“malaysia : your premier investment destination” mida’s functions in the promotion of the...
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“Malaysia : Your Premier Investment Destination”
MIDA’s Functions in The Promotion of The Manufacturing and Services Sectors in Malaysia
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24th October, 2012
“Malaysian Investment Development Authority”
CONTENT OUTLINE :
Functions
Development Corridors
Performance
Policies
Incentives
“Malaysia : Your Premier Investment Destination”
MILESTONES
The principal Malaysian Government agency responsible for the
promotion and coordination of
industrial development in the country
First point of contact for investors who intend to
set up projects in the manufacturing and services sectors in
Malaysia
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Established in 1967 under Act of Parliament, 1965
2011 : Rebrand as Malaysian Investment Development Authority
27 March 2004 : Government Mandated MIDA to Promote Investments in the Services Sector
“Malaysia : Your Premier Investment Destination” 4
Foreign Direct Investment Domestic Investment Cross Border Investment Business matching through E-Connect Manufacturing Services
Promotion
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
San Jose
Los Angeles
New York
Boston
Stockholm
FrankfurtMunich
MilanParis
London
DubaiMumbai
Guangzhou Taipei
Shanghai
SeoulOsaka
Tokyo
Kuala Lumpur Malaysia
Sydney
MIDA WORLDWIDE NETWORK
24 Overseas Centres
Chicago
Houston
Bangkok
Singapore
Johannesburg
“Malaysia : Your Premier Investment Destination”
ALOR SETAR
KOTA BHARU
IPOH
KOTA KINABALU
KUCHING
JOHOR BAHRU
KUANTAN
SEREMBAN
MIDA HEADQUARTERS
MELAKA
PENANG
MIDA’S STATE OFFICES
KUALA TERENGGANU
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MALAYSIA’S KEY ECONOMIC INDICATORS
2009 2010 2011 2012
Real GDP (%) - 1.7 7.2 5.1 5.0 ~ 5.5
Inflation (%) 0.6 1.7 2.1 2.4(Jan – Feb)
Per Capita Income (US$) 6,764 8,140 9,508 10,134f
Unemployment (%) 3.7
3.2 3.1 3.2
(Julai)
Trade Surplus (US$ bil) 33.6 34.2 39.32.9
(Jan)
International Reserves (US$ bil) 96.7 106.5 133.6 135.*
Retained Imports Equivalent (months) 9.7 8.5 9.7 9.4*
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Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE* As at 30th March 2012
“Malaysia : Your Premier Investment Destination”
GDP BY INDUSTRIAL ORIGIN
SectorGDP Contribution (%)
1970 1990 2009 2010 2011
Agriculture 33.6 19.3 7.9 7.8 7.7
Mining 7.2 9.8 10.5 9.8 8.8
Construction 3.8 3.4 3.1 3.0 3.0
Manufacturing 12.8 26.5 24.2 25.2 25.1
Services 42.6 42.1 53.2 53.2 54.2
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12
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“Malaysia : Your Premier Investment Destination”
TOTAL APPROVED MANUFACTURING PROJECTS (2008 – 2011)
YearNo. of
ProjectsNo. of
Employment
Proposed Investment (US$ billion)
Domestic Foreign Total
2009 766 64,330 3.0 6.5 9.5
2010 910 97,319 5.9 9.4 15.3
2011 846 100,533 6.9 10.8 17.7
2012 (Jul) 469 46,137 4.4 4.4 8.8
Source: MIDA
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“Malaysia : Your Premier Investment Destination” 12
APPROVED PROJECTS BY MAJOR COUNTRIES JANUARY – DECEMBER 2011
US$ Million
“Malaysia : Your Premier Investment Destination”
APPROVED MANUFACTURING PROJECTS BY MAJOR INDUSTRIES, JANUARY – DECEMBER
2011
Source: MIDA
Industry / Products Number of Projects
Foreign Investment
(US$ million)
Electronics & Electrical 90 5,900.2
Basic Metal 22 1,131.7
Chemicals & Chemical 36 1,016.0
Food Manufacturing 28 810.1
Non-Metallic Mineral 13 461.8
Transport Equipment 40 336.4
Petroleum (Incl. Petrochemicals) 11 305.5
Fabricated Metal 30 253.8
Scientific & Measuring Equipment 5 112.4
Paper, Printing & Publishing 22 100.5
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“Malaysia : Your Premier Investment Destination”
APPROVED REGIONAL ESTABLISHMENT JANUARY –
DECEMBER 2011
Source: MIDA
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Type of EstablishmentNo. of
ApprovalsInvestment (US$ million)
Operational Headquarters (OHQ) 18 38.8
International Procurement Centre (IPC) 6 22.2
Regional Distribution Centres (RDC) 1 3.2
Representatives Offices (RE) 55 7.5
Regional Offices (RO) 32 7.7
Total 112 79.4
“Malaysia : Your Premier Investment Destination”
• 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 manufacturing license.
Guidelines on Manufacturing License
INVESTMENT POLICIES
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“Malaysia : Your Premier Investment Destination”
Repatriation of Funds
Foreign Equity
INVESTMENT POLICIES
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“Malaysia : Your Premier Investment Destination” 19
Pioneer Status (PS) : Income Tax Exemption of 70 % or 100 % for 5 or
10 years
Investment Tax Allowance (ITA)60 % or 100 % on qualifying capital
expenditure for 5 or 10 years
Exemption from Import Duty on Raw Materials / Components
Exemption from Import Duty & Sales Tax on Machinery & Equipment
Incentives
MAJOR INCENTIVES PROVIDED
“Malaysia : Your Premier Investment Destination”
High technology, capital intensive &knowledge driven industries: Industries manufacturing
intermediate goods:
Resourced-based industries:
CURRENT FOCUS IN THE MANUFACTURING SECTOR
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
• Food & Agro based• Value-added products from
natural resources
• Machinery & equipment• Components & parts• Moulds and dies
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“Malaysia : Your Premier Investment Destination”
SERVICES SECTOR
Full tax exemption for 10 years
RE or RO status given for a period of 5 years
Eligible for PS or ITA
• OPERATIONAL HEADQUARTERS (OHQ)• INTERNATIONAL PROCUREMENT CENTRE (IPC)• REGIONAL DISTRIBUTION CENTRE (RDC)
• REPRESENTATIVE OFFICE (RE)• REGIONAL OFFICE (RO)
• INTEGRATED LOGISTICS SERVICES (ILS)• INTEGRATED MARKET SUPPORT SERVICES (IMSS)• INCENTIVES FOR INTEGRATED CENTRAL UTILITY
FACILITIES (CUF)
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“Malaysia : Your Premier Investment Destination”
Targeted Services
SERVICES SECTOR
• Regional Establishments• Business and professional services• Logistics• ICT services• Offshore and outsourcing activities• Distributive trade• Education and training• Healthcare• Tourism
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“Malaysia : Your Premier Investment Destination”
IRDA : ISKANDAR MALAYSIA
NCER : NORTHERN CORRIDOR ECONOMIC REGION
SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY
ECER : EAST COAST ECONOMIC REGION
Focus on:• Resource Based Industry• Energy• Tourism
Focus on:• Agro-based Industry• Tourism• Logistics• Manufacturing
Focus on:• Tourism• Oil & Gas• Manufacturing• Agriculture• Education
Focus on:• Modern Agriculture• Manufacturing & Design• Tourism• Logistics• Education & Health
To be a hub for the services sector:• Creative Industry• Education• Healthcare
• Financial Services• Tourism and Logistics Industries• Electrical & Electronics Services
SDC : SABAH DEVELOPMENT CORRIDOR
CORRIDOR OF DEVELOPMENT IN MALAYSIA
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WHY MALAYSIA ?• Political & Economic Stability• Pro-business Government• Liberal Investment Policies• Transparent Policies• Policy of Welcome • Sound Banking System• Well Developed Infrastructure• Harmonious Industrial Relations• Trainable & Educated Labour Force • Quality of Life• Good Track Record