A presentation by:

Dato’ Sri Mustapa Mohamed Minister of International Trade & Industry

10 May 2012

MALAYSIA – ISLAMIC DEVELOPMENT BANK (IsDB) GROUP INVESTMENT FORUM: ‘RECENT ECONOMIC DEVELOPMENTS & INVESTMENT OPPORTUNITIES’

1

Snapshots of the Malaysian

Economy

2

Key Economic Indicators

Source: Central Bank of Malaysia, Department of Statistics Malaysia and MATRADE

2009 2010 2011

Population (million) 27.9 28.3 28.6

Per Capita Income

(USD) 6,764 8,140 9,508

Inflation (%) 0.6 1.7 3.2

Unemployment (%) 3.7 3.3 3.1

Trade Surplus (USD billion)

33.6 34.2 48.8

International Reserves (USD billion)

96.7 106.5 138.3

3

GDP by Sector

Source: Central Bank of Malaysia

Sector GDP Contribution (%)

1970 2011

Agriculture 33.6 7.3

Mining 7.2 6.3

Construction 3.8 3.2

Manufacturing 12.8 27.5

Services 42.6 58.6

4

GDP Growth, 2001 - 2011

Source: Central Bank of Malaysia

0.5

5.4 5.8

6.8

5.3

5.8 6.5

4.8

-1.6

7.2

5.1

-3

-2

-1

0

1

2

3

4

5

6

7

8

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

% G

row

th

5

Malaysia’s FDI Inflows

Source: Central Bank of Malaysia 6

6.0

8.5

7.2

1.4

9.1

10.8

0

2000

4000

6000

8000

10000

12000

2006 2007 2008 2009 2010 2011

USD

Bill

ion

Sources of FDI, 2011

Source: Central Bank of Malaysia 7

Global

OIC

No. Country USD million 1 United Arab Emirates 239.6 2 Brunei 78.5 3 Indonesia 57.2 4 Qatar 26.2 5 Iran 24.4

No. Country USD million 1 Japan 3,248.4 2 Singapore 2,130.2 3 Netherlands 1,210.8 4 USA 1,069.8 5 Germany 1,060.3

Malaysia’s Global Trade, 2011

Source: Department of Statistics

8

China USD 54.5 bil.

(13.2%)

Singapore USD 52.8 bil.

(12.7%) Japan

USD 47.5 bil. (11.5%)

USA USD 36.9 bil.

(8.9%)

Thailand USD 22.9 bil.

(5.5%)

OIC USD 47.6 bil.

(11.5%)

Malaysia’s Trade with OIC Members, 2011

Source: Department of Statistics

9

Indonesia USD 18.3 bil.

(38.4%)

UAE USD 6.9 bil.

(14.5%)

Saudi Arabia USD 4.1 bil.

(8.5%)

Pakistan USD 2.8 bil.

(5.9%)

Bangladesh USD 1.8 bil.

(3.8%)

Others USD 13.8 bil.

(28.9%)

Malaysia’s Trade with IsDB Members

Note: Malaysia’s trade with 55 IsDB members Source: Department of Statistics

10

2009 2010 2011

Export 16.9 20.7 24.9

Import 11.8 17.0 22.7

Total Trade 28.8 37.7 47.6

Growth Total Trade (y-o-y) -20.2 31.2 26.2

-30

-20

-10

0

10

20

30

40

-30

-20

-10

0

10

20

30

40

50

60

Gro

wth

(%

)

USD

B

illio

n

Malaysian Ventures in

OIC Countries

11

12

Construction - GAMUDA BERHAD

NEW DOHA INTERNATIONAL AIRPORT, QATAR

PROJECT VALUE: USD 921.4 MILLION

QATAR

13

Construction - IJM-SUNWAY-LFE-ZELAN JV

ZONE C, PHASE 1, PLOT 1 MARINA SQUARE AT AL REEM ISLAND, ABU DHABI

PROJECT VALUE: USD 435.6 MILLION

UAE

14

Construction - SHIN EVERSENDAI BERHAD

CAPITAL MARKET AUTHORITY TOWER, RIYADH

PROJECT VALUE: USD 74.64 MILLION

SAUDI ARABIA

15

Construction - SHIN EVERSENDAI BERHAD

NEW DOHA INTERNATIONAL AIRPORT

PROJECT VALUE: USD 259 MILLION

QATAR

16

Construction - SUNWAY CONSTRUCTION S.B.

RIHAN HEIGHTS - PLOT H, ABU DHABI

PROJECT VALUE: USD 594 MILLION

UAE

17

Construction - WCT BERHAD

DUKHAN HIGHWAY, DOHA

PROJECT VALUE: USD 267 MILLION

QATAR

18

Construction - WCT BERHAD

YAS MARINA F1 CIRCUIT, ABU DHABI

PROJECT VALUE: USD 1.4 BILLION

UAE

19

Oil & Gas - PETRONAS

(Projects in 20 countries)

(Projects in 7 countries)

20

Oil & Gas - PETRONAS

(Projects in 44 countries)

21

Investments by KHAZANAH NASIONAL

Fulya Hospital - Istanbul

Jadwa Investment And Shuaibah Independent Water Power

Plant (IWPP) - Riyadh

22

Healthcare - KPJ Clinic Hospital -

New Jeddah Clinic Hospital - Jeddah

Rumah Sakit

Selasih - Padang

Rumah Sakit Medika

Permata Hijau -

Jakarta

Rumah Sakit Bumi

Serpong Damai - Jakarta

SAUDI

ARABIA

INDONESIA

23

OTHER VENTURES

Turkmenistan • Exploration and development of a new gas platform and pipeline project • Gas treatment plant and onshore gas terminal

Oman • Oil Exploration and Production Sharing Agreement (EPSA) with the Oman Oil Company and Industrial Petrochemical LLC

Kazakhstan • Production of construction materials

• Design and built contractor

Indonesia • Plantation • Manufacturing of plastic injection moulding parts and

components

Pakistan • Operation and maintenance agreement from Pakistan's Laraib Energy Ltd.

Maldives

• Building and expanding the airport at Male in the Maldives

OIC Ventures in Malaysia

24

OIC Ventures in Malaysia

25

Islamic Finance Oil & Gas

26

Real Estate

IT Solutions

Oleo-Chemical

Investment Opportunities

27

Investment Opportunities in Islamic Banking

28

Global Ranking in Islamic Finance

29

Five Economic Corridors for Investments

IRDA : ISKANDAR MALAYSIA

NCER : NORTHERN CORRIDOR ECONOMIC REGION

SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY

ECER : EAST COAST ECONOMIC REGION

SDC : SABAH DEVELOPMENT CORRIDOR

30

Iskandar Malaysia (IRDA)

31

A new financial district and state administrative centre Medical hub Second transportation link Expansion of Port of Tanjung Pelepas Industrial zone

Northern Corridor Economic Region (NCER)

East Coast Economic Region (ECER)

Agriculture Manufacturing Tourism

Oil, Gas and Petrochemical Tourism Manufacturing

Sabah Development Corridor (SDC)

32

Sarawak Corridor of Renewable Energy

(SCORE)

Agriculture Manufacturing Logistics

Aluminum Industry Glass Industry Steel Industry Oil-based Industry Palm Oil Industry Timber-based Industry Tourism Industry

Pengerang: Oil & Gas Haven

33

Regional Oil Storage Hub: A joint venture between Johor State, Dialog and Vopak

Pengerang Integrated Petroleum Complex (PIPC): Petronas Rapid is an anchor tenant In PIPC

(USD 20 billion)

• Telecommunication services • Private hospital services • Medical specialists services • Private higher education institution with university status • Departmental stores and specialty stores

Investment Opportunities in the Services Sector

34

High technology, capital

intensive

& knowledge-driven

industries:

Resource-based industries: • ICT

• Aerospace

• Petrochemicals

• Medical devices

• Oil & Gas • Food Products

Investment Opportunities

in the Manufacturing Sector

35

NKEAs selected which can

materially impact economic growth

Greater KL Regional &

Operational Headquarters

Agriculture

Palm Oil

Communication Content Infrastructure

Education

Electrical & Electronics

Oil, Gas & Energy Marginal Field, Oil Field Services

Tourism Wholesale and Retail

Financial Services Business

Services

Healthcare & Medical Devices

12 National Key Economic Areas (NKEAs)

Source: Performance Management & Delivery Unit (PEMANDU) 36

Malaysia-ASEAN:

Vast Business Opportunities

37

Single market production base - 600 million population, USD 1.8 trillion combined GDP, USD2.1 trillion global trade, 7.4% GDP growth (2010)

- 2010 intra-ASEAN trade - USD 519 billion (25.4% of

total global ASEAN trade) - ASEAN top trading partners are China, EU, Japan,

South Korea and the US

38

Towards AEC – An Integrated Market

Business Opportunities

ASEAN

Potential market of 2.7 billion Tariff reduction and elimination mostly by 2016

REGIONAL / BILATERAL FTAS

China Chile Korea Japan India Australia New Zealand

Potential market of 1.08 billion

ON-GOING FTA NEGOTIATIONS

TPP EU Turkey

39

Gateway to ASEAN and Asian Economies

Malaysia’s Strengths

40

41

Construction – Going Global

Overseas Projects Awarded to Malaysian Contractors By Country

Year 1986 ~ First Quarter 2012

5,955.29

3,999.063,689.11

3,113.15

2,160.50

1,738.391,546.41

1,385.341,149.21

889.14 870.22 797.42 627.66 599.14

4,868.65

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Ind

ia

Sa

ud

i A

rab

ia

UA

E

Qa

tar

Ch

ina

Lib

ya

Ba

hra

in

Ind

on

esia

Su

da

n

Vie

tna

m

Ira

n

Th

aila

nd

Bo

sn

ia

He

rze

go

vin

a

So

uth

Afr

ica

Oth

er

Country

Total in USD 33,388.69 Million

US

D M

illio

n

Source: Construction Industry Development Board (CIDB) ‘s Construction Quarterly Statistical Bulletin, 30 March 2012

Real Estate - Residential Developments

42

Real Estate

Why property is a good asset class and investment proposition in Malaysia?

43

Fast track ownership registration and titles

Real Estate - Malaysian Developers Venture in International Markets

44

SP SETIA

45

• Halal factor.

• Highly-trained specialists and Muslim-friendly ecosystem.

• Competitive pricing.

• Private hospitals with International Quality Standards.

• Private hospitals equipped with ‘Hospital Information Systems’ and state-of-the-art diagnostic equipment.

• Availability of traditional wellness and spas, resorts and alternative medicine.

• Warm hospitality - the Malaysian Hospitality.

Healthcare

46

Education - International Students from OIC

Countries, 2010

47

No. Country Of Origin Total

Enrolment

1 Iran 4,814

2 Indonesia 3,770

3 Yemen 1,809

4 Iraq 1,255

5 Libya 1,125

6 Somalia 739

7 Nigeria 737

8 Saudi Arabia 668

9 Sudan 596

10 Jordan 573

Public - Higher Learning

Institutions

Private - Higher Learning

Institutions

No. Country of Origin Total

Enrolment

1 Iran 7,009

2 Indonesia 6,119

3 Nigeria 5,080

4 Yemen 3,522

5 Libya 2,805

6 Sudan 2,241

7 Saudi Arabia 1,584

8 Bangladesh 1,503

9 Pakistan 1,492

10 Kazakhstan 1,229

Source: Ministry of Higher Education

48

Tourism - Arrivals from Top Five OIC Countries

Source: Ministry of Tourism

No. Country Tourist Arrival

2007 2008 2009 2010 2011

1 Indonesia 1,804,535 2,428,605 2,405,360 2,506,509 2,134,381

2 Brunei 1,172,154 1,085,115 1,061,357 1,124,406 1,239,404

3 Iran 27,215 63,165 101,664 116,252 139,617

4 Saudi Arabia 78,298 74,632 77,082 86,771 87,693

5 UAE 38,170 34,994 22,108 25,645 24,212

MM2H: Benefits of Long Stay Programme Multiple entry visa for 10 years

Entitled to purchase residential properties priced from a minimum of USD163,000 and one car (tax free)

OIC Nationalities in the MM2H (Top 10)

49

Malaysia My Second Home Programme (MM2H)

Source: Ministry of Tourism

• Economic Transformation Programme (ETP)

• Unity & Diversity – 1Malaysia

• Attractive Investment Incentives

• Good Infrastructure / Connectivity

• Sound Banking System

• Harmonious Industrial Relations

• Young & Educated Labour Force

• Quality of Life

• Pro-business Government

• Political & Economic Stability

Why MALAYSIA?

50 50

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 51