BiSEA Roadshow 2017

About British Malaysia Chamber of Commerce (BMCC) Established in 1963 Currently has a 220 Members Key activities of the Chamber: Networking Events Premier Events (With Senior Public Rep) Government Advocacy (Macro Issues or Industry Specific) Sector Committees Business Support Service (DIT Mandate)

Malaysia: Economic & political situation Snapshot Population : 31.2m Labour force: 14.1m GDP: US$ 296 million GDP growth: 4.9% (2017) Income Per-capita: US$10,500 Languages: Bahasa Malaysia, English (Dominant in Commerce), Cantonese, Mandarin Key Highlights Domestic consumption a key driver of growth Shift to more service, knowledge & innovation-based economy Serious initiatives for Industry 4.0 Highly skilled talent pool Challenges Opaque public procurement process Perceptions of patronage Protectionist outlook in some sectors Broadening the tax base, including introduction of GST and Withholding Tax

UK in Malaysia Key Highlights Foreign Direct Investment (FDI) into Malaysia from the UK rose by 6% from 2011 to over £3.4 billion in 2016 The UK is currently Malaysia’s 3rd largest foreign investor in the manufacturing sector among EU countries. As at December 2016, a total of 666 manufacturing projects have been approved Malaysia still retains its position as the UK’s second largest export market in ASEAN Last year the Chamber registered 750 British companies (SMEs Mostly) who have expressed their interest to do business in Malaysia An Expatriate destination!

Business Similarities: Standards & Practices Legal: The Malaysian legal system is predominately based on the British legal system and the principles of common law. British companies will be familiar with Malaysia’s legal framework. Accounting: The Accounting Standards Board (UK) is regarded as one of the ‘acceptable internationally recognised accounting standard’ by the Malaysian Accounting Standards Board (MASB) Equity Policy: There are generally minimal restrictions on foreign investment in Malaysia. Subject to the qualifications, a foreign investor can hold 100% equity in all investments in new projects as well as investments in expansion and/or diversification projects in existing companies

Opportunities in Malaysia Key Sectors Halal Food Processing & Distributing The global halal food industry generates US$560 billion. Recognising its potential, Malaysia aims to be a key player in the industry by becoming a hub for producing, marketing, certifying, and reference for halal food products Manufacturing E&E (Electrical & Electronics) segment is focused on deepening and strengthening the three major ecosystems of semiconductors, solar and light emitting diode (LED) technologies. Education Malaysia’s Education Blueprint 2013 -2025 hosts an array of opportunity for private education institution. Primary focus in on TVET ICT/Technology Internet of Things (IoT), Cloud, Big Data Analytics (BDA), Cybersecurity, e-Commerce, Fintech, Artificial Intelligence. Islamic Finance The Government targets to increase Islamic financing’s share of total financing in Malaysia from 29% in 2010 to 40% in 2020 Wholesale and Retail 60% of Malaysia's GDP contributed by domestic consumption. Preference for foreign brand in Malaysia

#1 #2 Opportunities in Malaysia Tips when doing Business in Malaysia We encourage companies to take a more long term view when venturing to Malaysia. Localise your operations It is common for incoming companies to partner with local companies Initial leg work is a crucial component. Building contacts and expanding network is vital Big picture - always think ASEAN! Summary of Malaysia’s rankings among ASEAN countries #1 AT Kearney Global Services Location Index 2016 #2 World Bank Ease of Doing Business 2017 WEF Global Competitiveness Index 2016 WEF Human Capital Index 2016 Bloomberg Innovation Index 2017 Taylor Wessing Global Intellectual Property Index 2016 ICT Development Index 2016 Arcadis Infrastructure Investment Index 2016

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