1. MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY 30 AUGUST 2016 INCENTIVES AND GRANTS

2. About MIDA R&D and Innovation Independent Conformity Assessment Body (ICAB) Domestic Investment Strategic Fund (DISF) CONTENT OUTLINE

3. MALAYSIA PRODUCTIVITY CORPORATION MALAYSIA STEEL INSTITUTE 3 MITI & AGENCIES

4. Follow-up / monitoring Promotion Evaluation Plannin g Follow-up / monitoring Promotion Evaluation FUNCTIONS OF MIDA Foreign Direct Investment Domestic Investment Manufacturing & Services Manufacturing Licenses Tax Incentives Expatriate Posts Duty Exemption Principal Hub & selected services Assist companies in the implementation & operation of their projects Facilitate exchange & coordination among institutions engage in or connected with industrial development Advisory Services Planning for industrial development Recommend policies & strategies on industrial promotion and development Formulation of strategies, programmes and initiatives for international economic coorperation

5. Immigration Department Royal Malaysian Customs Telekom Malaysia Berhad Labour Department 23 Overseas Center One-Stop Agency

6. RESEARCH & DEVELOPMENT AND INNOVATION

7. 7 INVESTMENT OPPORTUNITIES High technology, capital intensive & knowledge driven industries: Alternative Energy Sources Biotechnology Advanced materials Advanced electronics Optics and photonics Petrochemicals Pharmaceuticals Medical devices ICT Aerospace Industries manufacturing intermediate goods: Machinery & equipment Components & parts Moulds and dies Resourced-based industries: Oil & Gas Food & Agro based Value-added products from natural resources

8. INVESTMENT OPPORTUNITIES Services Regional Establishments Shared services outsourcing Data Centre Healthcare Logistics Tourism Education Environmental Management R&D

9. MAJOR INCENTIVES Pioneer Status Income tax exemption ranging from 70% or 100% for a period of 5 or 10 years Investment Tax Allowance 60% or 100% on qualifying capital expenditure for 5 years Reinvestment Allowance 60% on qualifying capital expenditure for 15 consecutive years Import Duty Exemption For raw materials / components and machinery and equipment

10. R&D INCENTIVES AVAILABLE R&D companies may apply for the fulfillment of definition as R&D STATUS COMPANY Related and unrelated companies which make payments to the R&D Status Company for the use of their services are eligible to claim DOUBLE DEDUCTION on approved R&D expenditure. R&D Status A company that provides R&D services in Malaysia to its RELATED and/or UNRELATED COMPANIES can enjoy :- INVESTMENT TAX ALLOWANCE (ITA) 100% of qualifying capital expenditure incurred within a period of 10 years R&D COMPANY + R&D STATUS COMPANY* *Only UNRELATED COMPANIES can claim Double Deduction R&D Company

11. R&D INCENTIVES AVAILABLE A company that provides R&D services in Malaysia to its UNRELATED companies can enjoy :- PIONEER STATUS (PS) with Income Tax exemption of 100% on statutory income for 5 years ; OR INVESTMENT TAX ALLOWANCE (ITA) of 100% on the qualifying capital expenditure incurred for 10 years CONTRACT R&D COMPANY + R&D STATUS COMPANY* *UNRELATED COMPANIES can claim Double Deduction Contract R&D A company carries out R&D within the company in Malaysia for the purpose of its own business can enjoy: INVESTMENT TAX ALLOWANCE (ITA) 50 % for 10 years. In-House R&D

12. AUTOMOTIVE ENGINEERING SERVICES OIL & GAS RENEWABLE ENERGY FOOD TARGETED SECTORS CHEMICAL MACHINERY & EQUIPMENT ELECTRICAL & ELECTRONICS AEROSPACE MEDICAL DEVICES

13. INDEPENDENT CONFORMITY ASSESSMENT BODY (ICAB)

14. TESTING LABORATORIES CALIBRATION LABORATORIES CERTIFICATION BODIES CERTIFICATION BODIES INSPECTION BODIES GOOD LABORATORY PRACTICE (GLP) COMPLIANT TEST FACILITIES ICAB OPERATIONS

15. NEW EXISTING  Pioneer Status (PS) with income tax exemption of 100% on statutory income for 5 years OR;  Investment Tax Allowance (ITA) of 60% on the qualifying capital expenditure incurred for 5 years. The allowance can be offset against 100% of the statutory income for each year of assessment  Investment Tax Allowance (ITA) of 60% on the qualifying capital expenditure incurred for 5 years. The allowance can be offset against 100% of the statutory income for each year of assessment. * Existing ICAB undertaking expansion are required to carry out at least one (1) additional ICAB operations. *Effective Date : 1 January 2016 until 31 December 2018 INCENTIVES FOR ICAB

16. CHEMICAL MACHINERY & EQUIPMENT ELECTRICAL & ELECTRONICS AEROSPACE MEDICAL DEVICES FOOD TARGETED SECTORS

17. To accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries Targeted Industries Aerospace Machinery & Equipment Medical Devices Pharmaceuticals Advanced Electronics Renewable Energy The fund will provide matching grants (1:1) on reimbursable basis to cater for expenditures incurred for the following activities: Training of Malaysians R&D activities carried out in Malaysia Licensing or Purchase of New Technology Obtaining International Standards/Certification Modernisation and upgrading of facilities and tools to undertake manufacturing or services activities for Multinational Corporations (MNCs) and Malaysian conglomerates (Outsourcing activities) DOMESTIC INVESTMENT STRATEGIC FUND (DISF)

18. Thank you THANK YOU