Malaysia Your Profit Centre in Asia

Incentives & Policies

In The Resource-Based

Industries

16 June 2015

PRESENTATION

OUTLINE

PROMOTED PRODUCTS AND ACTIVITIES

INCENTIVES & POLICIES

TARGETED SECTORS

RESOURCE-BASED INDUSTRY IN MALAYSIA: RUBBER PALM-BASED INCLUDING OLEOCHEMICALS WOOD-BASED

CONTACT US

TARGETED SECTORS

Quality Investment (FDI & DDI)

Strong Linkages with Domestic

Industries

Completing the

ecosystem

Capital Intensive

High Value Added

Utilization of natural

resources Green &

Clean Technology

Skills Intensive

High Income Jobs

Iconic/ Pioneer Project

High Technology &

Knowledge Intensive

4

Quality Investments

5

Promote the entire value chain of industry clusters

Strengthen & complete the ecosystem

5

Ecosystem Approach

High technology, capital intensive & knowledge driven industries:

Industries manufacturing intermediate goods:

Resourced-based industries:

• Alternative Energy Sources

• Biotechnology

• Advanced materials

• Advanced electronics

• Optics and photonics

• Petrochemicals

• Pharmaceuticals

• Medical devices

• ICT

• Aerospace

• Oil & Gas • Food & Agro based • Value-added products from natural resources

• Machinery & equipment • Components & parts • Moulds and dies

6

Targeted Sectors In Manufacturing

• Principal Hubs

• Business and professional services

• Logistics

• ICT services

• Offshore and outsourcing activities

• Distributive trade

• Education and training

• Healthcare

• Tourism

7

Targeted Sectors In Services

RESOURCE-BASED INDUSTRY

IN MALAYSIA

9

RUBBER INDUSTRY

• Total world production of rubber is growing at

an average rate of 2.9% per annum.

• Natural and synthetic rubber accounted for

41% and 59% of total world production.

• Growing trend in awareness for sustainability

in rubber:

Increasing R&D programs to achieve a

green industry status through new

environmentally-friendly processing and

waste utilisation technologies

• The vast potential of the industry when

developed as an integrated entity from rubber

cultivation to the downstream value-added

industries. Source: MREPC & MRB

Global Scenario

• Malaysia is the sixth largest producer of Natural Rubber after

Thailand, Indonesia, Vietnam, China and India.

• Key stakeholders:

• Private Sector – investment

• Malaysian Rubber Board (MRB)

• Tun Abdul Razak Research Centre (TARRC)

• Malaysian Rubber Export Promotion Council (MREPC)

• Industry sub-sectors:

• Latex products

• Tyres & tyre-related products

• Industrial and general rubber products

11 Source: MREPC

Rubber Industry In Malaysia

Latex Products

• World’s leading producer and exporter of medical gloves

(examination ad surgical gloves), catheters and condoms

• Second largest exporter of latex threads (in value terms)

• Major companies producing latex gloves:

• Top Glove Sdn. Bhd. (Malaysia)

• Hartalega Sdn. Bhd. (Malaysia)

• Kossan Rubber Industries Berhad (Malaysia)

• Supermax Corporation Berhad (Malaysia)

12

Rubber Industry In Malaysia (Cont.)

Tyres and Tyre-related Products

• More than 40 companies producing tyres and tyre-related

products i.e. tyre retreads, inner tubes, etc.

• Major Tyre producers : • Continental Tyre AS Malaysia Sdn. Bhd. (Germany)

• Continental Tyre PJ Malaysia Sdn. Bhd. (Germany)

• Silverstone Berhad (Japan)

• Goodyear Malaysia Berhad (USA)

• Toyo Tyre Malaysia Sdn. Bhd. (Japan)

13

Rubber Industry In Malaysia (Cont.)

Industrial and General Rubber Products

• More than 185 Companies producing a wide range of rubber

products:

• Beltings

• Hoses

• Tubings

• Seals and sheeting for automotive

• Electrical & electronics

• Machinery & equipment

• Construction industries

14

Rubber Industry In Malaysia (Cont.)

15

RUBBER ECOSYSTEM

PRIMARY END PRODUCT SECONDARY

Dried

rubber

Environmental-Friendly Tyres / Green Tyres

• Belting

• Hoses, Pipes and

Tubing

• Rubber profiles

• Seals, gaskets,

washers, packings,

rings and rubber lining

• Anti vibration, damping

and sound insulation

products

Concentrated

Latex

Rubber

Compound Safety or special function

gloves

Rubber gloves

RAW MATERIALS

PLANTATION

The Ayer Hitam

Planting

Syndicate

Berhad

Tyres:

Earthmovers, agricultural

vehicles, industries

vehicles, commercial

vehicles and aircraft

Ekoprena

Enablers Malaysia Rubber Board (MRB) /SIRIM/ Malaysian Rubber Glove Manufacturers Association (MARGMA)/

Malaysian Rubber Export Promotion Council (MREPC)/FMM/Malaysian Association of Tyre Retreaders and

Dealer Society (MATRDS)/ Global Testing and Consultancy for Rubber(G-TACR)

Advanced Rubber for Engineering and

Eco-Efficient Applications Pureprena

Natural Latex

16

RUBBER ECOSYSTEM

• Belting

• Hoses, Pipes and

Tubing

• Rubber profiles

• Seals, gaskets,

washers, packings,

rings and rubber

lining

• Anti vibration,

damping and sound

insulation products

Tyres:

Earthmovers,

agricultural vehicles,

industries vehicles,

commercial vehicles

and aircraft Recycling

Process

Enablers Malaysia Rubber Board (MRB) /SIRIM/ Malaysian Rubber Glove Manufacturers Association

(MARGMA)/ Malaysian Rubber Export Promotion Council (MREPC)/FMM/Malaysian Association of

Tyre Retreaders and Dealer Society (MATRDS)/

Global Testing and Consultancy for Rubber(G-TACR)

Rubber

powder/crumb/sheet

Fuel Oil

Carbon Black

Steel

Fibre (Textile)

Other Industries

Others

Reclaimed Rubber

Retread Tyres

Recycled

PRIMARY SECONDARY RECYCLED PRODUCTS

17

Domestic Investment : RM1.2 Billion

Foreign Investment :

RM103.1 Million

1,728 Job Opportunities

15 Projects

RM1.3 Billion

Approved Projects In Rubber Industry, 2014

18

PALM-BASED INDUSTRY

• The palm oil products sector comprises palm oil, palm kernel oil, oleochemicals, biodiesel, energy generation and products from palm biomass.

• Palm oil is one of the 17 major oils and fats produced in the world. The world’s major consumers of oils and fats are the People’s Republic of China, Europe, Pakistan and India.

• The production of crude palm oil (CPO) was 19.67 million tonnes in 2014 (19.22 million tonnes in 2013).

• The production of crude palm kernel oil and palm kernel cake amounted to 2.28 million tonnes and 2.52 million tonnes respectively.

• Exports of Malaysian oil palm products in 2014, constituting palm oil (crude palm oil and processed palm oil), palm kernel oil, palm kernel cake, oleochemicals, biodiesel, finished products and other palm products, amounted to 25 million tonnes compared with 25.7 million tonnes in 2013. In terms of value, exports increased from RM61.4 billion in 2013 to RM63.5 billion in 2014.

Palm Oil Industry In Malaysia

• The total oil palm planted area in the country was 5.39 million hectares. Sabah remained the largest oil palm planted state, accounting for about 28% of the total planted area in the country, followed by Sarawak and Johor.

• The oil palm industry consists of three major sub-sectors - the food based industry, oleochemicals and biomass products.

Plantation Sector Industry Sector

Current Status

PALM BIOMASS ECOSYSTEM

21

Oil Palm Frond (OPF)

Empty Fruit Bunch (EFB)

Palm Kernel Shell (PKS)

PRIMARY END

PRODUCTS SECONDARY RAW

MATERIALS

OPF Chips

Dried & Fine Fiber

Pulp (Metro Knight Sdn Bhd)

MDF / Particle Board

Briquette (HK Kitaran Sdn Bhd)

Pulp

Paperboard (Jin Xiu Paper Industry (M) Sdn Bhd)

Pellets (QL Tawau Palm Pellet Sdn Bhd)

Paper / Paperboard

Insole / Ring File

Energy Generation

Energy Generation

Furniture/Furniture part

Packaging, Molded Products / Paper

Oil Palm Trunk (OPT)

OPT Chips

Veneer/Plywood (Nippon Palm

Corporation Sdn Bhd)

Pellets (Green Giant Energy Sdn Bhd)

Pulp (Eko Pulp & Paper Sdn Bhd)

MDF/ Particle Board

Energy Generation

Packaging, Molded Products / Paper

Furniture/Furniture part

Furniture / Building Construction

Mattress/ composite product / moulded products / Packaging material

Promoted Products

49 projects RM5.7 billion

Domestic Investment:

RM3.6 billion

Foreign Investment:

RM2.0 billion

1,426 Job Opportunities

Approved Palm-Based Projects 2014

23

• Chemicals derived from natural oils/fats - could be of

animal, marine or vegetable oil sources .

• Derived from breaking the oils/fats into corresponding

constituents, i.e. fatty acids, glycerol, fatty esters, etc.

• Normal process involves hydrolysis or trans

esterification

• Production capacity in Malaysia :

2013 = 2.6 million tonnes

2014 = 2.8 million tonnes

What Is Oleochemical?

Source: MPOB

Significant expansion in production of fatty acid and

fatty alcohol capacities in the Asia region.

Asia Pacific led by Indonesia, China, and Malaysia, with

advantaged feedstock and markets, account for nearly

70% of the global markets and 60% of the total

capacity.

Increasing demand for oleochemicals in key end-user

applications such as personal care is expected to

improve the growth of oleochemicals market

Global Scenario

Source: Frost & Sullivan

Source : LMC International 2009 25

Major Producers of Basic Oleochemical in the World

Oleochemical industry in Malaysia started in 1979/1980. Comprises of the basic oleo chemical and oleochemical

derivatives subsector.

Malaysia is the largest producer of oleochemicals in the world : 20% of global capacity.

Almost 16 oleochemical plants are established in Malaysia.

Major Home Grown Players : IOI, KLK, Emery, Natural

Oleochemical, Oleon, FGV.

Oleochemical Industry In Malaysia

Malaysia : rich with raw material resources but lack in technology innovation to move into specialty products.

Palm Oil NKEA under EPP 6 initiative shift downstream industry to higher value add derivatives e.g surfactants, agrochemicals, bio lubricants, bio polyols and propylene glycol derivatives.

Vertical Integration: Large plantations have started to invest in downstream feedstock processing

Related supporting regulation bodies; MPIC , MPOB , MPOC

Oleochemical Industry In Malaysia (Cont.)

FEEDSTOCK BASIC DERIVATIVE SPECIALTY CONSUMER

Oleochemical Value Chain

MAJOR OPERATING COMPANIES IN MALAYSIA

Plantation /Millers

ME,Fatty Acid, Fatty Ester, Glycerine

PRODUCTS

Sulfo Fatty Acid

Ester, Alkyl

Chlorides, Fatty

Acid Ethoxylates

EGMS, Methyl Ester

Sulphonate (MES)

Methyl Ester

Food Industry, Toiletries

Confectionary, Pharmaceutical

Oil & Gas, Dairy Products

Domestic Investment : RM2.5 billion

Foreign Investment : RM1.4 billion

1,426 Job Opportunities

22 Projects

RM3.9 billion

Approved Oleochemical Projects in 2014

30

WOOD-BASED INDUSTRY

TARGETED SECTORS

MDF for Malaysia has achieved international standards British Standards (BS) Asia Pacific : Japan Australia & New Zealand (JANS) Harmonised European Standards (EN)

LARGEST EXPORTER OF TROPICAL WOOD

3RD LARGEST EXPORTER OF MDF (AFTER GERMANY & FRANCE)

9TH WORLD LARGEST EXPORTER OF FURNITURE

Source : MTIB

NATIONAL TIMBER INDUSTRY POLICY (NATIP) 2009 – 2020

- Target export of timber products RM 53 billion by 2020

(2014 – RM 20.52 billion)

Wood-Based Industry In Malaysia

Companies In Wood-Based In Malaysia

Veneer, sawn timber, timber

slabs, wood chips, fibre

Sabah Softwoods

Berhad Samling Plywood

(Bintulu) Sdn Bhd Mentakab Veneer &

Plywood Sdn Bhd Shin Yang Plywood

Sdn Bhd

WOOD BASED INDUSTRY ECOSYSTEM

MID-STREAM DOWN STREAM UPSTREAM

Supporting R&D and Government

Agencies

Decorative panel boards (excluding plain

plywood) / timber mouldings / builders

carpentry and joinery / wood waste products

(charcoal , wooden briquette, wood wool) Cipta Briquette Sdn Bhd Ketukangan Inspirasi Sdn

Bhd Pan Euro Products Sdn Bhd

Design,development & production of wooden

furniture LY Furniture Sdn.

Bhd. Cosmopolitan

Wood Sdn Bhd Home Ritz Corp Bhd Lii Hen Furniture

Sdn Bhd

RAW MATERIAL

Tropical hardwood /

rubber wood / acacia

Forest

**Engineered wood, also called composite wood, man-made wood, or manufactured board; includes a range of derivative wood, products which are manufactured by binding or fixing the strands, particles, fibers or veneers or boards of wood, together with adhesives, or other methods of fixation to form composite materials (greater strength)

Promoted Products Under General List

Promoted Products Under Small Scale Industries

WOODEN FURNITURE ECOSYSTEM

34

MID-STREAM DOWN STREAM RAW MATERIAL

Supporting R&D and

Government Agencies

Timber molding / finger joint

Major player: Samling Housing Product Sdn. Bhd.

Plywood

Major player: Asia Plywood Company Sdn Bhd

Particle board Major player:Mieco

Manufacturing Sdn. Bhd.

Sawn Timber

Major Player : Sabah Softwoods Berhad

logs

Sabah Forest Industries Sdn. Bhd.

Wood chips Major player:Sabah Softwoods Berhad.

Design and

develop

Promoted Products

KENAF ECOSYSTEM

35

MID-STREAM DOWN STREAM

Potential / Existing

Companies operating

in Malaysia

UPSTREAM

Supporting R&D and

Government Agencies

Plantation & Cultivation Kenaf Fibre & Powder Kenaf End Products

KEFI Malaysia S/B (Kenaf Fibre & Core)

Kenaf Natural Fiber

Industries S/B (Kenaf fibre & core)

Symphony Advance S/B

(Kenaf powder)

Pointray S/B (Powder, Pellets & Furniture

from Kenaf)

KPC Manufacturing (M) S/B

(Kenaf Polymer Composites Foaming)

Sri Jentayu Sdn. Bhd.

(Bullet proof vest)

Bio Solutions Sdn. Bhd. (Yarn & textile)

Small Planters

Promoted Products

48 projects RM465.4 million

Domestic Investment:

RM422.9 million

Foreign Investment:

RM42.5 million

3,815 Job Opportunities

Approved Wood-Based Projects 2014

PROMOTED PRODUCTS AND

ACTIVITIES

38

Category Current List

General List Manufacture of Rubber Products i. Tyre for earthmover, agriculture vehicles, industries vehicle,

commercial vehicles, motorcycle and aircraft. ii. Latex products (Safety or special function gloves) iii. Dry rubber products:

a) Beltings b) Hoses, pipes and tubings c) Rubber profiles d) Seals, gaskets, washers, packings, rings and rubber lining e) Anti-vibration, damping and sound insulation products

Small Scale (SMIs) Manufacture of Rubber Products i. Moulded rubber products ii. Extruded rubber products iii. General rubber goods

Promoted List Under PIA 1986 - Rubber

39

Category Current List

General List Manufacture of palm oil products and their derivatives such as: i. Oleochemicals or oleochemical derivatives or preparations ii. Palm based nutraceuticals, constituents of palm oil or palm kernel oil iii. Palm-based food products and ingredients:

• Specialty animal fat replacer • Palm-based mayonnaise and salad dressing • Milk or coconut powder substitute • Red palm oil and related product • Palm-based food ingredient • Modified (interesterified) pam oil and palm kernel oil products • Margarine, vanaspati, shortening or other manufactured fat products • Cocoa butter replacers, cocoa butter substitutes, cocoa butter

equivalent, palm mid fraction or special olein Processed products from: i. Palm kernel cake, ii. Palm oil mill effluent iii. Palm biomass

Small Scale (SMIs) Manufacture of oil palm products and their derivatives such as: Processed products from palm oil Processed products from palm biomass/waste/by-products

Promoted List Under PIA 1986 – Palm-Based

40

Category Current List

General List Manufacture of Wood-Based Products i. Design, development and production of wooden furniture ii. Engineered wood products excluding plywood

Manufacture of Pulp, Paper and Paperboard Corrugated medium paper, testliner or kraftliner or kraft paper and paperboard Manufacture of Kenaf-Based Products Such as animal feed, kenaf particle or fibre, reconstituted panel board or products and moulded products

Small Scale (SMIs) Forestry Products Rattan products, bamboo products and other forestry prodcuts Manufacture of Wood and Wood Products i. Decorative panel boards (excluding plain plywood) ii. Timber mouldings iii. Builders’ carpentry and joinery iv. Products derived from utilisation of wood waste (eg.: activated charcoal) v. Wooden household and office articles

Manufacture of Paper and Paperboard Products Moulded paper products

Promoted List Under PIA 1986 – Wood-Based

41

Category Resourced Based

Reinvestment (Section 4F)

i. Rubber ii. Oil Palm iii. Wood

Promoted List Under PIA 1986 – Reinvestment

INCENTIVES & POLICIES

The Industrial Coordination Act 1975 requires manufacturing companies with shareholders’ funds of RM2.5 million and above or engaging 75 or more full time paid employees to apply for a manufacturing license (ML). ML application will be processed by MIDA.

Guidelines on Manufacturing License

43

Investment Policies

Repatriation of Funds

Foreign Equity

Liberal Expatriate Post Approvals 44

Investment Policies

45

PIONEER STATUS (PS) Income tax exemption ranging from 70% or 100% for a period of 5 or 10

years

GENERAL LIST

INVESTMENT TAX ALLOWANCE (ITA) 60% or 100% on qualifying capital

expenditure for 5 years. Can be offset against 70% or 100% of statutory

income.

PIONEER STATUS (PS) 100% income tax exemption for a

period of 5 years

SMIs LIST

INVESTMENT TAX ALLOWANCE (ITA) 60% on qualifying capital

expenditure for 5 years. Can be offset against 100% of statutory

income.

Major Incentives

46

Reinvestment by Existing Company (Section 4F) – Resource-Based Industry

Another round of PS Income tax exemption ranging from 70%

for a period of 5 years

Another round of ITA 60% on qualifying capital

expenditure for 5 years. Can be offset against 70% of statutory income.

Second Round Incentive for Investment By Subsequent Company Formed by Existing Company

A second-round of PS Income tax exemption ranging from 70%

of increased statutory income for a period of 5 years

A second-round of ITA 60% on additional qualifying capital

expenditure for 5 years. Can be offset against 70% of statutory income.

Major Incentives

High Technology

New and emerging

technologies

Relatively new technology for

the industry concern

Incentives For Acquiring A Foreign Company For High

Technology

INCENTIVES FOR REINVESTMENT (BUDGET 2002)

Annual deduction of 20% of the acquisition cost for 5 years. To enable Malaysian owned companies to acquire state-of-the-art technologies

for the purpose of utilizing of the acquired technology in their existing operation within Malaysia.

Eligibility Criteria The acquirer company must be local owned with at least 60% Malaysian equity

for a period of 5 years from the date of application. The acquiree must be foreign company with 100% foreign equity ownership Direct acquisition at least 51% of the equity of the foreign company abroad The acquisition must be in form of cash transaction The acquisition must be complete within 3 years The acquisition must result in increase of performance or enhancement of

technology and process of company’s operation in Malaysia

Incentives For Acquiring A Foreign Company For High

Technology

Reinvestment Allowance

60% on qualifying capital expenditure for 15 consecutive years

(Application to be submitted to IRB)

Import Duty Exemption

For raw materials

49

Other Incentives

50

• Further development of the

rubber industry in the heart of the

Natural Rubber Economic Belt

• Proposed site: Ladang Bukit Ketapang,

Kuala Nerang, Kedah

• Supported and facilitated by the

Malaysian and Kedah State

Government

• More than 1,157 acres of flat land

• Rubber City will comprise:

Industrial zone

Commercial zone

Research & Development (R&D)

hub

Establishment Of Rubber City In Kedah

Catalytic Anchor Tenants

Leading rubber product manufacturers

e.g. latex / nitrile gloves, passenger & commercial tyres, condoms

Specialized Latex & Rubber Products

High value-add and specialized products for niche customer

segments

e.g. specialty / surgical gloves, catheters, latex mattresses,

adhesives, “intelligent” rubber

Precision Engineered Rubber Products

Precision moulded rubber products for different industrial

sectors

e.g. seals, gaskets, bearings for automotive, aerospace, construction

sectors

“Green” Rubber Products

Rubber-based products from environmentally-friendly raw materials and/or processes

e.g. Ekoprena tyres, reclaimed rubber products such as rubberised

bitumen

4 Sub-Industries

51

Rubber City Core Industry Focus

100% of qualifying capital

expenditure for 5 years. Can be

offset against 100% of statutory

income.

100% tax exemption for a period

of 5 + 5 years commencing from

the year company derives

statutory income

50% tax reduction for 5 years

PS

• 100% tax exemption for a period of 5 + 5 years commencing from the year company derives statutory income

ITA

• 100% of qualifying capital expenditure for 5 years. Can be offset against 100% of statutory income.

Stamp Duty Exemption

•For documents related to transfer of land/ building

Deduction on Pre-Operational Expenditure

•Tax exemption for pre-operational expenditure incurred within a period of 4 years

Reduction in Corporate Tax

•50% tax reduction for 5 years

• Applicable for Specialised Latex and Rubber, Precision Engineered Rubber and Green Rubber Products only.

OR

52

Incentives For Rubber City

NEW INCENTIVES UNDER THE 2015 BUDGET

Incentive for Less Developed Areas

Incentive for Industrial Area Management

Capital Allowance to Increase Automation

in Labour-Intensive Industries

Incentive for the Establishment of

Principal Hub

NEW INCENTIVES ANNOUNCED

New Incentive Annouced

INCENTIVE FOR LESS

DEVELOPED AREAS

Income Tax Exemption :

100% up to 15 years of assessment (5+5+5) OR

Investment Tax Allowance :

100% of qualifying capital expenditure incurred within 10 years

Stamp Duty Exemption on :

Transfer or leased of land or building used for development in relation to

manufacturing and services activities

Witholding Tax Exemption on :

Fees for technical advice, assistance or services or royalty in relation

tomanufacturing or services activities

Import Duty Exemption on :

- Raw materials & components used directly in the manufacturing process

- Machinery & equipment in the activity for the selected services sector

Incentives

Incentive For Less Develop Area

TARGET

GROUPS

ELIGIBILITY

CRITERIA EFFECTIVE DATE

OF APPLICATION

Existing

companies

expanding their

operation into the

less developed

areas; OR

Newly established

companies

Undertake

manufacturing or

services activities in

less developed areas

with substantial

employment creation

and rural

development

Comply with

conditions including

value added, local

employment and

Managerial, Technical

and Supervisory

Index (MTS index)

Submission

period: 1 January

2015 to 31

December 2020

Application

submitted to

MIDA

CAPITAL ALLOWANCE TO INCREASE

AUTOMATION IN LABOUR-INTENSIVE

INDUSTRIES

Category 2:

Other industries - ACA of

200% on the first RM2 million

expenditure incurred within

Year of Assessment 2015 to

2020.

IMPLEMENTATIO

N TIMELINE

Manufacturing

companies (labour

and non-labour

intensive) operating

at least 36 months in

Malaysia

Category 1:

Year of Assessment

(YA) 2015 – YA 2017

TARGET GROUP TYPE OF INCENTIVE

Accelerated Capital Allowance (Aca)

Category 2:

Year of Assessment

(YA) 2015 – YA 2020

Category 1:

Labour intensive industries

(rubber products, plastics,

wood, furniture and textiles) –

ACA of 200% on the first RM4

million expenditure incurred

within Year of Assessment

2015 to 2017.

Eligibility Criteria

Possesses a valid Business Licence from

Local Authority and Manufacturing Licence

from MITI

Company residing in Malaysia and in

operation for at least 36 months

Expenditure incurred within the relevant years

of assessment

INCENTIVE FOR INDUSTRIAL

AREA MANAGEMENT

EFFECTIVE

DATE OF

APPLICATION

Newly established

companies; OR

Existing

companies

appointed by

Local Authority

100% tax exemption

on statutory income

for 5 years

commencing from the

date a company

commences its

activities

Submission

period: 1 January

2015 to 31

December 2017

Application

submitted to

MIDA

TARGET

GROUP

TYPE OF

INCENTIVE

Industrial Area Management

IE must be gazetted by the State

Authority as an Industrial Land

Eligibility Criteria

A company approved by Local Authority

to undertake the management of

specified IE

At least 70% of the annual income

derives from mandatory activities

Must undertake all of the following management,

upgrading and maintenance activities within the IE:

Mandatory Activities

Roads, street lightings and drainage systems

Common facilities

Landscaping

Industrial waste collection, transfer and

disposal

Database system maintenance

Thank You MIDA Sentral No. 5 Jalan Stesen Sentral 5 K L Sentral 50470 Kuala Lumpur Tel. 03 – 2267 3633, Fax. 03 – 2274 7970 investmalaysia@mida.gov.my 65

Malaysia Your Profit Centre in Asia