Can Malaysia Create Better Returns for Global Investors? Dato Richard Azlan Abas Chief Executive Officer MALAYSIAN DIRECTORS ACADEMY (MINDA)

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Walter Norton
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2 Can Malaysia Create Better Returns for Global Investors? Dato Richard Azlan Abas Chief Executive Officer MALAYSIAN DIRECTORS ACADEMY (MINDA)

3 Can Malaysia Create Better Returns for Global Investors? Malaysia offers a compelling value proposition for both foreign direct investment (FDIs) and capital markets investment, ranking in the world s top 20 most competitive economies according to the World Economic Forum s Global Competitiveness Report

5 ACGA Asian Corporate Governance Association (ACGA), an independent, non-profit organisation based in Hong Kong and working on behalf of all investors and other interested parties to improve corporate governance practices in Asia.

6 LINK

7 LINK

16 CAN MALAYSIA CREATE BETTER RETURNS FOR GLOBAL INVESTORS 15 NOVEMBER 2016 Disclaimer: This document is for information purposes only, and does not constitute legal advice 16

17 KEY ECONOMIC DATA (2015) Capital MALAYSIA Kuala Lumpur Land Area (sq km) 330,399 Population GDP (US$) 30.6 million US$ billion GDP Growth (%) 5.0 GDP Per Capita (US$) 10,073 Total Trade (US$) Merchandise Total Trade (US$) Services Sources: MATRADE, CIA World Factbook, DOS, Trade Map and EIU billion 56.8 billion Disclaimer: This document is for information purposes only, and does not constitute legal advice 17

18 ECONOMIC GROWTH IN 2016 Moderate growth in 2016 due to domestic and external factors Domestic demand to remain the key driver of growth, led by private sector spending Contribution to growth (ppt.) 8 Disclaimer: This document is for information purposes only, and does not constitute legal advice Private Consumption Public Consumption Change in Stocks GDP Growth Real GDP Growth f Private Investment Public Investment Net Exports 18

19 TRANSFORMATION OF THE MALAYSIAN ECONOMY 1970 GDP Contribution (%) Agriculture Mining Construction Services Manufacturing Malaysia now has more diversified economic structure, which creates the foundation for future growth. Disclaimer: This document is for information purposes only, and does not constitute legal advice Source : Department of Statistic Malaysia 19

20 KEY ACHIEVEMENTS Gross National Income rose by nearly 50% in the past six years with 1.8 mil jobs created 220 months of trade surplus since November 1997 Capital market up by 150% since 2009 to USD 717 billion Equity market expanded by 69.6% to USD 435 billion since Bond and Sukuk grew by 6.7% to USD 282 billion Islamic capital market grew by 6.7% in 2015 to USD 435 billion Exchange Rate: USD1: RM Disclaimer: This document is for information purposes only, and does not constitute legal advice 20

WORLD-CLASS INFRASTRUCTURE High Speed Rail:

Transit: Line 1 to be fully completed by

document is for information purposes only,

21 WORLD-CLASS INFRASTRUCTURE High Speed Rail: KL to Singapore in just 90 mins Mass Rail Transit: Line 1 to be fully completed by mid-2017 Extension of Light Rail Transit: Expected to accommodate 2 mil people in Klang Valley Port Klang: 12 th busiest port North-South Expressway: 722km highway connecting from one end of Disclaimer: This document is for information purposes only, and does not constitute legal Peninsular advice Malaysia to another 21

22 MALAYSIA S 2015 GLOBAL TRADE RANKING 23 rd Largest Exporter 26 th Largest Importer 24 th Largest Trading Nation Disclaimer: This document is for information purposes only, and does not constitute legal advice 22

MALAYSIA S MAJOR TRADING PARTNERS IN 2015 USA USD 33 billion 8.8 % share EU USD 38.1 billion 10.1% share China USD 59.1 billion 15.7% share Japan USD 32.8 billion 8.7% share ASEAN USD 102.

23 MALAYSIA S MAJOR TRADING PARTNERS IN 2015 USA USD 33 billion 8.8 % share EU USD 38.1 billion 10.1% share China USD 59.1 billion 15.7% share Japan USD 32.8 billion 8.7% share ASEAN USD billion 27.4% share Australia USD 11.7 billion 3.1% share New Zealand USD 1.80 billion 0.5% share Exchange Rate: USD1: RM Disclaimer: This document is for information purposes only, and does not constitute legal advice 23

24 PETROCHEMICAL AND CHEMICAL INVESTMENT OPPORTUNITIES TOURISM ICT AND MULTIMEDIA INFRASTRUCTURE DEVELOPMENT MACHINERY & EQUIPMENT HALAL Disclaimer: This document is for information purposes only, and does not constitute legal advice LIFE SCIENCES 24

Pioneer Status Income tax exemption ranging from 70% or 100% for

qualifying capital expenditure for 5 years Less Developed Area

qualifying capital expenditure for 15 consecutive years

For raw materials / components and machinery and equipment

my/incentives/modules/public/incentivelist.

(ICAB) Investment Policies OWNERSHIP EXPATRIATE POSTS CAPITAL

Repatriate services sectors can be merit of each case Capital,

25 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 Less Developed Area Industrial Area Management Reinvestment Allowance 60% on qualifying capital expenditure for 15 consecutive years Automation Capital Allowance Expenditure Import Duty Exemption For raw materials / components and machinery and equipment Principal Hub Independent Confirmity Assessment Bodies (ICAB) Investment Policies OWNERSHIP EXPATRIATE POSTS CAPITAL Manufacturing & selected Liberal policy, based on Freedom to Repatriate services sectors can be merit of each case Capital, Interest, Dividends Disclaimer: This document wholly is for foreign-owned and Profits No Restrictions information purposes only, and does not constitute legal advice 25

26 Global offshoring destination (A.T. Kearney Global Services Location Index 2016) Protecting investors (World Bank Doing Business 2016 Report) Most attractive investment destination (Baseline Profitability Index (BPI) 2015) Ranking 31 million population 14 states CAPITAL: Kuala Lumpur Area: 329,847 km² Most competitive economy in overall performance (IMD's World Competitiveness Yearbook 2016) IMD world talent rankings (IMD's World Competitiveness Yearbook 2015) Most competitive nation in the world (WEF's Global Competitiveness Report ) In ease of doing business (World Bank Doing Business 2016 Report) Disclaimer: This document is for information purposes only, and does not constitute legal advice 26

Area: 329,847 km² About 78% of expatriates say that Malaysia offers a good work and life balance, a friendly culture and lower costs for raising a child HSBC Expat Explorer

27 Area: 329,847 km² About 78% of expatriates say that Malaysia offers a good work and life balance, a friendly culture and lower costs for raising a child HSBC Expat Explorer Report, 2015 Kuala Lumpur the 16 th most livable city in Asia ECA International Report Disclaimer: This document is for information purposes only, and does not constitute legal advice 27

28 Why Malaysia? Political and Economic Stability A Pro-business Government Liberal Investment Policies Good Infrastructure A Sound Banking System An Open Trading Environment Excellent Facilities - Convention and Conferences Trainable & English Speaking Human Resource Great Quality Disclaimer: This document is for information purposes only, Great and Food Liberal Business does not constitute legal advice of Life Environment Good Track Record 28

29 MALAYSIA S INVOLVEMENT IN FTAS MALAYSIA HAS IMPLEMENTED 13 FREE TRADE AGREEMENTS ASEAN 1. ASEAN Free Trade Area (1992) 2. ASEAN-China (2004) 3. ASEAN-Korea (2006) 4. ASEAN-Japan (2008) 5. ASEAN-India (2009) 6. ASEAN-Australia-New Zealand (2009) BILATERAL 1. Japan (2005) 2. Pakistan (2007) 3. New Zealand (2009) 4. Chile (2010) 5. India (2011) 6. Australia (2012) 7. Turkey ( ) Disclaimer: This document is for information purposes only, and does not constitute legal advice 29

MINISTRY OF INTERNATIONAL TRADE & INDUSTRY ASEAN ECONOMIC COMMUNITY 2015 was a milestone year for ASEAN as the realisation of the ASEAN Economic Community (AEC) was announced.

30 MINISTRY OF INTERNATIONAL TRADE & INDUSTRY ASEAN ECONOMIC COMMUNITY 2015 was a milestone year for ASEAN as the realisation of the ASEAN Economic Community (AEC) was announced. Malaysia s Chairmanship is critical in ensuring that the priority measures and initiatives for the AEC are in place and the integration process will seamlessly continue beyond Disclaimer: This document is for information purposes only, and does not constitute legal advice

31 Disclaimer: This document is for information purposes only, and does not constitute legal advice

32 AEC IN FIGURES Population 625 million (2015) Youth 60% GDP USD2.57 trillion GDP growth: 4.6% (2015); 5.1% (2016) Per capita USD 4,130 (2014) Tourist Arrivals 105 million (2014) Intra-ASEAN 48 million 7 th largest economy (4 th by 2050) Total FDI USD billion (2014) Intra ASEAN USD24.4 billion (17.9%) Total Exports USD1.3 trillion Intra ASEAN 25.5% Disclaimer: This document is for information purposes only, and does not constitute legal advice ASEAN Dialogue Partners Australia Canada China India Japan Korea New Zealand European Union (EU) Russia USA UNDP 32

Lumpur, Malaysia Tel: 603-8000 8000 Fax:

33 Thank You MENARA MITI No. 7, Jalan Sultan Haji Ahmad Shah, Kuala Lumpur, Malaysia Tel: Fax: Website: Disclaimer: This document is for information purposes only, and does not constitute legal advice

BRIEFING ON The TRANS-PACIFIC PARTNERSHIP AGREEMENT (TPPA)

BRIEFING ON The TRANS-PACIFIC PARTNERSHIP AGREEMENT (TPPA) BY SYAHRIL SYAZLI GHAZALI Strategic Negotiation Division MITI 21 January 2016 1 BRIEF BACKGROUND 2005 (P4) - Brunei, Chile, Singapore & New Zealand.