Investor’s point of contact - Invest-in-Penang Berhad...Kawan Industrial Park and Penang Science Park (0.5 acres to 5 acres) • Ready built factory units at Batu Kawan SME Village:

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Penang - The destination of choice for investments,

A great place to live, work, learn and play…

Dec 8, 2014

“Grow Your Business with International Partnership” Supplier Day

InvestPenang – Investor’s point of contact

• The Principal Investment Promotion Agency of the Penang State Government for the promotion of the manufacturing & services sectors

• Point of contact for investors.

• Collaborates with Federal/ State agencies

Promotion

• Assist State in Planning

• Policy advocacy

Planning & Evaluation

• Provides information on the business opportunities in Penang Opportunities for Investment

• Facilitates implementation of the investment projects in Penang

Facilitation

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Federal & State Government Relationships

Prime Minister (PM)

Federal Government

Chief Minister

State Government

+ Investment

Promotion Arm + Investment Arm

+ Penang Office

+ Ministry of Health

+ Institute of Medical

Research

+ Malaysian Biotech

Corp.

+ Ministry of

Education

+ Ministry of

International

Trade and

Industry

+ Malaysian

Investment

Development

Authority,

+ Malaysian

External

Trade

Development

Corp.

+ Ministry of

Science,

Technology

and Innovation

+ Universiti Sains Malaysia, Penang

+ Multimedia Development Corporation

+ MPPP

Local Authority Island

+ MPSP

Local Authority

Mainland

Penang Key Facts Where business goes to grow

Penang 2nd Bridge

• 2nd smallest state

in Malaysia

1031sq.km (MY

330,000 sq.km)

• 2nd most

urbanized state

population 1.6m

(MY29.3m)

• 4 decades of

industrialization

• >770, 500 workers

supporting Penang’s

economy

• >240,400 (31%) in

manufacturing

• Languages Spoken

Bahasa Malaysia,

English, Chinese

(Mandarin,

Hokkien), Tamil,

others

• Temperature: 21°~

32°C Source: DOS, Labour Force Survey Report 2012

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Penang in the news:

An industrial base state, heritage city and campus for

technology

Top 10 dynamic industrial cluster locations in the world to have demonstrated a successful manufacturing experience among developing economies (UNIDO Industrial Development Report 2009)

Top 31 Business Process Outsourcing (BPO) - locations of the future (KPMG’s “Exploring Global Frontiers” Report 2009)

Produces 8% of global back-end support for semiconductor industry (SEMI, 2013)

Georgetown – UNESCO World Heritage Site in 2008

The 8th most livable cities in Asia (ECA Intl. 2012)

Top in Green initiatives in Malaysia

C.A.T. Governance praised for anti-corruption efforts (Transparency International, AG Report 2010)

Top culinary spot (Lonely Planet 2014)

Penang Economic Profile

• GDP : RM 54.97 B

• GDP growth in 2013: 4.6 % (5.0% :2012)

• Contributes 7.0% of national economy (2013)

• Penang’s Share of Economic Activity:-

• Malaysia Inflation rate : 2.1% (2013) Source: Department Of Statistic Malaysia

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70s

80s

90s

00s

MNC’s

60s

• Quality branding

• Operational excellence

• Mfg – order fulfillment

• Disk drives

•Process automation • Consumer electronics assembly •Piece-parts & sub-assemblies •Localization – backend automation & tooling •Die fabrication

• Labor intensive semiconductor mfg

•Semiconductor assembly •Local machine shop upgrades •Logistics •Technical services

•Machine shops •Mech. R&M •Cottage industries

•Local precision tooling •Local back end automation

•Quality revolution •Local CM’s •Local high tech traders •Test automation

•Trading •Sub-Assembly CM’s •Technical services •Software/firmware • Internationalization • Outsourcing services

• Global supply chains

• Non-core outsourcing

• Global procurement

• R&D • Sales/marketing • Global ICT

integration • Equipment mfg

Local industry value add

Local SME’s

SME value add line

10s

• Biotech mfg. • Solar panels • Business units • Technology eco-

systems • LED fab/packaging • IC design

Low Vol/High Mix CM •Technical services • Tech startups • ODM’s • Design services. • Branding • Partnerships with MNC’s

• Penang has experienced 2 growth transformations to become a successful industrialized economy

• Penang’s economy targeted to move up the value-chain by driving the 3rd growth wave of knowledge intensive and innovation-led growth

• Promoting economic diversification e.g advanced technology, creative multimedia content, BPO-ITO, engineering design, R&D, ICT

1970s 1980s – 1990s

Jobs & GDP

Growth

2000 and beyond

Knowledge intensive, innovation-led

manufacturing and services Special Economic

Zone (“SEZ”)

1st Growth Wave: Malaysia’s First Free Trade Zone in Bayan

Lepas, Penang Industrialization

2nd Growth Wave: Expansion of SEZs into

Industry Clusters

3rd Growth Wave: Development of ICT Project

Move the PENANG ECONOMY up the value chain

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• Shared Services & Outsourcing (SSO) • IC Design & Development • ICT / Software development & Creative Multimedia • Operational Headquarters, International Procurement

Centre and Regional Distribution Centers • Logistics & Transportation • Healthcare & Wellness Services • International Education • Meeting, Incentives, Conferences, and Exhibitions (MICE) • High value Tourism / Hospitality

Our promoted sectors

• Electrical & Electronics • Electronics Manufacturing Services (EMS) • Light Emitting Diodes (LED) • Life Sciences / Medical Devices • Aerospace / Avionics • Renewable Energy (RE) • Halal & Food Industry

Industry

Services

Over 300 multinational companies have chosen Penang as

their location of choice to do business

No. of companies Japan: > 85 Taiwan: >70 US : > 50 Singapore: >30 Germany: > 10 Others : >50

Others – EU co

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Investment Performance in Penang 2000-Jul 2014

0

2

4

6

8

10

12

14

Source: MIDA

Domestic Investment Foreign Investment Total Capital Investment

RM Billion

Recent Projects in Penang:

Penang E&E Clusters

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Machining Stamping & Fabrication

Automation

Plastic Moulding

Die Casting

PCB Assembly

Surface Treatment

Jigs & Fixtures

CNC

Precision Engineering in Penang

www.penangcatcentre.my

“resource centre and point of contact for employers and job seekers”

Matching job seekers with potential employers

Policy advocacy on how to address talent gap

Initiatives to attract and retain talent

Penang Future Foundation Scholarship Award – Scholars bond to serve organizations in Penang

Affordable housing scheme – Priority given to talent working in Penang

Penang CAT Centre Career Assistance and Talent Centre

“My Penang….. My Workplace”

Attract and retain talent in Penang

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2012 Graduate Output

Talents

Institutions of Higher Learning

2 Public Universities

3 Private Universities

27 Colleges

2 Polytechnics

6 Community Colleges

4 Industrial Training Institutes

1 Youth Skills Development Institutes 2 Teacher Training Institutes

Year 2010-2012, Malaysia produces

190,000 university graduates yearly

Engineering produces 35,358

graduates

Competitive cost of doing business

• RM0.66/m3 vs KL/ Selangor RM2.07/m3 Johor RM2.60/m3

Among cheapest water rates in

Malaysia

• Compared to Asian region

Among cheapest electricity rate in the region

• Lower annual turnover rates Staff attrition

• Kuala Lumpur – RM 1,900 /month

• Johor – RM 1,500 / month

• Penang RM 1,450 /month

Lower median salary

Source: Department of Statistics 2012

Country Electricity Tariff （per KWh）（USD）

MALAYSIA 0.11

THAILAND 0.11

INDIA 0.12

CHINA 0.13

SINGPORE 0.23

PHILIPPINES 0.27

JAPAN 0.22

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Cost of Doing Business in Penang

investPenang’s ‘Cost of Doing Business’ booklet

available for collection at investPenang booth or

download at www.investpenang.gov.my

• Comprehensive master plan

• Eco-friendly township – work, live & play

• World class technology and innovation led industries

• Supply chain at SME Village

• Education hub

• Affordable housing – 11,800 units

Strategic location in Batu Kawan Industrial Park

Innovation Led Manufacturing

Education Hub & Talent Pool

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Choice of manufacturing/operation space in Penang

• Vacant industrial land in Batu Kawan Industrial Park and Penang Science Park (0.5 acres to 5 acres)

• Ready built factory units at Batu Kawan SME Village: Semi-detached (7k sqft) Terrace (3k sqft)

• Flatted manufacturing space for light industries (6k -13k sqft) in Penang SME Centre

• Wide range of selections for existing buildings in industrial parks

8th most livable cities in Asia

• “habitat of choice” for local and global talents

• Quality of life is key to attract & retain talents

UNESCO world cultural heritage site

• Vibrant showcase for art and creativity

• Best street food and beach resorts in the region

10 international schools

•American, British, Japanese, Taiwanese curricula

7 private hospitals with international accreditation

• 55% medical tourism revenue contribution by Penang

Pioneering Green State

• Promotion of recycling community , Green Building Index compliance & Sustainable water supply

Safe City

• Largest drop in crime index in Malaysia - 15% drop in Q1 2014 • Installation of closed circuit televisions and police patrolling over

hotspot areas

Home to global citizens

• 2000 expatriates in enjoy quality lifestyle with lower cost of living • International associations (e.g.: International Women’s Association)

Stable Economy

GDP : RM 52.5 B (2012) GDP growth in 2012: 5 % (3.9% :2011) Contributes average of 7.0% of GDP in Malaysia

Why

Penang?

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Penang: where you want to be….

“My continuing adventures – living in PENANG, working in PENANG and making PENANG home”

Tranquil Island Resort in a Vibrant City

Thank you! www.investpenang.gov.my

Invest-in-Penang Berhad

PSDC Building, 1, Jalan Sultan Azlan Shah, Bayan Lepas, 11900 Penang, Malaysia Tel: 604-646 8833 Fax: 604-646 8811