EU CIRCULAR ECONOMY MISSION TO MALAYSIA ......1 Petronas Twin Towers 1.78 million sq ft equivalent...

EU CIRCULAR ECONOMY MISSION TO MALAYSIA

Regional MNC Hubs in KL Driving Innovation, Nurturing Global Talent

10 June 2019

InvestKL is an Agency under MITI

11 Agencies under MITI

Y.B. DATUK IGNATIUS DARELL LEIKING

Minister

Y.B. DR. ONG KIAN MING

Deputy Minister

InvestKL : Multinational Companies (MNCs) Attraction OUR MANDATE : POSITION GREATER KUALA LUMPUR (GKL) AS THE

REGIONAL HUB LOCATION FOR GLOBAL MULTINATIONALS

OUR FACILITATION SERVICES Government Agency Liaison & Investor Advocacy

Fiscal Incentive Packages

Project Implementation & Post Investment Services

Investment Location Recommendation

Industry-University Collaboration, Malaysia Global Talent (MGT) & Vendor Development Programme (VDP)

Expat Onboarding

USA CHINA EU UK JAPAN S. KOREA

Investments in Malaysia spread across

Manufacturing & Shared Services

EXISTING

High Quality Investments (in Services)

- Strategic Sourcing - Purchasing/Procurement - Demand Planning

REGIONAL SUPPLY CHAIN HUB

- Supplier Development - Supply Chain Management - Logistics & Import/Exports

REGIONAL HEADQUARTERS (Principal Hub)

• P&L and Business Unit Management • Strategic Business Planning • Brand Management & Marketing • Treasury and Fund Management • JV and Acquisitions Management

GLOBAL BUSINESS SERVICES

• Procurement & Supply Chain • Big Data Analytics • Finance, HR, IT and Admin

CENTERS OF EXCELLENCE • Robotics and Automation • Engineering and Commissioning • Product Development • Corp Training Centers • Project Management

We Focus on MNCs with Regional Activities and High Quality FDI (Foreign Direct Investments)

Note: We do not handle real estate investments (property, land development)

InvestKL MNC Examples

InvestKL Focuses on Bringing High Quality Services FDI to Greater KL

MIDA ANNUAL PERFORMANCE REPORT 2018

InvestKL Focuses on Bringing High Quality Services FDI to Greater KL

MIDA ANNUAL PERFORMANCE REPORT 2018

InvestKL

Focus

2018 Outcome as of 31st December 2018 (vs 2017)

Year: 2018 2017

New MNCs Secured: 12 12

New Investments: (Committed / Approved)

RM2.3 Billion RM2.2 Billion

New Regional Jobs: (Committed / Approved)

1,339 1,689

(2268.52)

Big Names - 12 MNCs Secured for 2018

Rising Star

FTSE 100

Innovate

China

Global EPC Service Provider HQ: Aberdeen, UK, Revenue US$6.2 B, Employees: 55,000 in 60 countries GKL: REGIONAL HUB FOR SOUTH EAST & EAST ASIAN

Largest Workforce Solutions Provider in APAC HQ: Singapore, Revenue US$722M, Employees: 1,300 in 13 countries GKL: ASIA PACIFIC HEADQUARTER & CENTRE OF COMPETENCE

SEA’s Leading Fashion E-Retail Company HQ: Singapore, Revenue US$368 M, Employees: 1,863 in 7 countries GKL: SOUTH-EAST ASIA REGIONAL HUB AND E-FULFILMENT HUB

Global Big 4 Professional Services Firm HQ: London, UK, Revenue USD31.4B, Employees: 250,000 in 150 countries GKL: APAC TAX TECHNOLOGY & TRANSFORMATION NEARSHORE CENTRE

Global Leader in Corporate Telecommunications HQ: Paris, France, Group Turnover: US$ 50B, Employees: 152,000 in 28 countries GKL: CENTER OF EXCELLENCE FOR DIGITAL TRANSFORMATION (CoE for DT) IN APAC

7th Largest Life Insurance Co Worldwide HQ: New York, USA, Revenue USD62.3B, Employees: 49,000 in >40 countries GKL: ASIA PACIFIC CENTER OF EXCELLENCE (COE)

Leading Global Management Consulting and Professional Services Firm HQ: Dublin, Ireland, Revenue: US$ 34.85B, Headcounts: 425,000, Presence: 53 countries GKL: REGIONAL DELIVERY HUB FOR APAC

Global Leader in Home Appliance HQ: Stockholm, Sweden, Revenue : US$ 14.6B, Employees: 56,000 in 150 Countries GKL: ASIA PACIFIC DIGITAL TRANSFORMATION HUB

Largest Private Construction and Engineering Firm HQ: Xinjiang, China, Revenue: USD74.6B, Employees: 360,000 in 10 countries GKL: REGIONAL TECHNICAL COMPETENCY CENTER FOR APAC

Australia’s Largest Private Auction Company HQ: Sydney, Australia, Revenue: $287 M, No. of Employees: 900 GKL: REGIONAL CENTRE OF EXCELLENCE (COE) FOR KNOWLEDGE DATA & INFORMATION AND SOFTWARE DEVELOPMENT

Global Market Leader in Project Logistics Solutions HQ: Hamburg, Germany , Revenue:US$480 M, Employees: 850, Present in 30 countries GKL: ASIA PACIFIC CENTRE OF CHEMICAL LOGISTICS

Largest Chinese Medical Imaging Co in China HQ: Shanghai, China, Revenue: US$ 430M Employees: 3,200, Business footprint : 40 countries GKL: ASIA PACIFIC HEADQUARTERS

Big Names - 12 MNCs Secured for 2018 – additional details

FTSE 100

Innovate

China

RM11.7 B investment

RM6.6 B (57%) realized

Performance Summary – Achievements from 2011 - 2018

78of 100 MNCs Secured

Impact to Economy

Increased Usage of Ancillary Services

• Professional Services, Firms

• Hotels & MICE • Real Estate Specialists • Banking and Finance

Examples of MNCs Secured

11,693 regional jobs

7,516 (64%) on payroll

RM128 M

est. annual rental

99 Floors 1 Petronas Twin Towers

1.78 million sq ft

equivalent to

Profiles of MNCs under InvestKL as of 31st December 2018

Sectors by Country

Sectors

Regions

78 MNCs (51%)

(26%)

(22%)

(1%)

20

10

8

5

2

5

1 2 2

4

2 2

6

2 1 1

2 2 1

BS CCI CG E&E EDU ES FS GT HC IP O&G PO W&R OT

Business

Services

Communication

Content &

Infrastructure

Consumer

Goods

Electrical

&

Electronic

Education Engineering

Services

Financial

Services

Global

Commodities

Trader

Healthcare Industrial

Products

Oil &

Gas

Palm

Oil

Wholesale

& Retail

Others

WHY GREATER KL, MALAYSIA

© 2018 InvestKL. All

Rights Reserved

12

RISE OF ASIA

MILLION POPULATION

(Approximately)

TRILLION COMBINED GDP (USD)

642.4 2.77

ASEAN

6th

LARGEST ECONOMY IN THE WORLD

3rd

LARGEST ECONOMY IN

ASIA (After China and Japan)

One of ASEAN’s strongest economies and uniquely positioned at the heart of ASEAN

MALAYSIA’S FUNDAMENTALS

Population

32.4 million

Labour Force

15.38 million Unemployment Rate

3.4%

GDP (2017)

USD 333 billion 2017 GDP Growth

5.9%

2017 Inflation Rate

3.7%

Sources: Department of Statistics Malaysia (as of June 2018), SMBA Economic Outlook 2017

ACCESS TO MARKET GATEWAY TO ASEAN, ASIA & BEYOND

5%-7%

GDP GROWTH

RATE

By 2020, global demand from the middle class is projected to expand from US$21 trillion to US$35 trillion, with 70% of growth coming from Asia.

Page 13 ǀ © 2018 InvestKL. All Rights Reserved

7.2 million Population

2,793 km2

Area

33% Fresh Graduates Move to GKL/KV Upon Graduation

Commercial and financial capital

30% GDP Contribution

Main economic engine hub

GREATER KUALA LUMPUR (GKL) FACTS & FIGURES

KL

118

Tun Razak

Exchange

Page 14 | © 2019 InvestKL. All Rights Reserved

ASEAN Economic Community Free movement of goods, services, and investments Freer flow of capital and skills

AEC

Regional Comprehensive Economic Partnership Population of >3B people Combined GDP of >US$17 trillion >40% of the world trade

RCEP

Elimination of double taxation Reduction of withholding tax Comprehensive DTAs

74 DTAs Free Trade Agreements

Effective Bilateral FTAs (7) Effective Regional FTAs (6)

PAKISTAN NEW ZEALAND CHILE INDIA AUSTRALIA JAPAN TURKEY

13 FTAs

ASEAN ASEAN-JAPAN ASEAN-AU/NZ ASEAN-KOREA ASEAN-CHINA ASEAN-INDIA

Page 15 ǀ © 2018 InvestKL. All Rights Reserved

Comprehensive and Progressive Agreement for Trans-Pacific Partnership One of the largest free trade agreements in the world Representing nearly 13.5% of global gross domestic product (GDP) Freer trade and investment access among its members

CPTPP

REGIONAL ECONOMIC ARCHITECTURE COHERENT TRADE & INVESTMENT ARCHITECTURE

CPTPP Australia Brunei Chile New Zealand Peru Singapore

Vietnam Japan Malaysia Canada Mexico

Rank Country

1. India

2. China

3. MALAYSIA

CONSECUTIVELY RANKED AS WORLD’S 3RD BEST GLOBAL

SERVICES LOCATION since the start of the index in 2004. It is advancing in the

people skills and availability category. The country is increasingly becoming the

preferred destination for gaming and animation services, and Business Process

Outsourcing (BPO) providers have been expanding operations to take advantage of

growth in the APAC region.

4. Indonesia

5. Brazil

7.07

0 8.0 4.0 2.0 6.0

6.31

6.11

5.99

5.93

Legend:

Financial attractiveness

(cost competitive)

People skills and

availability (highly skilled)

Business environment (conducive

and business-friendly)

AT Kearney n=55

2ND IN ASEAN

World Economic Forum n=138

EIU n=30

2ND IN ASEAN

2ND IN ASEAN

BUSINESS-FRIENDLY ENVIRONMENT STRONG INTERNATIONAL RANKING

2017 - 2021


8 INTERNATIONAL

AIRPORTS 126 cities linked by

>1,900 weekly flights

17 PORTS

Linked to >120 countries worldwide

12TH BUSIEST PORT

(Port Klang)

GOOD CONNECTIVITY STRATEGIC LOCATION TO IMPORTANT ECONOMIES


#8 (2015) #4 (since 2016)

2018 Agility Emerging Markets Logistics Index The Agility Emerging Markets Logistics Index ranks emerging markets countries for their potential as logistics markets.

Evaluation Component: - Customs - Infrastructure - International shipments - Logistics competence - Tracking & tracing - Timeliness

EFFICIENT LOGISTIC BOOSTING PRODUCTIVITY & COMPETITIVENESS

#4 in ASEAN region 2018 Logistics Performance Index (LPI) n = 160 countries

The LPI measures the on-the ground efficiency of trade supply chains, or logistics performance.

Malaysia leapfrogged its position to the Top 4, signifying its offer of the very

best mix of economic robustness, commercial opportunity and access to markets.

Ranking Country LPI Score

2018 LPI Score

2016

1 Singapore 4.00 4.14

2 Thailand 3.41 3.26

3 Vietnam 3.27 2.98

4 Malaysia 3.22 3.43

5 Indonesia 3.15 2.98

6 Philippines 2.90 2.86

7 Brunei 2.71 2.87

8 Lao PDR 2.70 2.07

9 Cambodia 2.58 2.80

Source: Logistic Performance Index 2018 Source: Agility Emerging Markets Index 2018

AIR • 126 cities linked by >1,900 weekly flights

SEA

• Port Klang is the World’s 12th busiest port (Lloyd’s List’s One Hundred Container Ports 2018)

• 300 ports linked globally by 39 main line operators

Ranking Country 2018 Index 2017 Index

1 China 8.00 7.88

2 India 7.12 7.14

3 UAE 7.01 7.07

4 Malaysia 6.63 6.66

5 Indonesia 6.50 6.41

6 Saudi Arabia 6.29 6.48

7 Russia 6.1 6.09

8 Mexico 6.06 6.15

9 Brazil 6.03 6.23

10 Turkey 6.03 6.09

11 Qatar 6.02 5.78

12 Chile 5.86 5.88

13 Oman 5.75 5.62

14 Egypt 5.73 5.29

15 Thailand 5.68 5.53

16 Pakistan 5.58 5.39

17 Philippines 5.53 5.42

18 Iran 5.48 5.35

19 Vietnam 5.46 5.33

20 Kazakhstan 5.41 5.60


| © 2018 InvestKL. All Rights Reserved

CHINA

Mandarin,

Cantonese

THAILAND

Thai, English

INDONESIA

Bahasa Indonesia,

English

SINGAPORE

English, Mandarin

PHILIPPINES

Tagalog, English

JAPAN

Japanes

e

SOUTH KOREA

Korean

AUSTRALIA

English

INDIA

Hindi, Tamil,

English

MALAYSIA

Bahasa Malaysia,

English Mandarin,

Cantonese, Hindi,

Tamil, Japanese,

Korean

MALAYSIA

Attractive mix of

demographics and

strong economic growth

Cultural diversity and

affinity with the region

Speak languages that

serve Asia Pacific

Driven by mass

immigration from China

and India over 3

generations and adopting

an open economy

approach

MALAYSIA’S UNIQUE & KEY DIFFERENTIATING FACTOR MULTI-LINGUAL TALENT TO SERVE & SUPPORT THE REGION


TALENT AVAILABILITY GROWING SUPPLY OF QUALITY TALENT

TALENT AVAILABILITY & COMPETENCY

120,645 319,633 285,000

2,000 10,000 191,288

Board of Engineers Malaysia

Registered Members

Financial Services Professionals

50,000 (ACCA students and members)

857 (The Actuarial Society members)

Information and Communication Technology (ICT)

Knowledge Worker

The Chartered Institute of

Logistics and Transport Malaysia

Members

Malaysian Institute of

Management (MIM) Members

Healthcare Professionals

46,491(Doctors) 92,681 (Nurses)

KEY TALENT SECTORS

Board of Engineers Malaysia, 2017

Malaysian Institute of Management, 2015

The Chartered Institute of Logistics and Transport, 2018

Department of Statistics Malaysia, 2015


94.6% Literacy Rate

UNESCO Institute for Statistics

2nd Most Talent-Competitive

Country in ASEAN

IMD World Talent Report 2018

3rd Most English-Proficient

Country in ASIA

EF English Proficiency Index 2018

High Competency

Language Proficiency

Regional Experience

Highly Motivated

15.5million

Labour Force

Source: DOSM (2018)


Competent Senior Managers Availability

14 17 23 25 37

International Experience of Senior Managers

8 11 20 29 33

Skilled Labour Availability

7 11 23 26 45

Finance Skills Availability

13 21 30 33 49

Global Ranking

Global Ranking

Global Ranking

Global Ranking

Source : IMD World Talent Ranking 2018 Page 20 | © 2019 InvestKL. All Rights Reserved

DEVELOPING A DIGITAL ECONOMY NEW SOURCE OF GROWTH FOR MALAYSIA’S GROSS DOMESTIC PRODUCT (GDP)

GDP contribution of Malaysia’s digital economy is expected to exceed

the 20% target by 2020 from the current 17%.

FINANCIAL

TECHNOLOGY

INTERNET-OF-THINGS

(IOT)

INDUSTRY 4.0

BIG DATA

E-COMMERCE

CYBERSECURITY CLOUD & DATA

CENTER


DIGITAL INNOVATION ECOSYSTEM CATALYZING MALAYSIA AS ASEAN’S ROBUST DIGITAL & INNOVATION HUB

ASEAN DATA ANALYTIC EXCHANGE

• Create 20,000 data professionals by

2020, including 2,000 data scientists

• Provide analytics sandbox platform

• Co-working location

• Complete start-up ecosystem

• Test bedding and market

access opportunities

• Digital hub locations

DIGITAL HUBS

DIGITAL FREE TRADE ZONE

• Invigorate internet-based

innovation

• Position Malaysia as a regional

hub for e-Commerce logistics

• Integrated export and import

customs declaration Source: MDeC


• Malaysian Health Promotion Board Act 2006 • Medical Device Act 2012 • Private Healthcare Facilities And Services Act

1998 • Industry4RWD (new)

Policy

Activities/Set up in GKL

Impact to Economy

RENEWABLE ENERGY - VALUE PROPOSITIONS MALAYSIA MOVING TOWARDS GREEN ENERGY

Strong Ecosystem

Policy Alignment

RMK 11 – Promote Green and

Sustainable Growth 20% Renewable Energy mix by

2030 – MESTECC

RE Capacity growth

243MW (2014) to 2,080MW

(2020)

9 Universities

providing RE based

engineering courses

in Malaysia

Talent Pipeline Global Industry

Players

TOP 4 Global Solar

Players In Malaysia

Government Support

ITA & ITE

RE, Green Data Center ,

Green Building, Energy

Efficiency , Green

Township

Talent

Development

Incentive Tax Double Deduction

under IR 4WRD

Vendor

Development

Programme

Strategic Collaboration

with local vendors

Management Hub (BD, Sales,

Branding & Marketing)

Design & Engineering Hub

Technical Consulting Hub

Digital Operation Centre

Regional Operation Centre (ROC)

Digital Agenda

Digital Economy - 20%

towards Malaysia GDP by

2020

1 2

3 4


Moving forward 2019


Challenges for 2019

• US - China Trade War • Brexit • Uncertainties in Europe (e.g. Germany) • Protectionism • OECD curbing BEPS (Base Erosion Profit

Shifting)

Target for 2019

Secure 13 MNCs

Target Countries

USA CHINA EU UK JAPAN S. Korea

InvestKL KPI 2019

+

INVESTKL 2019 FOCUS

1. Industry4WRD

All go to market activities aligned with MITI’s Industry 4.0 blueprint

2. Ease of Doing Business – to increase competitiveness

Achieving the 5Cs (Clarity, Certainty, Consistency, Continuity, Confidence) for our Investors

3. Deeper MNC Ecosystem engagement

Execute High Impact Programs on talent & vendor development

|

BUSINESS HUB • E-Fulfilment Hub e.g. E-commerce

Robotics, BDA • Supply Chain Hub • Logistics Hub

REGIONAL MANAGEMENT HUB • Control Tower • Strategic Hub e.g. Business Services

AI, BDA – Predictive Planning

Cloud Computing Digital Operation Centre

CENTRE OF EXCELLENCE (COE) • MRO Hub • Regional Operation Centre (ROC) • Technical Centre e.g. Chemical

Additive Manufacturing Advanced Materials Simulation, 3D Printing

• Digital Lab

IDEATION HUB • Innovation Hub e.g. Smart & Shared Economy

AI AR BDA

• Test Labs

TYPES OF ACTIVITIES

IR4.0

Disruptive Technology

Technology & Innovation

INDUSTRY4WRD

Positioning Industry4WRD to Target New and Existing Companies

TARGET SECTORS

Consumer Technology

E-Commerce

Medical Devices

Smart Technology/ Shared Economy

Energy / Renewables

Industrial Automation

BUSINESS COLLABORATION • Industrial Expert • Local Champions • SME Participation e.g. Matrade

TALENT • Professional Bodies • Industrial Experts • Universities (MGT)

e.g. Collaboration with local incubation hubs

MARKET ACCESS

• Logistic / Supply Chain • Ports / Airports / Warehouse

e.g. Supporting Eco System

Industrial Park (MCKIP) DFTZ KL Internet City

FACILITATION • License / Certification • Immigrations • Customs

e.g. ESD fast Track

ECO-SYSTEM TO

SUPPORT

|

COST EFFECTIVE PLACE SUSTAINABLE COMPETITIVE COSTS OF DOING BUSINESS & AFFORDABLE LIFESTYLE

209.8

64.1

13.6 0

50

100

150

200

250

Hong Kong Singapore KualaLumpur

Prime Office Gross Effective Rents1

(US$/sqm/mth)

1Source: Knight Frank Research-Asia Pacific Prime Office Rental Index Q4 2017

2Source: 2018 Hays Asia Salary Guide (Salary based on Financial Accountant position within an MNC)

43.9

65.6

26.3

- 10.0 20.0 30.0 40.0 50.0 60.0 70.0


Average Cost of Talent2 (US$k/annum)

523.28

364.47

159.48

0

100

200

300

400

500

600


Ritz-Carlton Room Charges3 (US$/night)

3Source: Ritz Carlton Reservation (Nett charges based on Deluxe Room)

22.0

25.8

11.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0


International School Fees4 (US$k/annum)

4Source: ExpatFinder International School Fee Survey 2018

COMPETITIVE TAX REGIME COST OF LIVING

Kuala Lumpur Mumbai

145th

Singapore

4th

1st

Least Expensive

Most Expensive

Hong Kong

55th Bangkok

52nd

Source: Mercer Cost of Living Survey 2018

WITH TAX INCENTIVES

Source: Internal

PROVEN TRACK RECORD

Hosting Fortune 500 and Forbes 2000 Multinationals

COMPETITIVE CITY

EASY TO DO BUSINESS

FAIR COST

Global Competitiveness Report 2017 - 2018

2ND (ASEAN)

Global Doing Business Rankings 2019

2ND

(ASEAN)

Global Cost of Living Survey 2018 (#1 = most expensive)

145TH

1ST Best Nation to Invest In 2017 Best Countries Report

ATTRACTIVE INCENTIVES*

• Corporate Income Tax Exemption • Investment Tax Allowance • Import & Customs Duty Exemption • Unrestricted Foreign Knowledge

Workers *Depending on business commitment

286,375 Graduates in 2017

68 Public/private universities

Flight time to major Asian cities

7 hours

EXCELLENT ECOSYSTEM

350km of rail projects

US$15 bil Passengers annually

196 mil

Talent

Connectivity

Infrastructure

Weekly flights to 126 cities (KLIA)

1,990

GREAT QUALITY OF LIFE

4TH Best Shopping Destination Worldwide

Multicultural Malaysia Warm, friendly and welcoming environment

76 International

schools

24 World class golf courses

Host since 1991

GKL: AN INTERNATIONAL CITY FOR REGIONAL HUBS A HUB OF GLOBAL DIVERSITY & INNOVATION


Thank you

CONTACT US

“Disclaimer: This presentation is for information and/or discussion purposes only and should not be relied upon as formal

guidance. Independent professional advice should be obtained on any legal and tax matters as the consequences and

implications may differ depending on the facts and circumstance of each case. InvestKL accepts no liability for the content

of this presentation, or for the consequences of any actions taken on the basis of the information provided.” 32

PAULINE GOH Director, Alliances [email protected] +6019 2121 554

GYATRI JAYDAS Manager, Alliances

[email protected]

+6019 2600 217

InvestKL Corporation 16th Floor, Menara SSM@Sentral

No. 7, Jalan Stesen Sentral 5

Kuala Lumpur Sentral

50623 Kuala Lumpur

Malaysia

Tel : +603 2260 2270

Fax : +603 2260 2292

www.investkl.gov.my

mailto:[email protected]

mailto:[email protected]

EU CIRCULAR ECONOMY MISSION TO MALAYSIA ......1 Petronas Twin Towers 1.78 million sq ft equivalent...

Documents

Transcript of EU CIRCULAR ECONOMY MISSION TO MALAYSIA ......1 Petronas Twin Towers 1.78 million sq ft equivalent...