1. Malaysian Industrial Development Authority www.mida.gov.my1 DOING BUSINESS IN MALAYSIA S.SivasuriyamoorthyDirector MIDA Cologne,Germany Czech Asian Business Forum, Prague 5 th March 2007

2. Malaysian Industrial Development Authority www.mida.gov.my2 MALAYSIA Global Ranking

3. Malaysian Industrial Development Authority www.mida.gov.my3 TTop 3 growth centres in emerging markets Deutsche Bank Research 2005 TTop 10 countries as a choice for business location TNS Global Reputation Survey 2005 TTop 3 countries for Offshore Location Centres A.T.Kearney – Annual Global Services Location Index, 2005 TTop 5 countries for energy, finance and logistics in global shared services and outsourcing (SSO) Frost & Sullivan - SSO Hub Potential Analysis 2005 223rd most competitive economy in the world IMD World Competitiveness Yearbook, 2006 KKuala Lumpur is the cheapest city in the world to live in UBS Bank of Switzerland, 2006

4. Malaysian Industrial Development Authority www.mida.gov.my4 MALAYSIA Images of Malaysia

5. Malaysian Industrial Development Authority www.mida.gov.my5 The Location In the Heart of South East Asia

6. Malaysian Industrial Development Authority www.mida.gov.my6 The City

7. Malaysian Industrial Development Authority www.mida.gov.my7

8. Malaysian Industrial Development Authority www.mida.gov.my8 The City

9. Malaysian Industrial Development Authority www.mida.gov.my9

10. Malaysian Industrial Development Authority www.mida.gov.my10 The People Malaysia truly Asia

11. Malaysian Industrial Development Authority www.mida.gov.my11 MIDA Your First Point of Contact

12. Malaysian Industrial Development Authority www.mida.gov.my12 MALAYSIA Malaysian Economy GDP Growth 5.8% (2007 est.6%) Per Capita Income Euro 3,652 Population26.1 million Work Force 10.1 million Unemployment 4% Inflation 3.7% Trade Surplus Euro 19.9 billion Int.ReserveEuro 56.8 billion

13. Malaysian Industrial Development Authority www.mida.gov.my13 MALAYSIA Strength of the Manufacturing Sector

14. Malaysian Industrial Development Authority www.mida.gov.my14 Multinational corporations from more than 50 countries have invested in over 5,000 projects in Malaysia's manufacturing sector.

15. Malaysian Industrial Development Authority www.mida.gov.my15 Foreign Direct Investment In Approved Manufacturing Projects (Euro Billion) (Euro Bil.)

16. Malaysian Industrial Development Authority www.mida.gov.my16 Sources of FDI (Top 10 Countries), 2001-2006 COUNTRYINVESTMENTS (EURO MILLION) USA3,499.6 JAPAN2,802.3 GERMANY2,772.2 SINGAPORE2,039.5 UNITED KINGDOM955.5 NETHERLANDS930.8 UNITED ARAB EMIRATES849.3 KOREA808.4 TAIWAN671.2 AUSTRALIA665.0

17. Malaysian Industrial Development Authority www.mida.gov.my17 MALAYSIA Investment Opportunities

18. Malaysian Industrial Development Authority www.mida.gov.my18 Targeted Sectors (Manufacturing) High technology, capital intensive and knowledge driven industries: Biotechnology Advanced electronics Optics and photonics Wireless technology Display technology (TFT, LCD, Plasma & parts) Petrochemical Pharmaceutical Medical devices ICT

19. Malaysian Industrial Development Authority www.mida.gov.my19 Industries manufacturing intermediate goods Machinery and equipment Components and parts Moulds and dies Resourced-based industries Food ( Halal Hub ) Value-added products from oil palm biomass (particle board, MDF board, animal feed)

20. Malaysian Industrial Development Authority www.mida.gov.my20 Targeted Sectors (Services) Operational Headquarters (OHQ) International Procurement Centre (IPC) Regional Distribution Centre (RDC) Regional Office (RO) Representative Office (RE) Integrated Logistic Services (ILS) Integrated Market Support Services (IMSS) Integrated Central Utility Facilities (CUF)

21. Malaysian Industrial Development Authority www.mida.gov.my21 MALAYSIA Investment Incentives

22. Malaysian Industrial Development Authority www.mida.gov.my22 Foreign companies could consider the establishment of the following: Services Sector Representative Office Regional Office Operational Headquarters (OHQ) Regional Distribution Centre (RDC) International Procurement Centre (IPC)

23. Malaysian Industrial Development Authority www.mida.gov.my23 Incentives Granted for OHQ, IPC & RDC Full income tax exemption for 10 years

24. Malaysian Industrial Development Authority www.mida.gov.my24 High Technology projects Strategic Projects Manufacturing Sector Foreign companies could consider the establishment of manufacturing operations in the promoted areas of:

25. Malaysian Industrial Development Authority www.mida.gov.my25 Incentives Granted Pioneer Status (PS) with income tax exemption up to 100% for 5 to 10 years; or Investment Tax Allowance (ITA) up to 100% for 5 years. Allowance can be offset against 100% of statutory income. Customised Incentives - granted on request of the company and the merits of each case Reinvestment Allowance of 60% for a period of 15 years (For reinvestment). Duty exemption on raw materials and machinery and equipment

26. Malaysian Industrial Development Authority www.mida.gov.my26 MALAYSIA Liberal Investment Policies

27. Malaysian Industrial Development Authority www.mida.gov.my27 Foreigners are allowed to hold 100% equity ownership. Equity Ownership

28. Malaysian Industrial Development Authority www.mida.gov.my28 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)

29. Malaysian Industrial Development Authority www.mida.gov.my29 Fast Track approval Pre-Packaged Committee Cabinet Committee on High Impact Projects (Chaired by the Hon. Deputy Prime Minister) Approval Process

30. Malaysian Industrial Development Authority www.mida.gov.my30 Project Implementation Coordination Unit (PICU) in MIDA will monitor and render assistance to expedite the implementation of approved manufacturing and services projects. Special project officers are appointed to ‘hand-hold’ and assist investors in obtaining all necessary approvals until projects are operational. Implementation of Projects

31. Malaysian Industrial Development Authority www.mida.gov.my31 MALAYSIA Why Malaysia?

32. Malaysian Industrial Development Authority www.mida.gov.my32 Political and Economic Stability Strong Government support including liberal investment policies and attractive incentives (Tax and Non Tax) Liberal Investment Policies Transparent Policies Security of Intellectual Property Well Developed Infrastructure Multi Racial (Malays, Chinese and Indians) Trainable, Educated and English Speaking Workforce Harmonious Industrial Relations Quality of Life Good Track Record Member of ASEAN

33. Malaysian Industrial Development Authority www.mida.gov.my33 Do it in Malaysia Your Profit Centre in Asia When you want to do business in Asia

34. Malaysian Industrial Development Authority www.mida.gov.my34 MIDA 6 th Floor, Rolex Haus Dompropst-Ketzer-Str.1-9 D-50667 Cologne, Germany Tel: (022)124008/09 E-Mail: mida.cologne@t-online.de Thank you for your kind attention

35. Malaysian Industrial Development Authority www.mida.gov.my35 MALAYSIA What Foreign Investors Says Appendix

36. Malaysian Industrial Development Authority www.mida.gov.my36 FLEXTRONICS * PHILIPS * SHELL * UNILEVER * BASF * IKEA * NESTLE * AGILENT TECHNOLOGIES * BP AMOCO HITACHI * ELEKTRISOLA * MOTOROLA * SAMSUNG KOMAG * ERICSSON * SONY * MATSUHITA * INFENION BMW * DAIMLERCHRYSLER * MIECO * PHILLIPS ROBERT BOSCH * IDEMITSU * SHARP * TORAY ……..

37. Malaysian Industrial Development Authority www.mida.gov.my37 “We believe that a strong global network is a very important competitive advantage in the logistics industry and Malaysia is a key market in the Asian Region, Malaysia's continuous growth and the transition of the Malaysian economy into an export-driven economy, spurred on by high technology, knowledge-based and capital- intensive industries proved our decision to be right." SCHENKER Reiner Allgeier, Managing Director, Schenker Logistics (Malaysia) Sdn Bhd.

38. Malaysian Industrial Development Authority www.mida.gov.my38 “Since entering Malaysia, BMW has developed a strong platform, complemented by the professional support and commitment shown by our partners here in Malaysia. With a strong and stable political climate, some of the best infrastructure in the region and a large talent pool, Malaysia serves as a firm base for the BMW Group's growth plans in Asia. The establishment of the Regional Parts Distribution Centre in Port of Tanjung Pelepas, Johor Darul Takzim in August 2004 represents the introduction of a key regional role for BMW Group Malaysia. The Regional Parts Distribution Centre supports the BMW Group by the speedy distribution of parts and accessories throughout the Asia-Pacific markets, providing premium customer service. “ BMW Wolfgang Schlimme Managing Director BMW Group Malaysia

39. Malaysian Industrial Development Authority www.mida.gov.my39 “ Malaysia is an excellent place for do business. The Malaysia government has shown exemplary support through excellent infrastructure development and a good education system that allows us to employ a high quality workforce. There is in existence a large pool of component suppliers in Malaysia, thus we have transferred from Singapore and established an International Procurement Office here for sourcing parts to other Sony companies worldwide. Malaysia's political and economical stability has been and will continue to provide and ideal investment climate for us to prosper. The establishment of business-friendly laws and policies has helped us to remain at the competitive edge of the local and global market.” SONY Koichi Nakamura The Malaysian Representative of the Sony Group of Companies in Malaysia.

40. Malaysian Industrial Development Authority www.mida.gov.my40 “DaimlerChrysler Malaysia’s 250 employees with their unique skills and creativity provide the high-quality workmanship expected by our customers. With a well- developed infrastructure and an educated and productive workforce in place, the company is set to take the Mercedes-Benz brand and heritage to newer heights. Malaysia offers numerous advantages to investors. The Malaysian government is committed to improving the investment environment in the country especially its continuous support and efforts in developing the country as one of the automotive hubs in the ASEAN region. We have made the right decision to invest in Malaysia and we look forward to further expanding our investments to complement the growth of Malaysia’s automotive industry.” DAIMLERCHRYSLER Frank Steinler President & CEO DaimlerChrysler Malaysia Sdn. Bhd.

41. Malaysian Industrial Development Authority www.mida.gov.my41 “The governmental policies that are put in place encourage growth and promote investments in a stable political climate. Malaysia has a well- developed infrastructure and strong industrial linkages with supporting industries, thus providing an excellent business environment. In addition, the workforce is educated and productive. All these make Malaysia an ideal choice for investments.” ERICSSON Mats H. Olsson President & Country Manager Ericsson Companies in Malaysia