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FOR PERI CIRCULATION ONLY

| © 2013 InvestKL. All Rights Reserved

• Why MNCs are Investing in

Greater Kuala Lumpur, Malaysia


7.2 millionPopulation

2,793 km2

Area

33%Fresh Graduates Move to GKL/KV Upon Graduation

Commercial and financial capital

30%GDP Contribution

Main economic engine hub

MALAYSIA

GREATER KUALA LUMPUR (GKL) – A FAST GROWING WORLD CLASS METROPOLISFACTS & FIGURES

KL 118

Bandar Malaysia

Estimated to rise to 10 million by 2020

GLOBAL MULTINATIONALS IN GREATER KL

Principal Hub, Global Supply Chain Centre, Global Sourcing and Procurement Centre, Global Excellence Centre, Global Trading Hub

Category Criteria Weight

Business Environment

1.1 Political stability 50%1.2 Economic stability 15%1.3 Corruption and bureaucracy 15%1.4 Competitiveness 15%1.5 Economic freedom 5%

Legal Aspects2.1 Intellectual property protection 30%2.2 Investor protections 55%2.3 Labor legislation 15%

Quality of Infrastructure

3.1 Access to international and intercontinental airport hub 15%3.2 Quality of overall infrastructure 25%3.3 Quality of utilities 30%

3.4 Access to reliable and high quality IT / telecom infrastructure 5%

3.5 Mobile telephone subscriptions 20%3.6 Office space costs 5%

Human Resources

4.1 Tertiary education enrollment rate 5%4.2 Flexibility of wage determination 15%4.3 Labor - employer relations 25%4.4 Language skills 20%4.5 Labor cost 20%4.6 Attractiveness of location to international staff 15%

Taxation

5.1 Total corporate income tax rate 5%5.2 Personal taxation 5%5.3 Ease of paying tax 25%5.4 Double tax treaty network 5%5.5 Standard lowest tax rate 60%

MNC Site Selection Criteria for a Regional Hub

Source – EY Country Location Analysis Tool

RISE OF ASIA

MILLIONPOPULATION

(APPROXIMATELY)

TRILLION COMBINED GDP (USD)

654 2.94

ASEAN

5th

LARGEST ECONOMY IN THE WORLD

2nd

LARGEST ECONOMY IN

ASIA(AFTER CHINA)

One of ASEAN’s strongest economies and uniquely positioned at the heart of ASEAN

MALAYSIA’S FUNDAMENTALS

Population

32 million

Labour Force

15.1 million

Unemployment Rate

3.3%

GDP (2016)

USD 251 billion

2016 GDP Growth

4.2%

2016 Inflation Rate

2.1%

Sources: Central Bank of Malaysia (as of February 2017), Department of Statistics Malaysia, IMF and WEO database (as of July 2016), SMBA Economic Outlook 2017

ACCESS TO MARKET GATEWAY TO ASEAN, ASIA & BEYOND

5%-7%

GDP GROWTH

RATE

By 2020, global demand from the middle class is projected to expand from US$21 trillion to US$35 trillion, with 70% of growth coming from Asia.

ǀ © 2018 InvestKL. All Rights Reserved

Free Trade Agreements

Effective Bilateral FTAs (7)

Effective Regional FTAs (6)

REGIONAL ECONOMIC ARCHITECTURECOHERENT TRADE & INVESTMENT ARCHITECTURE

PAKISTANNEW ZEALANDCHILE INDIA AUSTRALIA JAPAN TURKEY

13 FTAs

ASEAN Economic Community✓ Free movement of goods, services, and investments✓ Freer flow of capital and skills

AEC

Regional Comprehensive Economic Partnership ✓ Population of >3B people✓ Combined GDP of >US$17 trillion ✓ >40% of the world trade

RCEP

Elimination of double taxationReduction of withholding tax✓ Comprehensive DTAs

74 DTAsASEAN ASEAN-JAPANASEAN-AU/NZ ASEAN-KOREA ASEAN-CHINA ASEAN-INDIA


BUSINESS FRIENDLY ENVIRONMENTSTRONG INTERNATIONAL RECOGNITION

Singapore

Malaysia

Thailand

ASEAN World

1

2

3

2

24

26

EASE OF DOING BUSINESS

Singapore

Malaysia

Thailand

ASEAN World

1

2

3

3

23

32

COMPETITIVENESS

Singapore

Malaysia

ASEAN World

1

2

1

26

BUSINESS ENVIRONMENT

India

China

Malaysia

World

1

2

3

SERVICES LOCATION


CONNECTIVITY & INFRASTRUCTUREONE OF THE REGION’S LEADING TRANSPORT HUB

RAIL• 2 Light Rail Transit (LRT): 100 km total track• 3 Mass Rapid Transit (MRT) Lines by 2017 totaling

141 km ✓ MRT Line 1: 51 km operational in stages – end ‘16

✓ MRT Line 2: 52.2 km on going tendering process

• 12 Bus Rapid Transit (BRT) Corridors: Sunway BRT corridor in operation

• 350km High Speed Rail (HSR) connecting Kuala Lumpur and Singapore to be operational by 2030

9

AIR• KUL is 12th busiest international passengers (2017)

– preliminary from ACI✓ 58million total passengers in Year 2017✓ 124 cities linked by > than 2000 weekly

frequencies/flights

MRT and Elevated Sunway BRT Line

Logistics• KLIA Cargo – 710,186 metric tonnes (2017)• Port Klang✓ 219,842,603 tonnes (2015)✓ 11,886,685 containers handled (2015)

Source: Port Klang Authority


CHINA

Mandarin, Cantonese

THAILAND

Thai, English

INDONESIA

Bahasa Indonesia, English

SINGAPORE

English, Mandarin

PHILIPPINES

Tagalog, English

JAPAN

Japanese SOUTH KOREA

Korean

AUSTRALIA

English

INDIA

Hindi, Tamil, English

MALAYSIABahasa Malaysia,

English Mandarin, Cantonese, Hindi, Tamil,

Japanese, Korean

MALAYSIA

Attractive mix of demographics and strong

economic growth

Cultural diversity and affinity with the region

Speak languages that serve Asia Pacific

Driven by mass immigration from China and India over 3 generations and adopting an

open economy approach

MALAYSIA’S UNIQUE & KEY DIFFERENTIATING FACTORMULTI-LINGUAL TALENT TO SERVE & SUPPORT THE REGION


TALENT AVAILABILITYGROWING SUPPLY OF QUALITY TALENT

TALENT AVAILABILITY & COMPETENCY

120,645 319,633 285,000

2,000 10,000 191,288

Board of EngineersMalaysia

RegisteredMembers

Financial Services Professionals

50,000 (ACCA students and members),

857 (The Actuarial Society members)

Information and Communication Technology (ICT)

Knowledge Worker

The Chartered Institute of

Logistics and Transport Malaysia

Members

Malaysian Institute of

Management (MIM) Members

Healthcare Professionals

46,491(Doctors), 92,681 (Nurses)

KEY TALENT SECTORS

Board of Engineers Malaysia, 2017

Malaysian Institute of Management, 2015

The Chartered Institute of Logistics and Transport, 2018

Department of Statistics Malaysia, 2015


94.6%Literacy Rate

UNESCO Institute for Statistics 2015

2nd

Most Talent-Competitive Country in ASEAN

IMD World Talent Report 2017

2nd

Most English-Proficient Country in ASIA

EF English Proficiency Index 2017

✓ High Competency

✓ Language Proficiency

✓ Regional Experience

✓ Highly Motivated

15.1 millionLabour Force

Source: DOSM (2017)


Competent Senior Managers Availability

6 17 19 23 27

International Experience of Senior Managers

6 18 22 23 29

Skilled Labour Availability

6 12 22 35 46

Finance Skills Availability

13 27 28 42 49

Global Ranking

Global Ranking

Global Ranking

Global Ranking

COST EFFECTIVE PLACE FOR DOING BUSINESS AND AFFORDABLE QUALITY LIFESTYLE

COST OF LIVING

Kuala Lumpur

Shanghai

145th

Singapore

4th

7th

1st

Least Expensive

Most Expensive

Hong Kong

52nd

Bangkok

Source: Mercer Cost of Living Survey 2018

190.3

69.8

14.70

50

100

150

200

HongKong

Singapore KualaLumpur

Prime Office Gross Effective Rents1

(US$/sqm/mth)

1Source: Knight Frank Research-Asia Pacific Prime Office Rental Index Q12016

2Source: 2016 Hays Asia Salary Guide(Salary based on Accounts Support position within an MNC)

38.6 43.4

13.2

-

10.0

20.0

30.0

40.0

50.0

HongKong


Average Cost of Talent2

(US$k/annum)

381

265

205

0

100

200

300

400

500

HongKong


Hilton Room Charges3

(US$/night)

3Source: Hilton Reservation(Nett charges based on Deluxe Room)

17

22

13

0

5

10

15

20

25

HongKong


International School Fees4

(US$k/annum)

4Source: International School Tuition Fee Schedule 2015-2016Elementary school (Year 1-Year 5)

WITH TAX INCENTIVES

Source: Internal

COMPETITIVE TAX REGIME


STATE & RATE OF DIGITAL EVOLUTIONMALAYSIA PROGRESSING INTO “STAND OUT” QUADRANT

“Clearly, the most exciting region in the world, digitally speaking, is Asia, with China and Malaysia as exemplars. We can expect to see plenty of investor and entrepreneurial interest in this region”.

DEVELOPING A DIGITAL ECONOMY NEW SOURCE OF GROWTH FOR MALAYSIA’S GROSS DOMESTIC PRODUCT (GDP)

GDP contribution of Malaysia’s digital economy is expected to exceedthe 20% target by 2020 from the current 17%

FINANCIAL TECHNOLOGY

INTERNET-OF-THINGS (IOT)

INDUSTRY 4.0

BIG DATA

E-COMMERCE

CYBERSECURITYCLOUD & DATA CENTER


DIGITAL INNOVATION ECOSYSTEMCATALYZING MALAYSIA AS ASEAN’S ROBUST DIGITAL & INNOVATION HUB

ASEAN DATA ANALYTIC EXCHANGE

• Create 20,000 data professionals by 2020, including 2,000 data scientists

• Provide analytics sandbox platform• Co-working location

• Complete start-up ecosystem• Test bedding and market access

opportunities• Digital hub locations

DIGITAL HUBS

DIGITAL FREE TRADE ZONE

• Invigorate internet-based innovation• Position Malaysia as a regional hub

for e-Commerce logistics• Integrated export and import customs

declaration

Source: MDeC


Priority Sectors

• Oil and Gas• FMCG• Aerospace• Finance• Healthcare• Engineering• Construction

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RT

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20

17

20

22

20

26

20

20

20

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Completion Date

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RO

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20

25

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Vis

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20

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20

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24

Business Opportunities In KLWhat’s New for KL - High Impact Projects

PROVEN TRACK RECORD Hosting Global MNCs COMPETITIVE CITY

EASY TO DO BUSINESS

AT A FAIR COST

Global Competitiveness Report 2015 - 2016

2ND (ASEAN)

Global Doing Business Rankings 2017

2ND

(ASEAN)

Global Cost of Living Survey 2018(#1 = most expensive)

145TH

1ST Best Nation to Invest In2017 Best Countries Report

ATTRACTIVE INCENTIVES*

• Corporate Income Tax Exemption• Investment Tax Allowance• Import & Customs Duty Exemption• Unrestricted Foreign Knowledge

Workers*Depending on business commitment

SUMMARY GREATER KUALA LUMPUR (GKL)Truly an International City for a Regional Business Hub

Gateway to ASEAN & ASIA

MILLIONPOPULATION

TRILLION GDP (USD)

633

2.57 2ndLARGEST ASIAN

ECONOMY

4.8%GDP

GROWTH

China Belt and Road Initiative

US$113 Billion AIIB Funding

US$8 TrillionAnticipated Investments

273,373Graduates in 2015

46Public/private universities

Flight time to major Asian cities

7 hours

EXCELLENT ECOSYSTEM

>350km of rail projects

US$15 bilPassengers annually

196 mil

Talent

Connectivity

Infrastructure

Weekly flights to 124 cities (KLIA)

2,000

GREAT QUALITY OF LIFE

4TH

Best Shopping Destination Worldwide

Multicultural Malaysia Warm, friendly and welcoming environment

44International

schools

23World class golf courses

Host since 1991

Kuala Lumpur International Airport

• 12th Busiest Airport (2017) • 124 Cities

• 58 million pax carried in 2017 • 2000 flights weekly

• 710,816 metric tonnes of

cargo carried in 2017

CITY: GREATER KL - RAIL PROJECTS (MRT, LRT Extension, Monorail)

• LRT Lines – 100 km • 12 BRT (Bus Rapid Transit) Corridors

• MRT 1 Line – 51 km• MRT 2 Line – 52.2 km

• HSR – 350 km connecting KL to Singapore (project to start in 2020)

RM11.07B investment

RM5.78B (52%) realized

InvestKL MNC Impact to Greater KL

RM128.2Mest. annual rental

Increased Usage of Ancillary Services• Professional Services, Firms• Hotels & MICE• Real Estate Specialists• Banking and Finance

99 Floors Petronas Twin Towers

> RM123.6MEst. annual personal

income tax from employees of MNCs

11,195 regional jobs

7,116 (63.6%) on payroll

1.8million sq ft

equivalent to

Examples of InvestKL MNCs

76 MNCs


Regional Jobs Created - Salary Analysis (end of Q2 2018)

Locals vs Expats (Salary Scale)

Based on 7,116 Realised Job Creation as at 30 Jun 2018

Overall 7,116 Local 5,780 (81%) Expat 1,336 (19%)


State No. of MNCsRealised Jobs

(Q2 2018)2018 Office Space

Utilization*

Kuala Lumpur 52 3,309 885,149

Selangor 24 3,807 897,374

TOTAL 76 7,116 1,782,523

Average Rental :-Kuala Lumpur RM7 /sqf-Selangor RM5 / sqf

Spill Over to Local Economy - Space Utilization Analysis

RM Million

Estimated Annual Rental (2018)

RM 128.2 million

* KLCC average NLA / floor – 18,000 sqf

The 76 MNCs would

occupy 49.5 floorsof both Petronas TwinTowers

New office space

99 floors @ Petronas Twin Towers

Total Cost Total Length Pax / day Stations

£12.32bil 203KM 537,757 94

Greater KL Rail Project (MRT, LRT Extension, Monorail)

MRT Line 1

LRTKommuter

Monorail

KLIA Transit

LRT

KL River of LifePhase 1 Launched by Prime Minister Najib on 28 August 2017

Tun Razak Exchange (TRX)On Track for Launch in 2020

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