Post on 08-Apr-2018
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
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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
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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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