Singapore Food Manufacturing Mission

7/29/2019 Singapore Food Manufacturing Mission

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9 May 2012, Iskandar Malaysia Information Centre (IMIC)

BRIEFING TO IE SINGAPORE FOOD MANUFACTURINGMISSION TO ISKANDAR MALAYSIA

By: Zainal Abdul Rahman, MIDA Johor


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CONTENT OUTLINE

Functions

Performance

Policies & Incentives

Investment Opportunities

Regional Economic Corridors


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3

FUNCTIONS OF MIDA

3

Promotion

Evaluation

Planning

Follow-up &

Monitoring


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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


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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


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MIDA ONE STOP CENTRE

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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)


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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


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ALOR SETAR

KOTA BHARU

IPOH

KOTA KINABALU

KUCHING

JOHORBAHRU

KUANTAN

SEREMBAN

MIDA

HEADQUARTERS

MELAKA

PENANG

MIDAS STATE OFFICES

KUALA TERENGGANU


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MALAYSIAN ECONOMY

MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY


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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


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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


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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


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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


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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


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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


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PERFORMANCE OF THE

MANUFACTURING &

SERVICES SECTORS


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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


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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


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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


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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


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I N V E S T M E N T

from ASEAN Countries

MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY

APPROVED PROJECTS WITH ASEAN PARTICIPATION


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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


AS AT 31 DEC 2011

Source: MIDA


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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


BY MAJOR INDUSTRY, AS AT 31 DEC 2011

Source: MIDA


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INVESTMENT POLICIES

Guidelines on Manufacturing License

Policy on Equity Ownership

Policy on Employment of Expatriates


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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


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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


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Repatriation of Funds

Foreign Equity

INVESTMENT POLICIES

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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


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INCENTIVES FOR THEMANUFACTURING SECTOR


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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


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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


MALAYSIA

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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


MALAYSIA

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INCENTIVES FOR THE

SERVICES SECTOR


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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)

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THE SERVICES SECTOR

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Regional Establishments

Logistics

Tourism

Environmental Management

Healthcare Travel (Medical Tourism)

Education and Training


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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

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ISKANDAR MALAYSIA


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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


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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 ?


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Singapore Food Manufacturing Mission