ASIAN MARKET UPDATES MALAYSIA - · PDF fileASIAN MARKET UPDATES MALAYSIA . COUNTRY REVIEW MALAYSIA ... Bahasa Malaysia ... Kuantan, Pahang (400K)

7 April 2017 Singapore Yacht Show

ONE°15 Marina Singapore

ASIAN MARKET UPDATES MALAYSIA

COUNTRY REVIEW MALAYSIA

SU LIN CHEAH Spinnaker International Pte Ltd

Singapore

•  Independence in 1957 •  Federation of 13 States and 3

Federal Territories; Parliamentary democracy with a Constitutional Monarchy

•  Legislation: Federal and State level

•  Official/National Language: Bahasa Malaysia

•  Business Language: English

•  Official Religion: Islam •  Justice system: Based on British law

in tandem with Shariah court

•  Ethnic Races include: Bumiputera, Chinese, Indians

•  Vernacular Languages include: Mandarin, Cantonese, Hokkien, Tamil, depending on ethnic race

Source: Commonwealth of Nations

MALAYSIA Country Brief

Land Mass: 330, 290 sq km Coastline: 4, 675 km Land borders shared with: •  Thailand •  Indonesia •  Brunei

Sources: Department of Statistics Malaysia extracted Mar 2017)

MALAYSIA Country Brief

Population Density by State, Malaysia 2010

•  GDP (current): US$ 276.9 bil •  GDP growth: 5% (2015) •  GDP Forecast: 4.2% (2016 est) •  GDP per capita: US$ 8,746 (2016 est) •  Unemployment rate: 3.4% •  Diversified economy •  Currency: Ringgit •  Gini coefficient: 0.41

•  The mean Urban household income per month in 2014 was RM 3,921 from RM 2,465 in 2012, a CAGR of over 7% over the same period.

•  HNWI Population: 65,000 (2015) •  HNWI Wealth: US$ 422 billion

New Economic Model (2015) •  Strategic reforms to move the

economy to high income and higher value- added activities in industry and services.

•  The reforms include a shift in emphasis to relying more on private sector initiative.

Sources: Department of Statistics Malaysia extracted Mar 2017); The World Bank (Country Report, Sept 2016); Capgemini Wealth Report 2015

MALAYSIA Country Brief

Ref Exchange rate: US$1 : Malaysian Ringgit 4.41

Source: Capgemini Financial Services Analysis 2016

Urban Centres

Sources:: Department of Statistics Malaysia extracted Mar 2017; Marine Department)

MALAYSIA Urban Centres, Distributive Trade & Harbours

Commercial Harbours H •  Dermaga Tg Lembung •  Kuala Perlis •  Teluk Ewa Jetty •  Penang Port •  Lumut Port •  Telok Intan

•  Port Klang •  Port Dickson •  Sungai Udang Port •  Malacca Port •  Muar •  Tanjung Pelepas •  Mersing

•  Kuantan Port •  Kemaman Port •  Kertih Port •  Tumpat •  Kota Bharu •  Kuching Port •  Rajang Port

•  Bintulu Port •  Miri Port •  Labuan Port •  Kota Kinabalu Port •  Sapangar Bay Oil

Terminal •  Kudat

•  Sandakan •  Lahat Datu •  Kunak •  Semporna

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•  Klang Valley (7.2 mil)- Kuala Lumpur, Petaling Jaya, Putrajaya, Shah Alam, Klang

•  Kinta Valley (1 mil)- Ipoh •  Penang (1.5 mil) •  South Johore – Johor Baharu

(1.4 mil)

•  Central Peninsular – Kuantan, Pahang (400K)

•  East Coast Peninsular (1mil)– Kuala Terengganu, Terengganu, Kota Bharu, Kelantan

•  Kuching, Sarawak (320K) •  Kota Kinabalu, Sabah (700K)

Tourism is a major revenue stream for Malaysia (est 15% of GDP) and the country’s marine attractions are a major feature. Its KPIs include visitors on cruise liners and visitors to the marine parks.)

Source: http://ctatlas.reefbase.org

MALAYSIA Marine Tourism & Cruising

Number of Marine Parks (MPAs): 50 (total area: 5,725 sq km) Number of Islands: 878 (over 500 still unnamed)

Source: Armada Sportfishing (for illustrative purposes only)

MALAYSIA Sportfishing

Credit: Armada Sportfishing

Sources: Department of Statistics Malaysia (extracted Mar 2017);; Marine Department; open sources

MALAYSIA Marina Clubs & Government Marinas

Marina Clubs M Government Marinas G •  Batu Uban, Penang (35) •  Pulau Indah, Selangor (100) •  Melaka (40) •  Kuching, Sarawak Facilities not officially listed include: Muar, Johore; Pulau Duyung, Terengganu (refer Marine Dept www.marine.gov.my)

•  Tanjung Pengelih, Johore •  Pulau Tioman, Pahang •  Tanjung Gemok, Pahang •  Labuan Marina

•  Royal Langkawi Yacht Club •  Awana Porto Malai Resort •  Rebak Marina, Langkawi •  Telaga Harbour, Langkawi •  Straits Quay, Penang •  Lumut Int’l Yacht Club, Perak

(closed)

•  Marina Island, Pangkor •  Royal Selangor Yacht Club •  Admiral Marina & Leisure Club,

Port Dickson •  Sebana Golf & Marina Resort,

Johore

•  Senibong Cove, Johore •  Puteri Harbour, Johore •  Miri Marina, Sarawak •  Sutera Harbour, Kota Kinabalu,

Sabah •  Kudat Golf & Marina Resort,

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Summary of Registries •  Langkawi International Yacht

Registry •  Terminable Certificate of Registry –

registration of vessels <150GRT and under 24m. Valid 5 years.

•  Boat Licence (Boat Rules 1953) for for vessels <500 GRT. Malaysian individuals and entities only.

•  Malaysian Ship Registry under Merchant Shipping Ordinance 1952

•  Malaysian International Ship Registry (Labuan)

•  Further information: Marine Department (www.marine.gov.my)

Sources: AMIM Presentation - ABF2015

MALAYSIA Overview of Regulations

Import Controls, Regulations and Taxes •  Import rates range from 0% to 50%. Customs duties applied

to the dutiable value of the imported goods. •  Goods & Services Tax of 6% implemented in 2015 •  Yachts / boats (complete) : 0% duty •  Boat parts : 10% import duty / 5% excise

Export Incentives (general) •  Rebate on imported parts if the completed product is

exported. •  Exemption of income for increased exports for:

•  Malaysian international trading company •  Allowance for increased exports •  Exemption of income for significant increase in export,

penetration of new markets and for Export Excellence Award

•  Exemption of income for increase in export of manufactured motor vehicles, automobile components or parts

•  Double deduction for promotion of exports •  Double deduction for qualifying expenses in promotion

export of all services

Regulatory authorities (main) •  Ministry of Transport (primary) •  Ministry of Natural Resources and

Environment •  Ministry of International Trade &

Industry

•  Marine Department •  Department of Marine Park •  Dept of Fisheries Government agencies •  Malaysian Industry-Government

Group •  Maritime Institute of Malaysia

(MIMA) Industry Representation (default) Association of Marine Industries of Malaysia (AMIM)

MALAYSIA Marine Industry: Regulators and Agencies

Sources: Open sources

Key Activities •  Manufacturing of government

vessels (armed forces, enforcement, support) and commercial vessels (oil and gas, offshore transport and supply, ferries, tourist transfer)

•  Repair and refit •  Engines, parts and accessories -

supply and maintenance •  Manpower – recruitment and

training •  Surveying

Issues •  Shipping sector facing potential

downturn; yards need to diversify to high-value work or change business model. The commercial sector is not able to fully meet the needs of luxury pleasure crafts and recreational boating

•  Regional competition: Phuket, Singapore

Sources: AMIM Dec2016 report; Commercial Industry discussion

Capability: Build up to 30,000 DWT Repair up to 450,000 DWT Export (2014): Singapore, India, Indonesia, USA, UAE

104 Shipyards

85 Non-shipyards

Shipbuilding & Repair

189 Companies

Source: Ministry of Int’l Trade & Industries

MALAYSIA Government & Commercial Marine Business

Malaysia is 2-stroke market (82% of total imports) Applications: Enforcement, transport, tourism. Angling Estimated 90% of imports sold into market

Propulsion & Power (Rec) Outboards: •  Yamaha •  Mercury •  Suzuki •  Evinrude •  Honda •  China brands Inboard: •  Volvo •  Mercruiser •  Yanmar •  Cummins

Diesel: •  Volvo • Caterpillar •  Yanmar • Cummins • MAN • MTU Power: •  Onan •  Kohler •  Cummins

2016 OBM Imports 11,209 units

2 STROKE <30hp

2 STROKE 31 - 90hp

4 STROKE 135> hp

4 STROKE 20 - 135 hp

MALAYSIA Recreational Marine Business: Local Build

*Semi-knock down import; local assembly

Source: Open sources

Overview •  Types: •  Sport boat •  Small cabin cruisers •  Motoryachts (custom) •  Houseboats (custom)

•  Propulsion: •  Boats and cruises: mainly

outboards >90hp - 300hp; single or twin;

•  Motoryachts and larger: Diesel •  Purpose: Sportfishing, day tripping,

lacal marine tourism

•  Local production either on demand or limited quantities

•  Semi-knock down imports from Europe or South America, assembled on demand

•  No official registration or records of numbers

Overview •  Competitive environment •  Exclusive positioning and client

profile •  Lack of a “middle market” due to

the (lack of) financing and relative high cost of ownership

•  Regional sales coverage is essential; cross-border sales inevitable

Issues for Manufacturers seeking representation •  Challenge in meeting

Manufacturer’s requirements for dealership appointment with regards to stocking, forecasting and purchase commitments. E.g. stocking is not viable due to investment required, holding costs and devaluation

Sources: Industry discussion

MALAYSIA Recreational Marine Business: Imports

Types •  Sport Boats 20’ – 30’ OBM, Sterndrives •  Sport Cruisers 24’ – 36’ OBM, Sterndrives, Diesel •  Motoryachts 40’ – 90’ Diesel •  Catamaran Sail 40’ – 70’ Diesel •  Catamaran Motor 40’ – 70’ Diesel •  Sailing Yachts 26’ – 60’ Diesel

Active brands in the market

Sources: Open source

MALAYSIA Recreational Marine Business: Promotions

International Regattas Dealer Events

?

Marine Shows

Maritime Events*

*Government and Commercial events

MALAYSIA Strategic Plan for Growth

Sources: Industry discussion

Growth Drivers •  Growth-promoting

Regulation •  Financial Structures •  Infrastructure •  Manpower

Engagement – internal/External •  Industry initiated and driven •  Government engagement •  Business engagement •  Public engagement •  Regional and international synergies

Evidenced-based Impact Assessments •  Market Intelligence •  Statutory statistics •  Industry performance data

Economic Benefits •  Contribution to national economy •  Economic impact at local level •  Business diversification or change to high

value activities •  Improvement in quality of life

The Horizon

MALAYSIA

•  Leadership

•  Collaboration

•  Synergy

THANK YOU

Government: •  Ministry of Transport Malaysia •  Ministry of International Trade & Industry Malaysia •  Ministry of Environment & Natural Resources •  Department of Survey & Mapping Malaysia •  Department of Statistics Malaysia •  Marine Department Malaysia •  Fisheries Department Malaysia •  Customs & Excise Department Malaysia •  Economic Planning Unit Malaysia •  Malaysia Industry-Government Group •  Maritime Institute of Malaysia

Private •  Association of Marine Industries of Malaysia

MALAYSIA References