Masakuni Nakayama 6th November, 2018 presentation r16.pdf · ⚫Well developed domestic...
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Contribution and Expectation of Japanese companies in Malaysia toward Industrial Development The Japanese Chamber of Trade & Industry, Malaysia Chairman of Trade and Investment Committee Masakuni Nakayama 6th November, 2018
Transcript of Masakuni Nakayama 6th November, 2018 presentation r16.pdf · ⚫Well developed domestic...
Contribution and Expectation of Japanese companies
in Malaysia toward Industrial Development
The Japanese Chamber of Trade & Industry, Malaysia
Chairman of Trade and Investment Committee
Masakuni Nakayama
6th November, 2018
About JACTIM
1
Center of the first low : YAB Tun Dr. Mahathir(4th Prime Minister)
On the left of Tun: The late Tan Sri Datuk Dr. Suzuki(2nd President of JACTIM)
⚫ Established in 1983
⚫ Endorsed as the first foreign chamber of commerce by Tun Dr. Mahathir as 4th Prime Minister
20.8%
0.0% 20.0% 40.0%
Foregin Trade & Commerce
Manufacturer Rep/Service
Construction & Engineering
Transportation & Warehousing
Restrants
Finance & Insurance
Travel Agents
Agriculeture & Forestry
Other Non-Manufacturing
(Source)JETRO
No. of Japanese
Companies1,376
（As of Oct 2018）
No. of Japanese Companies
In Malaysia
Ratio of Companies by Industry
＜Manufacturing＞
＜Non-Manufacturing＞
Non-Manuract
uring49.4%
Manufacturing50.6%
34.8%
0.0% 10.0% 20.0% 30.0% 40.0%
Electrical & Electronic
Petroleum & Chemical
Steel & Nonferrous Metal
Transportation Machinery & Parts
Machinery
Wood & Wooden Products
Food & Beverages
Textile & Textile Products
Other Manufacturing
Number of Japanese Companies
2
Business potential in MALAYSIA
Attractive Aspects as Friendly Country
[Reliable Domestic Situation]
⚫ Stable politics, Parliamentary Democracy
⚫ Friendly and Positive Feeling toward Japan
⚫ Safety/Security, Minimal Natural Disasters, Gentle Climate
[Understanding of Industry and Investment]
⚫ “Industry-Friendly” policy by the New Government
⚫ Educational exchange (e.g. MJIIT(Malaysia-Japan International Institute of Technology), OJT by Japanese companies)
[Window to the World]
⚫ English proficiency
⚫ multi-ethnic group
⚫ FTA network
⚫ Well developed domestic infrastructure
(Connect to China, India, Middle East, ASEAN)
New Government was born on May 9th
3
Japan’s Strength
Strength High value-added
industrial structure
Technologies
Skilled-labors
Understanding of
Factory Floor
Providing
high value-added products
Lean-Manufacturing
Digital
4
Be organized comfortable “home”
Thinking priority strategically
with industrial players
Welcome
Hospitality
Reinforce
ment
Trans
formation
New Investors
TRANSFORMATION
Step of creating a virtuous circle of
enhancing the level of invested business
while attracting the new related investment
• Cultivate HR capable of R&D
• Enhance Industry 4.0
• Develop a rule for merger & division
• Encourage Green Technology
WELCOME
Step of attracting the investment
• Clear and transparent incentives
• Prompt & simple procedures
• Clear guideline for service sector
• Flexible issuance of EP & PVP
• Mitigation of Regulations of FDI
• Sufficient number of HR
⚫ Our recommendation is to follow the cycle of investment which consists of 4 steps.
5
HOSPITALITY
Step of stabilizing the incoming investment
• Reasonable TP(Transfer Pricing) audit
• Prompt GST refund
• Withholding Tax Treatment
• Clear new SST rules
REINFORCEMENT
Step of extending the invested business
• Encourage & Support reinvestment
• Support to set up the Regional Hub
• Enhancing human capital development
& Work Ethics
• Effective utilization of Foreign Workers
Frequent meetings with “Industry-Friendly” Government
Right : YAB Tun Dr. Mahathir(7th Prime Minister)
Left : Mr. Imizu(10th President of JACTIM)
Meeting with YB Tuan Lim Guan Eng (Minister of Finance)
6
（Source）United Nation World Population Prospects, the 2015 Revision
https://esa.un.org/unpd/wpp/Graphs/DemographicProfiles/
0
10,000
20,000
30,000
40,000
50,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Estimated population in Malaysia (～2100)
2010 2020 2030
To
tal
po
pu
lati
on
(tho
usa
nd
s)
2040 2050 2060 2070 2080 2090 2100
(year)
※Medium Variant
30,331 36,10739,862 42,418
42,325
40,778
7
Continuous population bonus of MALAYSIA
⚫ The average annual rate of population growth in Malaysia is 1.5% (2010 - 2016)
⚫ The population is expected to reach a peak between 2065 and 2070
⚫ Population distribution by age in 2017: 24.1% for 0 - 14 years old, 69.7% for 15 - 64, 6.2% for over 65 years old
⚫ The top 20% of the total population are the affluent households with annual household incomes exceeding US $ 48,000.
Terima kasih banyak
Thank you very much
ありがとうございました
<JACTIM>Suite 6.01, 6th Floor, Millennium Office Block, Peti #4,
160, Jalan Bukit Bintang 55100 Kuala Lumpur
TEL 60-3-2142-7106 / FAX 60-3-2142-0483
EMAIL [email protected]
http://www.jactim.org.my/
Mon - Fri 9:00am - 5:00pm
<Other Related Organizations>●Embassy of Japan in Malaysia
https://www.my.emb-japan.go.jp
TEL 60-3-2177-2719
EMAIL [email protected]
●JETRO Kuala Lumpur
https://www.jetro.go.jp/malaysia/
TEL 60-3-2171-6100
EMAIL [email protected]
●Malaysian Investment Development Authority：MIDA
<MIDA TOKYO>
TEL 81-3-5777-8808 FAX 81-3-5777-8809 EMAIL [email protected]
<MIDA OSAKA>
TEL 81-6-6451-6661 FAX 81-6-6451-6626 EMAIL [email protected]
●Multimedia Development Corporation：MDEC
TEL 1-800-88-8338 (within Malaysia) 60-3-8315-3000 (International)
EMAIL [email protected]
Contact to US
8
Appendix
9
Activities of JACTIM (after the change of Government)
Meetings with New Government:Discussion for Meeting with YB Tuan M. Kulasegaran, Minister of Human Resources (MOHR) (June 21)
JACTIM Courtesy Call on YAB Tun Dr. Mahathir bin Mohamad, the 7th Prime Minister of Malaysia (July 5)Town Hall Session by Institute of Labor Market Information and Analysis (ILMIA) (July 10)
National Human Resources Consultative Council (NHRCC) Coordination Meeting for Working Group 1:Employments and Human Resource Development (July 12)
Meeting with NWCC on Minimum Wage Review (July 17)
SST related Meeting with Royal Custom Malaysia (July 19)
SST related Meeting with YBhg Datuk Seri Dr. Ismail Hj. Bakar, Secretary General of Treasury（MOF) (July 23)
Follow-up meeting with Prime Minister’s Secretary (August 2）Round Table Discussion on Improving Good Governance and Integrity in Malaysia (August 3）Networking Session with Chambers of Commerce, Business and Industry Associations by YB Datuk Ignatius Darell Leiking, Minister of International Trade and Industry (MITI) (August 13)
National Human Resources Consultative Council (NHRCC) Coordination Meeting for Working Group 2:Labor and Human Resource (August 13)
Discussion on SST Implementation Chaired by YB Tuan Lim Guan Eng, Minister of Finance (MOF) (August 19）MOF Focus Group Meeting :
・Ensuring sustainable development (September 3）・Attracting Investment and Boosting Trade (September 6)
・Improving Research & Development, and Commercialization & Innovation Activities (September 7）Meeting with YBhg Dato’ Azman Mahmud, CEO of Malaysian Investment Development Authority(MIDA) (September 6）Meeting with YBhg Datuk Isham Ishak, Secretary General of Ministry of International Trade and Industry(MITI) (September 19）Meeting with YB Tuan Lim Guan Eng, Minister of Finance (MOF) (October 2）Follow-up meeting with MOF (October 4）Follow-up meeting with Bank Negara Malaysia(BNM) (October 5）
Meetings with Other Associations after New Government is formed:Meeting with The American Malaysian Chamber of Commerce (AMCHAM) (June 7）MEF chaired Industry Group Meeting to Discuss National Minimum Wages（June 12）Meeting with SME Association on Foreign Worker Outsourcing Company, Minimum Wage and other Labor Issues (June 19）FMM Chaired Preparatory Discussion for Meeting with Minister of Human Resources（June 19）FMM Chaired Joint Industry Discussion on Minimum Wage and Rehiring Programme（July 6）Meeting with the Japan Graduates’ Association of Malaysia (JAGAM) (August 28）ACCCIM Chaired Industry Meeting on impact of suspension of Recruitment of Bangladeshi Foreign Workers through the Foreign Workers Management System (September 12）MEF chaired Joint Meeting of Industry Association to discuss Proposal for Employer to pay RM10,000 Levy to extend employment of skilled foreign worker beyond 10 years (September 28)
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Business trips to Japan of Malaysian Cabinet Ministers
11
June：YAB Tun Dr. Mahathir bin Mohamad(Prime Minister of Malaysia)
July：YAB Dato' Seri Dr. Wan Azizah binti Wan Ismail(Deputy Prime Minister cum Minister of Women, Family & Community Development)
August：YAB Tun Dr. Mahathir bin Mohamad(Prime Minister of Malaysia)YB Dr. Maszlee bin Malik(Minister of Education)YB Datuk Seri Mohd Redzuan bin Md Yusof(Minister of Entrepreneur Development)YB Tuan Anthony Loke Siew Fook(Minister of Transport)
September：YB Tuan Gobind Singh Deo(Minister of Communications and Multimedia)YB Datuk Mohamaddin bin Ketapi(Minister of Tourism, Arts and Culture)
October：YB Tuan Haji Mohamad bin Sabu(Minister of Defence)YB Datuk Ignatius Darell Leiking(Minister of International Trade and Industry)YB Tuan Baru Bian(Minister of Works)
November：YAB Tun Dr. Mahathir bin Mohamad(Prime Minister of Malaysia)YB Dato' Seri Mohamed Azmin bin Ali(Minister of Economic Affairs)YB Dr. Maszlee bin Malik(Minister of Education)YB Dato' Saifuddin bin Abdullah(Minister of Foreign Affairs)YB Datuk Ignatius Darell Leiking(Minister of International Trade and Industry)
Attractive Aspects of Malaysia for Investment
73.4
55.4
52.7
47.8
46.7
46.7
30.4
26.6
15.2
14.7
13.6
13.0
13.0
9.8
7.1
0.0 20.0 40.0 60.0 80.0
English Proficiency of Workforce/General Public
Friendly and Positive Feelings toward Japan
Minimal Natural Disasters
Safety/Security
Infrastructure Quality
Good Living Environment
Political Stability
Labor cost, Personnel Expenses
Availability of Inexpensive Energy Resources
Gateway to Islamic Nations/Markets
Investment Incentive Policy by Government
Quality of Workers
Consumer Market
Clusters of Parts and Components Industry
Good FTA Network
（%）
n=184, Multiple Responses Allowed
Sources: Questionnaire Survey for Japanese Companies in Malaysia in the Year 2018 conducted
by JACTIM/JETRO 12
