1. MALAYSIA YOUR BUSINESS PARTNER Roma 29 May 2013 DOING BUSINESS WITH MALAYSIA Rome May 30, 2013

2. 2 www.matrade.gov.my Malaysia External Trade Development Corporation |2

3. 3 3 Snapshot of World Growth in 2012 COUNTRIESGDP GROWTH 2012 (%) WORLD3.2 Advanced Economies1.3 USA2.3 Euro Area-0.4 Japan2.0 Emerging Market and Developing Economies 5.1 Developing Asia6.6 China7.8 India4.5 Singapore2.1 Thailand5.6 Indonesia6.0 Malaysia 5.6

4. 4 www.matrade.gov.my Malaysia External Trade Development Corporation |4 KEY HIGHLIGHTS Strong growth of 5.6% amid challenging external environment Robust domestic demand underpinned by strong investment and consumption activity Low headline inflation of 1.6% Resilient external position Capital flows remain well intermediated

5. 5 www.matrade.gov.my Malaysia External Trade Development Corporation |5 Compiled by : MATRADE Source : DOSM -0.3% 4.9% 2% -24.2% Malaysias Trade Performance 2011 and 2012 Value : US Billion

6. 6 www.matrade.gov.my Malaysia External Trade Development Corporation |6 ASIA 71.7% share AFRICA 2.1% share LATIN AMERICA 2.4% share EU 9.8% share EASTERN EUROPE 0.9% share OCEANIA & AUSTRALASIA 4% share NORTH AMERICA 8.8% share ASIAS SHARE OF MALAYSIAS TRADE STRENGHTHENS 6

7. 7 www.matrade.gov.my Malaysia External Trade Development Corporation |7 COMPOSITION OF EXPORTS IN 2012 Others US 2.04 bil. (0.9% share) Manufactured Goods US 152.72 bil. (67% share) Mining Goods 13.6% US 47.16 bil. (20.7% share) Agricultural Goods 14.9% to US 26.06 bil. (11.4% share)

8. 8 www.matrade.gov.my Malaysia External Trade Development Corporation |8 IMPORTS BY MAJOR PRODUCTS IN 2012 Others US 71.22 bil. (39% share) E&E Products US 56.82 bil. (28.8% share) Machinery, Appliances & Parts US 17.16 bil. (8.7% share) Chemical & Chemical Products US 16.89 bil. (8.6% share) Petroleum Products US 16.17 bil. (8.2% share) Transport Equipment US 12.73 bil. (6.5% share)

9. 9 www.matrade.gov.my Malaysia External Trade Development Corporation |9 Malaysias Exports to Italy 2012 Value Euro million

10. 10 www.matrade.gov.my Malaysia External Trade Development Corporation |10 Malaysias Imports from Italy 2012 Value Euro million

11. 11 www.matrade.gov.my Malaysia External Trade Development Corporation |11 Malaysia-Italy Bilateral Trade 2003-2012 Value: US million

12. 12 www.matrade.gov.my Malaysia External Trade Development Corporation |12 Trade in Services (Jan – Sept 2012) EXPORTS UP 5.7% IMPORTS UP 13% TRADE UP 9.5% 12 US27.83 billion US31.31 billion US59.14 billion

13. 13 www.matrade.gov.my Malaysia External Trade Development Corporation |13 WHY MALAYSIA? 13

14. 14 www.matrade.gov.my Malaysia External Trade Development Corporation |14 THE ASEAN FACTOR Highest Export Growth Compared with Other Regional Markets

15. 15 www.matrade.gov.my Malaysia External Trade Development Corporation |15 ASEAN ECONOMY INDICATORS Source : ASEAN Secretariat, DOSM and IHS Global Insight

16. 16 Country2010201120122013 F Brunei2.62.21.6 Cambodi a 6.07.56.56.4 Indonesia6.36.56.36.6 Lao PDR8.18.08.37.1 Malaysi a 7.25.15.65.0/6.0 Myanmar10.610.45.05.9 Philippin es 7.63.76.64.7 Singapor e 14.94.91.34.2 Thailand7.80.15.97.5 Vietnam6.86.05.06.3 ASEAN7.84.75.26.0 GDP GROWTH rates (%)… Source: ASEC database *2012 forecasts are official figures (low end of forecasts) 2013 projections from IMF, WEO2012

17. 17 ASEAN ECONOMIC INTEGRATION

18. 18 www.matrade.gov.my Malaysia External Trade Development Corporation |18 The AEC will make ASEAN more attractive to foreign direct investments, with a market larger than many other regional groupings and countries in the world The AEC is a significant stimulus to regional production, linkages and competitiveness Provides a platform for SMEs to venture into export market Stimulates expansion of intra-regional trade and intra-regional investment 18 ASEAN ECONOMIC COMMUNITY

19. 19 www.matrade.gov.my Malaysia External Trade Development Corporation |19 GLOBAL GROWTH CENTERS Source: ASEAN Secretariat (2011 figures)

20. SINGLE MARKET AND PRODUCTION BASE 20

21. TARIFF/IMPORT DUTIES ASEAN Trade in Good Agreement (ATIGA) ASEAN-6:Import duties eliminated by 1 January 2013 Exclusion: Very limited CLMV: Import duties are between 0-5%. Total elimination by 1 January 2015, with some exceptions Special arrangements for rice and sugar for Indonesia and The Philippines. 21

22. 22 www.matrade.gov.my Malaysia External Trade Development Corporation |22 -to enhance and strengthen cooperation among service suppliers in ASEAN; and Signed in 1995 -progressively liberalise trade in services among ASEAN countries through reduction / elimination of restrictions. FREE FLOW OF SERVICES 22

23. Australia US 14.19 bil. Australia US 14.19 bil. New Zealand US 1.96 bil. New Zealand US 1.96 bil. Japan US US 47.18 bil. Japan US US 47.18 bil. Pakistan US 2.12 bil. Pakistan US 2.12 bil. China US 58.64 bil. China US 58.64 bil. India US 13.36 bil. India US 13.36 bil. ASEAN US 116.28 bil. ASEAN US 116.28 bil. Chile US US 0.35 bil. Chile US US 0.35 bil. Malaysia Korea US 16.22 bil. Korea US 16.22 bil. LEVERAGING ON FTAs Trade 5.8% to US270.30 billion from US257.08 billion

24. Enhance competitiveness and efficiency by expanding domestic production facilities for the larger markets: 24 IMPLICATION TO LOCAL BUSINESS