Sarawak Corridor of Renewable Energy

INVESTMENT OPPORTUNITIES ININVESTMENT OPPORTUNITIES IN

YBHG. DATU ISMAWI BIN HAJI ISMUNIDirector, State Planning UnitChief Minister’s Department

Sarawak

10th August, 2009

MALAYSIAN INSTITUTE OF ACCOUNTANTS (MIA) REGIONAL CONFERENCE 2009

S C O R ES C O R E

Table of Contents

• SCORE: Background;

• SCORE: Investment Opportunities; and

• SCORE: Incentives.

Launched on 11 February 2008 The 1-Stop Agency for SCORE

Implementing AgencyDevelopment Plan & Development Area

New Economic Model and Institutional Frameworks

RECODA is created under the Regional Corridors Development Authorities Ordinance, 2006 which was passed by the Sarawak State Legislative Assembly on 20th November 2006.

2008 2015 2020 2030

Current Situation 2008GDP growth (%) 5.0RGDP (RM billion) 26Jobs (million) 0.9Pop (million)GDP Per Capita (Nominal) (RM)

2.528,801

With Corridor 2015GDP growth (%) 10.0RGDP (RM billion) 55Jobs (million) 1.5Pop (million) 3.2

With Corridor 2030GDP growth (%) 7.0RGDP (RM billion) 118Jobs (million) 2.5Pop (million)GDP Per Capita (Nominal) (RM)

4.697,400

With Corridor 2020GDP growth (%) 8.7RGDP (RM billion) 74Jobs (million) 1.9Pop (million) 3.7

Without Corridor 2030GDP growth (%) 5.0RGDP (RM billion) 75Jobs (million) 1.7Pop (million) 4.0

5%10%

8.7%

7%

Sarawak Economy by 2030 Sarawak GDP to expand 5-fold1.6 million more jobsPopulation will double to 4.6 million

SCORE is Long-Term Development Plan to 2030To lift the Sarawak economy By increasing income per head

Samalaju Heavy Industries

MukahServices Hub

Baram Rural Growth Centre

TunohRural Growth Centre

Tanjung ManisAgro-Based Industries

Northern Region34,567 sq km (27.8%)

437,100 persons

Southern Region19,174 sq km (15.4%)

1,105,000 persons

Central Region70,708 sq km (56.8%)

862,000 persons

SCORE Development Area5 New Growth Nodes

SCORE Funding Strategy

20%Government Funding

Private Sector RM (Billion)

%

Power Sector 67 20%

Industries 200 60%

RM334 billion – Total Planned Investments

Government RM (Billion)

%

Institutional Infrastructure 3 1%

Physical Infrastructure 61 18%

3Human Capital 1%

80%Private Funding

Huge energy potential of 28,000 Mega Watts

Today (MW) Potential (MW)966 28,000

20,0005,000

Other 662 3,000 11%481

02,519

94210

481181

-

% TotalTotal 100%

Gas 2%Diesel 0%

Hydropower 71%Coal 18%

Other 9%

The Power Sector

Sarawak has sufficient energy capacity for local industries, therest of Malaysia and export

Bakun HEP (2,400 MW), 2010-2012

Mukah Coal-Fired Plant (270 MW), April 2009

Murum HEP

Priority 1 (2008-2010) 9MP MTRPriority 2 (2011-2015) 10MPPriority 3 (2016-2020) 11MP

Ongoing/Approved

Kapit

Tatau

Baleh

Tunoh

Nanga Merit Coal Mine

BelagaBakun

Murum

Baram

Sarikei

TanjungManis

Tunoh access road

Solid line = existing road/upgradingDotted line = new road

Balleh access road

Ng Merit access road

Murum access road

Baram access road

Limbang access road

SCORE: Access Roads to Energy Sites

Aluminum Industry

1

Steel Industries2

Glass Industries4

Timber-based Industry

7

Palm Oil Industry5

Fishing & Aquaculture

Industry6

LivestockIndustry

10

Marine Engineering

8Oil-based Industry

3

TourismIndustry

9

SCORE – 10 Priority Industries

Oil-based industry

Aluminum industry

Steel industry

Tourism industry

Livestock industry

Fishing/aquaculture industry

Palm oil industry

Timber-based industry

Glass industry

Marine engineering

--

Smelters

Steel making (steel mill)

Enhanced marketing

Breeder farms

Hatching farms

Palm oil plantations

Timber plantations

Float glass plant

Ship-steel making

Petrochemicals

Aluminum end-products

Steel products

Creation of new attractions

Processed poultry for export

Fish exports, fish processing

Refining, oleo-chemicals

Panels, mouldings, furniture

Modular windows

Boats, marine structures

Upstream Industry Downstream IndustryPriority Industry

Value Chains Examples of upstream and downstream industries

Opportunities for SMEs

Opportunities for SMEs

Oil-based industry

Aluminum industry

Steel industry

Tourism industry

Livestock industry

Fishing/ Aquaculture industry

Palm oil industry

Timber-based industry

Marine engineering

--

Fabrication and installation

--

Tour operators, agents, guides, hotels, restaurants, suppliers, transport

Farmer-producers

Farmer-producers

Smaller plantations, cattle rearing in plantations

Downstream processing

Independent (small) companies, subcontractors to larger firms

Plant maintenance and technical services

Plant maintenance, technical services, transport

Construction, supplies, feed

Supplies, feed, distribution

Plant maintenance, transport, supplies

Plant maintenance

Maintenance and technical services, suppliers

Upstream/Downstream Industries Service industries

Plant maintenance, technical services, transport

Priority Industries

Spin-Off Service Industries

Glass industry -- Plant maintenance, technical services, transport

Opportunities for SMEs

Examples of Service Industries from Priority Industries

Agriculture & resource-based industries – palm oil industrial cluster, deep-sea fishing, food industries (halal hub), timber-based industry & shipbuilding

Palm Oil Processing, Oil Refinery, Other liquids

Regional Timber Processing

Centre

General cargo terminal

Fishing terminal

Marine Engineering

TownshipOther Heavy industries

Commercial centre

Dry Bulk & Container Terminals

Source: ADL

Tanjung Manis Industrial Port City 2030(Artist Impression)

Tanjung Manis: Zoning

Dubai World

TANJUNG

TANJUNG MANISAIRPORT

NEW TOWNSHIP

SHIPBUILDINGINDUSTRY

TIMBER PROCESSING ZONE

BELAWAI TOWN

MARITIME OFFICE

POIC

CODTRPA PORT

LKIM FISHERY PORT

STIDC & SEA PARTY, TAIWAN AQUACULTUREPROJECT

16,000 hectares

Industries at Tanjung Manis:Organic Chicken and Egg ProductionFeed-Milling & FertilizerFruit and Vegetable FarmHerbal PlantationMarine Fish FarmingEel FarmingBio-tech Aquaculture Prawn FarmingAqua Processing IndustriesR&D Centre

Services hub – administration, ICT, education, training, R&DWith a small port terminal and food processing industries

Tertiary education campus

Government centre

Fish & General Terminal

Food processing industries

Coast guard base

Commercial centre

Residential area

Research science park

Airport

Mukah Smart City 2030 – Artist Impression

Food processing industries

Aluminiumindustries

Residential Area

Steel industries

Mukah Industrial Estate 2030 – Artist Impression

New Industrial Park for new industries – aluminium, polysilicon, steel, oil refineryWith a deep-sea port

Liquid bulk port area

Oil Refinery, other liquids, tank farms

and processing

Aluminum Smelter &

Downstream

Other industries & commercial

Steel industries

Silica based industries

Marine Engineering

Dry bulk and general cargo port

area

Similajau Industrial Park 2030 — Artist Impression

To support industries sited at Samalaju Industrial ParkPurpose

20,000 people by 2013Projected Population

Northern SamalajuIndustrial ParkLocation

2,266.24haArea

To support industries sited at Samalaju Industrial ParkPurpose

20,000 people by 2013Projected Population

Northern SamalajuIndustrial ParkLocation

2,266.24haArea

Bintulu Development AuthorityDeveloper

SCORE 10 Priority IndustriesType of IndustriesRM80,305.0 millionInvestment ProposalJuly 2010 – Apr. 2013Phase 3Aug. 2009 – Sept. 2012Phase 2July 2008 – Aug. 2010Phase 1

Start Construction/Completion Date:6,000 haArea

Bintulu Development AuthorityDeveloper

SCORE 10 Priority IndustriesType of IndustriesRM80,305.0 millionInvestment ProposalJuly 2010 – Apr. 2013Phase 3Aug. 2009 – Sept. 2012Phase 2July 2008 – Aug. 2010Phase 1

Start Construction/Completion Date:6,000 haArea

Samalaju New Township

Samalaju Industrial Park

Samalaju Industrial Park & New Township

Port

Shipbuilding

Solar Glass

AluminiumSmelter

Polysilicon

SCORE / RECODA ORGANISATION STRUCTURE

SCORE Advisory CouncilTo advise on direction for policy, strategy and

implementation to RECODA

Federal Govt

State Govt

Corporate Sector

RECODA Board- Chief Minister (Chairman)

- Federal Government- State Government- Corporate Sector

Chief Executive Officer

Management Team1-Stop Agency

Co-ChairmanPrime Minister,

MalaysiaChief Minister,

Sarawak

RECODA is created under the Regional Corridors Development Authorities Ordinance, 2006 which was passed by the Sarawak State Legislative Assembly on 20th November 2006.

SCORE: Incentives

State: Discount on industrial land

Federal: Special MIDA incentives for East Coast and East Malaysia: pioneer status, investment tax allowance, reinvestment tax allowance

Incentives for Manufacturing Sector offered by Federal Government

Pioneer Status (PS) 100% tax exemption on statutory income for 5 years

Investment Tax Allowance (ITA) 100% allowance on the qualifying capital expenditure incurred within a period of 5 yearsThe allowance could be utilised to offset against 100% of statutory income for each year of assessment

Reinvestment Allowance (RA) Free to offset RA against 100% of statutory income

Incentives for Strategic Projects offered by Federal Government

100% allowance on the qualifying capital expenditure incurred within a period of 5 years from the date the first qualifying capital expenditure is incurred

Investment Tax Allowance (ITA)

100% tax exemption on statutory income for a period of 10 years

Pioneer Status (PS)

SCORE: Federal Investment Incentives

Undeveloped Land Developed LandSamalaju Industrial Park

Price per Square Metre

RM29.49

After Discount 25% for Preferred Industries RM22.12 RM40.59

Further Discount 50%For projects operating within 5 years from date of land alienation

RM11.06 RM20.29

Price after Discount RM11.06 RM20.29

Original Price RM54.12

SCORE: Land Price – Samalaju Industrial Park

CONCLUSION

I hope my presentation has provided you with all the relevant information on investment opportunities in SCORE.

I would like to reiterate that Sarawak has a lot to offer, particularly our huge energy potential which is an essential to power our heavy capital intensive industries or better known as trigger industries.

In this respect, we welcome the participation of the investors in the trigger industries as they will provide spin offs to develop the whole value and supply chains in both the upstream & downstream industries that will also benefit our SMEs.

With our conducive investment environment, stable government and good quality of life here should provide the investors with the additional incentives to make Sarawak your Preferred Investment Destination.

I would like to extend my special thanks for your kind indulgence and patience.

With this, I wish you all a very successful and fruitful conference.

Invest in Sarawak!

www.sarawakscore.com.my