BUSINESS AND INVESTMENT OPPORTUNITIES IN THE … MIDA _30 May-58760.pdf · IN THE MACHINERY &...
Transcript of BUSINESS AND INVESTMENT OPPORTUNITIES IN THE … MIDA _30 May-58760.pdf · IN THE MACHINERY &...
BUSINESS AND INVESTMENT OPPORTUNITIES IN THE MACHINERY & EQUIPMENT, SUPPORTING ENGINEERING AND MEDICAL DEVICES SECTORS IN MALAYSIA
Table of Contents
Malaysia and Italy: Key Economic Data Malaysia’s Visibility Malaysia’s Economic Development Journey Malaysian Economy Malaysia Investment Performance Investment From Italy Malaysian Machinery & Equipment Industry Malaysian Medical Devices Industry Malaysia – Strategic Gateway To Asia International Competitiveness Rankings Why Malaysia? MIDA’s Functions
Malaysia and Italy: Key Economic Data
Malaysia Italy
Land Area 320,252km² 301,340km²
Capital Kuala Lumpur Rome
Population 29.5 million 61.5 million
GDP US$278.67 billion US$1.83 trillion
GDP Per capita US$10,466 US$30,100
Source: World Factbook
Malaysia’s Visibility
Multiracial, multicultural and multilingual Malaysians living in harmony
Ranked 68th in FORTUNE Global 500®, with revenue over US$97 billion
39 % of world’s palm oil production and 44% of world’s exports
Malaysia is the largest supplier of examination and surgical gloves - 50% of the global demand
Diversity Petronas Palm Oil
Gloves Silicon Valley of Malaysia
High-tech manufacturing hub
Islamic Banking
Over 30 years of experience and world leader in Islamic banking with a strong legal and regulatory Framework
The Malaysia’s Economic Development Journey
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12
1960s
1970s
1980s
1990s 2000
Import Substitution
Export-Oriented & Labour-Intensive
Resource-Based & Heavy Industries
Economic Corridors & Services
Technology Intensive
Innovation, ETP & High Income
2011
National Key Economic Areas (NKEAs)
NKEAs selected which can
materially impact economic growth
Greater KL
Agriculture
Palm oil
Comms Content Infrastructure
Education
Electrical & electronics
Oil, gas & energy
Tourism Wholesale and retail
Financial services
Business services
Healthcare
Malaysian Economy
MALAYSIA’S KEY ECONOMIC INDICATORS
Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE * As at 29th March 2013
2010 2011 2012
Real GDP (%) Growth 7.2 5.1 5.6
Inflation (%) 1.7 3.2 1.2
GNI Per Capita (USD) 8,100 9,700 9,970
Unemployment (%) 3.3 3.1 3.3
International Reserves (USD bil) 106.5 138.3 139.7*
Retained Imports Equivalent (months) 8.5 9.6 9.7*
GDP BY INDUSTRIAL ORIGIN
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12
Sector GDP Contribution (%)
1970 1990 2000 2010 2011 2012
Agriculture 33.6 19.3 8.8 7.3 7.3 7.3
Mining 7.2 9.8 6.7 7.0 6.3 8.4
Construction 3.8 3.4 3.4 3.3 3.2 3.3
Manufacturing 12.8 26.5 32.6 27.6 27.5 24.9
Services 42.6 42.1 53.0 57.7 58.6 54.5
Malaysia Investment Performance
Total Investment Approved 2012
USD 53.1 BILLION
182,841 JOBS
6,442 PROJECTS
Total Investment Approved By Sectors In 2012
USD 53.1 billion
Manufacturing 25.2%
Primary 2.4%
Services 72.4%
No. Country Investment
(USD billion)
1. Japan 22.0
2. USA 18.9
3. Singapore 8.0
4. Germany 6.2
5. Taiwan 5.3
6. Netherlands 4.6
7. South Korea 4.0
8. United Kingdom 1.8
9. Hong Kong 1.6
10. India 1.1
Source: MIDA
REALISED INVESTMENTS IN MANUFACTURING SECTOR
BY MAJOR COUNTRIES AS AT 31 DEC.2011
REALISED INVESTMENTS IN MANUFACTURING SECTOR BY MAJOR COUNTRIES AS AT 31 DEC 2012
REALISED INVESTMENT IN THE MANUFACTURING SECTOR BY MAJOR SECTORS, AS AT 2012
E&E30%
Petroleum11%
Basic Metal10%
Chemicals8%
Non-Metallic5%
Transport 6%
Food4%
Natural Gas4%
Fab. Metal4%
M&E3%
Others15%
Total Investment
US$ 156.1 bil
Total Foreign Investment
US$ 86.9 bil
Total Projects 18,148 Source: Malaysian Investment Development Authority
Investments from Italy
Source: Malaysian Industrial Development Authority (MIDA)
APPROVED PROJECTS & INVESTMENT IN THE MANUFACTURING SECTOR WITH ITALIAN PARTICIPATION
Year No. Potential
Employment
Total Investment
(US$ million)
1980 - 2000 79 7,981 174.95
2005 2 114 10.92
2006 9 610 61.93
2007 4 310 15.76
2008 2 302 20.44
2009 2 17 13.21
2010 3 247 9.58
2011 4 64 27.32
2012 3 76 7.50
TOTAL 108 9,721 341.61
Source: Malaysian Industrial Development Authority (MIDA)
APPROVED PROJECTS & INVESTMENT IN THE MANUFACTURING SECTOR WITH ITALIAN PARTICIPATION BY INDUSTRY, 1980 – 2012
114.84
53.0534.59
33.32
31.03
20.1919.02
8.165.79
Investment (US$ Million)Rubber Products
Machinery & Equipment
Chemical & ChemicalProducts
Fabricated Metal products
Non-Metallic MineralProducts
Electronics & Electrical
Wood & Wood Products
Plastic Products
Leather & Leather Products
APPROVED REGIONAL ESTABLISHMENT WITH USA PARTICIPATION, 2006 - 2011
Source: Malaysian Industrial Development Authority (MIDA)
APPROVED REGIONAL ESTABLISHMENT WITH ITALIAN PARTICIPATION, 2006 – 2012
Type of Establishment No. of Approvals
Regional Offices (RO) 6
Representatives Offices (RE) 2
Operational Headquarters (OHQ) -
International Procurement Centre (IPC) -
Regional Distribution Center (RDC) 1
TOTAL 9
MAJOR ITALIAN MANUFACTURING COMPANIES OPERATING IN MALAYSIA
MALAYSIA’S GLOBAL TRADE PERFORMANCE
2010
362.5 bil
2011
414.7 bil
2012
430.7 bil
Source: Malaysia External Trade Development Corporation, MATRADE
Total Trade from 2010 – 2012(USD)
TRADE PERFORMANCE
2012(USD)
Exports 230.9 bil
Imports 199.8 bil
Total Trade 430.7 bil
%Total Trade to GDP
154.5%
MALAYSIA MAJOR TRADING PARTNERS, 2012
Country Value
(US $ Billion)
Percentage
(%)
ASEAN 117.8 27.3
China 59.41 13.8
Japan 47.8 11.0
EU 42.0 9.8
USA 19.9 4.6
Source: Malaysia External Trade Development Corporation, MATRADE
Investment Policies & Incentives
Industries manufacturing intermediate goods:
Resourced-based industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
• Oil & Gas • Food & Agro based • Value-added products from natural resources
• Machinery & equipment • Components & parts • Moulds and dies
High technology, capital intensive & knowledge driven industries:
PROMOTED ACTIVITIES IN THE MANUFACTURING SECTOR
PROMOTED ACTIVITIES IN THE SERVICES SECTOR
Regional Establishments Operational Headquarters (OHQ) International Procurement Centre (IPC)
Regional Distribution Centre (RDC)
Logistics
Integrated Logistics Services Cold Chain Facilities
Tourism Hotel Tourist project Recreational camp Convention centre
PROMOTED ACTIVITIES IN THE SERVICES SECTOR
Repatriation of Funds
Foreign Equity
Liberal Expatriate Post Approvals
INVESTMENT POLICIES
Pioneer Status
Income tax exemption ranging from 70% to 100% for a period
of 5 to 10 years
Investment Tax Allowance
60% to 100% on qualifying capital expenditure for 5 years
Reinvestment Allowance
60% on qualifying capital expenditure for 15 consecutive years
Import Duty & Sales Tax Exemption
For raw materials/components and Machinery and Equipment
Incentives
MAJOR INCENTIVES PROVIDED
MILESTONES
Machinery and Equipment Sector
Machinery & Equipment and Advanced Engineering
Industry Snapshot – Malaysia (2012)
Production RM32.6 billion*
Exports RM 25.2 billion#
Imports RM52.9 billion# Companies
M&E (1073) , ESI (1004)
2,077
Employees 133,859
* Source from Frost and Sullivan at 2008 with consideration of 5% growth # Matrade
M&E
ESI
Sectors
Manufacturing, Services,
Agriculture, Mining,
Construction
1. Specialised / Process M&E 2. Metal Working M&E 3. General M&E, Modules &
Components 4. Power Generating
1. Mould & Die 2. Forging 3. Machining 4. Surface Engineering 5. Stamping 6. Heat Treatment 7. Casting
4 main categories
Activities/services
MALAYSIA’S ENERGY VISION COMPANIES IN PRODUCTION M&E AS AT 2012
Specialised/ process M&E,
425
Metal Working M&E; 27
Power Generating; 51
General M&E; 528
M&E
MALAYSIA’S ENERGY VISION MAJOR M&E MANUFACTURED IN MALAYSIA
1. Assembly & test equipment for electronic industry
2. Production equipment for oil and gas industry
3. Natural rubber/latex/palm oil processing machinery and equipment
4. Factory automation equipment
5. Vibratory road rollers, C-frame for tractors, buckets & arms for excavators,
hydraulic cylinders, bushes & pins
6. Filling/wrapping/strapping machine
7. Concrete mixers & asphalt batching plants
8. Cranes, lifts & escalators
9. Refrigeration plants/cold room equipment
10. Plant/packaged air-conditioners & cooling towers
11. Pressure vessels & industrial boilers
12. Blowers & fans
13. Dehumidifiers & compressors
14. Power/hydraulic presses & shearing & bending machines
15. Welding machine
Oil & Gas Eco-System
Wellhead FPSO SpecialisedM&E
: Exotic Materials, Forging (1), Machining (10) & Surface Engineering (3)
Exploration Appraisal Production Fabrication MRO Abandonm
ent Stages/ Cycle
Jacket Process Module
Topside
– UM, USM, UPM, UKM, UTM, UTP , GMI, NCMTT, ADTECH, INSTEP, Free zone Supply Base
Surveying (Land and Sea Seismic
Equipment)
X-mas Tree,
Umbilical Flexible pipes
Valves
M&E for Services Pigging
Turbo M&E
MNCs with presence in
Mlaysia
Drilling
Down-hole tools
ROV
Research, Training &
Infra
Supporting Services
Solar Alert
Clients PSCs (Production Sharing Contract)
E&E Industry Cluster (Semiconductor processes)
Wafer Processing Wafer Fabrication
Cleanroom Class 1 to 100
TPM, Kulim High Tech, Sirim, PSDC, UTM, USM, UM
Total engineering solutions for high precision – Frencken , Kobay , UMS Group
Automatic Test Equipment (ATE) ,
Back-end processing
Epitaxial Deposition Etching Equipment
PVD, CVD Laser Lithography
Crystal Growth
Slicing & Polishng
Wafer Testing
& Dicing
Assembly &
Packaging (Back-end)
Process
Equipment
Companies
Supporting Services/ Facilities
Research, Training &
Infra
Furnace Crystal Puller
Diamond Wire Saw
Edge Grinding Wafer Polisher
Back-end processes
Photolithography
Etching & Metallisation
Clients
Silterra X-Fab Infineon On Semiconductor Fuji Electric MEMC Tech Intel Infineon Linear Tech. Carsem Unisem ASE Freescale Semiconductor NXP Texas Instrument
Consumables Implants &
Surgical Instruments Healthcare
Equipment
Supporting Infrastructure
Sterilization Certification Packaging Testing Industry
Group
Education
Training Regulatory
Products Medical Gloves, Contraceptives,
Catheters, woundcare,
Opthalmology, IVD, SUD
Pacemakers, Orthopedics,
Surgical instruments
Electronic Modules
Life Science Instruments
Electrodes, Hospital beds
UKM
Bio
compatibility
Lab
UM, USM
UKM
Medical
Device
Act 2012
33
Clients
Source : AMMI
Medical Devices Eco-System
Machinery/
ESI
Companies
Engineering Supporting Industries
Hi Tech M&E
Customized M&E
Targeted Sectors
• Oil & Gas • Semiconductor
Processing • Food & Beverage • Agricultural • Plastic Processing
• Robotics & Automation
• Metalworking Machinery
• Packaging Machinery
• Material Handling Equipment
• Forging • Casting • Machining • Surface Engineering • Heat Treatment • Stamping • Mould, tool & die
INVESTMENT OPPORTUNITIES IN M&E & ESI
SPECIAL INCENTIVES FOR M&E
Incentive Quantum Criteria:-
− Targeted Machinery & Equipment
− Level of Investment
− Level of Technology and R&D
− Transfer of Technology
− Spin off/ Outsourcing
Pioneer Status
• Up to 10 years full income tax exemption
Investment Tax Allowance
• Up to 100% of qualifying capex incurred within 5 years for income tax exemption
MILESTONES
MEDICAL DEVICE INDUSTRY IN MALAYSIA
MALAYSIA’S ENERGY VISION Medical Device Companies in Operation
Total: 190 companies in Malaysia (manufacturing, distribution, sales) Source : AMMI
MALAYSIA’S ENERGY VISION Major Foreign Medical Device Companies in Malaysia
MALAYSIA’S ENERGY VISION Medical Device Industry Ecosystem
Consumables Implants &
Surgical Instruments Healthcare Equipment
Technology Latex/ Plastic
Metal Machining Electronics Furniture
Certification Packaging Testing Industry Group
Education Training Regulatory
Products
Companies
Medical Gloves, Contraceptives,
Catheters, woundcare,
Opthalmology, IVD, SUD
Pacemakers, Orthopedics,
Surgical instruments
Electronic Modules
Life Science Instruments
Electrodes, Hospital beds
Sterilization
Supporting Infrastructure
Machinery & Engineering Supporting Industry
Electronic Manufacturing
Services
Medical Compounds
Clinical Research Center
MALAYSIA’S ENERGY VISION
Business Opportunities: Malaysia as a Medical Device Hub in Asia
MEDICAL
DEVICES
Electromedical
equipment
Cardiovascular
devices
Orthopaedic
devices
In-vitro
diagnostic
products
Wound care
products
Contract
Manufacturing
Research/Design
& Development
Engineering Supporting Services
MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES
Sectors Background Capability Opportunities
1. Mould & Die Established since
1970s
About 400 industry
players
Precision specifications
by international
semiconductor industry
requirements
End-user industry :
Automotive, E&E
High precision mould
and dies for E&E
industry
Large moulds (>10MT)
for automotive and
plastic industries
2. Metal
Casting
About 70 foundries Mass production high-
pressure and low-
pressure die casting
End-user industry :
Automotive,
telecommunication
Large component casting
Custom-made
sandcasting
3. Machining About 170 industry
players
Precision up to 1µ and
size up to 2 mtr
End-user industry :
Semiconductor, E&E,
aerospace, oil & gas
Multi axis/ ultra precision
free form machining
Laser machining
Ceramic grinding
MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES
Sectors Background Capability Opportunities
4. Metal Stamping About 300 industry
players
Precision tolerances
less than 1m, presses
capacity up to 600 tons
End-user industry : E&E,
automotive
Established
5. Surface
Engineering
40 industry players
80% are foreign-
owned or joint-
ventures
Electroplating,
Phosphating, Anodizing
End-user industry :
semiconductor, E&E and
automotive
Services for the oil &
gas, aerospace,
biomedical,
optoelectronics and
photonics industries
6. Heat Treatment 20 industry players Carburizing, nitriding,
vacuum handling,
quenching, annealing,
normalizing, tempering
End-user industry :
Automotive, shipyard,
cement, aluminium
extrusion
Services for the
aerospace, military,
medical, oil and marine
industries
MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES
Sectors Background Capability Opportunities
7. Forging 7 industry players Mostly small parts (less
than 10MT)
Open, drop, press, roll
and cold forging
End-user industry :
Automotive, E&E
Large forgings for the
oil & gas industry
8. Metal
Fabrication
Well established
Over 2,000 industry
players
Simple household items
to steel structure for
skyscrapers and
offshore oil drilling
platform
Electron beam/ laser
welding
• Consistent quality of production and on-time delivery
• Lower cost for high technology products
• High volume, low mix demand for the electrical & electronics, telecommunications and automotive industries
• Low volume, high mix niche products for the medical, machinery & equipment, oil & gas and aerospace industry
• IP protection, laws and regulations
• Financial incentives and operational support
Competitive Edge
• Engineering supporting industry (more than 1,000 cos.)
• Metal fabrication (well established)
• Semiconductor/ electronics components
• Silicon wafer, Wafer fab, IC packaging and testing, IC design house, PCB, PCBA, LED, Other passive components (about 380 cos.)
• Plastic components (480 cos.)
• Rubber components (180 cos.)
Sourcing Capabilities
• Design centres
• Technical facilities
• Specialized colleges
• Research institutions
Infrastructure
MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER
Why Malaysia ?
• Political & Economic Stability
• Pro-business Government
• Liberal Investment Policies
• Transparent Policies
• Policy of Welcome
• Sound Banking System
• Well Developed Infrastructure
• Harmonious Industrial Relations
• Trainable & Educated Labour Force
• Quality of Life
• Excellent Track Record
WHY MALAYSIA?
MALAYSIA AND ASEAN MALAYSIA & ASEAN
Malaysia is strategically located in the very heart of Southeast Asia; between India and China:
Foreign companies based in Malaysia can enjoy preferential market access via Free Trade Agreements concluded by Malaysia:
Potential market of 600 million
Combined GDP of USD2.3 trillion, as of 2012
Already zero tariffs for 99% of products
ASEAN Economic Community and Single market by 2015
PREFERENTIAL MARKET ACCESS
ASEAN
Potential market of 2.7 billion
Tariff reduction and
elimination mostly by 2016
REGIONAL / BILATERAL FTAS
China Chile Korea Japan India Australia New Zealand
Strategic location: Malaysia is a gateway to other markets with
preferential access through Free Trade Agreements (FTAs)
Potential market of 1.08 billion
ON-GOING FTA NEGOTIATIONS
TPP EU Turkey
GATEWAY TO ASEAN AND ASIAN ECONOMIES
INTELECTUAL PROPERTY PROTECTION IN MALAYSIA INTELECTUAL PROPERTY PROTECTION IN MALAYSIA
Malaysia:
• Member of the World Intellectual Property Organisation (WIPO)
• Signatory to the Paris Convention and Berne Convention
• Signatory to the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) signed under the auspices of the World Trade Organization (WTO)
• Intellectual property laws are in conformance with international standards and have been reviewed by the TRIPs Council periodically
• Removal of Malaysia from IP violations ‘watch list’- United States Trade Representative (USTR) ‘Special 301 Report’ on IP Rights
Establishment of Intellectual Property Court in Malaysia: to remove Malaysia from
the IP international watch list;
to reduce backlog of intellectual property (“IP”) cases;
to provide better remedies to the owners of the IP rights and to
eradicate IP infringement
INTELECTUAL PROPERTY PROTECTION IN MALAYSIA INTELECTUAL PROPERTY PROTECTION IN MALAYSIA
Intellectual Property Protection in Malaysia Comprises of:
Industrial designs - Industrial Designs Act 1996 and Industrial Designs Regulations 1999
Copyright - The Copyright Act 1987
Layout designs of integrated circuits - Layout Designs of Integrated Circuits Act 2000
Geographical indications - Geographical Indications Act 2000
Patents - Patents Act 1983 and the Patents Regulations 1986
Trademarks - Trade Marks Act 1976 and the Trade Marks Regulations 1997
RECENT POSITIVE DEVELOPMENTS Malaysia’s Ranking in the World Malaysia Remain an Attractive Investment Location
Malaysia ranked 12th most business-friendly country
Malaysia is ranked ahead of other highly regarded economies such as Sweden (13th), Taiwan (16th), Germany (20th), Japan (24th) and Switzerland (28th)
Malaysia is first in terms of ease of getting credit
Malaysia is fourth in the world for protecting investors
Malaysia ranked among the top 10 economic reformers in the APEC region
World Bank Doing Business 2013 Report