The document provides an overview of the American Malaysian Chamber of Commerce (AMCHAM), the Malaysian economy, trade, business and investment landscape. AMCHAM is a non-profit business association founded in 1978 representing over 350 American and Malaysian companies. The summary discusses key facts about Malaysia's population, GDP, economic growth, and position as a regional trade hub. It also outlines Malaysia's strengths and opportunities in attracting foreign direct investment, and sectors driving the economy such as manufacturing, services and trade.
2. What is AMCHAM Malaysia?
An international, non-profit,
private-sector business
association
Founded in 1978
1000 representatives from over
350 American & Malaysian
Companies
Affiliations
APCAC
6. Malaysia In Numbers
Malaysia Facts and Figures
(2012)
Population 29 Million
GDP (US$ bln) 237.8
GDP per capita (US$ bln) 8.4
GDP growth (%) 4.8 (est)
Market Cap (US$ bln) 411
Credit rating A (Standard & Poor’s)
A3 (Moody’s)
Unemployment rate (%) 3.3
Big Mac index (US$) 2.34
7. ‘Center to ASEAN’
Malaysia:
• 3rd largest economy in ASEAN
• A trade hub with geostrategic nexus
• U.S. 4th largest trading partner, China # 1
• 2nd largest U.S. export market in ASEAN
• U.S. key investor (US$16 Bln FDI, 2010)
• Negotiating Trans-Pacific Partnership free trade
agreement
8. Country Overview
Strengths Weaknesses
• Major world source for electronics • Sustainability of the national
and computer parts subsidization program on capping
the prices of basic consumer
goods
• Government offering attractive
tax breaks and concessions to
foreign companies • Relative insulation from global
energy price shocks being
• One of the world’s largest eroded- to be net importer of crude
producers of rubber, palm oil, oil in few years time
pepper and tropical hardwoods
Opportunities Threat
• Reforms and changes with the • Malaysia is at risk of losing out to
(ETP) and (GTP) China, Vietnam, & Indonesia in the
race for foreign investment
• Private sector-led growth
• Government’s fiscal deficits could
• Free trade agreement strain country’s finances
negotiations with the EU as well as
the Trans-Pacific Partnership
10. Economic Snapshot
Moving up the value chain from a manufacturing to a
services economy
GDP by sector GDP Value and Growth
(2003 – 2013)
*GDP at current price
Services subsectors:
• Wholesale and retail
• Financial services
• Government services
• Real estate and construction
Source: Bank Negara Malaysia (BNM),
11. Trade Overview
Export and Import
• Malaysia shows strong trade performance despite Economic
uncertainties and supply chain disruptions.
• Malaysia is a leading exporter of electrical appliances, electronic parts
and components, palm oil and natural gas.
• The major category of imports includes electronics and electrical goods,
chemicals and chemical products, machinery, appliances and parts.
Source: Malaysia in Focus, PwC
2012
12. Business and Investment Landscape
An Overview
The World Bank’s Ease of Doing
Business Report says Malaysia is
the 18th most competitive nation
out of 183 economies it surveyed.
The AT Kearney 2012 FDI
Confidence Index ranks Malaysia
among the top 10 FDI destinations
in the world.
Malaysia is relatively disaster-free
and nestled at the heart of ASEAN.
Malaysia is:
• Market oriented
• Cost effective
• Business friendly
13. Business Landscape
Leading Corporations
Top 4 sectors based on Market cap. local MNCs
1. Banking
2. Telecommunications
3. Oil and Gas
4. Retail
Source: Malaysia in Focus, PwC
14. Investment Landscape
FDI Growth
• Malaysia achieved a foreign direct investment
(FDI) inflow growth of 12.3% to US$ 10.8 Bln in
2011
• Malaysia is the top 5 preferred investment
destinations in Asia.
• FDI inflow per category
• Manufacturing (50%)
• Services (27%)
• Mining (22%)
Source: Malaysia investment performance, MIDA
15. Investment Landscape
Investment Overview
• In 2011, total investments
approved in the Malaysian
economy amounted to
US$49 Bln.
• This constitutes
investments approved in
the manufacturing,
services and primary
sectors.
• The services sector is
expected to assume a
greater role in driving
economic growth during
this decade.
• FDI inflow important for
Malaysia’s economy
Source: Malaysia investment performance, MIDA
16. Investment Landscape
Approved Investments Manufacturing Sector (FDI + DDI)
• E&E industry dominates investment
inflow
• Malaysia sees increased
competition from low cost
producers; China, India and
Vietnam.
• Moving up the value chain with
more R&D and into high value added
industries such as Solar Source: Malaysia investment performance, MIDA
17. Investment Landscape
U.S. E&E Investments
• Total E&E investments from U.S. in E&E Investments by Country
the Malaysian economy amounted to (Total US$ 36.5 Bln)
US$12 Bln. Korea,Rep. Others
4% 7%
• U.S. investments shift from labor Taiwan
intensive to High-end Automation, 6%
Design & Development, Shared USA
Services & OHQs Netherlands 35%
8%
• D&D Expenditure = RM1.68 Bln Singapore
5x increase in expenditure from 2001 8%
to 2011
Japan
• D&D Engineers = 5.6k; Germany 23%
2x increase in from 2007 to 2011 9%
• This year, 8 E&E companies
celebrate 40 years establishment in
Malaysia.
Source: MAEI Annual Survey 2011;
18. Investment Landscape
Approved Investments Services Sector (FDI + DDI)
• Investments in services sector
recovering to pre-crisis
levels.
• Real estate makes up the
largest services sub-sector for
approved foreign and
domestic investments.
• US MNCs in Malaysia are
setting their sights on going
regional and increasingly look
at Malaysia as a hub for
regional activities.
Source: Malaysia investment performance, MIDA
22. Economic Transformation Program
Focused Approach to Economic Growth
12 National Key Economic Areas 6 Strategic Reform Initiatives
+
12 NKEAs 6 SRIs
• Oil, gas & energy Enablers to achieve competitiveness:
• Palm oil & rubber • Government’s facilitative role in
• Financial services business
• Wholesale & retail trade • Public finance reform
• Communications content & • Human capital development
infrastructure • International standards &
• Tourism liberalization
• Business services • Public service delivery
• Health services • Narrowing disparities
• Electronics & electrical •
Education
• Agriculture Source: ETP Annual
• Greater KL
23. New Economic Model
Focused Approach to Economic Growth
• Targeted GNI growth of 6% per
annum to US$ 15.000 per
capita in 2020
• Achieving a High-Income, High-
Value, Fully Developed
Economy that enables:
• GDP Growth High
• Quality Jobs Growth income
• Career Opportunities
• Ability to Fund Ideas NE
M
• Join the ranks of the high-
Inclusiveness Sustainability
income economies with an
inclusive and sustainable
growth process.
24. References and Key Contacts
Organization Website
PricewaterhouseCoopers www.pwc.com/my
(PwC) Malaysia
U.S. Embassy Kuala Lumpur malaysia.usembassy.gov/
Ministry of International Trade www.miti.gov.my
and Industry Malaysia
Performance management & www.pemandu.gov.my
Delivery Unit (PEMANDU)
InvestKL www.investkl.gov.my
Economic Planning Unit www.epu.gov.my
Malaysian Investment www.mida.gov.my
Development Authority
Malaysian External Trade www.matrade.gov.my
Development Corporation
25. AMCHAM
The Voice of U.S. Business in Malaysia
THANK YOU
info@amcham.com.my
Follow us on Twitter via
@amchammalaysia
Hinweis der Redaktion
Malaysia’s target is a 6% annual growth in line with the Economic Transformation Program (ETP).ETP aims to boost both private consumption and investments
Malaysia shows strong trade performance despite the slow US economic recovery, Eurozone debt crisis uncertainties and supply chain disruptions from Japan’s tsunami and Thailand’s floods.
- Stable. A resilient macroeconomic environment and a sound financial sector. - Market-oriented. An efficient goods market and large export earner. - Well connected. World class infrastructure comprising excellent transport connectivity and advanced communications infrastructure. - Cost effective. Affordable costs of living and doing business. - Business friendly. Attractive governmental support through government policies and tax incentives.
Reference: Market cap. US$BN (20-1-12)Citigroup 86Bank of America 71Apple 560ExxonMobil 381Microsoft 248GE 203
With increased competition from low cost producers such as the People’s Republic of China, India and Vietnam, Malaysia is no longer competitive in the area of low-end manufacturing. To raise the economy up the value chain, the Government will continue to intensify its efforts in identifying and attracting investments in new growth areas and emerging technologies, high value-added industries, high technology and capital intensive industries and research and development (R&D) activities in line with the Government’s efforts to become a high income nation by 2020.
US MNCs in Malaysia are setting their sights on going regional and increasingly look at Malaysia as a hub for regional activities. Reflective of this new trend, AMCHAM board members now have additional responsibilities in this region and are entirely based in Malaysia.