BRIEFING TO SFEIA MEMBERS 16 JULY 2019 GOVERNMENT FACILITATION Machinery & Metals Division Good morning everyone I am Noorzita Mohamad Nor from Machinery & Metals Division of MIDA Today I would like to share with you on gov facilittaion to assist industrial development in Malaysia

Roles & Functions MIDA ia principal gov egency to promote investment in manufacturing & services sectors in malaysia MIDA core functions are promotion, eveluation – evaluate application for ml, tax incentive, duty exemption & expartriate post, monitoring – to facilitate the implementation of the approved projects, planning to formulate strategies for the industrial dev MIDA as 1 stop centre – where a number of relevant gov egencies will allocated their rep in MIDA such as Imigration, custom, doe, TNB & telekom with the objective to hand hold the project implementation We have 22 overseas centre & 12 state offices

Total Approved Investments in 2018 This our invesment performance for 2018, total investment approved is RM201.7 bil This consist of 3 major sectors sech manufacturing, services & primary Total approved projects is 4887 and created 129,780 jobs From the total investment 40% is from FDI & 60% from DDI

Total Approved Investment In Manufacturing Sector 2018 Total approved investmet in manufacturing sector for 2018 is RM87.4 b, increased 37% compare to 2017 Total project approved is 721 and created 59294 jobs Major share from the total investment is from FDI 66% and DDI 34%

Major Incentives This is major incentive offered by gov to assist industrial dev. In the country PS or ITA offered to new/existing companies involved with promoted activities listed under PIA1986 PS is tax exemption of 70% 0r 100% for period 5yrs or 10yrs ITA is 60% or 70% of qualifying expenditure for 5 yrs will be converted to capital allowance. This allowance can be offseted to the 70% or 100% of SI After the ps or ita period, if companies involved with additional capital investment, are eligible for RA. RA is 60% of qualifying capex for period 15 years Import duty exemption on raw materils/components and machinery & equipment used directly for the production

PROMOTED ACITIVITES (MANUFACTURING SECTOR) This are major sectors listed in promoted activities under PIA 1986

Another facility provided by gov is DISF The objective of this fund is

This fund offered to

The eligilibility criteria for ACA are

In budget 2019, gov was announced new incentive under Industry4WRD initiative

No 1 is the expansion scope of DISF & HIF DISF is for majority malaysian owned co and HIF is for Malaysian or foreign owned co

Application Process Flow for Industry4WRD DISF and HIF Online application for Industry4WRD Readiness Assessment (RA) to MPC Obtain RA Report from the Assessment Body (AB) Decision by companies on Industry 4.0 Application for Industry 4.0 Incentives (Budget 2019) Screening by Technical & Steering Committee Application for Industry4WRD Intervention Fund to MPC Application for Industry4WRD DISF/HIF to MIDA Application for other Industry 4.0 incentives Application for other available incentives/grants/soft loans related to Industry 4.0 MIDA Existing HIF or DISF Automation Capital Allowance Pioneer Status or Investment Tax Allowance Other ministries / agencies, e.g: 1) MIDF's soft loans 2) SME Corp's grants 3) Reinvestment Allowance How to apply this fund Readiness Assessment (RA) is not compulsory for application of other existing incentives 13

Industry4WRD – Readiness Assessment Comprehensive programme to help firms assess their capabilities and readiness to adopt Industry 4.0 technologies and processes. Now I would like toexplain what is RA ATRD – Advanced Tech R&D *Register for online application : https://www.miti.gov.my/index.php/pages/view/industry4WRD

Vendor Development Programme (VDP) Next incentive is

Beside that other facilitation under Industry4WRD are

THANK YOU CONTACT US: Be with us on Social Media / Mobile: MIDA HQ – MACHINERY & METALS DIVISION Opening hours:  Monday - Friday 8.30 a.m - 5.00 p.m MIDA Sentral No. 5 Jalan Stesen Sentral 5, KL Sentral 50470 Kuala Lumpur Tel: 603 2267 3633 Fax: 603 2273 4190 Email: investmalaysia@mida.gov.my www.mida.gov.my Visit our Business Information Centre (BIC) at 2nd Floor, MIDA Sentral, KL Sentral Be with us on Social Media / Mobile: URL: @officialMIDA With that I will end my presentation TQ THANK YOU