The Familiarisation Programme for Officials of Investment Promotion Agencies of South South Countries 18 29 August 2008

Promotion of Domestic Investment in the Manufacturing & Services Sectors Tuesday 19 August 2008

By: Onn Abdullah Director Domestic Investment Promotion, MIDA

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MIDA ORGANISATION CHART

MIDA Board Chairman Advisory Services Centre

Director General

Deputy Director General I

Senior Director (Services) Industry Support - State Offices Business & Other Services Logistic & Regional Operations Resource Centre Management Secretariat Senior Director (Resource Industry) Agro-Based Industry Chemicals & Life Science Industries Petrochemical & Polymer Industries

Deputy Director General II

Senior Director (Investment) Foreign Investment Promotion: - Americas - Asia Oceanic - Europe Domestic Investment Cross Border Investment Overseas Offices Senior Director (Non-Resource Industry) ICT & Electrical Industries Electronics Industries Transport & Metal Industries Machinery & Engineering Supporting Industry Textiles & Minerals Industries

Strategic Planning International Cooperation

Corporate Mgmt HRD Finance Mgmt Internal Audit Unit

Communications & Media Information Management & Statistics

THE ORGANISATION STRUCTURE OF DOMESTIC INVESTMENT PROMOTION DIVISION

Director
Deputy Director
Domestic Investment Initiatives Personal Assistant

Deputy Director
Domestic Investment Initiatives

Economic Affairs Officers (2)

Economic Affairs Officers (2)

Clerk (2)

Machine Data Entry Operator (1)

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DOMESTIC INVESTMENT PROMOTION

Plan, implement and coordinate programmes to promote domestic investments. Formulate programmes and strategies to promote domestic investment in high value added manufacturing & services sectors. To assist local and foreign investors to identify suitable joint-venture partners via enterprise connect (Econnect).
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Functions Of Domestic Investment Promotion Division

Promotion Functions

Domestic investments Planning and arranging visits of delegation from domestic companies/ Chambers of Commerce & Industry/ Association Conducting briefing outside MIDA

Addressing investments

enquiries

related

to

domestic

Facilitate joint-venture
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Functions Of Domestic Investment Promotion Division

Development Functions

Database on Domestic Investment

Investment promotion programmes Targeted companies, industries

and countries
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OVERALL STRATEGIES

Intensify Promotion of Domestic Investment in the promoted industries Greater emphasis on domestic investment Promotion of manufacturing services Improving the cost-competitive environment Quality & lower cost of utilities Skill workers Productivity Government Delivery system Grants & Incentives
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STRATEGIES
PROMOTION OF DOMESTIC INVESTMENT

Expanding and improving SMIs capacity in higher value-added products

Creating green field investments in industries which have the potential for local companies

Obtaining the strategic and suitable know-how

Enhancing the institutional support and financial assistance Realizing greater domestic contribution to total investment
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PROGRAMMES FOR DOMESTIC INVESTMENT PROMOTION

Domestic/Specific Industry Seminar Master schedule : annual seminar organized by region Briefings on investments related topics by other relevant departments/ agencies in the seminar Technical workshops e.g. on project financing facilities for seminar participants.
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continued

Domestic/Specific

Industry

Seminar

To update Malaysian investors on policies and investment opportunities in the manufacturing & services sectors Dialogue session with Minister International Trade & Industry of

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.. continued

Dialogues with local Chambers/Industry Associations Discuss on investment matters e.g.:

facilitating new/ expansion/ diversification projects source of technology upgrading new market contract manufacturing/joint venture
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.. continued

Meeting with Local Multinationals

Companies
identify locally-owned MNCs profile of MNCs partnership work programme

investment opportunities

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.. continued
Pro active and effective follow-up

programmes - post domestic seminars - post specific seminars - post dialogues session Handhold approved domestic investors - Federal level - State level/ Local authority
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SEMINAR PROGRAMMES 2008

KLANG VALLEY INVESTMENT SEMINAR, KL 28 & 29 JANUARY 2008 NATIONAL SEMINAR ON BUSINESS OPPORTUNITIES IN THE MACHINERY & EQUIPMENT INDUSTRY, KL 8 & 9 MAY 2008 INTERNATIONAL SEMINAR IN THE ELECTRONICS INDUSTRY, PENANG 3 & 4 JUNE 2008 SEMINAR ON BUSINESS OPPORTUNITIES IN MEDICAL DEVICE 2008, KL 8 JULY 2008

SARAWAK INVESTMENT SEMINAR, KUCHING, SARAWAK 17 & 18 JULY 2008

SABAH INVESTMENT SEMINAR, KOTA KINABALU, SABAH 20 & 21 AUGUST 2008
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.. continued

Facilitate Joint-Venture - Enterprise Connect (E-Connect) - Disseminate information on contract manufacturing, JV and technical collaboration

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E-Connect
Objective:

To assist local and foreign manufacturers to identify suitable joint-venture partners for projects in Malaysia

To assist Malaysian contract manufacturers in forging business links to supply to world markets

As at 30th June 2008, 573 companies have been registered with E-Connect which 330 (58%) are Malaysian companies.
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E-Connect
Business Matching for Foreign and Local Companies - Enterprise Connect

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Issues and Challenges

Malaysian companies participation in the manufacturing sector is still small

To realise the 60% domestic contribution to total investments

A need for Malaysian SMIs to further expand and improve its capacity in higher value added products A need to create industries which have the potential for Malaysian A need to enhance the institutional support and financial assistance
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Performance of The Manufacturing Sector Total Approved Manufacturing Projects ( 2006 2008*)
Approved Investments (RM billion) Domestic 2006 1,077 25.8 Foreign 20.2 Total 46.0

Year

No. of projects

2007
2008* Total

949
417 2,287

26.5
9.3 61.6

33.4
23.2 76.8

59.9
32.5 138.4
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* Period of January June 2008

Total Implemented Manufacturing Projects ( As At 31 December 2007)

No. of projects

Implemented Investments (RM billion)

THANK YOU
Domestic Foreign Total 142.0 171.95 313.98

14,757

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Foreign Investment In Manufacturing Projects Implemented By Major Country (As at 31 Dec 2007)

Country
Japan USA

No of Projects
2,215 635

Total Investments (RM billion)

43.3 35.1

Singapore
Taiwan Germany Netherlands Korea United Kingdom Hong Kong

2,408
1,454 303 131 270 344 401

16.5
15.1 14.8 10.0 6.2 4.13 2.0
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Approved Domestic Investment In Manufacturing Projects By Major Industry ( January June 2008)

Industry
Basic Metal Products Electronics & Electrical Products Transport Equipment Food Manufacturing Non Metallic Mineral Products Petroleum Products (Including Petrochemical Products) Machinery & Equipment

Total Investments (RM Billion)

17.3 5.8 1.5 1.5 1.2 1.1

THANK YOU

Chemical & Chemical Products

0.8
0.7
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Malaysian Industrial Development Authority

THANK YOU

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