Performance Report 2015 - InvestKL€¦ · like the Petronas Twin Towers and the KL Tower, which...

Greater Kuala LumpurThe Regional Headquarters Location for

Multinational Companies in Asia

PerformanceReport 2015

InvestKL is an agency under the purview of the Malaysian Government, which was set up in support of the Economic Transformation Programme (ETP). Its main objective is to promote Greater Kuala Lumpur as a strategic regional base for global multinational companies (MNCs) to set up their regional business, innovation and talent hubs.

InvestKL focuses on MNCs particularly engaged in National Key Economic Areas (NKEAs) such as oil, gas and energy, engineering services, healthcare, wholesale and retail and environmental technology. These areas are recognised to have high growth potential and strong impact on the economy whilst generating high-income, knowledge-intensive jobs for the people.

Overseen by PEMANDU, reporting to two lead Ministers and headed by CEO Datuk Zainal Amanshah, InvestKL works with numerous Government Ministries, entities and agencies to formulate attractive fiscal packages, and helps corporations identify business opportunities while strengthening their competitiveness regionally and globally.

Best Investment Attraction Agency

In 2015, InvestKL was among the agencies in Asia Pacific to be awarded with the Best to Invest Top Agency Award by Site Selection. The award is a recognition of excellence demonstrated by leadership and staff, and serves as a reminder of the importance of maintaining and building on the winners’ success.

The Best to Invest Top Agency Award is presented to the winning agencies which had accumulated the most points in an index of seven criteria including most professionally responsive to investor inquiries, most knowledgeable and linguistically diverse staff, most access to user-friendly databases of sites and incentives, best information on timing expectations for permitting and other processes, best access to recent investors in the region for testimonials, best reputation for protecting investor confidentiality and best reputation for after-care services.

Contents

04Chairman’s Message

05CEO’s Message

06Greater Kuala Lumpur

08InvestKL Achievements

09Greater KL & Malaysia’s International Rankings

18Raising Greater KL’s Profile

17 to

14Impact on the Economy

12MNCs in Greater KL

11Our 2015 Investors

Chairman’s Message

Established in 2011 as part of the Economic Transformation Programme (ETP) and Government Transformation

Programme (GTP), InvestKL is tasked to assist and facilitate the strategic move of various global multinational companies to grow their business in Asia out of Greater Kuala Lumpur (KL). Now in its fifth year of operations, InvestKL is entering the most exciting phase of its young history as it moves pass the half way target to secure at least 100 companies by 2020. We’ve made solid progress on many fronts and I applaud all involved for the impressive achievements.

To date, InvestKL has attracted 51 MNCs to establish their regional head offices in Greater KL with a commitment of RM5.88 billion worth of investment. This translates to over 7,000 regional jobs approved and committed in response to the operations of these newly launched regional headquarters. We are indeed proud as this is a resounding vote of confidence in our country and our people.

Over the years, Malaysia has remained buoyant in the face of many challenges and uncertainties, and this year will be no different; We are convinced that 2016 will be a dynamic one. The constant quest to be world-class and investor-friendly is what has established Greater KL to be a compelling setting for a regional base. In this aspect, we look forward to the opportunities that the Trans-Pacific Partnership Agreement (TPPA) would bring.

Malaysia has historically been a natural gateway for MNCs to conduct business. With the TPPA in place, this will strengthen Malaysia’s position as a base for MNCs to not only tap into the domestic market, but also to utilise Malaysia for growth in the region. Greater KL’s strategic location in the heart of ASEAN is well acknowledged among investors for its state-of-the-art infrastructure, highly skilled workforce and cost-competitive operating environment.

Datuk Seri Michael KC YamChairman

Malaysia is set to benefit from the knowledge and technology sharing that these MNCs will bring, which will expose our people to global perspectives and cultivate innovation. The creation of high-value jobs will spur the local economy as the use of local service providers and ancillary services such as logistics and banking, as well as enhanced business ecosystem will strengthen the market.

Undoubtedly, InvestKL’s driving force has been the trust of its stakeholders. As we shape Greater KL to become a leading investment destination, our stakeholders have entrusted us to partner in our city’s magnificent transformation into a global hub. I firmly believe that Greater KL’s competitiveness will create long-term value for our stakeholders and their investment.

On behalf of the Board of Directors and the Management, I would like to extend our gratitude to the lead Ministers – YB Dato’ Sri Mustapa Mohamed and YB Datuk Seri Tengku Adnan Tengku Mansor and PEMANDU CEO, Yg Bhg Dato’ Sri Idris Jala for their unwavering support. Our thanks also to the various government entities and agencies in particular, The Mayor of Kuala Lumpur and PEMANDU, stakeholders and everyone who has worked tirelessly to bring up the name of Greater KL and help InvestKL achieve its goals.

InvestKL Performance Report 2015

4

Board of Directors

Datuk Seri Victor Wee

Dato’ Azman Mahmud

Dato’ Sani Mistam

Encik Ziad Razak

CEO’s Message

Datuk Zainal AmanshahCEO

to boost the attractiveness of Greater KL as a top investment destination. This will also be underpinned by our collaborative efforts with Kuala Lumpur City Hall (DBKL) to enhance the ease of doing business, improve accessibility and elevate Greater KL’s liveability. The Special Task Force to Facilitate Business (Pemudah) is also stepping up to ensure smooth and efficient public-private sector initiatives.

The next phase of growth in Greater KL will present a historic opportunity for InvestKL to build more strategic partnerships and advance our pipeline to attract top tier Fortune 500 and Forbes 2000 companies en route to meeting our target of 100 MNCs by 2020. We are in a good position to attract potential investors in capitalising on Greater KL’s central location, credibility, cost competitiveness, cultural diversity and varied choices of business and community hubs.

Let me close by expressing my pride in the InvestKL team for bringing us to this point. My appreciation goes to our lead ministers, board of directors and key stakeholders for their generous support and valuable insights. I trust you share in our excitement about InvestKL’s performance and the progress that Greater KL is heading to for an even brighter future.

T he year 2015 was a pivotal point of accomplishment for InvestKL. We have successfully reached the mid mark of

our target by drawing in 51 MNCs so far to set up their regional operations in Greater KL. Investors have always viewed Greater KL as a strong locale with excellent opportunities for business and growth. The MNCs appreciate the knowledge, expertise and commitment of our people. These attributes are our advantage and they are what make our business ecosystem a dynamic one.

Under the 11th Malaysia Plan (11MP), Greater KL has been named as among the four growth catalyst cities for national development along with Johor Bahru, Kuching and Kota Kinabalu. The competitive cities are part of the 11MP core strategies in re-engineering economic growth for greater prosperity and will play an important role as finance and logistics hubs, as well as magnets for talent seeking new opportunities.

InvestKL is confident that Malaysia is on course to become a high income nation by 2020 as Greater KL continues to benefit from rapid urban development and strategic investments that are vital for the transformation agenda. With the new infrastructure projects and expansion of efficient transportation networks such as the MRT and High Speed Rail currently in the pipeline, Greater KL will be in a better position to provide exciting prospects for businesses seeking a foothold in the flourishing Asian region.

In 2016, InvestKL is renewing its focus to move up and shape Greater KL’s geographical position as the ideal regional headquarters location for multinational organisations. We stand to gain from Malaysia’s competitiveness and vibrant environment in providing an attractive platform to support MNCs in improving their operations and efficiency.

In this regard, InvestKL is committed to building a relationship of trust to transform Greater KL into a world-class metropolis and spur the economic growth of the country. We will be working closely with key alliances and partners

5

The capital city of Malaysia is a thriving metropolis, with a fast-growing population of almost 1.73 million in 2015, a far cry from its humble beginnings as a small tin-mining town in the 1850s. Iconic landmarks like the Petronas Twin Towers and the KL Tower, which are among the world’s tallest structures, dominate the city’s skyline.

Greater KL, also known as the Klang Valley, consists of Malaysia’s bustling capital city of Kuala Lumpur and its surrounding areas, spanning about 2,800km2. With its advanced infrastructure, strong global supply-chain, integrated public transportation network, and young workforce of close to one million, Greater KL is the heart of Malaysia’s economic growth.

The Malaysian Government aims to position the city among the world’s top investment destinations. Among the game-changing projects in the pipeline to accelerate Greater KL towards becoming a world-class city, are the High Speed Rail connecting to the city to Singapore, and the integrated Mass Rapid Transit (MRT) railway line.

Greater Kuala LumpurThe Rising Star of ASEAN

Greater Kuala LumpurExisting Business Hubs and Major Developments

Population: 10 million by 2020Size: 2793 km2

Climate: TropicalTime Zone: GMT+8Languages: English, Malay,

Cantonese, Mandarin, Tamil and Indigenous

Gross National US$184b (RM650b) estimated contribution of Greater KL to Malaysia’s GNI by 2020

KL Metropolis

Bukit BintangCity Centre

BandarMalaysia

Tun RazakExchange

KL 118

Free Industrial Zone

Cybercity

Port Klang Expansion(Container Terminal 8)

AmpangJaya

ShahAlam

KlangKajang

Sepang

Putrajaya

Subang Jaya

KualaLumpurPetaling

Jaya

Selayang

KLIA Aeropolis

AsiaAerospace

City

KLCC

Income:

At a Glance

KL Sentral

BangsarSouth

Source: InvestKL, JLL

7

INVESTMENTSAPPROVED/COMMITTED

MULTINATIONAL COMPANIESATTRACTED TO GREATER KL

REGIONAL HIGH SKILLEDJOBS CREATED

*RM1.9 Billion investments realised

*Out of 100 by 2020

*4,786 regional job realised

10MULTINATIONAL

COMPANIESSECURED

REALISED AMOUNTSPENT

788MRM 672

HIGH SKILLEDREGIONAL JOBS

InvestKL AchievementsSince inception in 2011

Highlights of the Year 2015

8

Greater KL and Malaysia’s International Rankings

TalentBusiness

IMD World Talent Report 2015

MOST TALENTCOMPETITIVECOUNTRY IN ASIA

Education First EnglishProficiency Index 2015

IN ASIA FORENGLISHPROFICIENCY

Mercer’s Cost ofLiving Survey 2015Most Expansive = 1

LEASTEXPENSIVE CITY

HSBC Expat Survey 2015

BEST EXPATDESTINATION

Liveability

A.T Kearney Global ServicesLocation Index (2016)

Baseline Profitability Index (BPI) 2015

MOST BUSINESSFRIENDLY COUNTRY

in World Economic ForumGlobal Competitiveness Ranking

(2015-2016)

FOR FINANCIALMARKET DEVELOPMENT

EY:Capital Barometer, SEA

MOST ATTRACTIVEDESTINATION

by World Economic Forum’sGlobal Competitiveness Report

(2015-2016)

MOST COMPETITIVECOUNTRY

by World Bank

EASE OF DOINGBUSINESS 2016

9

Milestones With Our MNCs

Our InvestorsA selection of our investors from 2011-2015

11

By Country

16

14

12

10

8

6

4

2

0

By Sectors16

14

12

10

8

6

4

2

0

USA

16

France

7

UK

5

Japan

4

Singapore

3

China

1

Belgium

2

Italy

2

Switzerland

2

Australia

1

India

2

Germany

2

Netherlands

2

Norway

1

Spain

1

OthersNKEA

By Region

Europe

24Americas

16APAC

11

HC

2

MN

0O&G

7

PO

1

W&R

2

IP

7

GT

8

BS

10

CCI

2

CG

1

E&E

2

EDU

1

ES

7

FS

1

Wholesale & Retail

Palm Oil

Oil & Gas

Mining

Industrial Products

Healthcare

Global Commodities Traders

Financial Services

Engineering Services

Education

Electrical & Electronics

Consumer Goods

Contents CommunicationInfrastructure

Business ServicesBS

CCI

CG

E&E

EDU

ES

FS

GT

HC

IP

MN

O&G

PO

W&R

Legend

MNCs in Greater KLby Country, Sectors and Region


12

By Country

16

14

12

10

8

6

4

2

0

By Sectors16

14

12

10

8

6

4

2

0

USA

16

France

7

UK

5

Japan

4

Singapore

3

China

1

Belgium

2

Italy

2

Switzerland

2

Australia

1

India

2

Germany

2

Netherlands

2

Norway

1

Spain

1

OthersNKEA

By Region

Europe

24Americas

16APAC

11

HC

2

MN

0O&G

7

PO

1

W&R

2

IP

7

GT

8

BS

10

CCI

2

CG

1

E&E

2

EDU

1

ES

7

FS

1

Wholesale & Retail

Palm Oil

Oil & Gas

Mining

Industrial Products

Healthcare

Global Commodities Traders

Financial Services

Engineering Services

Education

Electrical & Electronics

Consumer Goods

Contents CommunicationInfrastructure

Business ServicesBS

CCI

CG

E&E

EDU

ES

FS

GT

HC

IP

MN

O&G

PO

W&R

Legend

13

Impact On The Economy

Regional Jobs RealisedBased on 4,786 realised high skilled job creation by 51 MNCs

Senior Management(RM50k and Above)

Senior Manager/HOD(RM25k - RM50k)

Manager(RM10k - RM25k)

Senior Executive/Technician(RM5k - RM10k)

Junior Executives/Fresh Grad(RM3k - RM5k)

Support/Customer Service(RM3k and below)

0% 3% 7%

74%

13%

3%2%0%

31%

32%

27%

8%

100%

80%

60%

40%

20%

0%


Senior Manager/HOD

(RM25k - RM50k)


Senior Executive/Technician

(RM5k - RM10k)

Junior Executives/Fresh Grad

(RM3k - RM5k)

Support/Customer Service

(RM3k and below)

56

36

605

879

107

1398

24

1259

1

396

23

2

Local Expat

1%0%22%

35%

32%

10%

Overall

4,786Expat

816(17%)

Local

3,970(18%)


Senior Manager/HOD(RM25k - RM50k)


Senior Executive/Technician(RM5k - RM10k)

Junior Executives/Fresh Grad(RM3k - RM5k)

Support/Customer Service(RM3k and below)

0% 3% 7%

74%

13%

3%2%0%

31%

32%

27%

8%

100%

80%

60%

40%

20%

0%


Senior Manager/HOD

(RM25k - RM50k)


Senior Executive/Technician

(RM5k - RM10k)

Junior Executives/Fresh Grad

(RM3k - RM5k)

Support/Customer Service

(RM3k and below)

56

36

605

879

107

1398

24

1259

1

396

23

2

Local Expat

1%0%22%

35%

32%

10%

Overall

4,786Expat

816(17%)

Local

3,970(18%)

15

Kuala Lumpur Selangor

5

10

15

17

13

7

3

0

20

Rental

11.13 10.92

19.06 20.84

RMMillion

2013 2014 2015

2015Estimated

Annual Rental

KualaLumpur

Selangor

TOTAL

SelangorKuala Lumpur

Q4 Q4

Q4

12.6714.52

RM39.91Million

RM7/sqft

RM5/sqft

226,920 ft229 MNCs

2015 Of�ce Space Utilisation*347,400 ft2

22 MNCs

2015 Of�ce Space Utilisation*574,320 ft2*

51 MNCs

2015 Of�ce Space Utilisation*

* equivalent to the size of 10 soccer �elds

Spillover to Local EconomySpace Utilisation Analysis


5

10

15

17

13

7

3

0

20

Rental

11.13 10.92

19.06 20.84

RMMillion

2013 2014 2015

2015Estimated

Annual Rental

KualaLumpur

Selangor

TOTAL


Q4 Q4

Q4

12.6714.52

RM39.91Million

RM7/sqft

RM5/sqft

226,920 ft229 MNCs


22 MNCs


51 MNCs


* equivalent to the size of 10 soccer �elds


5

10

15

17

13

7

3

0

20

Rental

11.13 10.92

19.06 20.84

RMMillion

2013 2014 2015

2015Estimated

Annual Rental

KualaLumpur

Selangor

TOTAL


Q4 Q4

Q4

12.6714.52

RM39.91Million

RM7/sqft

RM5/sqft

226,920 ft229 MNCs


22 MNCs


51 MNCs


* equivalent to the size of 10 soccer �eldsInvestKL Performance Report 2015

16

Strategic Partnerships

University of Malaya and VINCI Construction*On the 20th January 2016, a Memorandum of Understanding (MoU) was signed between the University of Malaya, Malaysia’s No.1 ranked higher education institution and VINCI Construction, a French leading design and build construction company. The MoU, which was facilitated by InvestKL, will see the two parties jointly work on a collaborative project to encourage and promote cooperation in research and development in the field of Capacity Building and Local Talent Development.

This marks VINCI Construction’s first collaboration with a Malaysian University. Over the course of three years, the project will focus on mutual sharing of best practices and expertise in the areas of construction and engineering. These include final year projects for undergraduates, internship and employment opportunities, joint research and development activities, participation in seminars and academic sessions, worksite visits and other areas agreed by both parties.

MNCs in Greater KL are able to gain access to various business ventures and opportunities the city has to offer. Since our establishment in 2011, InvestKL has successfully facilitated partnerships and alliances between local and international corporations. These key partnerships are vital to cultivate innovation and expansion for various business ventures and opportunities. Among our highlights:

Pemudah, Schlumberger Customs K8*Schlumberger Limited maintains a strong presence in Malaysia where its regional headquarters was set up to enhance its standing and to consolidate its support centres throughout the Asia Pacific. In order to meet optimal logistics performance in the region, Schlumberger sought for an improved export clearance procedure to be implemented. A consultation was initiated and an initiative was then undertaken by the Malaysia Productivity Corporation (MPC), Special Task Force to Facilitate Business (Pemudah), Royal Malaysian Customs Department (RMCD) and PKFZ Sdn Bhd to cater effectively for the business requirement of Schlumberger.

An innovative two-pronged solution was found where the customs clearance process in PKFZ using K8 documentation was further enhanced with an aim to reduce the clearance process for Schlumberger’s cargoes for regional deployment. The implementation of new online processes by the RMCD in May 2014 resulted in 85 percent faster cargo clearance and savings of up to 230 minutes and three procedures were eliminated from the entire process during office hours. This efficiency improvement has successfully facilitated Schlumberger’s operations.

SHRDC and IBM Brighter Blue ProgramThe 2015 internship programme was a joint initiative by Selangor Human Resource Development Centre (SHRDC) and IBM, collaborating under the Industrial Skills Enhancement Program (INSEP). Fresh graduates were trained and equipped with industry relevant skills before being placed in actual work environments. The Brighter Blue Program was targeted at fresh graduates with a minimum CGPA of 2.8. Before being accepted into the programme, they have to take an aptitude test and be interviewed by specific department Manager.

The selected candidates will then undergo a training duration of six months, during which they are exposed to Project Management, Wintel and AIX. For the 2015 programme, all of the talents were from SHRDC pool and the selected 56 interns comprised local students from various universities. A total of 33 talents were offered positions upon completion of the programme. This year, the programme was launched again in February with 13 students selected from various local universities to undergo Cloud Training for 6 months. In August, once the programme ends, these students will be assessed and if succeeded, they will be offered a position in IBM.

*Taken from public sources

17

Huffington Post Interview live from World Economic Forum, DavosDatuk Zainal Amanshah spoke to HuffPost live at Davos during the World Economic Forum, about the corporation’s goal to attract 100 MNCs to invest in Greater KL by 2020, noting that the agency is “just under halfway”.

InvestKL’s Annual Three Minister’s Event at Pullman PutrajayaInvestKL in Conversation with the Three Ministers is an exclusive networking event with MNCs that have chosen Greater KL to establish its regional headquarters. The event was attended by relevant government agencies, partners, alliances and media.

Schlumberger opens Asia Center for Reliability & Efficiency in Kuala LumpurSchlumberger launched its Asia Center for Reliability and Efficiency dedicated to advanced maintenance and servicing of oil and gas technologies in Asia Pacific. The state-of-the-art centre demonstrates the company’s confidence to Malaysia.

InvestKL Charity Golf with MNCs

Attended by government agencies and MNCs, InvestKL hosted a Charity Golf Tournament for the purpose of demonstrating social responsibility by raising funds for small charities in dire needs of resources to sustain their operations.

Kadokawa buys into Gempak Starz, eyes KL as creative hubKadokawa, Japan’s leading creative content publisher buys into Gempak Starz and established its ASEAN & Middle East Creative Content Hub in Greater KL to produce and export “Made-in-Malaysia” content for the global market.

InvestKL Ambassador Breakfast Session with the Mayor of KLInvestKL held a Breakfast Session with the Mayor of Kuala Lumpur to discuss issues surrounding Kuala Lumpur. International representatives from over 10 countries were present at the session, among them Ambassadors, Trade Commissioners and Chambers.

Turner International Celebrates its 50th AnniversaryTurner International celebrates its 50th anniversary of presence overseas. Since the company broke ground on its first project in Hong Kong in 1965, it has completed iconic projects in more than 60 countries across five continents. InvestKL attended the event to be part of the great milestone.

InvestKL Update SeriesInvestKL hosted an Update Series on the topic ‘Roles & Responsibilities of Directors under Company Act 1965 and Transfer Pricing’. Speaking at the event was Mr. Mohamed Sufyan from SSM and Ms. Anushia Soosaipillai from PWC.

January

December

February

November

March

October

Raising Greater KL’s ProfileHigh Impact Engagement in 2015


18

The Principal Hub Announcement by MITI Minister, Dato’ Sri MustapaThe Principal Hub incentive announcement by the Malaysian Government was developed in line with an evolving regional management and global supply trend. It serves to enhance Greater KL’s competitiveness as a leading regional base for MNCs.

International SOS’s Office LaunchInternational SOS, the largest international healthcare, medical assistance and travel security risk services company in the world launched its new office opening in Greater KL.

Datuk Zainal Amanshah as a keynote speaker at the IAME 2015 ConferenceDatuk Zainal Amanshah was the keynote speaker at the International Maritime Association of Maritime Economists (IAME) conference, hosted by the Malaysia Institute for Supply Chain Innovation (MISI), which is a member of the MIT Global SCALE Network.

KL’s Aspiration to be ASEAN’s Corporate CapitalDatuk Zainal Amanshah says the move to make Kuala Lumpur an attractive destination for multinationals is a game changer. He tells Bloomberg TV Malaysia’s Sophie Kamaruddin why the country’s capital is best placed to be ASEAN’s economic hub.

Datuk Zainal Amanshah on CNBCIn an interview with CNBC, Datuk Zainal Amanshah, discussed the state of the Malaysian Economy and says investors continue to focus on Malaysia’s economic fundamentals.

Datuk Zainal Amanshah on Bloomberg Television’s First UpDatuk Zainal Amanshah talks about efforts to lure foreign investments with Angie Lau on Bloomberg Television’s “First Up”.

Bloomberg TV Interview with Daniel TengInvestKL senior director Daniel Teng says multinationals find Greater KL an attractive investment destination despite the broader market volatility. In an interview with Bloomberg TV, he says KL will soon be home to more Forbes and Fortune companies.

April

September

May

August

June

July

19

InvestKL Corporation

16th Floor, Menara [email protected], Jalan Stesen Sentral 5

Kuala Lumpur Sentral50623 Kuala Lumpur, Malaysia

T: +603 2260 2270F: +603 2260 2292

E: [email protected]: www.investkl.gov.my







Performance Report 2015 - InvestKL€¦ · like the Petronas Twin Towers and the KL Tower, which...

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