“Kedah, Your Ultimate Profit Centre”

INVESTMENT

OPPORTUNITIES

IN KEDAH, MALAYSIA

Area size of 329,000 sq km

14 states

GDP 2012: 5.6% , 2013: 4.7%

Population of 29 mil people withmultiple ethnic groups and religions

Stable and pro-business government

MALAYSIA

South China Sea

Japan

Malaysia

Capital city is Alor

Setar

Area size 9,426 sq

km (2.9% of

Malaysia)

12 districts including

Langkawi Island

Population: 2.02 mil

KEDAH DARUL AMAN

GEOGRAPHY & CLIMATE

• Located in the northwest corner of Peninsular

Malaysia, bordered by Perlis in the north, by the

Straits of Malacca on the west, and by Penang and

Perak in the south.

• Climate - tropical monsoon

• Uniform temperature between 24°C to 34°C

ECONOMIC GROSS DOMESTIC PRODUCT

- KEDAH

2009 2010 2011 2012 2013

GDP at

constant

2005 prices

(RM million)

21,092 21,998 23,863 25,278 26,434

GDP per

capita at

current

prices (RM)

12,481 13,744 15,388 15,814 32,984

GDP

Growth (%)(0.5) 4.3 8.5 6.1 4.6

Source: Department of Statistics, Malaysia

Capital city is Alor Setar

KEDAH KEY GROWTH AREAS

World famous tourist

destination with an

international airport facilityBorder Town development at

Bukit Kayu Hitam. One of the

major entry points from

Thailand

World class Kulim Hi-Tech

Park

Sungai Petani Industry City.

Halal Park

Automotive Hub in Gurun

Kuala Ketil Industrial Area

Bukit Kayu Hitam Industrial

Estate

Universiti Utara Malaysia

(UUM)

AIMST University

Automotive Hub in Kulim

UiTM

Polytechnic

Polytechnic

Durian

Burung

Bukit Kayu

Hitam

INVESTMENT OPPORTUNITIES

Investors are welcomed to invest in:• Automotive / Transportation – Related Industry

• High-Tech Manufacturing; Research, Design and Development

• Hi-Technology

• Bio-Technology

• Agro & Aquaculture

• Manufacturing

• Tourism

• Oil & Gas

• Halal Food Hub

INDUSTRIAL DEVELOPMENT ZONING

IN KEDAH

• Divided into 5 development zones:-•

The Northern Part of Kedah – Halal Industry, Education, Land Port, CIQ and hydrocarbon.

•The Northwest – Tourism, Marine Industry Services

•The Central part – Automotive, Petroleum & Tourism

•The Eastern Corridor – Agro-Based Industry, Agro Tourism

•The Southern Part of Kedah – High-Tech Industry,

Bio-Tech, Manufacturing.

POTENTIAL INVESTMENT

ZONES

WHY KEDAH?

Kedah : A Preferred Choice

• Political and economic STABILITY.

• Government committed to maintain a BUSINESS

FRIENDLY environment.

• PRODUCTIVE and MULTI-LINGUAL workforce.

• MARKET oriented economy.

• COMPETITIVE and COST EFFECTIVE investment

environment.

• EXCELLENT infrastructure.

• LOWER cost of operation.

• LOWER cost of living.

• COMPETITIVE industrial land.

• FAST approval to set up business

• Financial FACILITIES

REASON TO INVEST IN KEDAH

KEY DEVELOPMENT NODES

2013 - 2018

Kulim Hi-Tech Park

Kedah Science & Technology Park

Rubber City

Kulim International Airport

Kedah Aerocity

Automotive Hubs

Petrochemical / Oil & Gas

Medical Science City

Kedah Integrated Fishery Terminal

High Precision Machining Centre

KEY

NODES

2013-2018

KULIM INTERNATIONAL AIRPORT

• Location - Kulim, Kedah.

• Proposed New Major Airport (Northern region)

Passenger

up to 40 millions

passengers/year

Cargo

next 30-50 years

Two runways.

Link to high speed train

KEDAH AEROCITY

• Kedah Aerocity aims to develop Southern Kedah

into a regional aviation maintenance, repair and

overhaul (MRO) services hub, capitalising on

global market growth.

• Caters to international FBOs, MROs, Air Charter

Operators and OEMs.

• Compliment to Kedah International Airport (KXP)

•Kedah Aerocity follows initiatives that have been

undertaken through Malaysia Entry Point Projects

(EPP) include the gradual adoption of European

Aviation Safety Agency (EASA) standards by the

Department of Civil Aviation Malaysia (DCAM).

DCAM is also in the process of introducing an E-

exam platform to expedite licensing for new

aircraft engineers.

•Currently in Malaysia, we have company such as

Fixed Base Operator

Maintainance, Repair & Overhaul

Air Charter Operators OEMs

SUNGAI PETANI-KEDAH INNER

EXPRESSWAY (SPIKE)

New expressway connecting Changkat Jering,

Perak to Sungai Petani, Kedah via Kulim

Approximately 133 km.

Shorten travel time at North-South Highway by

avoided traffic congestion at Seberang Perai, Pulau

Pinang

In the future, State Government will have another

alternative to connect this expressway to Bukit

Kayu Hitam that will take about 83 km.

SPIKE will be a compliments to Kulim Hi-Tech Park

dan Kedah International Airport

MEDICAL SCIENCE CITY

Proposed area – Bandar Baharu, Kedah

Components:

Zone A - Medical Manufacturing Industries

Zone B - Medical Research Centre

Zone C - Medical Research University

Zone D - Anti Aging Hospital

Zone E - Healthcare Assisted Living home

Zone G - Green City Home

Zone H - Medical Commercial Complex

Total Investment : Total RM2.34B

Job Opportunities : 6,850 jobs

KEDAH SCIENCE & TECHNOLOGY

PARK (KSTP)

Located at Bukit Kayu Hitam

Industrial Area

Near Thailand border (Danok).

45 km north of Alor Setar

Total size 1,933 acres

Mirror the success of Kulim Hi-

Tech Park but focusing on

advanced technologies

PROPOSED SITE

KSTP’s Vision

KEDAH SCIENCE & TECHNOLOGY

PARK (KSTP)

Proposed Development Clusters in KSTP

KEDAH SCIENCE & TECHNOLOGY

PARK (KSTP)

KEDAH SCIENCE & TECHNOLOGY

PARK (KSTP)

“The Rubber City is a national level strategic project that is

expected to bring benefits to both Malaysia and Thailand”

A strategically located project situated in the

heart of the Natural Rubber Economic

Belt, close to the source of raw materials;

strongly supported by the Malaysian and

Thai governments to stimulate socio-

economic development in an economically-

depressed border region

A national level project

RUBBER CITY

The Rubber City is a strategic project to elevate the global

competitive position of the Malaysian rubber industry, and

provide economic benefit to the hinterland of Kedah

The Rubber City will lead Malaysia to

be a global leader in the rubber

industry by:

Leading in niche and

downstream rubber sectors

Creating greater resilience with a

diversified portfolio of products

Achieving higher position in the

global value chain, extracting

more value in Malaysia

Generating a larger knowledge-

based workforce

Developing local innovation and

R&D capabilities

The Rubber City is a strategically located project situated in the heart of the Natural Rubber Economic Belt,

close to the Malaysia-Thailand border. The socio-economic development of this border region is strongly

supported by both the Malaysian and Thai governments.

Global Leader in

the Rubber Industry

Rubber City is proposed at

Ladang Bukit Ketapang / Kuala

Nerang

RUBBER CITY

Core Industries

“Green” Rubber Products

Rubber-based products which are produced using

environmentally-friendly raw materials and / or

processes, e.g. Ekoprena tyres1, reclaimed rubber

products such as rubberised bitumen; or which

contribute to lower carbon footprint

Precision Engineered Rubber Products

Precision moulded rubber products for different

industrial sectors, e.g. seals, gaskets, bearings for

automotive, medical devices, aerospace,

construction sectors

Specialized Latex and Rubber Products

Innovative, high value-add and specialized

products for niche customer segments, e.g.

specialty / surgical gloves, catheters, latex

mattresses, adhesives, “intelligent” rubber

Catalytic Anchor Tenants

Large, well-recognized leading rubber product

manufacturers, e.g. latex / nitrile gloves, passenger

and commercial tyres, condoms

High Value Add Sub-categoryLegend: Catalytic Sub-category

RUBBER CITY

… focusing on high value add downstream products from both

natural and synthetic rubber

Rubber ProductsSynthetic RubberNatural Rubber

RUBBER CITY

KEDAH INTEGRATED FISHERY TERMINAL

PROPOSED PROJECT SITEKEDAH INTEGRATED FISHERY TERMINAL

Malaysia is one of Indian Ocean Tuna Commission (IOTC)

31 members (as at 2013)

KEDAH INTEGRATED FISHERY TERMINAL

EEZ: East Malaysia

Oceanic Tuna: 25,000 tan

(RM 150 million)

EEZ: Peninsular Malaysia

Neritic Tuna 200,000 tan

(RM 200 million)

Indian Ocean

Oceanic Tuna 30,000 tan

(RM 300 million)

KEDAH INTEGRATED FISHERY TERMINAL

Architectural Illustration

KEDAH INTEGRATED FISHERY TERMINAL

Kedah has become the automotive

hub in 2 areas namely Gurun and

Kulim

These 2 sites carry 14 brands

including BMW, MAZDA, KIA,

PEUGEOT, CITROEN, HAVEL

(Greatwall) and etc.

Advantages of Gurun and Kulim:

Direct access to North South

Expressway

Close to double tracked railway line

and station

Availability of land for expansion and

for new investors

Availability of talent to support

operations

AUTOMOTIVE HUBS

Activities

Oil Refinery

Oil Storage

Oil Transportation

Supporting Activities

OIL & GAS ACTIVITIES IN KEDAH

YAN, KEDAH IS A STRATEGIC LOCATION TO FULFILL OIL

EAST ASIA DEMAND FROM WEST ASIA SUPPLY

Crude Oil

Petroleum products

YAN

PETROCHEMICALS

(YAN PETROLEUM INDUSTRIAL ZONE)

PETROCHEMICALS

(YAN PETROLEUM INDUSTRIAL ZONE)

Outside the major fault zone and is

the ‘Central Point’ from the West to

the Peninsula

Enjoys the most comfortable span

outside the world’s busiest shipping

route

Existing natural passage way and

draft for extra large vessels to ply

the area

North of Penang Port

Hydrographically suitable for SBM

(Single Buoy Mooring) operation

Suitable for Tank Farm and refinery

Strategic LocationNorth

Basin

South

Basin

Jerlun

ZIPY

Reference TLDM Hydrographic MapMAL 565 Ko Tarutao – Pulau Pinang Edition 31 October 2006 Note 2004-66-2006-150-202007-72-91Note: 1 Nautical Mile = 1.854 KM

North

Basin

South

Basin

Jerlun

ZIPY

Reference TLDM Hydrographic MapMAL 565 Ko Tarutao – Pulau Pinang Edition 31 October 2006 Note 2004-66-2006-150-202007-72-91Note: 1 Nautical Mile = 1.854 KM

West of Kuala Sg Limau and

North West of Pulau Bunting,

Coast of Kedah State,

Open Sea

Mouth to Straits of Melaka

Good Draft 36m

Coastal areas with excellent

geographical, political and

socio–economic potentials

for development

PETROCHEMICALS

(YAN PETROLEUM INDUSTRIAL ZONE)

Strategic Location

KULIM HI-TECH PARK

– Vibrant Business Environment

Centrally located within

Malaysia’s Northern

Region

26 km from North

Butterworth Container,

Penang Port

45 km from Penang’s

Bayan Lepas International

Airport

Directly linked to the

North-South Highway and

East-West Expressway via

Butterworth Kulim

Expressway

MASTERPLAN

Total Industrial Land:

1,061 acres

Occupied :

878 acres

Available :

183 acres

INDUSTRIAL ZONE

IZP1 – TENANTS

IZP2 – TENANTS

COMMUNITY POLICE

COMMUNITY POLICE

Industrial Land

Total Land: 371 acres

Occupied : 231 acres

Available : 140 acres

IZP3 – TENANTS

INDUSTRIAL ZONE PHASE 4

Target completion

2015

INFRA UTILITIES

Cur. Demand: 45K cu m/day

Current Demand: 110 MW

Current Demand: 3,000 lines

Dedicated main supply from Sg. Muda, with dedicated water treatment plant

Supply Capacity – 85,000 cubic metre per day (3 reservoirs)

Water quality per WHO standard

Maximum 24 hour restoration time

Supply capacity has increased to 107,000 cubic metres per day with completion of IZP3.

Electricity Water

Minimum service availability for all services per month (99.9%)

Transmission capacity: 24 -core fibre optics network

Exchange capacity: 7,000 lines upgradeable to 40,000 lines

24-hour, 365-day service centre

Now, 4MB Broadband (Streamyx). Soon, broadband to homes ranges from 1MB –100MB. 1G on request.

Infostructure

GAS MALAYSIA &

KULIM INDUSTRIAL GASES (KIG)

Natural GasProvided by Gas Malaysia Sdn Bhd to tenants using an underground gas pipeline

Industrial GasesProvided by KIG to tenants using an underground gas pipeline

-N2 Plant-Specialty Gas Plant-Warehouse for Storage-Technical Centre

Industrial Chemicals

-Provided by BASF

Gases & ChemicalsJABATAN BEKALAN AIR

(JBA) KEDAH

99.99% reliability & service availability

2 blocks of combined cycle generation facilities – 220 MW

Reliable supply:

6 units of generator available currently /

3 units running continuously at any one time/ 4th on standby

2 independent supply sources with Hot Standby connection to TNB, &SCADA system for monitoring, controlling and restoration of power

Underground cabling (XLPE cable)

NORTHERN UTILITY RESOURCES (IPU)

Max. Demand: 160 MW

NO AREA YEAR STARTED DEVELOPMENT AREA

( ACRES)

1. Kulim 1978 430.16

2. Sungai Petani 1989 622.31

3. Bakar Arang 1980 558.28

4. Tikam Batu 1975 89.10

5. Mergong II 1980 102.35

6. Mergong Barrage 1988 100.49

7. Kuala Ketil 1994 332.00

8. Bukit kayu Hitam 1995 348.4

9. Gurun 2003 376.82

10. Kulim Hi-Tech Park 1992 4032

Total 6,991.91

INDUSTRIAL AREA IN KEDAH

Organized by : Kedah State Development Corporation

Main Criteria:i. Fundingii. Reliabilityiii. Marketiv. Benefit to State

APPLICATION FOR

SPECIFIC TRADE /

BUSINESS LICENSE

Submit plan to Local

Authorities (MBAS, MPSP,

MD) for “Kebenaran

Merancang & Membina”

MANUFACTURING

LICENSE / INCENTIVES /

DUTY EXEMPTION

- From MITI / MIDA

APPLICATION TO

PURCHASE INDUSTRIAL

LAND

•State Economic

Development Corporation

•Private Developer

•State Government Land

Preliminary study /Application & approval

by Investment Committee

Obtaining General Information(MIDA , Invest Kedah)

Submit detailed proposal (KIC, UPEN)

Approval by State Planning Committee

(SPC) & MajlisMesyuarat Kerajaan

Negeri (MMK)

License / Approval

•Technical Department –

DOE, JPBD, JPS, Bomba,

Police, Land Office

APPLICATION PROCEDURE TO

INVEST IN KEDAH

INVESTOR SUPPORT

End-to-end investor support and handholding resources

from Federal, Regional and State Authorities

Pre-

investmentInvestment

Post-

investment

Manufacturing Sector

Performance in Kedah

& Malaysia

APPROVED PROJECTS BY STATE

(Jan – March 2015)

APPROVED PROJECTS BY STATE

(2014)

APPROVED MANUFACTURING PROJECTS IN

KEDAH WITH PARTICIPATION BY COUNTRY 2014

Country Number Employment Investment (RM)

GERMANY 3 1006 3,210,270,160

USA 1 771 771,000,000

China 1 229 99,600.000

Ireland 1 555 300,979,500

Netherlands 2 201 41,058,001

India 1 201 23,038,223

Hong Kong 1 121 12,706,560

Taiwan 3 194 7,324,303

Japan 1 0 5,715,047

Iran 1 20 3,623,000

Australia 2 102 3,540,000

Thailand 1 75 2,950,200

Singapore 5 102 3,540,000

Source :

APPROVED MANUFACTURING PROJECTS IN

KEDAH (BY INDUSTRY), 2014

Industry

TOTAL

No.Employ-

ment

Domestic Investment

(RM)

Foreign Investment

(RM)

Total Capital Investment

(RM)

Food Manufacturing 2 156 48,965,301 1,257,558 50,222,859

Beverages & Tobacco 1 185 16,274,000 0 16,274,000

Textiles & Textile Products 2 156 18,223,291 2,950,200 21,173,491

Wood & Wood Products 6 80 12,271,276 2,868,000 15,139,276

Chemical & Chemical Products 6 304 34,508,558 51,420,731 85,929,289

Rubber Products 1 96 3,398,041 1,456,303 4,854,344

Plastic Products 6 191 27,649,313 9,255,047 36,904,360

Basic Metal Products 2 17 6,450,000 0 6,450,000

Fabricated Metal Products 3 317 163,027,103 99,600,000 262,627,103

Electronics & Electrical Products 9 3,114 17,304,788 3,977,623,000 3,994,927,788

Transport Equipment 6 342 115,778,177 298,799 116,076,975

Scientific & Measuring Equipment 6 1,131 304,470,070 370,165,713 674,635,783

TOTAL 50 6,089 768,319,918 4,516,895,350 5,285,215,268

Source :

Q & A

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