Business Opportunities in Malaysia - Doing Business With Malaysia Forum - 26 October 2009

1. Business Opportunities In Malaysia Your Profit Center In Asia Phang Ah Tong Malaysian Industrial Development Authority

3. MALAYSIA PRODUCTIVITY CORPORATION MITI’S AGENCIES

7. MIDA WORLDWIDE NETWORK

8. ALOR SETAR KOTA BHARU IPOH KOTA KINABALU KUCHING JOHOR BAHRU KUANTAN SEREMBAN MIDA HEADQUARTERS MELAKA PENANG MIDA’S STATE OFFICES KUALA TERENGGANU

9. MALAYSIAN ECONOMY MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY

10. MALAYSIA’S KEY ECONOMIC INDICATORS Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE * As at 30 September 2009 2006 2007 2008 2009 Real GDP (%) 5.9 6.3 4.6 - 4 to – 5 f Inflation (%) 3.6 2.0 5.4 1.3 (2 nd Quarter) Per Capita Income (US$) 5,681 6,721 7,246 7,749 f Unemployment (%) 3.3 3.3 3.7 3.6 (2 nd Quarter) Trade Surplus (US$ bil) 29.6 29.2 39.8 16.8 (2 nd Quarter) International Reserves (US$ bil) 90.8 101.3 91.4 96.0 * Retained Imports Equivalent (months) 7.8 8.4 7.4 9.5 *

11. GDP BY INDUSTRIAL ORIGIN Source : Economic Reports/Bank Negara Annual Report, Malaysia 08/09 Sector GDP Contribution (%) 1970 1990 2000 2008 Agriculture 33.6 19.3 8.8 7.5 Mining 7.2 9.8 6.7 8.4 Construction 3.8 3.4 3.4 3.0 Manufacturing 12.8 26.5 32.6 29.6 Services 42.6 42.1 53.0 54.3

12. INVESTMENT TRENDS IN THE MALAYSIAN MANUFACTURING & SERVICES SECTORS

13. TOTAL APPROVED MANUFACTURING PROJECTS (2007 – JUNE 2009) Source: MIDA Year No. of Projects No. of Employment Proposed Investment (US$ billion) Domestic Foreign Total 2007 949 97,673 8.0 10.0 18.0 2008 919 101,173 4.8 13.3 18.1 Jan – July 2009 416 33,030 1.7 3.3 5.0 TOTAL 2,284 231,876 14.2 26.3 40.5

14. FOREIGN INVESTMENT IN IMPLEMENTED PROJECTS BY MAJOR COUNTRIES (AS AT 31 DECEMBER 2008) Country No of Projects Total Investments (US$ billion) Japan 2,260 16.60 USA 649 13.18 Singapore 2,488 5.98 Germany 320 5.92 Taiwan 1,473 4.66 Netherlands 146 3.21 Korea 279 2.49 United Kingdom 355 1.55 India 95 1.08 New Zealand 23 29.89 million

15. FOREIGN INVESTMENT IN IMPLEMENTED PROJECTS BY MAJOR INDUSTRIES (As at 31 Dec 2008 ) MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY

16. APPROVED REGIONAL ESTABLISHMENT AS AT 31 DECEMBER 2008 * 2008 : USD$ 1 = RM 3.568 Type of Establishment No. of Approvals Estimated Annual Business Spending (US$ million) Operational Headquarters (OHQ) 54 198.5 International Procurement Centres (IPC) 32 209.6 Regional Distribution Centres (RDC) 9 45.1 Regional Offices (RO) 150 29.5 Representatives Offices (RE) 262 41.4 TOTAL 507 524.1

23. INCENTIVES FOR THE MANUFACTURING SECTOR

24. 1. Pioneer Status (PS) Income tax exemption, ranging from 70% to 100% of statutory income for a period of 5 to 10 years. 2. Investment Tax Allowance (ITA ) ITA of 60% to 100% on qualifying capital expenditure incurred for a period of 5 to 10 years. The allowance can be offset against 70% to 100% of the statutory income for each year of assessment. 3. Reinvestment Allowance (RA) RA of 60% on qualifying capital expenditure. MAJOR INCENTIVES PROVIDED

26. OUTSOURCING OPPORTUNITIES MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY

27. MALAYSIA’S COMPETITIVE EDGE

29. - Individual components/ services - Integrated services/ total solution - Product conception to serial production - Manage the entire process including logistics, warehousing, packaging, testing and certification MALAYSIA : THE PREFERRED LOCATION FOR OUTSOURCING

32. “ MALAYSIA –TOWARDS A HIGH INCOME COUNTRY ”

36. www.mida.gov.my MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY Thank You For Your Attention!