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DOING DOING BUSINESS IN BUSINESS IN

MALAYSIAMALAYSIA

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MALAYSIA Global

Ranking

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Top 3 growth centres in emerging markets Deutsche Bank Research 2005

Top 10 countries as a choice for business location TNS Global Reputation Survey 2005

Top 3 countries for Offshore Location Centres A.T.Kearney – Annual Global Services Location Index, 2005

Top 5 countries for energy, finance and logistics in global shared services and outsourcing (SSO) Frost & Sullivan - SSO Hub Potential Analysis 2005

23rd most competitive economy in the world IMD World Competitiveness Yearbook, 2006

Kuala Lumpur is the cheapest city in the world to live in UBS Bank of Switzerland, 2006

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MALAYSIA Images of Malaysia

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The Location

In the Heart of South East Asia

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The City

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The City

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The People

Malaysia truly Asia

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MALAYSIA Malaysian Economy

GDP Growth 5.8% (2007 est.6%)

Per Capita Income Euro 3,652

Population 26.1 million

Work Force 10.1 million

Unemployment 4%

Inflation 3.7%

Trade Surplus Euro 19.9 billion

Int.Reserve Euro 56.8 billion

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MALAYSIA Strength of theManufacturing

Sector

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Multinational corporations from more than 50 countries have invested in over 5,000

projects in Malaysia's manufacturing sector.

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2.5

3.32.8

3.84.3

3.9

0

1

2

3

4

5

6

2001 2002 2003 2004 2005 2006

Foreign Direct Investment In Approved Manufacturing Projects (Euro Billion)

(Euro Bil.)

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Sources of FDI (Top 10 Countries), 2001-2006

COUNTRY INVESTMENTS

(EURO MILLION)

USA 3,499.6

JAPAN 2,802.3

GERMANY 2,772.2

SINGAPORE 2,039.5

UNITED KINGDOM 955.5

NETHERLANDS 930.8

UNITED ARAB EMIRATES 849.3

KOREA 808.4

TAIWAN 671.2

AUSTRALIA 665.0

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MALAYSIA Investment

Opportunities

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Targeted Sectors (Manufacturing)High technology, capital intensive and knowledge driven industries:

• Biotechnology• Advanced electronics• Optics and photonics• Wireless technology• Display technology (TFT, LCD, Plasma & parts)• Petrochemical• Pharmaceutical• Medical devices• ICT

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Industries manufacturing intermediate goods

• Machinery and equipment• Components and parts• Moulds and dies

Resourced-based industries

• Food ( Halal Hub )• Value-added products from oil palm biomass (particle board, MDF board, animal feed)

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Targeted Sectors (Services)

• Operational Headquarters (OHQ)• International Procurement Centre (IPC)• Regional Distribution Centre (RDC)• Regional Office (RO)• Representative Office (RE)• Integrated Logistic Services (ILS)• Integrated Market Support Services (IMSS)• Integrated Central Utility Facilities (CUF)

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MALAYSIA InvestmentIncentives

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Foreign companies could consider the establishment of the following:

Services Sector

• Representative Office• Regional Office• Operational Headquarters (OHQ)• Regional Distribution Centre (RDC)• International Procurement Centre (IPC)

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Incentives Granted for

OHQ, IPC & RDC

Full income tax exemption for 10 years

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• High Technology projects• Strategic Projects

Manufacturing Sector

Foreign companies could consider the establishment of manufacturing operations in the promoted areas of:

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Incentives Granted

• Pioneer Status (PS) with income tax exemption up to 100% for 5 to 10 years; or

• Investment Tax Allowance (ITA) up to 100% for 5 years. Allowance can be offset against 100% of statutory income.

• Customised Incentives - granted on request of the company and the merits of each case

• Reinvestment Allowance of 60% for a period of 15 years (For reinvestment).

• Duty exemption on raw materials and machinery and equipment

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MALAYSIA Liberal

InvestmentPolicies

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• Foreigners are allowed to hold

100% equity ownership.

Equity Ownership

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Employment of Expatriates

• Foreign companies are allowed to bring in expatriate personnel to hold

- key posts (posts that are permanently filled by foreigners)

- term posts (posts that are filled by foreigners for a period of 1-5 years)

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• Fast Track approval

• Pre-Packaged Committee

• Cabinet Committee on High Impact Projects (Chaired by the Hon. Deputy Prime Minister)

Approval Process

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• Project Implementation Coordination Unit (PICU) in MIDA will monitor and render assistance to expedite the implementation of approved manufacturing and services projects.

• Special project officers are appointed to ‘hand-hold’ and assist investors in obtaining all necessary approvals until projects are operational.

Implementation of Projects

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MALAYSIA Why Malaysia?

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• Political and Economic Stability• Strong Government support including liberal

investment policies and attractive incentives (Tax and Non Tax)

• Liberal Investment Policies• Transparent Policies• Security of Intellectual Property• Well Developed Infrastructure• Multi Racial (Malays, Chinese and Indians)• Trainable, Educated and English Speaking

Workforce• Harmonious Industrial Relations• Quality of Life • Good Track Record• Member of ASEAN

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Do it in MalaysiaYour Profit Centre in Asia

When you want to do business in Asia

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MALAYSIA What Foreign

Investors Says

Appendix

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FLEXTRONICS * PHILIPS * SHELL * UNILEVER * BASF * IKEA * NESTLE * AGILENT TECHNOLOGIES * BP AMOCO HITACHI * ELEKTRISOLA * MOTOROLA * SAMSUNG KOMAG * ERICSSON * SONY * MATSUHITA * INFENION BMW * DAIMLERCHRYSLER * MIECO * PHILLIPS ROBERT BOSCH * IDEMITSU * SHARP * TORAY ……..

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“We believe that a strong global network is a very important competitive advantage in the logistics industry and Malaysia is a key market in the Asian Region, Malaysia's continuous growth and the transition of the Malaysian economy into an export-driven economy, spurred on by high technology, knowledge-based and capital-intensive industries proved our decision to be right."

SCHENKER

Reiner Allgeier,

Managing Director,

Schenker Logistics (Malaysia) Sdn Bhd.

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“Since entering Malaysia, BMW has developed a strong platform, complemented by the professional support and commitment shown by our partners here in Malaysia. With a strong and stable political climate, some of the best infrastructure in the region and a large talent pool, Malaysia serves as a firm base for the BMW Group's growth plans in Asia.

The establishment of the Regional Parts Distribution Centre in Port of Tanjung Pelepas, Johor Darul Takzim in August 2004 represents the introduction of a key regional role for BMW Group Malaysia. The Regional Parts Distribution Centre supports the BMW Group by the speedy distribution of parts and accessories throughout the Asia-Pacific markets, providing premium customer service. “

BMW

Wolfgang SchlimmeManaging Director

BMW Group Malaysia 

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“ Malaysia is an excellent place for do business. The Malaysia government has shown exemplary support through excellent infrastructure development and a good education system that allows us to employ a high quality workforce.

There is in existence a large pool of component suppliers in Malaysia, thus we have transferred from Singapore and established an International Procurement Office here for sourcing parts to other Sony companies worldwide.

Malaysia's political and economical stability has been and will continue to provide and ideal investment climate for us to prosper. The establishment of business-friendly laws and policies has helped us to remain at the competitive edge of the local and global market.”

SONY

Koichi Nakamura The Malaysian

Representative of the Sony Group of

Companies in Malaysia.

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“DaimlerChrysler Malaysia’s 250 employees with their unique skills and creativity provide the high-quality workmanship expected by our customers. With a well-developed infrastructure and an educated and productive workforce in place, the company is set to take the Mercedes-Benz brand and heritage to newer heights. 

Malaysia offers numerous advantages to investors. The Malaysian government is committed to improving the investment environment in the country especially its continuous support and efforts in developing the country as one of the automotive hubs in the ASEAN region. We have made the right decision to invest in Malaysia and we look forward to further expanding our investments to complement the growth of Malaysia’s automotive industry.”

DAIMLERCHRYSLER

Frank Steinler

     President & CEO

     DaimlerChrysler

     Malaysia Sdn. Bhd.

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“The governmental policies that are put in place encourage growth and promote investments in a stable political climate. Malaysia has a well-developed infrastructure and strong industrial linkages with supporting industries, thus providing an excellent business environment. In addition, the workforce is educated and productive. All these make Malaysia an ideal choice for investments.”

ERICSSON

Mats H. OlssonPresident & Country

ManagerEricsson Companies in

Malaysia