DOMESTIC DIRECT INVESTMENT DOMESTIC DIRECT INVESTMENT (DDI) INITIATIVES(DDI) INITIATIVES
MALAYSIA PRODUCTIVITY CORPORATION
HALAL INDUSTRY DEVELOPMENT CORPORATION
MALAYSIA AUTOMOTIVE INSTITUTE
MITI & ITS AGENCIES
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MITI & ITS AGENCIES
Deputy CEO (Manufacturing &
Services Development II)
Deputy CEO (Manufacturing &
Services Development I)
Chief Executive Officer
Chairman MIDA’S NEW ORGANISATION
STRUCTURE
Manufacturing Development
(Resource)
Transportation Technology
Production & Advanced
Engineering
Chemical & Advanced Material
Life Sciences & Medical
Technology
Manufacturing Development
(Non-Resource)
Infrastructure, Utilities & After
Sales
Services Development
(I)
Investment Info. Centre
Services Development
(II)
Investment Analysis & Info.
Database
Strategic Planning
Management Services
Administration
Finance Mgmt.Licence & Incentives
Compliance & Monitoring
Domestic Investment
Tariff
E&E
Food Tech. & Sustainable Resources
Investment Ecosystem
Healthcare, Education & Hospitality
IPAs Coordination,
ICM Secretariat & Pipeline TrackingNational
Investment Secretariat
Technology & Business Frontier
IT System Development
Metal & Metal Alloy
Building Technology &
LifestyleLegal & Govt. Relations
Internal Audit
Investment Comm.
Capacity Development
Mgmt. & Industry Talent
Foreign Investment
Coordination
Senior Executive Director (Strategic Planning &
Investment Ecosystem)
Investment Promotion
Strategic Planning &
Policy Advocacy
Clean Tech. &
Environment Mgmt.
IT & Comm. Services
Business & Professional
Services
Oil & Gas
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Regional Establishment,
Logistics & Supply Chain
R&D and Design
Human Resource
Mgmt.
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Foreign Direct Investment Domestic Investment Business matching Manufacturing Services
Manufacturing licenses Tax incentives Expatriate posts Duty exemption OHQ, RDC, IPC and R&D status
EvaluationEvaluation
Follow-up /Follow-up /MonitoringMonitoring
PlanningPlanning
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
PromotionPromotion
Functions of MIDA
Investment Targets under Economic Transformation Programme (ETP), by 2020
The Mission
73% DDI(RM953 billion)
27% FDIRM1.4 trillion
8%Public
Investments
92%(RM1.3 trillion)
Private Investments
* Industrial Master Plan 3 (IMP3) Investment Ratio, DDI:FDI is 60 : 40
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Domestic Direct Investment (DDI) Initiatives
Domestic Investment Strategic Fund (DISF)Domestic Investment Strategic Fund (DISF)Incentives for Acquiring a Foreign Company Incentives for Acquiring a Foreign Company for High Technologyfor High TechnologyIncentives for Small Scale CompaniesIncentives for Small Scale CompaniesIncentives for Companies in Production Incentives for Companies in Production (Desirous Issue)(Desirous Issue)Incentives for Merger Among Malaysian Incentives for Merger Among Malaysian Services ProvidersServices Providers
D.I.S.F
RM1 billion for the fund under the RM1 billion for the fund under the 1010thth Malaysian Plan Malaysian PlanProvided under the Customised Provided under the Customised Incentive Scheme, Section 127, Income Incentive Scheme, Section 127, Income Tax Act 1967Tax Act 1967
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Objectives of the Fund
To accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industriesTo enable domestic investors to develop new sources of competitive advantage and to become active participants in the global ecosystems of industries. To assist capable Malaysian companies to make the quantum leap required in driving the national investment agenda in transforming the economyThe fund is not a business start-up fund but it is applicable to local companies which have new/additional investments
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Priority Sectors
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AerospaceMachinery & Equipment Medical Devices
Services including Design, R&D, testing, quality and standard certification, technical and skills training, engineering services, and logistics service providers
Other industries, on a case by case basis
PharmaceuticalsAdvanced ElectronicsRenewable Energy
Scope of the Fund
The fund will provide matching grants (1:1) on reimbursable basis to cater for expenditures incurred for the following activities:
Training of Malaysians R&D activities carried out in MalaysiaLicensing or Purchase of New TechnologyObtaining International Standards/Certification Modernisation and upgrading of facilities and tools to undertake manufacturing or services activities for Multinational Corporations (MNCs) and Malaysian conglomerates (Outsourcing activities)
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Definition of Outsourcing: A subcontracting process that involves manufacturing, manufacturing related services, business services and delegation of some/all operations to an external entity, usually specialised in that operation.
Eligibility
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New and Existing companies in the Manufacturing & Services New and Existing companies in the Manufacturing & Services sectors with Malaysian equity ownership of at least 60%sectors with Malaysian equity ownership of at least 60%
Incorporated under the Companies Act, 1965Incorporated under the Companies Act, 1965
For Training, R&D, International Standards / Certification and Licensing and Purchase of New Technology:
Eligibility
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For Upgrading and Modernisation of Facilities for Outsourcing activities:
A subsidiary of an existing company operating in the relevant industryThe parent company must have proven track record in the relevant industry Effective equity of at least 60% owned by Malaysians;
New CompanyNew Company Existing CompanyExisting CompanyA company which undertakes reinvestments in the form of expansion / modernisation / diversification; The company must have the capability and proven track record in the relevant industry;Effective equity of at least 60% owned by Malaysians
Approved Projects under D.I.S.F.
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RM114.2 millionRM80.8 million
RM39.1 million
RM2.65 millionRM238.3 million
A total of 40 projects
Electrical & Electronics
Machinery & Advanced Engineering
Life Sciences
Transport
Wood-based
Services
As at 31 July 2013:
ICT
RM1.5 million
R&D
Capital
International Standards/Certification
Licensing & Purchase of New/High Technology
R&D
Training
Training of Malaysians
Courses such as product technology, process technology, equipment technology, equipment maintenance, quality control, tools & facilities and other training related to the approved project.
Motivational courses / workshops / seminarsLanguage coursesManagement / Marketing coursesFurther study (Postgraduate; PHD / Masters)Training related to safety
Types of TrainingTypes of TrainingPre-operational / Operational TrainingOn-the-job TrainingValidationD&D and R&DIn-house Training (Internal, External or Overseas
Trainers)External Training (within Malaysia)Overseas training
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EligibleEligible Not EligibleNot Eligible
Based on Guideline on Training Grant under Strategic Fund
Research & Development
Definition of R&D – systematic or intensive study carried Definition of R&D – systematic or intensive study carried out in the field of science & technologyout in the field of science & technology
Improvement of materials, devices, products, produce or processesDesign, Development and Prototyping
Quality Control of products, or routine testing of materials, devices, products or produceResearch in social sciences or humanitiesRoutine data collectionEfficiency surveys or management studiesMarket research or sales promotion
EligibleEligible Not EligibleNot Eligible
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Eligible ExpenditureEligible Expenditure
Special machinery / equipment which is only used in the relevant industry. Special production machines can be considered if these are additional machines and not replacing existing machines; whereby these machines are required to penetrate new markets or industriesSpecial machinery / equipment which is required by MNCs / Malaysian conglomerates for vendors to undertake outsourcing activities
Normal production machinery / equipment which is used in the general production lineNormal testing machinery / equipment
Non-Eligible ExpenditureNon-Eligible Expenditure
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Purchase of Machinery and Equipment for Modernisation and Upgrading of Facilities and Tools for Outsourcing activities
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The fund covers technology acquisition through:The fund covers technology acquisition through:
PatentDesignBlueprints Manufacturing/Services Know-HowTechnical support
Licensing or Purchase of New/High Technology
Technology Licensing; andAcquisition of Technology
Eligible Cost of Licensing / Acquisition of Eligible Cost of Licensing / Acquisition of Technology :Technology :
Note: Eligibility does not include costs of acquisition of trademark, copyright and proprietary information
Submission
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Thank youThank you
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