This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Investing in Malaysia

“A Trusted Partner and Reliable Close Friend for the AEC”

March 2015

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Contents

Malaysia – Brief Introduction 3 Malaysia in Figures 4 National Key Economic Areas 5 Construction Projects 6 Advantages of Investing in Malaysia 7 Malaysia Tax Structure 8-9 Strengths & Weaknesses 11 Prospects in Malaysia 12 To Succeed 13 Banking Services for Companies in Malaysia 15 Local Banking Sector 16 Foreign Private Commercial Banks in Malaysia 17 Bangkok Bank in Malaysia 18-19 Key Contacts 20 End 21

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Malaysia – Brief Introduction

Consists of 13 states and 3 federal territories Contribution of SMEs to GDP in year 2014 – 33%

Aims to increase the percentage to 41% by year 2020 Average annual growth rate of GDP is 6.5% for almost 50 years Source: Ministry of International Trade and Industry (MITI)

GDP - Current Price

(Billion USD)

FDI

(Million USD)

Inflation

(%)

GDP Growth Rate

(%)

Population

(Million Persons)

International Reserve*

(Million USD)

304.9

10,074

1.7

5.6

29.5

139,724

Source: Bank Negara Malaysia, MITI, WEO Update October 2014 Note: International Reserve as of calendar year end.

2011

313.2

12,306

2.1

4.7

29.9

134,911

2012

336.9

N/A

2.9

5.9

30.5

115,937

2013

289.3

12,198

3.2

5.2

29.1

133,642

0.327

2014

Foreign Exchange Rate

(MYR per USD), avg. 0.324 0.318

0.306

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Malaysia in Figures

GDP per Capita

(USD)

10,331.3 10,456.9 11,062.0 9,995.7

National Key Economic Areas

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Oil, Gas & Energy

Palm Oil & Rubber

Financial Services

Tourism

Business Services

Electrical & Electronics

Wholesale & Retail

Education

Healthcare

Communications Content & Infrastructure

Agriculture

Greater Kuala Lumpur/Klang Valley

12 Key Sectors

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Rail

KL-Singapore High Speed Rail

ERL extension to Malacca

Freight Relief Line (Serendah – Port Klang – Seremban)

KVMRT line 2 & 3

Highway

West Coast Expressway – 276km remaining

Damansara-Shah Alam Highway (DASH) – 47km

Kinrara-Damansara Expressway (Kidex)

Others

Bukit Bintang City Centre

Project 4-B gas-fired power plant (2x1000MW)

Kuantan Port expansion

Source: Maybank IB Research as of December 2014

Ongoing & Future Projects

Construction Projects

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Advantages of Investing In Malaysia

Assistance from Malaysian Investment Development Authority (MIDA) which has a global network of

19 overseas offices

Tax Incentives & Allowances

Pioneer Status

Investment Tax Allowance

Double Deduction of Expenses

Incentive for Approved Overseas Investment

Plenty of Free Trade Zones

Implementation of supporting policies – Strategic Reform Initiatives (SRIs) : fostering a business

friendly environment conducive for private investment flows

Ease of starting business – procedures require minimum 6 days and costs 7.6% of income per capita in

fees (global stats: 25 days and costs 32% of income per capita in fees)

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This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Malaysia Tax Structure

Personal Income Tax:

For Residents, 1%-25%

For Non-Residents (period of stay is less than 182 days regardless citizenship/nationality), 10%-26%

Corporate Income Tax:

Resident Company, 20%-25%

Non-Resident Company, 10%-25%

Goods & Services Tax (GST)

Will be replacing the existing Government Service Tax of 10%

Proposed to be imposed at 6% from 1st April 2015

8 Source: Inland Revenue Board Of Malaysia

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Malaysia Tax Structure (ctd.)

Applicable if and only if the business is registered under GST (registration threshold of annual

turnover for taxable supplies: RM500,000)

Can be registered voluntarily

Taxable supplies :

Standard-rated supplies

Zero-rated supplies

Exempt supplies

Scope and Charge

Charged on the importation of goods and services as well

Amount of GST incurred on input can be deducted from the amount of GST charged by the

registered person.

Output > Input, difference is remitted to Government

Input > Output, difference is refunded by Government

9 Source: Royal Malaysia Customs Department

Goods & Services Tax (GST)

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

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Why Malaysia?

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Strong political stability

Large number of young, hardworking, and highly literate labor force

Growing consuming class with higher purchasing power

Abundant natural resources – opportunities of both downstream and upstream

Strategic location – able to reach 60% of the countries within 5 hour radius. Hence, secured location for Foreign Direct Investment

Competitive tax rates

Strengths & Weaknesses

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Strengths

Weaknesses

Fluctuation of Money Market and Exchange rate

Shortage of workers in the downstream sectors

Dependent on the external factors such as the Asia Pacific Community for business

Instability of weather which may affect certain industries

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

In the next 3-5 years

Growth in the Islamic Banking Sector – currently largest in the world

Proliferating opportunities due to current projects – Multimedia Super Corridor/Economic Transformation Programme/10th Malaysia Plan

Steady growth in exports

Growing number of consuming class

Prospects in Malaysia

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In the next 3-5 years

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

To Succeed

13

Key success factors

Know well and respect local regulations

Plenty of bodies/organisations to refer to i.e. Royal Malaysian Customs Department, Immigration Department of Malaysia, Companies Commission of Malaysia(SSM)

Manage well in human resources

Understand culture of Malaysian consumers

Decision maker must be on-site

Have Bangkok Bank Bhd as your partner

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

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Financial Services

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Banking Services for Companies in Malaysia

All Banks are governed by Bank Negara Malaysia (BNM).

Local Banking Sector

Commercial Bank

Postal Savings Bank

Building Society

Co-operative Bank

Islamic Bank

Foreign Commercial Bank

Wholly Foreign-owned Bank

Representative Offices of Foreign Bank

Islamic Bank

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This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Local Banking Sector

Banks List

1. Commercial Bank Malayan Banking Bhd RHB Bank Bhd Public Bank Bhd CIMB Bank Bhd Hong Leong Bank Bhd AmBank (M) Bhd Alliance Bank Malaysia Bhd Affin Bank Bhd

2. Postal Savings Bank Bank Simpanan Nasional

3. Building Society Malaysia Building Society Bhd

4. Co-operative Bank Bank Kerjasama Rakyat Malaysia Bhd Bank Persatuan Malaysia Bhd

5. Local Islamic Bank Source: Bank Negara Malaysia

Bank Islam Malaysia Bhd Bank Muamalat Malaysia Bhd Maybank Islamic Bhd Alliance Islamic Bank Bhd

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This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Foreign Private Commercial Banks in Malaysia

Banks Examples

1. Wholly Foreign-owned Bank

Bangkok Bank Bhd Bank of China (Malaysia) Bhd J.P. Morgan Chase Bank Bhd Standard Chartered Bank Malaysia Bhd United Overseas Bank (Malaysia) Bhd Citibank Bhd HSBC Bank Malaysia Bhd OCBC Bank (Malaysia) Bhd The Royal Bank of Scotland Bhd BNP Paribas Malaysia Bhd

2. Representative Offices of Foreign Bank Credit Suisse Ltd DBS Bank Ltd The Royal Bank of Scotland Ltd Wells Fargo Bank Ltd The Bank of Tokyo-Mitsubishi UFJ Ltd National Australia Bank Ltd Zamora Trading Ltd Middle East Investment Bank Ltd

3. Foreign Islamic Bank Source: Bank Negara Malaysia

Al Rajhi Banking & Investment Corporation Kuwait Finance House (Malaysia) Bhd HSBC Amanah Malaysia Bhd

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This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Bangkok Bank in Malaysia

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Bangkok Bank Kuala Lumpur Head Office 105, Jalan Tun H.S. Lee, 50000 Kuala Lumpur Tel: (+60)3-2173 7200

Kuala Lumpur Main Branch 105, Jalan Tun H.S. Lee, 50000 Kuala Lumpur Tel: (+60)3-2173 7219

Bandar Botanic Branch No 1, Jalan Kasuarina 2/KS07, Bandar Botanic, 41200 Klang, Selangor Tel: (+60)3-3325 2178

Taman Molek Branch No. 1 & 3, Jalan Molek 1/30, 81100 Taman Molek, Johor Bahru, Johor Tel: (+60)3-353 3001

Jalan Bakri Branch No.8, Taman Pesta Baru, Pusat Perniagaan Pesta Baru, Jalan Bakri, 84000 Muar, Johor Tel: (+60)3-953 1001

Penang Auto-City Branch 815-A, Jalan Perusahaan, Auto-City

North-South Highway, Juru Interchange, 13600 Prai, Penang Tel: (+60)3-5012388

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Bangkok Bank in Malaysia

19 Source: www.bangkokbank.com.my

Deposit (USD, MYR) Current, Savings, Fixed

Loan (USD, MYR)

Revolving Short-term Loan

Long-term Loan

Trade Finance Facility: L/C, S/G, T/R, B/A, L/G, etc.

Local and Foreign Fund Transfer (USD, MYR, GBP, EUR, etc.)

Foreign Exchange

International Trade

Inward/Outward Bills for Collection: D/P, D/A

Letter of Credit

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Malaysian Investment Development Authority (MIDA) First Contact Point before investment

Ministry of International Trade and Industry (MITI)

Facilitates trade sector

Ministry of Finance

InvestKL

Facilitates companies to set up regional businesses in Greater Kuala Lumpur

In line with Economic Transformation Programme

Bursa Malaysia Stock Exchange for Malaysia

Key Contacts

20 Source: Performance Management and Delivery Unit (PEMANDU)

This information is confidential and was prepared by Bangkok Bank solely for the use of our client; it is not to be relied on by any 3rd party without Bangkok Bank’s prior written consent.

Our International Branch Network - Thailand’s only truly regional bank

China (subsidiaries) Hong Kong Taiwan (Taipei, Kaohsiung and Taichung) Japan (Tokyo and Osaka) United Kingdom United States

Malaysia (subsidiaries) Laos Vietnam (Hanoi and Ho chi Minh) Indonesia (Jakarta, Surabaya and Madan) Philippines Singapore Cambodia Myanmar (preliminary approved)

ASEAN

Other important Economies

BBL international network covers 13 countries globally, with 28 overseas branches and 1 representative office in Yangon, Myanmar. BBL is the Thai bank with the most extensive branch network in the ASEAN region, putting us in the best position to support the growing businesses of our clients

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