Singapore Food Manufacturing Mission
Transcript of Singapore Food Manufacturing Mission
-
7/29/2019 Singapore Food Manufacturing Mission
1/39
9 May 2012, Iskandar Malaysia Information Centre (IMIC)
BRIEFING TO IE SINGAPORE FOOD MANUFACTURINGMISSION TO ISKANDAR MALAYSIA
By: Zainal Abdul Rahman, MIDA Johor
-
7/29/2019 Singapore Food Manufacturing Mission
2/39
CONTENT OUTLINE
Functions
Performance
Policies & Incentives
Investment Opportunities
Regional Economic Corridors
-
7/29/2019 Singapore Food Manufacturing Mission
3/39
3
FUNCTIONS OF MIDA
3
Promotion
Evaluation
Planning
Follow-up &
Monitoring
-
7/29/2019 Singapore Food Manufacturing Mission
4/39
4
Foreign Direct Investment Domestic Investment
Cross Border Investment Business matching through E-Connect Manufacturing Services
Promotion
Manufacturing licenses
Tax incentives
Expatriate posts
Duty exemption OHQ, RDC, IPC and R&D status
Evaluation
Follow
-
up /
Monitoring
Planning
Planning for industrial development Recommend policies and strategies on industrial
promotion and development Formulation of strategies, programmes and
initiatives for international economic cooperation
Assist companies in the implementation and operation of their
projects
Facilitate exchange & co-ordination among institutions engaged
in or connected with industrial development
Advisory Services
FUNCTIONS OF MIDA
-
7/29/2019 Singapore Food Manufacturing Mission
5/39
5
MIDA as a One Stop Agency :
a) Approval of projects
b) After- care services
Under the National Committee on
Investment (NCI)
Evaluation of applications for:
Manufacturing licence Tax incentives
Import duty exemptions on raw materials,
components and machinery Expatriate posts/work permits
Regional establishments such as
Operational Headquarters, International
Procurement Centres, etc
FACILITATION OF INVESTMENT
5
-
7/29/2019 Singapore Food Manufacturing Mission
6/39
6
MIDA ONE STOP CENTRE
6
Based In MIDA
Immigration Department
Royal Malaysian Customs
Department of Environment
Tenaga Nasional Berhad
Telekom Malaysia Berhad
Labour Department
Based outside of MIDA
Department of Occupational
Safety and Health
Ministry of Finance
Ministry of Health
Ministry of Tourism
Ministry of Human Resource
Ministry of Higher Education
Multimedia Development Corp.(MDeC)
Construction Industry DevelopmentBoard of Malaysia (CIDB)
-
7/29/2019 Singapore Food Manufacturing Mission
7/397
San Jose
Los Angeles New York
Boston
Stockholm
FrankfurtMunich
MilanParis
London
Dubai
Mumbai
Guangzhou Taipei
ShanghaiSeoul Osaka
Tokyo
Sydney
MIDA WORLDWIDE NETWORK
24 Overseas Centers
Chicago
Houston
Bangkok
Singapore
Johannesburg
-
7/29/2019 Singapore Food Manufacturing Mission
8/398
ALOR SETAR
KOTA BHARU
IPOH
KOTA KINABALU
KUCHING
JOHORBAHRU
KUANTAN
SEREMBAN
MIDA
HEADQUARTERS
MELAKA
PENANG
MIDAS STATE OFFICES
KUALA TERENGGANU
-
7/29/2019 Singapore Food Manufacturing Mission
9/399
MALAYSIAN ECONOMY
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY
-
7/29/2019 Singapore Food Manufacturing Mission
10/3910
MALAYSIAS KEY ECONOMIC INDICATORS
2009 2010 2011
Real GDP (%) - 1.7 7.2 5.1
Inflation (%) 0.6 1.7 3.2
Per Capita Income (US$) 6,764 8,140 9,204
Unemployment (%) 3.7 3.2 3.1
Trade Surplus (US$ bil) 33.6 34.2 39.3
International Reserves (US$ bil) 96.7 106.5 134.4*
Retained Imports Equivalent (months) 9.7 8.5 9.3*
Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE* As at 15th February 2012
-
7/29/2019 Singapore Food Manufacturing Mission
11/3911
GDP BY INDUSTRIAL ORIGIN
Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12
SectorGDP Contribution (%)
1970 1990 2009 2010 2011
Agriculture 33.6 19.3 7.7 7.3 7.3
Mining 7.2 9.8 7.7 7.2 6.3
Construction 3.8 3.4 3.3 3.3 3.2
Manufacturing 12.8 26.5 26.6 27.7 27.5
Services 42.6 42.1 57.6 57.4 58.6
-
7/29/2019 Singapore Food Manufacturing Mission
12/3912
1960s
1970s
1980s
1990s2000
Import
Substitution
Export-Oriented &Labour-Intensive
Resource-Based &
Heavy Industries
Economic Corridors& Services
Technology
Intensive
Innovation, ETP &
High Income
2011
MALAYSIAS ECONOMIC DEVELOPMENT JOURNEY
-
7/29/2019 Singapore Food Manufacturing Mission
13/3913
GOVERNMENT INITIATIVES
Government TransformationProgramme (GTP) Effective delivery of government services
Economic TransformationProgramme (ETP)
Premised on the New Economic Model
high income, inclusive and sustainable.
Specific initiatives and projects driving
economic transformation.
10th Malaysia Plan
Outlines governments development
plan for next 5 years . 12 NKEAs to
received prioritised policy and
investment focus.
Source: Economic Planning Unit, Malaysia
-
7/29/2019 Singapore Food Manufacturing Mission
14/3914
NEW ECONOMIC MODEL (NEM)
Three guiding principles to propel Malaysia forward tobecome a developed status nation in 10 years:
high income - per capita income rise from the present
US$6,700 (RM23,770) to US$15,000 (RM48,000);
sustainability in economic activities and impact ofeconomic development on the environment and naturalresources; and
inclusiveness no one is left out in contributing to andsharing in the creation of wealth.
Source: National Economic Advisory Council
-
7/29/2019 Singapore Food Manufacturing Mission
15/3915
NKEAsselected whichcan materially
impacteconomic
growth
Greater KL
Agriculture
Palm oil
Comms ContentInfrastructure
Education
Electrical &electronics
Oil, gas& energy
TourismWholesale
and retailFinancialservices Business
services
Healthcare
ESTABLISHMENT OF 12 NATIONAL KEY
ECONOMIC ACTIVITIES (NKEAs)
Source: Economic Planning Unit, Malaysia
-
7/29/2019 Singapore Food Manufacturing Mission
16/39
PERFORMANCE OF THE
MANUFACTURING &
SERVICES SECTORS
-
7/29/2019 Singapore Food Manufacturing Mission
17/3917
TOTAL APPROVED MANUFACTURING PROJECTS
(2008 2011)
Year No. ofProjects
No. ofEmployment
Proposed Investment
(US$ billion)
Domestic Foreign Total
2008 919 101,173 4.8 13.3 18.1
2009 766 64,330 3.0 6.5 9.5
2010 910 97,319 5.9 9.4 15.3
2011 846 100,533 6.9 10.8 17.7
TOTAL 3,441 363,355 20.6 40.0 60.7
Source: MIDA
-
7/29/2019 Singapore Food Manufacturing Mission
18/3918
Source: MIDA
APPROVED PROJECTS BY MAJOR COUNTRIES, 2011
No. Country No of Projects Investment(US$ million)
1 Japan 77 3,186.7
2 Korea 10 1,635.7
3USA 21 791.5
4 Singapore 88 781.6
5 Saudi Arabia 1 684.8
6 Germany 13 615.5
7Taiwan 23 439.9
8 China 20 376.7
9 Netherlands 14 318.6
10 Indonesia 4 218.5
-
7/29/2019 Singapore Food Manufacturing Mission
19/3919
APPROVED MANUFACTURING PROJECTS BY MAJOR
INDUSTRIES, 2011
Source: MIDA
IndustryNumber ofProjects
ForeignInvestment
(US$ million)
Electronics & Electrical Products 129 5,900.2
Basic Metal Products 38 1,131.7
Chemicals & Chemical Products 69 1,016.0
Food Manufacturing 64 810.1
Non-Metallic Mineral Products 25 461.8
Transport Equipment 110 336.4
Petroleum Products (Inc.Petrochemicals)
15 305.5
Fabricated Metal Products 63 253.8
-
7/29/2019 Singapore Food Manufacturing Mission
20/39
20
Source: MIDA
APPROVED REGIONAL ESTABLISHMENT, 2011
Type of Establishment No. ofApprovals
Investment(US$ million)
Operational Headquarters (OHQ) 18 51.4
International Procurement Centre (IPC) 6 22.2
Regional Distribution Centres (RDC) 1 3.2
Representatives Offices (RE) 55 7.7
Regional Offices (RO) 32 6.8Total 112 91.3
-
7/29/2019 Singapore Food Manufacturing Mission
21/39
21
I N V E S T M E N T
from ASEAN Countries
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY
APPROVED PROJECTS WITH ASEAN PARTICIPATION
-
7/29/2019 Singapore Food Manufacturing Mission
22/39
22
CountryNo. of
ApprovalsEmployment
Investment
(USD million)
Singapore 3,882 465,821 12,543.8
Indonesia 146 31,221 1,813.3
Thailand 133 15,310 482.6
Philippines 44 6,006 143.6
Brunei 11 543 11.0
Myanmar 5 122 2.7
Vietnam 2 74 0.9
APPROVED PROJECTS WITH ASEAN PARTICIPATION
AS AT 31 DEC 2011
Source: MIDA
-
7/29/2019 Singapore Food Manufacturing Mission
23/39
23
IndustryNumber
ofProjects
Investment(USD million)
Electronics & Electrical Products 1,003 4,740.5
Food Manufacturing 365 1,786.3Basic Metal Products 126 1,416.2
Chemical & Chemical Products 266 1,184.9
Petroleum Products (Inc.
Petrochemicals)
37 995.7
Paper, Printing & Publishing 147 950.6
Fabricated Metal Products 391 737.1
APPROVED PROJECTS WITH ASEAN PARTICIPATION
BY MAJOR INDUSTRY, AS AT 31 DEC 2011
Source: MIDA
-
7/29/2019 Singapore Food Manufacturing Mission
24/39
24
INVESTMENT POLICIES
Guidelines on Manufacturing License
Policy on Equity Ownership
Policy on Employment of Expatriates
-
7/29/2019 Singapore Food Manufacturing Mission
25/39
25
The Industrial Coordination Act 1975 (ICA)requires manufacturing companies with
shareholders funds ofRM2.5 million and aboveor engaging 75 or more full-time employees toapply for manufacturing license.
Guidelines on Manufacturing License
INVESTMENT POLICIES
-
7/29/2019 Singapore Food Manufacturing Mission
26/39
26
Equity Guidelines 100% foreign equity ownership is allowed,
irrespective of the level of exports
Guidelines on Repatriation of Funds No restriction imposed to foreign companies
investing in Malaysia on:
- Repatriation of capital
- Interest
- Profits
- Dividends
INVESTMENT POLICIES
-
7/29/2019 Singapore Food Manufacturing Mission
27/39
27
Repatriation of Funds
Foreign Equity
INVESTMENT POLICIES
27
-
7/29/2019 Singapore Food Manufacturing Mission
28/39
28
Companies No. Of Post Eligible Duration
Foreign paid-up capital ofUS$2 million and above
Up to 10 posts (including5 key posts)
Key post permanent
Exec. post 10 years
Non-exec. post 5 years
Foreign paid-up capital of
more than US$200,000 butless than US$2 million
Up to 5 posts (includingat least 1 key posts)
Key post permanent
Exec. post 10 years
Non-exec. Post 5 years
Guidelines on Employment of Expatriate PersonnelAutomaticApproval:
INVESTMENT POLICIES
-
7/29/2019 Singapore Food Manufacturing Mission
29/39
29
INCENTIVES FOR THEMANUFACTURING SECTOR
-
7/29/2019 Singapore Food Manufacturing Mission
30/39
30
Pioneer Status (PS)
Income Tax Exemption
70 % or 100 % for 5 or 10 years
Investment Tax Allowance(ITA)
60 % or 100 % on qualifyingcapital expenditure for 5 or 10
years
Reinvestment Allowance
60% on qualifying capitalexpenditure for 15 consecutive
years
Import Duty & Sales TaxExemption
For raw materials/componentsand Machinery and Equipment
Incentives
MAJOR INCENTIVES PROVIDED
INVESTMENT OPPORTUNITIES IN
-
7/29/2019 Singapore Food Manufacturing Mission
31/39
31
Electronics & Electrical Industries :
Machinery & Equipment:
High-technology based products using
wireless & convergence technology
Mobile application
Solar wafer / cells / modules
Semiconductors
Automated equipment for semiconductor,
solar, medical & automotive industries Process machinery for food & beverages
and oil & gas
Packaging machinery
ICT Industry :
Computer & computer peripherals Telecommunications
Photonics, optoelectronics, optical
fibres & cables
Engineering Services : Moulds and dies
Machining, heat treatment &
surface engineering
Automotive Components :
Transmission, brake, airbag,and steering systems , automotive
seats & radiators
INVESTMENT OPPORTUNITIES IN
MALAYSIA
31
INVESTMENT OPPORTUNITIES IN
-
7/29/2019 Singapore Food Manufacturing Mission
32/39
32
Food Processsing Industry : Processed meat & seafood
Beverages, food ingredients, dairy
products & confectionary
Resourced-based industries : Food & Agro based
Value-added products
from natural resources
Petrochemical Industry :
Alpha-olefins & fatty alcohols,propylene oxide & caprolactam
Renewable & biodegradable
materials
Palm Oil Industry :
Oleochemicals Palm-based nutraceuticals,
constituents of palm oil/palm kernel
oil & palm biomass
Palm-based food products specialty
animal fat replacer, mayonnaise &
salad dressing
Hotel & Tourism Projects : Hotels, tourist projects & recreational
camps
Expansion, modernization
& renovation
INVESTMENT OPPORTUNITIES IN
MALAYSIA
32
-
7/29/2019 Singapore Food Manufacturing Mission
33/39
33
INCENTIVES FOR THE
SERVICES SECTOR
-
7/29/2019 Singapore Food Manufacturing Mission
34/39
34
SERVICES SECTOR
Full tax exemption for 10 years
RE or RO status given for a period of 5 years
Eligible for PS or ITA
OPERATIONAL HEADQUARTERS (OHQ)
INTERNATIONAL PROCUREMENT CENTRE (IPC) REGIONAL DISTRIBUTION CENTRE (RDC)
REPRESENTATIVE OFFICE (RE) REGIONAL OFFICE (RO)
INTEGRATED LOGISTICS SERVICES (ILS)
INTEGRATED MARKET SUPPORT SERVICES (IMSS) INCENTIVES FOR INTEGRATED CENTRAL UTILITY
FACILITIES (CUF)
34
INVESTMENT OPPORTUNITIES IN
-
7/29/2019 Singapore Food Manufacturing Mission
35/39
35
INVESTMENT OPPORTUNITIES IN
THE SERVICES SECTOR
35
Regional Establishments
Logistics
Tourism
Environmental Management
Healthcare Travel (Medical Tourism)
Education and Training
-
7/29/2019 Singapore Food Manufacturing Mission
36/39
36
CORRIDOR OF DEVELOPMENT IN MALAYSIA
IRDA : ISKANDAR MALAYSIA
NCER : NORTHERN CORRIDOR ECONOMIC REGION
SCORE: SARAWAK CORRIDOR OF RENEWABLEENERGY
ECER : EAST COAST ECONOMIC REGION
Focus on:
Resource Based Industry Energy
Tourism
Focus on:
Agro-based Industry
Tourism
Logistics
Manufacturing
Focus on:
Tourism Oil & Gas
Manufacturing
Agriculture
Education
Focus on:
Modern Agriculture Manufacturing & Design
Tourism
Logistics
Education & Health
Financial Services
Tourism and Logistics Industries
Electrical & Electronics Services
Food Manufacturing
SDC : SABAH DEVELOPMENT CORRIDOR
36
ISKANDAR MALAYSIA
-
7/29/2019 Singapore Food Manufacturing Mission
37/39
37
Logistics, Manufacturing
(esp High Tech and
aerospace related),Tourism (Luxury
Destination Shopping),
Cybercity
SENAI-SKUDAI
Education & Medical
Tourism,
Entertainment &Recreation,
State Administration &
Finance
Biotechnology
NUSAJAYA
Cultural and Urban
Tourism
JB CITY CENTRE
Logistics, Regional
Distribution, International
Procurement
TANJUNG PELEPAS
Focused Development at Five Flagships
2,217 km2 or 550,000 acres
1.4 million population
Manufacturing
Electronics,Petroche
micals and
oleochemical)
PASIR GUDANG /
TANJUNG LANGSAT
ISKANDAR MALAYSIA
-
7/29/2019 Singapore Food Manufacturing Mission
38/39
38
Political & Economic Stability Pro-business Government
Liberal Investment Policies
Transparent Policies
Policy of Welcome
Well Developed Infrastructure
Harmonious Industrial Relations
Trainable & Educated Labour Force
Quality of Life
Good Track Record
WHY MALAYSIA ?
-
7/29/2019 Singapore Food Manufacturing Mission
39/39
Please visit us at