beyond TPB’s control. Although TPB believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to it, no assurances can be given that such expectations will prove to have been correct. Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only as of their dates, and TPB undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
This brochure and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized, disclosed referred or passed on to others at any time without the prior written consent of TPB.