malaysian aerospace industry-business opportunities

“Invest In Malaysia > Your Profit Centre In Asia”

MALAYSIAN AEROSPACE INDUSTRY – LATEST

DEVELOPMENT


• Malaysian Aerospace Council (MAC) established in 2001 –one of the key recommendations in the Blueprint

- Chairman - Prime Minister

: Members - 6 Cabinet Ministers; Heads of Government Agencies; Captains of Industry

- Objectives

: Provide vision, direction and overall development plan

: Establish policies/guidelines and identify priority areas

: Think-tank for procurement of technology

• Malaysian Aerospace Industry Development is guided by theNational Aerospace Industry Blueprint launched in 1997 –Malaysia a global player by 2015

BACKGROUND OF THE AEROSPACE INDUSTRY IN MALAYSIA

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MALAYSIAN AEROSPACE INDUSTRY ROADMAP

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AVIATION, AEROSPACE MANUFACTURING & MRO THE KEY SUB-SECTORS LEADING THE GROWTH OF THE

AEROSPACE INDUSTRY

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Aerospace Companies

Operating in Malaysia

SupportingCompanies

(Aviatron & Meerkat)

Policies & Regulations

National Aerospace Blueprint

Aerospace Value Chain

Domestic Companies

R&D, Design Parts Manufacturing

Parts Assembly

Maintenance Repair &

Overhaul (MRO)

AEROSPACE ECOSYSTEM

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MROCompanies

Operating in Malaysia

SupportingCompanies

Airframes Engines ComponentsAerospace Value Chain

Domestic Companies

AIROD TURBO

AEROSPACE ECOSYSTEM – MRO

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AVIONICS & SYSTEMS INTEGRATION - YOUR GATEWAY TO ACCESS MALAYSIA’S TALENT IN SOFTWARE & HARDWARE

DEVELOPMENTSystems Integration capability development program

Led by CTRM Systems Integration -mission systems development & demonstrator projects

Avionics manufacturingLeveraging Honeywell investment to localize supply chain

Assisting EADS to source low volume high value electronics from local sources

Other national initiativesALUDRA: National Unmanned Aerial Vehicle project

RazakSAT®: the nation’s first remote sensing satellite

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HUMAN CAPITAL - SPECIALLY TAILORED PROGRAMS TO FULFIL THE INDUSTRY’S NEED FOR PROFESSIONAL & SKILLED HUMAN

CAPITAL

LEADER AerospaceA bridging program funded by MOHE to increase number of certified ‘design & structural engineering’ workforce 1st batch July 2010 - 24 engineering graduates selected from 500 applicantsProgram in collaboration with Spirit AeroSystems Malaysia, CTRM & Strand

Advanced Composite Training Centre (ACTC) @ UniKL-MIAT

Established to support Spirit AeroSystems investment in MalaysiaCurrently, supplying skilled composite technicians to composite manufacturing industry (aerospace & beyond)

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MALAYSIA IS THE RIGHT DESTINATION TO SET UP YOUR GLOBAL FOOTPRINT IN ASIA PACIFIC

We offer competitive cost as well as competent workforce

FDIs, JV, strategic alliance and outsourcing packages are welcome

Government through Malaysian Aerospace Council is giving its full commitment

Has a well developed blueprint, programs and action plans to support national aspiration

AAIS members are invited to consider Malaysia as your next location for investment and/or outsourcing

Leverage on new aerospace incentive package (2010-2014)

Participate in various initiatives to strengthen local supply chain

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POLICIES & INCENTIVES


Guidelines on Manufacturing License

INVESTMENT POLICIES

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Under the Industrial Coordination Act (ICA) 1975,manufacturing companies are required to apply formanufacturing licence if:

• shareholders’ funds is RM2.5 million and above ; or

• engaging 75 or more full-time employees

Or


Repatriation of Funds

Foreign Equity

INVESTMENT POLICIES

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Pioneer Status (PS)Income Tax Exemption

70 % or 100 % for 5 or 10 years

Investment Tax Allowance (ITA)

60 % or 100 % on qualifying capital expenditure incurred for

5 or 10 years

Reinvestment Allowance (RA) or 2nd Round

Incentive (for MRO) 60 % on qualifying capital

expenditure

Machinery & Equipment

Exemption from Import Duty & Sales Tax on Machinery & Equipment & Import Duty on Raw Materials / Components

Incentives

MAJOR INCENTIVES PROVIDED

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“Invest In Malaysia > Your Profit Centre In Asia” 14

IMPORT DUTY & SALES TAX EXEMPTIONS

Aircraft & Aircraft Parts/ Components Assembler/

Manufacturer

Maintenance, Repair & Overhaul (MRO) Activities

Blanket approval on Raw Materials,

Machinery, Equipments, Replacement Parts &

Consumables

Machinery/ Equipment/ Spare Parts

Raw Materials/

ComponentsSubject to the condition that each import is attached with one of the

‘Certificates of Parts & Components’ issued by the original equipment

manufacturer (OEM)


AEROSPACE ACTIVITIES CAN BE CONSIDERED FOR INCENTIVES

R&D and manufacturing/assembly of aerospace related products, materials, equipment, component, accessories and parts thereof

General Aviation

Maintenance, Repair & Overhaul (MRO)

Certification & Standard Development

Licensing of Pilot & Maintenance Engineers

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Please contact MIDA Dubai for any enquiries pertaining tothe business & investment opportunities in themanufacturing and services sectors in Malaysia:

MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY, MIDA(CONSULATE GENERAL OF MALAYSIA – INVESTMENT SECTION), Unit2205, 22nd Floor, Tower A, Business Central Tower, Dubai Media City,P.O. Box: 502876, Dubai, UAE

Contact Person:

Sukri Abu BakarDirector / Consul InvestmentTel : +971-4-434696 / 697 Fax : +971-4-434698Email : [email protected] : www.mida.gov.my

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