INVESTMENT OPPORTUNITIES IN MALAYSIAArham Abdul RahmanDeputy Chief Executive Officer of MIDA

1“To ASEAN Business Day” | 17 June 2019

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M a l a y s i a I t a l y P a r t n e r s h i p B u s i n e s s

O p p o r t u n i t i e s i n M a l a y s i a a s G a t e w a y t o As e a n

9 November 2019 in Milan

Attended by 160 participants

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T h e E u r o p e a n H o u s e – Am b r o s e t t i a n d C h i n a D e v e l o p m e n t -

t h e s e c o n d e d i t i o n o f t h e B e l t a n d R o a d S u m m i t o n 2 2

N o v e m b e r 2 0 1 8

• Foreign Direct Investment

• Domestic Investment

• Manufacturing & Selected

Services

• Manufacturing Licenses

• Tax Incentives

• Expatriate Posts

• Duty Exemption

• Principal Hub & selected

services

• Assist companies in the

implementation & operation

of their projects

• Facilitate exchange &

coordination among

institutions engage in or

connected with industrial

development

• Advisory Services

• Planning for industrial

development

• Recommend policies & strategies

on industrial promotion and

development

• Formulation of strategies,

programmes and initiatives for

international economic

cooperation

Core functions

FIRST POINT OFCONTACT

PROMOTION

POST INVESTMENT

PLANNING

• Licensing & Incentive

Compliance and Monitoring

• Determination of effective

date of incentives

• Issuance of Pioneer Certificate

MONITORING

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EVALUATION

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• 20 overseas offices • 12 state offices

Truly International:

Royal Customs Department, Immigration, Malaysia Energy provider (TNB), TM Net, and Department of Labour in MIDA

Placement of

representatives in

MIDA:

I TA L I A N F O O T P R I N T I N M A L AY S I A

MANUFACTURING SERVICES

MSC STATUS

REGIONAL ESTABLISHMENT

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Manufacturing project implemented, As at 2018 USD354.2 M75

manufacturing projects

4,598jobs opportunities

P O T E N T I A L C O L L A B O R AT I O N B E T W E E N I TA LY A N D M A L AY S I A

OIL & GAS ENGINEERING SERVICES

ELECTRIC & ELECTRONIC MACHINERY & EQUIPMENT

TRANSPORTATION EQUIPMENT

PRINCIPAL HUB

POTENTIAL COLLABORATION FASHION DESIGNING

(FOOTWEAR & APPAREL)E-COMMERCE

REGIONAL ESTABLISHMENT

ITALIAN STRENGTH

INDUSTRIAL MACHINERY

ADVANCED TECHNOLOGY

AUTOMOTIVE FASHION

HALAL FOOD

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T a r g e t i n g Q u a l i t y I n v e s t m e n t s

Strong Linkages with

Domestic IndustriesCapital-Intensive

R&D & Design

High Income Jobs GNI Impact

Export Oriented

Skills-Intensive

Knowledge-

Intensive

High TechnologyHigh Value Added

Malaysia Industry 4.0

Policy Framework

Malaysia as strategic partner

for smart manufacturing,

primary destination for high-

technology industries

45 Sub Sectors liberalised since 2009

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P r o m o t e d A c t i v i t i e s

Transportation

Technology

Oil and Gas

Medical Devices

Advanced Materials

Biotechnology

Pharmaceuticals

Food TechnologyMachinery &

Equipment

Aerospace – MRO

Specialty

Chemicals

Advanced

Electronics

Education &

training

ICT Services

Hotel &Tourism

Principal Hub

Offshore & Outsourcing

Activities

Medical Tourism

Green Technology

R&D

Manufacturing Sector Services Sector

Logistics

60% or 100% on

qualifying capital

expenditure for 5

years

60% on

qualifying capital

expenditure for

15 consecutive

years

Income tax

exemption ranging

from 70% or 100%

for a period of 5 or

10 years

Reinvestment

AllowanceInvestment

Tax AllowancePioneer

Status

9

Major Tax Incentives

20-25 years

PS ITA RA

100% income tax

exemption for up to 15

years or income tax

exemption equivalent to

100% of qualifying capital

expenditure incurred within

10 years

Less Developed

Area

LDA

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Why Malaysia?Malaysia’s Competitive Advantage

Talented Human Capital

Greater Market Access

• Public Universities: 20• Private Universities: 70• Private Colleges: 410• Polytechnics: 33

• TVET Training Institutions 32• Private University Colleges: 34• Community Colleges: 91• Higher Institution Centres

of Excellence (HICoE): 14

Located in the Heart of South East Asia

Developed Ecosystem

AFTA

Port Klang#11 Busiest port in the World

World Class InfrastructureExample: Semiconductor

Industrial estates:over 500 Free Industrial Zones: 18

14 FTAs

Hub for MNCs

Leveraged on the complementations in the region

Procurement Hub for Asia in Malaysia

Malaysia as its ASEAN Regional HQ

Regional Distribution and Supply Chain Centre for ASEAN in Malaysia

We look forward to receiving more quality and high technologyinvestments from Italian companies particularly in new emergingsectors i.e industry 4.0, industrial machinery, e- commerce, digitaleconomy etc.

To establish more collaboration and engagements with Italiancompanies/institutions in developing investment ecosystem(Institutional support, Centre of Excellence, talent development)inMalaysia

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KEY MESSAGES

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We welcome Italian businessmen to leverage on our country’scompetitive and comparative advantages throughout businesspartnership and to be part of our supply chain as the Italian is wellknown for high-quality craftsmanship and prominent Italian brands.

Most competitive economy in overall performance (IMD's World Competitiveness Yearbook 2019)

Global offshoring destination(A.T. Kearney Global Services Location Index™ 2016)

Protecting investors(World Bank Doing Business 2017 Report)

The Most Developed Islam Economy(Thomson Reuters 2018/2019)

Dominant position in Islamic

Finance Development Indicator

(ICD- Thomson Reuters)

Most attractive emerging market in the World(Bloomberg 2018)

“Destination of the Year”(International Medical Travel Journal (IMTJ) 2018)

Doing Business Report

2019

World Bank

Our Ranking

“Most Attractive Emerging

Market in Asia”(Bloomberg’s Emerging Market

Scorecard, 2018)

“Ease of Doing Business

Within ASEAN”(World Bank’s Doing Business Report, 2018)

“Global Competitiveness

among ASEAN Countries”(World Economic Forum’s Global

Competitiveness Report, 2017/2018)

Digital Readiness in

ASIA based on the 2018

UNCTAD Business to

Consumer (B2C) e-

commerce index. 12

MIDA HEADQUARTERSMIDA SentralNo. 5 Jalan Stesen Sentral 5KL Sentral50470 Kuala LumpurTel: 603 – 2267 3633 Fax: 603 – 2274 7970

www.mida.gov.my

MIDA MILANAwangku FiarulnazriConsul (Investment)/ DirectorConsulate of Malaysia ( Investment Section)Malaysia Investment Development Authority (MIDA)2nd Floor, Via Albricci 920122 Milan (MI), ItalyTel: +39 02 89093824Fax: +39 02 8909545418E-mail: milan@mida.gov.my

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