A presentation by:
Dato’ Sri Mustapa MohamedMinister of International Trade & Industry
10 May 2012
MALAYSIA – ISLAMIC DEVELOPMENTBANK (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
SectorGDP 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
5.45.8
6.8
5.3
5.86.5
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 Malaysia6
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 Malaysia7
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
ChinaUSD 54.5 bil.
(13.2%)
SingaporeUSD 52.8 bil.
(12.7%)Japan
USD 47.5 bil.(11.5%)
USAUSD 36.9 bil.
(8.9%)
ThailandUSD 22.9 bil.
(5.5%)
OICUSD 47.6 bil.
(11.5%)
Malaysia’s Trade with OIC Members, 2011
Source: Department of Statistics
9
IndonesiaUSD 18.3 bil.
(38.4%)
UAEUSD 6.9 bil.
(14.5%)
Saudi ArabiaUSD 4.1 bil.
(8.5%)
PakistanUSD 2.8 bil.
(5.9%)
BangladeshUSD 1.8 bil.
(3.8%)
OthersUSD 13.8 bil.
(28.9%)
Malaysia’s Trade with IsDB Members
Note: Malaysia’s trade with 55 IsDB membersSource: 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 - KPJClinic 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
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 centreMedical hubSecond transportation linkExpansion of Port of Tanjung PelepasIndustrial zone
Northern Corridor Economic Region (NCER)
East Coast Economic Region (ECER)
AgricultureManufacturingTourism
Oil, Gas and PetrochemicalTourismManufacturing
Sabah Development Corridor (SDC)
32
Sarawak Corridor of Renewable Energy
(SCORE)
AgricultureManufacturingLogistics
Aluminum IndustryGlass IndustrySteel IndustryOil-based IndustryPalm Oil IndustryTimber-based IndustryTourism Industry
Pengerang: Oil & Gas Haven
33
Regional Oil Storage Hub: A joint venture betweenJohor 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 KLRegional &
Operational Headquarters
Agriculture
Palm Oil
Communication Content Infrastructure
Education
Electrical & Electronics
Oil, Gas & EnergyMarginal Field,Oil Field Services
TourismWholesaleand Retail
FinancialServices 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 millionpopulation, USD 1.8 trillion combined GDP, USD2.1trillion global trade, 7.4% GDP growth (2010)
- 2010 intra-ASEAN trade - USD 519 billion (25.4% oftotal global ASEAN trade)
- ASEAN top trading partners areChina, EU, Japan, South Korea and the US
38
Towards AEC – An Integrated Market
Business Opportunities
ASEAN
Potential market of 2.7 billionTariff reduction and elimination mostly by 2016
REGIONAL / BILATERAL FTAS
China ChileKoreaJapan 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 InformationSystems’ and state-of-the-art diagnostic equipment.
• Availability of traditional wellness and spas, resorts andalternative medicine.
• Warm hospitality - the Malaysian Hospitality.
Healthcare
46
Education - International Students from OIC
Countries, 2010
47
No. Country Of OriginTotal
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 OriginTotal
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. CountryTourist 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 ProgrammeMultiple 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?
5050
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA 51