BUSINESS AND INVESTMENT

OPPORTUNITIES IN KEDAH, MALAYSIA

JAMECA-MAJECA JOINT CONFERENCE, TOKYO, JAPAN

DATO’ AHMAD SHUKRI TAJUDDIN

Managing Director

Invest Kedah

BRIDGING INVESTORS - BUILDING OPPORTUNITIES

MALAYSIA’S FAST FACTS

Total area : 329,000 sq km

14 states

Population 29 mil -multiple ethnic group

GDP ( Malaysia )

2012 : 5.5%

2013 : 4.7%

2014 : 6.0%

2015 : 5.0%

Stable and pro-businessgovernment .

MALAYSIA - TREND OF GROWTH DOMESTIC

PRODUCTION (GDP) OVER YEARS

Gross Domestic

Product (GDP)2010 2011 2012 2013 2014 2015

GDP at current prices

(million)

¥21,440,123

RM797,327

¥23,806,765

RM885,339

¥291,169,66

RM971,252

¥27,396,096

RM1,018,821e¥29,755,936

RM1,106,580p

¥31,108,530

RM1,156,881p

GDP at constant 2010

prices (RM million)

¥18,195,199

RM676,653

¥19,139,226

RM711,760

¥24,530,698

RM912,261

¥25,686,941

RM955,260e¥27,226,286

RM1,012,506p

¥28,574,577

RM1,062,647p

GDP Growth (%)7.4 5.2 5.5 4.7e 6.0p 5.0p

7.4

5.2 5.5

4.7

6

5

0

1

2

3

4

5

6

7

8

2010 2011 2012 2013 2014 2015

Rates : RM1 MYR = ¥26.89 JPY (May 2016)

MALAYSIA- GROWTH DOMESTIC PRODUCTION (GDP)

1.1%

9.2%

9.0%

23.0%

4.3%53.5%

OVERALL

GDPRM1,012.5 billion

Percentage Share of GDP and SMEs at Constant 2010 Prices for year 2014

58.6%

12.4%

0.4%

21.7%

5.7%

0

SMEs

GDPRM363.5 billion

Source: Department of Statistics, Malaysia

Area size 9,500 sq km

(2.9% of Malaysia)

13 districts including

Langkawi Island

Population: 2 mil

Known as Rice Bowl of

Malaysia

KEDAH DARUL AMAN – FAST FACTS

•Climate - tropical monsoon

•Average temperature

between 24°C to 39°C

ECONOMIC GROSS DOMESTIC PRODUCT

-KEDAH

2010 2011 2012 2013 2014

GDP at

constant 2005

prices (Million)

¥591,526

RM 21,998

¥641,676

RM 23,863

¥840,070

RM 31,241

¥880,781

RM 32,755

¥917,997

RM34,139p

GDP per capita

at current

prices (Million)

¥369,576

RM 13,744

¥414,052

RM 15,398

¥432,606

RM 16,088

¥447,153

RM 16,629

¥465,761

RM17,321p

GDP Growth

(%)4.3 8.5 5.6 4.8 4.2p

Source: Department of Statistics, MalaysiaRates : RM1 MYR = ¥26.89 JPY (May 2016)

4.3

8.5

5.6

4.8

4.2

0

1

2

3

4

5

6

7

8

9

2010 2011 2012 2013 2014

0

20

40

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015 (Jan-Sep)

9.7 3.8 6.6

65.4

20.7

8.7

43.0

161.2

9.32.8

121.5

23.7

DI FDI

(¥ Billions)

TOTAL APPROVED MANUFACTURING PROJECTS IN

KEDAH (2010 – Sep. 2015, FDI vs. DI

Source :

Source :

PROJECTS APPROVED BY MAJOR INDUSTRY IN

KEDAH, JANUARY - SEPTEMBER 2015 AND 2014

Industry

Jan-September, 2015 2014

NO.

Total Capital

Investment

(RM)

Total Capital

Investment

(¥)

NO.

Total Capital

Investment

(RM)

Total Capital

Investment

(¥)

Electronics & Electrical

Products7 820,558,715 22,064,823,846 9 3,994,927,788 107,423,608,219

Transport Equipment 11 129,207,141 3,474,380,021 6 116,076,975 3,121,309,857

Plastic Products 4 99,877,659 2,685,710,250 6 36,904,360 992,358,240

Machinery & Equipment 5 43,409,610 1,167,284,412 - - -

Wood & Wood Products 3 36,346,022 977,344,531 6 15,139,276 407,095,131

Chemical & Chemical

Products4 33,707,498 906,394,621 6 85,929,289 2,310,638,581

Scientific & Measuring

Equipment2 32,700,000 879,303,000 6 674,635,783 18,140,956,204

Rubber Products 1 7,000,000 188,230,000 1 4,854,344 130,533,310

Fabricated Metal Products 1 1,935,000 52,032,150 3 262,627,103 7,062,042,799

Rates : RM1 MYR = ¥26.89 JPY (May 2016)

Source :

PROJECTS APPROVED BY MAJOR COUNTRY IN KEDAH,

JANUARY - SEPTEMBER 2015 AND 2014

Country

January – September 2015 2014

No

.

Foreign

Investment (RM)

Foreign

Investment (¥)

No

.

Foreign

Investment (RM)

Foreign

Investment (¥)

Japan 6 754,754,363 20,295,344,821 1 5,715,047 153,677,613

Taiwan 4 88,459,661 2,378,680,284 3 7,324,303 196,950,507

Korea, Rep 3 17,316,090 465,629,660 - - -

USA 2 7,168,715 192,766,746 1 771,000,000 20,732,190,000

Singapore 7 5,210,276 140,104,321 5 1,556,357 41,850439

Canada 1 5,000,000 134,450,000 - - -

Germany 1 1,289,436 34,672,934 3 3,210,270,160 86324164602

China 1 305,266 8,208,602 1 99,600,000 2,678,244,000

Rates : RM1 MYR = ¥26.89 JPY (May 2016)

NO AREAYEAR

STARTED

DEVELOPMENT

AREA( ACRES)

1. Kulim 1978 430.16

2.Sungai Petani

1989 622.31

3.BakarArang

1980 558.28

4. Tikam Batu 1975 89.10

5. Mergong II 1980 102.35

6.Mergong Barrage

1988 100.49

7. Kuala Ketil 1994 332.00

8.Bukit kayu Hitam

1995 348.4

9. Gurun 2003 376.82

10.Kulim Hi-Tech Park

1992 4032

Total 6,991.91

Organized by : Kedah State Development Corporation

LOCATION OF INDUSTRIAL PARKS

KHTP

KULIM

BUKIT KAYU HITAM

MERGONG II

MERGONG

KUALA KETIL

BAKAR ARANG

GURUN

TIKAM BATU

SUNGAI PETANI

INDUSTRIAL PARKS

KEDAH KEY GROWTH AREAS

PROMOTED ACTIVITIES

• Electrical & Electronic

• Equipment / Machineries

• Healthcare / Medical Devices

• Automotive

• Rubber & Rubber Downstream Activities

• Advance Agriculture

• Aquaculture / Horticulture

• Green Technology

• Tourism

• Education & Training

Centrally located within

Malaysia’s Northern

Region

26 km from North

Butterworth Container,

Penang Port

45 km from Penang’s

Bayan Lepas International

Airport

Directly linked to the

North-South Highway and

East-West Expressway via

Butterworth Kulim

Expressway

FAST FACTSKULIM HI-TECH PARK

KULIM HI-TECH PARK

• Wafer Fabrication & Related Activities

• Semiconductor & Related Activities

• Green Energy (Solar Cell/ Fuel Cell/

Polymer Battery/Renewable Energy)

• Advanced Electronic Industries

• Medical and Scientific Instruments

• Process Control and Automation

Equipment

• Optical and Electro-optical Application

• Optoelectronics

• Biotechnology

• Advanced Materials

• Contract R&D Services

• Aerospace

• New and Emerging Technologies

Targeted Hi-Tech Sectors

MASTER PLAN

MAJOR TENANTSKULIM HI-TECH PARK

TOTAL FOREIGN

DIRECT

INVESTMENT

(FDI)

USD 8.5 BILLION /

¥ 914 BILLION

AUTOMOTIVE HUBS

Area – Gurun & Padang Meha, Kulim

KULIM

GURUN

LOCATION

Bandar Baharu

KEDAH INTEGRATED FISHERY TERMINAL

- FAST FACTS Strategically located

Long coastline and deep water

Complete logistic infrastructure

Comply with Kedah Reclamation

Masterplan

Close to business and financial centers

Fishing villages in the vicinity

Malaysia in one of Indian Ocean Tuna

Commission (IOTC)

KEDAH INTEGRATED FISHERY TERMINAL

KEDAH SCIENCE & TECHNOLOGY PARK

(KSTP)

Located at Bukit Kayu Hitam

Industrial Area (North part of

Kedah)

PROPOSED SITE

Bordering

Thailand

45 km north of Alor

Setar

New growth centre within

IMT-GT

Area - 1,900 acres

- FAST FACTS

RUBBER CITY

• Area – 1,500 acres

• Located in the heart of

the Natural Rubber

Economic Belt.

• Close to the

Malaysia-Thailand

border

• Supported by both the

Malaysian and Thai

governments.

MasterplanFast Facts

NOT TO SCALE

To UUM Sintok

Commercial

Commercial

Commercial

The Rubber City will focus on four core rubber sub-industries producing high value add

downstream products from both natural and synthetic rubber …

Core Industries

“Green” Rubber Products

Rubber-based products which are produced using

environmentally-friendly raw materials and / or

processes, e.g. Ekoprena tyres1, reclaimed rubber

products such as rubberised bitumen; or which

contribute to lower carbon footprint

Precision Engineered Rubber Products

Precision moulded rubber products for different

industrial sectors, e.g. seals, gaskets, bearings for

automotive, medical devices, aerospace,

construction sectors

Specialized Latex and Rubber Products

Innovative, high value-add and specialized

products for niche customer segments, e.g.

specialty / surgical gloves, catheters, latex

mattresses, adhesives, “intelligent” rubber

Catalytic Anchor Tenants

Large, well-recognized leading rubber product

manufacturers, e.g. latex / nitrile gloves, passenger

and commercial tyres, condoms

High Value Add Sub-categoryLegend: Catalytic Sub-category

CORE INDUSTRIES

SMALL AND MEDIUM SIZE ENTERPRISE (SME)

- 630 million Asean population

- Muslim population (Food / Cosmetic)

Halal Market

SME

Manufacturing / Assembly

Transportation

Packaging/ Process

Marketing/ Trading

Food Processing

TOURISM – LANGKAWI ISLAND

- Popular tourist destinations

- Located 30 km off the mainland

- Close to Thailand, (Koh Lipe

island)

- Consists of almost 104 small

surrounding islands.

- World Geopark status by

UNESCO

- Duty-Free Island

- Characterized by beautiful hills,

valleys, mountains, jungles,

beautiful unspoiled beaches,

waterfalls, rice fields and quaint

villages

InfrastrutureReadiness

Cost Effectiveness

Location

IP Protection

Support Services (Supply Chain)

International Linkages

After Sales Services

Government Support

Matured Market (Market potential)

Human Capital

KEDAH VALUE PROPOSITION

25

www.investkedah.com.my

info@investkedah.com.my

Want a BIG PIECE of

Asia’s Action?

KEDAH IS SPOT-ON!

C Block, Level 3, Wisma Darul Aman

05503 Alor Setar, Kedah, Malaysia

+604 732 5326 +604 732 5357

+604 732 5484