DOING BUSINESS IN MALAYSIA

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DOING BUSINESS IN MALAYSIA
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MALAYSIA Global Ranking
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• Top 3 growth centres in emerging markets
  
  Deutsche Bank Research 2005
• Top 10 countries as a choice for business
  location
  TNS Global Reputation Survey 2005
• Top 3 countries for Offshore Location Centres
  
  A.T.Kearney Annual Global
  Services Location Index, 2005
• Top 5 countries for energy, finance and logistics
  in global shared services and outsourcing (SSO)
  
  Frost Sullivan - SSO Hub Potential
  Analysis 2005
• 23rd most competitive economy in the world
  IMD World Competitiveness Yearbook, 2006
• Kuala Lumpur is the cheapest city in the world to
  live in
  UBS Bank
  of Switzerland, 2006

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MALAYSIA Images of Malaysia
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The Location
In the Heart of South East Asia
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The City
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The City
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The People
Malaysia truly Asia
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MALAYSIA Malaysian Economy
GDP Growth 5.8 (2007 est.6) Per Capita Income
Euro 3,652 Population 26.1 million Work Force
10.1 million Unemployment
4 Inflation 3.7 Trade
Surplus Euro 19.9 billion Int.Reserve Euro 56.8
billion
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MALAYSIA Strength of the Manufacturing Sector
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Multinational corporations from more than 50
countries have invested in over 5,000 projects in
Malaysia's manufacturing sector.
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Foreign Direct Investment In Approved
Manufacturing Projects (Euro Billion)
(Euro Bil.)
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Sources of FDI (Top 10 Countries), 2001-2006
COUNTRY INVESTMENTS (EURO MILLION)
USA 3,499.6
JAPAN 2,802.3
GERMANY 2,772.2
SINGAPORE 2,039.5
UNITED KINGDOM 955.5
NETHERLANDS 930.8
UNITED ARAB EMIRATES 849.3
KOREA 808.4
TAIWAN 671.2
AUSTRALIA 665.0
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MALAYSIA Investment Opportunities
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Targeted Sectors (Manufacturing)
High technology, capital intensive and knowledge
driven industries

• Biotechnology
• Advanced electronics
• Optics and photonics
• Wireless technology
• Display technology (TFT, LCD, Plasma parts)
• Petrochemical
• Pharmaceutical
• Medical devices
• ICT

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Industries manufacturing intermediate goods

• Machinery and equipment
• Components and parts
• Moulds and dies

Resourced-based industries

• Food ( Halal Hub )
• Value-added products from oil palm biomass
  (particle board, MDF board, animal feed)

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Targeted Sectors (Services)

• Operational Headquarters (OHQ)
• International Procurement Centre (IPC)
• Regional Distribution Centre (RDC)
• Regional Office (RO)
• Representative Office (RE)
• Integrated Logistic Services (ILS)
• Integrated Market Support Services (IMSS)
• Integrated Central Utility Facilities (CUF)

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MALAYSIA Investment Incentives
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Services Sector
Foreign companies could consider the
establishment of the following

• Representative Office
• Regional Office
• Operational Headquarters (OHQ)
• Regional Distribution Centre (RDC)
• International Procurement Centre (IPC)

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Incentives Granted for OHQ, IPC RDC
Full income tax exemption for 10 years
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Manufacturing Sector
Foreign companies could consider the
establishment of manufacturing operations in the
promoted areas of

• High Technology projects
• Strategic Projects

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Incentives Granted

• Pioneer Status (PS) with income tax exemption up
  to 100 for 5 to 10 years or
• Investment Tax Allowance (ITA) up to 100 for 5
  years. Allowance can be offset against 100 of
  statutory income.
• Customised Incentives - granted on request of the
  company and the merits of each case
• Reinvestment Allowance of 60 for a period of 15
  years (For reinvestment).
• Duty exemption on raw materials and machinery and
  equipment

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MALAYSIA Liberal Investment Policies
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Equity Ownership

• Foreigners are allowed to hold 100 equity
  ownership.

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Employment of Expatriates

• Foreign companies are allowed to bring in
  expatriate personnel to hold
• - key posts (posts that are permanently filled
  by foreigners)
• - term posts (posts that are filled by
  foreigners for a period of 1-5 years)

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Approval Process

• Fast Track approval
• Pre-Packaged Committee
• Cabinet Committee on High Impact Projects
  (Chaired by the Hon. Deputy Prime Minister)

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Implementation of Projects

• Project Implementation Coordination Unit (PICU)
  in MIDA will monitor and render assistance to
  expedite the implementation of approved
  manufacturing and services projects.
• Special project officers are appointed to
  hand-hold and assist investors in obtaining all
  necessary approvals until projects are
  operational.

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MALAYSIA Why Malaysia?
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• Political and Economic Stability
• Strong Government support including liberal
  investment policies and attractive incentives
  (Tax and Non Tax)
• Liberal Investment Policies
• Transparent Policies
• Security of Intellectual Property
• Well Developed Infrastructure
• Multi Racial (Malays, Chinese and Indians)
• Trainable, Educated and English Speaking
  Workforce
• Harmonious Industrial Relations
• Quality of Life
• Good Track Record
• Member of ASEAN

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Do it in Malaysia Your Profit Centre in Asia
When you want to do business in Asia
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Appendix
MALAYSIA What Foreign Investors Says
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FLEXTRONICS PHILIPS SHELL UNILEVER BASF
IKEA NESTLE AGILENT TECHNOLOGIES BP AMOCO
HITACHI ELEKTRISOLA MOTOROLA SAMSUNG
KOMAG ERICSSON SONY MATSUHITA INFENION
BMW DAIMLERCHRYSLER MIECO PHILLIPS ROBERT
BOSCH IDEMITSU SHARP TORAY ..
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SCHENKER
We believe that a strong global network is a
very important competitive advantage in the
logistics industry and Malaysia is a key market
in the Asian Region, Malaysia's continuous growth
and the transition of the Malaysian economy into
an export-driven economy, spurred on by high
technology, knowledge-based and capital-intensive
industries proved our decision to be right."
Reiner Allgeier, Managing Director, Schenker
Logistics (Malaysia) Sdn Bhd.
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BMW
Since entering Malaysia, BMW has developed a
strong platform, complemented by the professional
support and commitment shown by our partners here
in Malaysia. With a strong and stable political
climate, some of the best infrastructure in the
region and a large talent pool, Malaysia serves
as a firm base for the BMW Group's growth plans
in Asia. The establishment of the Regional Parts
Distribution Centre in Port of Tanjung Pelepas,
Johor Darul Takzim in August 2004 represents the
introduction of a key regional role for BMW Group
Malaysia. The Regional Parts Distribution Centre
supports the BMW Group by the speedy distribution
of parts and accessories throughout the
Asia-Pacific markets, providing premium customer
service.
Wolfgang SchlimmeManaging DirectorBMW Group
Malaysia 
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Malaysia is an excellent place for do business.
The Malaysia government has shown exemplary
support through excellent infrastructure
development and a good education system that
allows us to employ a high quality workforce.
There is in existence a large pool of component
suppliers in Malaysia, thus we have transferred
from Singapore and established an International
Procurement Office here for sourcing parts to
other Sony companies worldwide. Malaysia's
political and economical stability has been and
will continue to provide and ideal investment
climate for us to prosper. The establishment of
business-friendly laws and policies has helped us
to remain at the competitive edge of the local
and global market.
SONY
Koichi Nakamura The Malaysian Representative of
the Sony Group of Companies in Malaysia.
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DAIMLERCHRYSLER
DaimlerChrysler Malaysias 250 employees with
their unique skills and creativity provide the
high-quality workmanship expected by our
customers. With a well-developed infrastructure
and an educated and productive workforce in
place, the company is set to take the
Mercedes-Benz brand and heritage to newer
heights.   Malaysia offers numerous advantages to
investors. The Malaysian government is committed
to improving the investment environment in the
country especially its continuous support and
efforts in developing the country as one of the
automotive hubs in the ASEAN region. We have made
the right decision to invest in Malaysia and we
look forward to further expanding our investments
to complement the growth of Malaysias automotive
industry.
Frank Steinler      President CEO     
DaimlerChrysler      Malaysia Sdn. Bhd.
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ERICSSON
The governmental policies that are put in place
encourage growth and promote investments in a
stable political climate. Malaysia has a
well-developed infrastructure and strong
industrial linkages with supporting industries,
thus providing an excellent business environment.
In addition, the workforce is educated and
productive. All these make Malaysia an ideal
choice for investments.
Mats H. OlssonPresident Country
ManagerEricsson Companies in Malaysia