MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 1 DOING BUSINESS IN MALAYSIA Your Profit Centre in Asia S.Siva - Director MIDA Germany

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 2 Malaysia’s Ranking

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 3 Deutsche Bank Research 2006 Second, after India, as Asia's "growth stars" for the with China in third position. A.T.Kearney – Annual Global Services Location Index, 2007 One of the top 3 countries for Offshore Location Centres and Outsourcing

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 4 Why Malaysia?

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 5 Political and Economic Stability Strong Government Support Liberal Investment Policies Transparent Policies Security of Intellectual Property Well Developed Infrastructure Excellent Financial Institutions Strong Supporting Industries English Speaking Workforce (Educated, Trainable and Multi Racial) Quality of Life Good Track Record Member of ASEAN

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 6 Images of Malaysia Seeing is believing

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 7 Location 1. 1.In the very heart of South East Asia 2. 2.Between India and China 3. 3.Borders 5 countries (Thailand, Singapore, Indonesia, Brunei and Philippines)

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 8 The City – Kuala Lumpur (KL)

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 9

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 10 Putrajaya Government’s New Administrative Centre

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 11 MALAYSIA Investment Opportunities in Selected Industries The People (…the young ones)

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 12 Malaysia truly Asia …and the not so young ones Multi racial and multi cultural

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 13 Foreign Investment

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 14 Foreign Investment In Approved Manufacturing Projects (Euro Billion) (Euro Bil.)

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 15 CountryNo.FDI (Euro) Japan601,358,904,008 Germany26782,666,686 Iran3639,116,617 USA33629,162,726 Singapore108615,036,659 India8609,107,804 China13392,331,657 Netherlands9352,169,835 Major Investors in 2007

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 16 Major Foreign Companies From Europe

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 17 In 2007 For the Very First Time A Project from Czech Republic Spolchemie

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 18 Promoted Sectors

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 19 Manufacturing High technology, capital intensive and knowledge driven industries: Machinery and Equipments Biotechnology Advanced electronics Optics and photonics Photovoltaic Wireless and display technology Chemical Petrochemical Pharmaceutical Medical devices ICT

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 20 Services Operational Headquarters (OHQ) Regional Distribution Centre (RDC) International Procurement Centre (IPC) Regional Office (RO) Representative Office (RE)

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 21 Incentives Offered

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 22 Manufacturing Sector Full income tax exemption for a period up to 10 years; or 100% Investment Tax Allowance (ITA) for 5 years to be offset against 100% of statutory income. Reinvestment Allowance of 60% for a period of 15 years (For reinvestment). Customised Incentives - granted on request of the company and the merits of each case. Negotiable.

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 23 Facilities   Exemption from import duty and sales tax on raw materials/components   Exemption from import duty and sales tax on production machinery and equipment   Free Zone (FZ) / License Manufacturing Warehouse (LMW)   Free Commercial / Industrial Zone

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 24 Services Sector (OHQ, IPC & RDC) Full income tax exemption for 10 years

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 25 Investment Policies

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 26 Foreigners are allowed to hold 100% equity ownership in the manufacturing and related services sectors. Equity Ownership

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 27 Employment of Expatriates Foreign companies are allowed to bring in expatriate personnel to hold -key posts (posts that are permanently filled by foreigners) - term posts (posts that are filled by foreigners for a period of 1-5 years)

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 28 Project Implementation Coordination Unit (PICU) in MIDA HQ will monitor and render assistance to expedite the implementation of approved manufacturing and services projects. MIDA State Directors are appointed to ‘hand-hold’ and assist investors in obtaining all necessary approvals until projects are operational. Implementation of Projects

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 29 Whom to Contact?

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 30 MIDA is the first point of contact for investors who intend to set up projects in the manufacturing and related services sectors in Malaysia. The principal agency responsible for the promotion and coordination of industrial development in the country. MIDA Malaysian Industrial Development Authority

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 31 Services Provided by MIDA (Free of Charge) Services (Initial Stage) Briefing by MIDA HQ Meetings with State Authorities Business matching with Malaysian companies Visit to companies/suppliers Visit to potential location Evaluating & Granting Approval Manufacturing License Tax Incentives Expatriate Posts Import Duty Exemptions Project Implementation Stage Handhold and assist investor until project is implemented

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 32 COLOGNE MIDA, 6th Floor, Rolex Haus, Dompropst-Ketzer. 1-9, D Cologne Tel:0049 (0) MIDA’s Worldwide Network

MALAYSIA – Your Profit Centre In Asia Malaysian Industrial Development Authority 33 Thank you for your kind attention