by Yong Poh KonChairman, ICC Malaysia/Immediate Past

President, FMMMarch 2-3, 2009

• World GDP : Share of 24% (2006)

• Average income growth in the region : 7%

• Trade : 34% of world trade (2006) &7% of world exports in 2007

• Share of exports in GDP: 50% (2006)

• Accounted for 40% of total increase in world trade (1990 – 2006)

• Asian export boom supported by intra-regional trade which accounts for 50% of Asia’s total trade, with China as a hub;

• Largest international reserves & highest savings rate in the world

• Integration of Asia progresses in trade, investment, money & finance, cross-border infrastructure: ASEAN, China, Japan, Korea are leading integration efforts

In order of importance..

1. Market growth rate

2. Market size

3. Access to internal/regional markets

4. Skilled labour

5. Cheap labour

6. Infrastructure

7. Supplies

8. Government effectiveness

9. Natural resources

10. Following competitors

11. Availability of incentives

12. Local capital market

• Market: size & growth of the local market: 3,061 million population in Asia China: 1,323 million India: 1,131 million ASEAN Population: 570 million

• Good economic growth prospects• Availability of cheap labour & skilled labour e.g. India• Progressive regional integration – ASEAN Economic

Community• Opening up to FDI e.g. Vietnam• Noticeable improvements in the business environment

for foreign companies e.g. Indonesia

• Preferred location for investors: 2 Asian economies in top 10 i.e. China followed by India

• Other countries in the top preferred 30 countries: Indonesia Korea Singapore

• Sector Focus: Services important because of “catching up”, particularly telecommunications, transport, infrastructure & internationalisation of business functions e.g. logistics, R&D, call centres

Thailand Vietnam Malaysia

• Prospects remain ‘good’ as Asia’s trading partners other than US continue to perform reasonably well e.g. emerging market economies, Eastern Europe, Latin America, several African countries;

• East Asian financial turmoil in 1997/8 led to reforms, better regulation and clearer accountability. Prudent monetary & fiscal policies have assisted in mitigating the external shocks;

• Scope for fiscal and monetary expansion as most of the region’s economies enjoy robust budgetary positions and scope to wind monetary policy back; and

• High foreign exchange reserves and high stock of savings in several of the Asian economies.

No Key Indicators

1 Area 329,847 sq km 78.866 sq km

2 Population 27,730,000 10,424,926 

3 GDP Growth Rate

6.3% 6.4 %

4 GDP By Sector

Agriculture (8.6%)Industry (47.8%)Services (43.6%)

Agriculture (3.4%)Industry (39.3%) Services (57.3%)

5 Inflation Rate

5.4% 2.1 %

6 GDP Per Capita

$14,400 $22,000

7 Unemployment

3.2% 4.3%

No Key Indicators

8 Main industries

Electrical and electronics, palm oil,

crude petroleum, chemicals, machinery appliances and parts, metal manufacturing

Motor vehicles and parts, machine tools,

electric power equipment, metals,

chemicals, coal, food processing, glass,

tourism9 Exports $189.6 billion $66.5 billion 10 Main

PartnersSingapore (14.7%), US (12.5%), Japan

(10.8%), Thailand (4.8%), Hong Kong (4.3%)

Germany (36.1%), Slovakia (8.4%), Austria (6%), Poland (5.3%), UK

(4.7%)11 Imports $149 billion $68.2 billion12 Main

PartnersChina (12.8%), Japan (12.5%), Singapore (11.0%), US (11%),

Thailand (5.6%)

Germany (31.7%), Slovakia (5.4%), Italy (5.3%), China (5.2%),

Poland (4.8%)

• Ranked 20 out of 181 economies in WB Ease of Doing Business Index in 2008

• Ranked 19th in IMD’s 2008 World Competitiveness Yearbook

• 19th largest trading nation. Total trade valued at RM1.11 trillion or 210 % of GDP

• Malaysia’s trade with Asian economies– Exports: 35.4% or RM234.9 billion– Imports: 42.4% or RM221 billion

• Provides Market Access: Malaysia’s FTA partners ASEAN, China, Japan, Korea, Pakistan

Strong macro-economic fundamentals• Natural resources – oil, gas, tin, timber, palm oil• GDP growth: 5%• Gross national savings: 38% of GDP• Debt service ratio: 3.8%• Unemployment: 3.3%• Inflation: 2%• Exports of manufactured goods – ¾ of total exports

Supportive Government Policies• Pro-business policies & responsive government• Liberal investment policies• Attractive tax and other incentives• Liberal exchange control regime• Intellectual property protection

An Educated Workforce• Talented, young & productive workforce• Multilingual workforce, including English• Comprehensive system of vocational

& industrial training• Harmonious industrial relations

Developed Infrastructure• Network of well-maintained highways & railways• Well-equipped seaports & airports• Fully developed industrial parks, including FTZs,

technology parks and Multimedia Super Corridor (MSC)

• Advanced MSC Cybercities & Cybercentres

Conducive Business Environment• Market-oriented economy• Well-developed financial and banking sector• Wide usage of English in business legal and accounting

practice based on British system• Large local business community with international

business links• Large international business community

Good Quality of Life• Friendly & hospitable Malaysians• Safe & comfortable living environment• Excellent housing, education

& healthcare/medical facilities• World-class shopping & modern amenities

• Agricultural production and processing• Forestry and forestry products• Rubber products• Oil palm products and derivatives• Chemicals and petrochemicals• Pharmaceutical and related products• Wood and wood products• Pulp, paper and paperboard• Textiles and textile products• Clay-based, sandbased and other non-metallic

mineral products• Iron and steel• Non-ferrous metals and their products

Machinery and machinery components Machinery and industrial parts/components Machine tools Packaging machinery Machinery or equipment for the services sector

Transport equipment, components and accessories Engines and engine parts Automotive parts and components Aerospace industry Manufacture of train and related equipment Ship building and repair

Incentives Available• Pioneer Status with Tax Exemption of 100%• Investment Tax Allowance of 100%

Applications to Malaysian Industrial Development Authority at http://www.mida.gov.my/

6th World Chambers Congress3 - 5 June, 2009 ● Kuala Lumpur

Leading Sustainable Growth and Change

Our Global Challenges

Food, Water and Energy

The Economic Implications of Climate Change

The Only Global meeting place for Chambers

the only international forum for chamber leaders to share experience and best practices, develop

network and address latest business issues affecting business and chambers.

BUSINESS

• Intellectual property• Women & business• Creating Sustainable Cities• Ports: Facilitating economic development & trade• Good governance

DEVELOPMENT

• Web 2.0 in business• Social responsibility• Transformational leadership• Customer service• Youth & beyond

CHAMBER

• Chambers & the environment• Electronic certificate of origin• Preferential certificate of origin• ATA Carnet• ICC Arbitration

will be divided into three tracks, enabling delegates to easily access thesessions that are most important to their sector. Some highlights include:

4th International Conference onExcellence in

Manufacturing

2 June 2009

Impiana KLCC Hotel & Spa

Investment Opportunities in the

Manufacturing & Services Sectors in

Malaysia

3 June 2009 Kuala Lumpur

Convention Centre

SMIDEX 2009

A showcase

for SMEs

3 – 5 June 2009

Kuala Lumpur Convention

Centre

21

Online:

www.KL2009.com

to save time and immediately secure your

accommodation & tour bookings!

E-mail to:

FMM Secretariat:wcc2009@fmm.org.my

or

Congress Bureau:

wcc09@asianoverland.com.my

Fax

Registration Form:

+ 603 4257 1133

3

Per Delegate: RM3,100.00 (US$885)

Delegate registration includes attendance to :

• opening and closing ceremonies• all plenary and workshop sessions• exhibition area• 2 lunches and 5 contact breaks• welcome reception• theme night dinner• gala evening

Companion: RM950.00 (US$275)

Companion registration includes attendance to :

• opening and closing ceremonies• welcome reception• theme night dinner • gala evening

One free registration

for every 12 full-paying delegates

Federation of Malaysian Manufacturerswww.fmm.org.my

6th World Chambers Congresswww.KL2009.com