6/21/2012 1 MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR HIGH TECHNOLOGY MANUFACTURING N. Sangaran Director Machinery and Engineering Supporting Industries Division MIDA 19 June 2012 CONTENT OUTLINE Investment Trends Outsourcing Opportunities 2 Malaysia: Your Premier Investment Destination Malaysian Economy About MIDA
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6/21/2012
1
MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR HIGH
TECHNOLOGY MANUFACTURING
N. Sangaran
Director
Machinery and Engineering Supporting Industries Division
MIDA
19 June 2012
CONTENT OUTLINE
Investment Trends
Outsourcing Opportunities
2 Malaysia: Your Premier Investment Destination
Malaysian Economy
About MIDA
6/21/2012
2
About MIDA
4
MILESTONES
4 Malaysia: Your Premier Investment Destination
The principal Malaysian Government agency responsible for the
promotion and coordination of industrial
development in the country
First point of contact for investors who intend to
set up projects in the manufacturing and services sectors in
Malaysia
Established in 1967 under Act of Parliament, 1965
2011 : Rebrand as Malaysian Investment Development Authority
27 March 2004 : Government Mandated MIDA to Promote
Investments in the Services Sector
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5 Malaysia: Your Premier Investment Destination
FUNCTION OF MIDA
Promotion
Evaluation
Planning
Follow-up &
Monitoring
� Foreign Direct Investment
� Domestic Investment
� Cross Border Investment
� Business matching through E-Connect
� Manufacturing Services
� Manufacturing licenses
� Tax incentives
� Expatriate posts
� Duty exemption
� OHQ, RDC, IPC and R&D status
� 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
MIDA “ONE STOP CENTRE”
6 Malaysia: Your Premier Investment Destination
Ba
sed
In M
IDA
Immigration Department
Royal Malaysian Customs
Department of Environment
Tenaga Nasional Berhad
Telekom Malaysia Berhad
Labour Department
Ba
sed
Ou
tsid
e M
IDA
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 Development
of Malaysia (CIDB)
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7 Malaysia: Your Premier Investment Destination
24 Overseas Centre24 Overseas Centre
San Jose
Los AngelesNew York
Boston
Stockholm
Frankfurt
MunichMilan
Paris
London
Dubai
Mumbai
GuangzhouTaipei
Shanghai
SeoulOsaka
Tokyo
Sydney
Chicago
Houston
Bangkok
Singapore
Johannesburg
MIDA WORLDWIDE NETWORK
8
Malaysian Economy
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9 Malaysia: Your Premier Investment Destination
MALAYSIA’ S KEY ECONOMIC INDICATORS
Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE
2010 2011p 2012f
Real GDP (%) Growth 7.2 5.1 4.0-5.0
Inflation (%) 1.7 3.2 2.5-3.0
Per Capita Income (US$) 8,140 9,508 10,134
Unemployment (%) 3.2 3.1 3.2
Trade Surplus (US$ bil) 34.2 46.7 48.6
International Reserves (US$ bil) 106.5 132.3 136.1
Retained Imports Equivalent (months) 8.5 9.6 -
Investment Trends
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INVESTMENT IN THE APPROVED MANUFACTURING PROJECTS,
2008 – APRIL 2012
11 Malaysia: Your Premier Investment Destination
Source: MIDA
YearNo. of
Projects
No. of
Employment
Proposed Investment
(RM billion)
Domestic Foreign Total
2008 919 101,173 16.7 46.1 62.8
2009 766 64,330 10.5 22.1 32.6
2010 910 97,319 18.1 29.1 47.2
2011 846 100,533 21.9 34.2 56.1
Jan – April
2012268 29,918 10.1 7.8 17.9
TOTAL 3,709 393,273 77.3 139.3 216.6
APPROVED REGIONAL ESTABLISHMENT
JANUARY – DECEMBER 2011
Source: MIDA
12 Malaysia: Your Premier Investment Destination
Type of EstablishmentNo. of
Approvals
Investment
(RM million)
Operational Headquarters (OHQ) 18 163
International Procurement Centre (IPC) 6 70.5
Regional Distribution Centres (RDC) 1 10
Representatives Offices (RE) 55 23.9
Regional Offices (RO) 32 24.4
Total 112 291.8
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PROMOTED ACTIVITIES IN THE MANUFACTURING SECTOR
13 Malaysia: Your Premier Investment Destination
High technology, capital intensive &
knowledge driven industries:
Industries manufacturing
intermediate goods:
• Machinery & equipment
• Components & parts
• Moulds and dies
Resourced-based industries:
• Alternative Energy Sources
• Biotechnology
• Advanced materials
• Advanced electronics
• Optics and photonics
• Petrochemicals
• Pharmaceuticals
• Medical devices
• ICT
• Aerospace
• Food
• Value-added products from
natural resources
Outsourcing
Opportunities
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Global
Outsourcing
Manufacturing Solution Providers
Value
Added
Value
Added
and
R&D
OUTSOURCING TREND
Solution ProvidersIntegrators and
Assemblers
Component
SuppliersP
rese
nt
15 Malaysia: Your Premier Investment Destination
STRATEGIC REASONS FOR OUTSOURCING
16 Malaysia: Your Premier Investment Destination
Reducing cost and improving economics
Focus on core function
Access to specialised services and diverse technologies
Enhance risk management
Gain a competitive advantage through faster delivery times
Level the playing field
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17 Malaysia: Your Premier Investment Destination
OPPORTUNITIES FOR CROSS-BORDER NEMs
Source : UNCTAD report on Non-Equity Modes of
International Production and Development
Key figures of cross-border Non-Equity Modes, selected industries, 2010
Estimated NEM-related worldwide
Sales Value added Employment
Employment in
developing
economies
USD billion USD billion million million
Contract Manufacturing – selected technology/ capital intensive industries