INVESTMENT OPPORTUNITIES

IN MALAYSIA EU Circular Economy Mission to Malaysia | 10 June 2019

www.mida.gov.my

Nelson Samuel Director Foreign Investment Promotion Division

Malaysian Investment Development Authority

2 2

• Briefings

• Data on industries

• Meetings with companies

• Visits to production facilities & service

providers

• Visits to potential locations

• Manufacturing License

• Tax Incentives

• Expatriate Posts

• Import Duty Exemptions

• Representative/Regional Office

• Principal Hub/OHQ

1. PROMOTION

2. APPROVAL

3. IMPLEMENTATION • Handholding

• Post Invest

• Talent

STEP 3

Representative

Office Regional Office

Sales

Office

Principal Hub/Operational HQ

Regional and global businesses and operation to

manage, control, and support key functions

including management of risks, decision making,

strategic business activities, trading, finance,

management and human resource

Production

Facility R&D/

Competence Centre

Training

Centre

STEP 2

STEP 1

First Point of Contact

MIDA - First Point of Contact

• New York • San Jose • Chicago

• London

• Stockholm • Munich • Frankfurt • Milan

• Paris

• Tokyo

• Osaka

Sydney Singapore

Mumbai

Dubai

12 state offices

20 overseas offices and 12 state offices

• Beijing • Guangzhou • Shanghai • Taiwan

Seoul

Truly International

Investment Policies & Incentives

6

Focus Areas

Manufacturing Sector Services Sector

• Manufacturing sector was re-energized towards producing more high value-added, diverse and complex products to accelerate innovation and technology adoption.

• The catalytic subsectors:

• High potential growth subsectors:

• In enabling the services sector to move up the value chain and provide strong linkages with other sectors, the focus will be given to the following subsectors

Medical Devices

Machinery &

Equipment

Aerospace

Chemicals

and Chemical

Products

Electrical and

Electronics

ICT Services

Hotel &Tourism

Medical Tourism

Green Technology

Going Green

Manufacturing Sector Services Sector Green Technology Master Plan as the national strategic plan and implementation framework to catalyse Green Growth towards sustainable development and high income nation by 2020 and to position Malaysia as a Green Technology hub by 2030;

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Circular Economy

Manufacturing Sector Services Sector

60% or 100% on

qualifying capital

expenditure for 5

years

60% on qualifying

capital expenditure

for 15 consecutive

years

For raw materials

/ components

and machinery

and equipment

Income tax

exemption ranging

from 70% or 100%

for a period of 5 or

10 years

Import Duty

Exemption Reinvestment

Allowance Investment

Tax Allowance Pioneer

Status

9

Less Developed Area

100% income tax exemption for

up to 15 years

Major Tax Incentives 20-25 years

PS ITA RA Note: Waste recycling is eligible for either PS or ITA while Green project only avail for ITA.

US$ Billion

Overall Investment Approved in the Economy (2008 –2018)

0

10

20

30

40

50

60

70

80

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Primary Manufacturing Services

10

USD48.7 bil.

Approved Investments in the Manufacturing Sector (2008 – 2018)

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

DDI

FDI

11

USD21.1 bil.

66%

34%

US$ Billion

12

9.18

7.73

2.92

1.97 1.24 1.22

0.74 0.55 0.54 0.48

Germany Netherlands United

Kingdom

France Spain Sweden Denmark Ireland Italy Luxembourg

Investments Implemented by EU Countries (Manufacturing) as at 2018

USD’ Bil.

Germany 440 46,872

9,183,350,428

32,577,650,857

Netherlands 248 39,321

7,727,623,605

28,574,584,847

United Kingdom

460 38,509

2,918,661,431

9,914,670,244

Spain 7 1,499

1,218,276,099

4,215,715,394

France 122 10,559

1,239,324,415

4,068,188,755

Sweden 92 5,827

736,869,797

2,462,343,034

Denmark 68 5,087

549,768,330

1,855,231,542

Ireland 10 1,739

478,640,760

1,755,163,725

Italy 75 4,598

354,225,649

1,316,996,309

Luxembourg 12 3,204

344,155,370

1,312,533,034

Belgium 32 1,897

357,599,265

1,261,446,759

As at December 2018, 1,632 projects

with the EU’s participation have been

implemented worth RM90.9 billion

(US$25.6 billion) with 165,616

employment opportunities.

Over 5,000 companies from more than 50 countries 13

OIL & GAS ENGINEERING SERVICES

ELECTRIC & ELECTRONIC MACHINERY & EQUIPMENT

PRINCIPAL HUB

POTENTIAL INVESTMENT/

COLLABORATION

E-COMMERCE

REGIONAL ESTABLISHMENT

INDUSTRIAL MACHINERY

ADVANCED TECHNOLOGY

MACHINERY & EQUIPMENT

MEDICAL DEVICES

TRANSPORTATION EQUIPMENT

4.0 4.0 INDUSTRY

POTENTIAL COLLABORATION BETWEEN EUROPE AND MALAYSIA

AUTOMOTIVE

HALAL

PHARMACEUTICAL CHEMICAL PRODUCTS AEROSPACE

Harmonious

Industrial Relations Quality of Life

50 years -Strong

Industry Base

STRATEGIC LOCATION

Stable Banking System

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Liberal Investment

Policies

Pro-business

Government

Political and Economic

Stability

Young, Trainable and

Educated Labour Force

An Unsurpassed Lifestyle

Home to Tropical Paradise We Embrace Multiculturalism

Well Developed Infrastructure/

Connectivity

IP Protection Excellent Facilities -

Convention and Conferences

Liberal Business

Environment

Capital: Kuala Lumpur Population: 32 Mil. Land Area: 330,399 sq km

English speaking language

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Thank You MIDA HEADQUARTERS MIDA Sentral No. 5 Jalan Stesen Sentral 5 KL Sentral, 50470 Kuala Lumpur Tel: 603 – 2267 3633 Fax: 603 – 2274 7970 Email: derrick@mida.gov.my