THE STAR, TUESDAY 30 JUNE 2015

special

INVEST MALAYSIA

On the map
to success

THE STAR, TUESDAY 30 JUNE 2015

2 invest malaysia

By THERESA BELLE
IN his meeting with 34 industry
captains in Tokyo last month,
Prime Minister Datuk Seri Najib
Razak reported that 2014 was a
record-breaking year for
investments in Malaysia.
The total of RM181.5bil marked a
13.1% increase from 2013s
RM160.5bil, surpassing the
projected RM148bil target, which is
an average annual growth target
of 10.9% set under the 10th
Malaysia Plan.
This year, Malaysia is projected
to sustain a growth of 4.5% to 5.5%
in view of a forecasted 3.5% global
economic growth.
The 11th Malaysia Plan, which
outlines national strategies for
economic growth from 2016 till
2020, projects an increased gross
national income by 7.9% per
annum driven by private
consumption and investment.
This plan, along with the New
Economic Model, supports the
Economic Transformation
Programme (ETP), which is the
Malaysian Governments initiative
to develop the country into a highincome economy by 2020.
Twelve National Key Economic
Areas (NKEAs) with high-income
potential have been identified for
further development.
The Malaysian Investment
Development Agency (MIDA) was
entrusted to ensure these sectors
including oil, gas and energy,
education, electrical and
electronics, financial services, palm
oil and related products, and
tourism experience significant
growth.
Accordingly, MIDA has initiated
four new tax incentives under the
Malaysian 2015 Budget to promote
balanced growth while exploring
new fields and upgrading
manufacturing methods and
facilities.
MIDA works closely with the
Federal Government in promoting
the manufacturing and services
sectors in the country, assisting
potential investing companies and
facilitating their project
implementations.

Prepare for change

With steady investments into key industries, Malaysia is well on track to meeting its goals of developing a knowledge-based economy.

Promising prospects
In the first quarter of last year, a
total of 42,906 jobs were created
from the numerous projects
approved througout the country.
MIDA statistics on the same
quarter this year displayed a 12%
increase in employment
opportunities through the creation
of 48,120 jobs.
The investments received in the
months of January to March this
year were channelled into
manufacturing, services and
primary sectors. Manufacturing
investments totalled RM33.6bil,
followed by RM22.3bil in the
services sector and RM1.5bil in the
primary sector.
Bank Negara has indicated that

investment activities in
manufacturing and services sectors
are expected to remain robust.
Investment in manufacturing will
be supported by export-oriented
industries and new growth areas
such as renewable energy,
semiconductors and medical
devices, while expenditure in the
services sector will be chanelled
into higher value-added activities,
such as IT services, education and
medical tourism.
Out of the RM57.4bil investments
made in the first quarter of this
year, 73% came from domestic
sources. The percentage of foreign
direct investments are decreasing
year after year, but MIDA chief
executive officer Datuk Azman
Mahmud explains that this is in

line with national growth

strategies.
The Government aims to
promote higher domestic
investments to spearhead
economic growth, as the ETP
targets 73% domestic investments
by 2020, he says.
For years now, natural gas and
chemicals industries have
dominated the local manufacturing
scene. This trend can still be seen
well into this year as of last
month, these activities have raked
in RM13.3bil worth of investments.
Accordingly, oil and gas services
lead services sector investments so
far with RM3.7bil.
The manufacturing sector will
move towards more high value,
diverse and complex products,

Services gaining traction

Support
services
5.41%

Regional
establishments
3.15%

Others
4.50%

MSC
status
7.21%

Programme, the services sector is targeted

to contribute 67% to the countrys GDP
by 2020.
The chart shows the various subsectors
driving growth of the service industry in
Malaysia:

Industry

Health
services
7.21%

Hotel and
t ourism
9.91%

The countrys services sector recorded

RM22.3bil worth of investments in the first
quarter of this year, in line with the
Malaysian Investment Development
Authoritys goal of expanding this sector.
Under the Economic Transformation

Real estate
29.98%

Global
operations hubs
11.71%

Utility
21.72%

Total investments
from January to March
2015 (RM billion)

Real estate
Utility
Global operations hubs

6.5
4.8
2.6

Hotel and tourism

Health services
MSC status
Support services
Regional
establishments
Others

2.2
1.6
1.6
1.2
0.7
1

driven by three catalytic

subsectors: chemicals, electrical
and electronics, machinery as well
as industries with high potential of
growth such as medical devices
and aerospace, says Azman.

> SEE PAGE 6

International support
FOREIGN investments into
the manufacturing sector
accounted for 27.4%
(RM64.6bil) of total
investments into Malaysia
last year.
Seventy percent of these
investments came from
Asian countries, several of
which continue to support
the countrys growing
economic ecosystem in
various sectors this year,
while 24.5% were from the
United States and European
Union nations.
These were some of the
major investors last year
that continue to make their
mark in Malaysia this year:

Japan

Singapore

China

Republic
of Korea
United
States
European
Union
countries

THE STAR, TUESDAY 30 JUNE 2015

THE East Coast Economic Region

(ECER) of Malaysia consists of
several areas rich in culture and
natural resources the states of
Kelantan, Terengganu and Pahang,
and the Mersing district of Johor.
The responsibility of executing
and implementing the East Coast
Economic Region (ECER) Master
Plan for developing this region has
been entrusted by the Federal
Government to the East Coast
Economic Region Development
Corridor (ECERDC), and the
statutory body reports positive
results.
The ECER attracted RM73.04bil
in investments from 2007 up till
March this year this figure
represents 66% of the development
corridors target of RM110bil total
investment by 2020. This
encouraging progress facilitated
the creation of 73,708 new job
opportunities in the region.
A great, unique advantage is
that investments into ECER are not
restricted to urban areas, says
Datuk Seri Jebasingam Issace John,
chief executive officer of ECERDC.
Rural areas such as Gua
Musang, Besut, Jengka and Rompin
have also attracted their fair share
of investments, providing jobs and
entrepreneurial opportunities for
local communities.
The resource-based activities in
this region are largely supported
by the abundance of natural assets
such as pristine beaches and coralringed islands, centuries-old
rainforest, sizeable land areas, oil
and gas as well as mineral
reserves.
ECERDC has identified five
economic clusters to spearhead
economic growth:
l Tourism
l Oil and gas and petrochemicals
l Manufacturing
l Agribusiness
l Human capital and
entrepreneurship development

invest malaysia 3

Rise of the east

Kuantan Port is now being expanded into a deepwater port upon completion, it is expected to propel ECERs
positioning as the investment gateway to the Asean and Asia-Pacific markets, with a total population of four billion
and a combined gross domestic product of US$17 trillion.

Increasing focused
efforts
Enhancing the regions
competitive advantage is the ECER
Special Economic Zone (ECER SEZ),
a concentration of high-impact
projects within the 25km by 140km
strip extending to Pekan, Pahang
from Kertih, Terengganu.
This gem within the nucleus of
the ECER is expected to generate
80% of the regions economic
output and aims to achieve a total
investment figure of RM90bil by
2020.
Its attractive location in the
centre of South-East Asia makes it a
prime investment gateway to
Asean and Asia Pacific markets.
Comprising new townships,
international tourism sites, three
ports, two airports and a
knowledge innovation zone, ECER
SEZ is set to accelerate growth with
the support of good infrastructure
development as well as knowledgebased and capacity-building
programmes.
The expansion of Kuantan Port,
which is located in ECER SEZ, will
further enhance investment
potential in ECER, offering the
quickest and most direct route
between Malaysia and ports in
China.
The Federal Government is
channeling RM1bil into building a
new 4.7km breakwater and
upgrading external infrastructure
at the port.
On top of that, the new deep

Chief executive officer of ECERDC

Datuk Seri Jebasingam Issace John.

On June 4, the worlds first integrated bio-methionine and thiochemicals

facility owned by South Koreas CJ CheilJedang and Frances Arkema in
Kertih Biopolymer Park was officially launched by the Sultan of Terengganu,
HRH Sultan Mizan Zainal Abidin Ibni Almarhum Sultan Mahmud Al-Muktafi
Billah Shah.

water terminal (NDWT) will be

developed in two phases for
a total investment of RM3bil
this involves construction and
reclamation works as well as new
equipment costs.
Upon completion of Kuantan
Ports expansion in 2016, the port
will be able to receive vessels of up
to 200,000 dead weight tonnes,
while doubling its operational
capacity to 52 million freight
weight tonnes annually.
Kuantan Port is recognised as
a sister port to Chinas Qinzhou
Port, which enhances logistics
and harbour-related industries
between the countries. As a
deepwater facility, this port will
take on the role of a regional hub
for cargo terminals and logistics.
In addition, ECERDC is upgrading
road connectivity in the region
while also looking at the possibility
of implementing the East Coast Rail
Link (ECRL) project in the future.

Water resources are also being

well managed with treatment
plants and storage tanks
addressing any large resourcerelated issues while meeting
industry requirements.
For example, the Panching
Water Treatment Plant has
enhanced the reliability, capacity
and the quality of potable water
supply to Kuantan and the
surrounding areas.
With a capacity to provide 160
million litres of treated water daily,
the Panching Water Treatment
Plant will contribute significantly
to the socio-economic growth and
improve the quality of life of the
local population, especially in
Kuantan Port City.
Meanwhile, the Ganchong Water
Treatment Plant, also in Pahang,
will provide 160 million litres of
treated water per day to the district
of Pekan, including the Pekan
Automotive Park.

Creating promising
climate
ECERDC has made strides in
addressing and building human
capital over the years, which is
crucial in creating a suitable
business ecosystem for existing
and emerging industries alike.
Human capital and
entrepreneurship development
programmes such as empower
ECER, entrepreneur ECER,
Agropolitan, ECER Talent
Enhancement Programme,
TERAJU@ECER and Suri@Home
have greatly benefited the local
communities.
These programmes have
contributed to the creation of more
than 9,000 entrepreneurs in the
region, 61% of whom are women.
Under the ECER Talent
Enhancement Programme, ECERDC
provides on-the-job training to
engineering graduates in
collaboration with its investors.
Last year, 164 graduates
completed the programme and
went on to clinch positions in top
companies. Given this track record
for success, ECERDC is expecting
more than 600 participants for this
years programme.

Why invest in ECER?

Strong government
support
Advantageous
geographical orientation
Abundance of land and
natural resources
Good land, air and sea
connectivity
Competitive wage rates
Large international
business communities
Skilled and multilingual
workforce
Market-oriented economy
One-stop centre for
investor management
Human capital training
tailored to the need and
requirements of investors
via the ECER Talent
Enhancement Programme
(ETEP)
Attractive and competitive
incentives:
> 100% income tax
exemption for 10 years
> 100% investment tax
allowance on qualifying
capital expenditure
incurred for five years
> Customised incentives
based on specific
industrial needs
> Import duty and sales tax
exemption for raw
materials, parts and
components, plants,
machineries and
equipment
> Stamp duty exemption on
transfer or lease of land
or building used for
development

Looking forward, ECERDC

expects to continue working closely
with federal and government
agencies to attract more
investments into the region,
particularly into ECER SEZ.
The development authority will
intensify promotions in Singapore,
Japan, South Korea, China, the
United States and countries in the
European Union.
We aim to attract more
investments into our key industrial
parks such as Malaysia-China
Kuantan Industrial Park (MCKIP),
Kertih Biopolymer Park, Kuantan
Integrated Biopark, Pekan
Automotive Park, Gambang Halal
Park, Pasir Mas Halal Park and
Pahang Technology Park, says
Issace.
For this purpose, we have been
working very closely with the
Ministry of International Trade
and Industry as well as the
Malaysian Investment
Development Authority and the
respective ECER state governments
to attract more investments into
ECER, he says.
The ECERDC will build on the
existing relationship with China in
leveraging on the Five-Year
Programme for Economic and
Trade Cooperations agreement
between Malaysia and China to
further attract investments from
the global economic giant.
With all these in place to spur
ECERs growth, this economic
region is on the rise and its
economy can only get bigger and
better from this point on.

n For more information,

visit www.ecerdc.com.my

THE STAR, TUESDAY 30 JUNE 2015

4 invest malaysia

Talent gain to
attract investors
SINCE its inception, many
Malaysians are aware of the
economic ambitions of Iskandar
Malaysia. It is becoming one of the
most exciting places to work in
Malaysia, especially in nine
economic sectors plus the oil and
gas industry.
The Iskandar Regional
Development Authority (IRDA) is
the governments statutory body
tasked to regulate and drive
stakeholders in public and private
sectors towards realising the vision
of developing Iskandar Malaysia
into a strong and sustainable
metropolis of international
standing.
It plans and facilitates the
development of Iskandar
Malaysias economic sectors.
These economic sectors are:
l Electrical and electronics
l Petrochemicals and
oleochemicals
l Food and agro processing
l Logistics and related services
l Tourism
l Health services
l Educational services
l Financial services
l ICT and creative industries
These economic sectors require
a skilled workforce to support the
industries at all levels.
To meet this need, IRDA is
building the talent pool and
cultivating the necessary skill sets
and capabilities through close
partnerships with government
agencies, private businesses and
educational institutions.
Starting with the creation of the
Human Capital Blueprint in 2008,
we have been following a focused
plan to develop talent, says Ismail
Ibrahim, IRDAs chief executive
officer.
By studying the demand and
supply of human capital for each
of the key economic sectors, we
have a good idea of the gaps that
need to be closed to support the
growth of industry.
Based on IRDAs strategic
assessment of the regions human
talent, Johor boasts a relatively
young population, with about 50%
of the states estimated three
million people between 15 and 44
years old.
According to IRDA, this young
population provides Iskandar
Malaysia a strong and vibrant
human capital base.
The government agencies that
facilitate the funding process for
human capital development in
Iskandar Malaysia include the
Johor Economic Planning Unit, the
Economic Planning Unit (EPU), the
Finance Ministry and the
Performance Management and
Delivery Unit (Pemandu).
The talent development
programmes supported by
government ministries and
agencies include the National
Talent Enhancement Programme
(NTEP) for the electrical and
electronics sector funded by
Pemandu, the Graduate
Enhancement and Training

Tourism an
engine of growth
Iskandar Regional Development Authority (IRDA) is responsible for regulating
and driving stakeholders towards realising the vision of developing Iskandar
Malaysia into a strong and sustainable metropolis.

Programme for the oil and gas

sector funded by the Skills
Development Fund under the
Human Resources Ministry, and
the Iskandar Malaysia Creative
Industry Talent Development
Programme funded by the Finance
Ministry.
IRDAs dedication to address
human resource issues such as the
implementation of the minimum
wage and Employment Act is
unyielding.
The Iskandar Malaysia Human
Capital Network (IMHCN) was set
up in collaboration between
IRDA and the Human Resource
Ministrys Labour Department and
Department of Skills Development.
The IMHCNs mission is to foster
and sustain effective partnerships
between the regions human
resource practitioners.
Its meetings, conducted twice a
year, provide human resource
practitioners with a forum to
discuss current industry issues,
share good practices and network
with one another.
While the state government
plays an important role in closing
the talent gap, IRDA also
cooperates with the private sector
to better understand the challenges
of human capital development in
Iskandar Malaysia.
IMHCN provides IRDA with the
opportunity to communicate with
the private sector and share the
latest information on Iskandar
Malaysias progress, particularly in
the human capital development
front.
Building up the human capital in
Iskandar Malaysia needs to begin
from education institutions, which
is the reason IRDA is collaborating
with the Education Ministry to
initiate a tracking system for
school-leavers.
These graduates represent an
important part of the potential
talent supply for Iskandar
Malaysia, says Ismail.
To help them achieve their full
potential, we share our database
with the Human Resources
Ministry to develop and execute
talent intervention strategies.
Depending on the situation, we try
to match school-leavers with

employment opportunities or
training providers for skills
development.
The Place and Train concept
is used in the NTEP to find
placements for new graduates to
work with major participating
employers in Iskandar Malaysia by
subsidising part of their salaries for
their first year of employment.
Following the term of
employment, the companies may
take these employees as long-term
hires.
To support regional
development, IRDA also examines
the bigger picture through studies
and reports.
For instance, IRDA has embarked
on a salary and remuneration
benchmarking study for Iskandar
Malaysia.
Upon completion, the report will
provide employers in Iskandar
Malaysia a better idea of the
current salary situation, which will
enable them to offer the right
remuneration package to attract
more talent.
The talent strategy employed by
IRDA is in line with the current
investment trend and the vision to
make Malaysia a high income
nation by 2020.
IRDAs relentless work on human
capital development will pay off
handsomely as it is expected to
boost local skills, support the key
economic sectors, attract more
investors and maintain the
economic momentum.
IRDAs strategic role is clear: to
plan, facilitate and promote human
capital development programmes
organised by industries and
training providers, says Ismail.
IRDA is well suited to gauge the
demand and supply of skilled
workers and coordinate human
capital development programmes.
With Iskandar Malaysias robust
pool of potential talent, the needs
of the industry will be met.
By 2025, Iskandar Malaysia is
expected to achieve a gross
domestic product of US$93.9bil
(RM352.7bil) and support 1.43
million jobs for a population that is
expected to reach three million.
> SEE PAGE 9

TOURISM has always been an

important economic sector for
Malaysia. Besides the typical
sun and sea experience that
the country is known for,
todays travellers also demand
more exciting and authentic
attractions with exceptional
standard of amenities.
Johors traditional tourism
attractions revolve around
coastal tourism, eco-tourism
and culture and heritage. The
state is home to the worlds
second largest uninhabitated
mangrove island in Pulau Kukup
while Tanjung Piai, at the
southernmost tip of mainland
Asia, is another tourist
landmark.
Iskandar Malaysia will
leverage on these assets and
transform the sector with new
tourism infrastructure to create
a niche family fun destination.
Iskandar Malaysia has the
right balance of new and old,
indoor and outdoor activities
thanks to Iskandar Regional
Development Authoritys (IRDA)
strategic tourism plan for the
mega-region.
For now, the focus is on
attracting tourists from Asean
countries, China and India.
We want Iskandar Malaysia
to be Asias gateway for tourist
arrivals into Malaysia and
Asean, says IRDA chief
executive Ismail Ibrahim.
There has been more than
RM1bil invested into the tourism
sector in Iskandar Malaysia
since 2006 and we believe that
this has played a substantial role
in boosting the tourism industry
in Malaysia.
Iskandar Malaysia boasts
impressively diverse tourism
offerings, from Ramsardesignated wetlands (Ramsar
is an international treaty for
conservation and sustainable
utilisation of wetlands) in the
Western Gate Development to
the colourful, modern theme
parks at the new Nusajaya city.
Another tourist attraction is
the Puteri Harbour Family
Theme Park that houses the first
Hello Kitty town outside Japan.
It also has the Little Big Club and
a Lat-themed restaurant.
The most obvious sign
of Iskandar Malaysias
developmental intent is

Legoland Malaysia, the countrys

first international theme park
and the only Legoland in Asia.
More than one million visitors
have visited Legoland since its
inception in September 2012.
Iskandar Malaysia is wellpositioned to be a regional
tourism player and we benefit
from our proximity to Singapore
and Changi Airport, which is one
of the worlds busiest airports,
says Ismail.
The Johor Premium Outlets
retail centre is located just a
10-minute drive away from the
Senai International Airport.
The introduction of the retail
centre will become one of
Iskandar Malaysias tourism
draws as it offers shoppers
access to many sought-after
brands.
The two road links between
Singapore and Malaysia are
assets that help drive traffic into
the region. IRDA also heavily
invests in new highways to link
existing attractions with new
ones and allow travellers to
explore the mega-region easily.
Visitors can expect
enhancements of existing retail
complexes and hotels to
transform Johor Baru into a
mini Venice.
The riverfront is clean, green
and attractive, and will offer
activities expected of any worldclass city.
With IRDAs strategy of
creating new attractions while
improving existing ones, IRDA
expects to attract major
hospitality chains and encourage
the growth of the hotel and
tourism industry.
The hotel chains currently
operating in Iskandar Malaysia
includes Renaissance, Traders,
Berjaya and Thistle, offering
more than 17,000 rooms
collectively.
The tourism sector in
Iskandar Malaysia, thanks to the
mix of private-public
investment, has created a
thriving scene and led to the
creation of new jobs within the
industry.
According to Ismail, tourism
will play a key role in
strengthening the local and
national economy. By 2020, IRDA
anticipates seven million visitors
per year.

THE STAR, TUESDAY 30 JUNE 2015

THE STAR, TUESDAY 30 JUNE 2015

6 invest malaysia

Corridors of advancement
TODAY, the Malaysian economy
has developed into an exportdriven one based on advanced
technology and knowledge-based
and capital-intensive industries.
Malaysias five economic
corridors are crucial mechanisms
for each regions growth and for
the country to achieve greater
heights in economic and social
development.
Iskandar Malaysia in the
southern region is the nations
largest single-development project.
Up north, the Northern Corridor
Economic Region (NCER)
encompasses Perlis, Kedah, Penang
and four northern districts of
Perak.
Situated on the east coast of
Malaysia, the East Coast Economic
Region (ECER) consists of Kelantan,
Terengganu, Pahang and Johors
Mersing district.
In East Malaysia are the Sarawak
Corridor of Renewable Energy
(SCORE) and Sabah Development
Corridor (SDC).

Iskandar Malaysia
Covering 2,217sq km, Iskandar
Malaysia is approximately three
times the size of neighbouring
Singapore and twice the size of
Hong Kong.
Six service-based sectors have
been identified to sustain the
regions economic growth

administrative capital. The key

economic activities of this flagship
are mixed-property development
and logistics.
To provide a wider range of
investment opportunities, this
flagship is also a hub for creative
arts and entertainment, medical
facilities, educational institutions,
tourism, biotechnology and hi-tech
manufacturing.

l Western Gate Development

Acknowledged as one of the
worlds dominant container ports,
Tanjung Pelepas is a free-zone
industrial area with oil storage
terminals. The port is a base for
logistics, regional distribution and
international procurement.
Most of the land banks situated
in this flagship zone consist of
agricultural lands and mangrove
forests.

Nusajaya, the largest

property development
project in South-East Asia.

creative, education, financial

advisory and consulting,
healthcare, logistics and tourism.
Iskandar Malaysia has been
further divided into five distinct
flagship zones to focus on these
sectors.

l Johor Baru City

The city of Johor Baru is the
central business district and the
state capital of Johor. It acts as the
souths gateway and has the

potential to attract a large number

of foreign tourists to Malaysia.
Therefore, its focus is on financial,
cultural and urban tourism.
Johor Baru is a shopping hub
comparable to Singapore due to
the analogously lower cost of
purchasing various services and
goods. It is also the main gateway
for entering and exiting Singapore
by road via the Causeway.
This flagship gives focus to
financial services, commerce and

> FROM PAGE 2

Putting our best foot forward

This is in line with the 11th
Malaysia Plan, which seeks to
increase productivity, especially in
higher value-added and knowledge
intensive activities.
Speaking on behalf of the state
and its development authority
Invest Selangor, Mentri Besar of
Selangor Azmin Ali concurs by
affirming the focus shift from
labour-intensive to knowledgeintensive industries.
Invest Selangor has introduced
the life sciences cluster to achieve
respective goals, but we also
accelerate our efforts to attract
foreign direct investments in niche
sectors relevant to all five core
clusters, he says.
These five clusters Azmin speaks
of are central to Selangors
development plan, and they
include industries that have shown
great growth on the national stage
in recent years, including electrical
and electronics and food and
beverages.
The country is gaining
international attention for its halal
food industry, a high-growth
subsector of its food and beverages
industry. Selangor, as the halal
centre of the country, is home to
34% of the countrys halal-certified
products and 28% halal-certified
companies.
Selangor representatives who
went on investment mission trips
to Japan and South Korea found
interest in the halal food industry
within the East itself, which
promises to transform Malaysia
into a regional and, eventually,

The booming halal

industry is set to
transform the food
and beverage sector
in the country.

global halal hub.

Malaysia is the first country in
the world to introduce halal parks
and dedicated halal industrial
estates, which has been a factor in
attracting RM8.8bil worth of
investments from the United States,
Italy, Taiwan and Singapore since
2010.
The changing dynamics of
investment focus can be witnessed
nationwide, even up north in
Perak.
It has always been our focus to

target industries that use new and

efficient technologies as well as
employ more skilled and semiskilled workforce.
This is important as it is
becoming much more challenging
for manufacturers to source cheap
labour not only in Perak but also in
the country as a whole, says
InvestPeraks chief executive
officer Datuk Ir Muhammad Hafni
Ibrahim.
Therefore, together with
agencies such as MIDA, we

retail, arts and culture, hospitality,

urban tourism, plastic
manufacturing, electrical and
electronics, and food processing.

l Nusajaya
At 97.12sq km, Nusajaya is now
the largest property development
project in South-East Asia and a
key component of Iskandar
Malaysia. By 2025, its projected
population will reach 500,000.
Nusajaya operates as the state

l Eastern Gate Development

Pasir Gudang is the renowned
hub for manufacturing purposes
in the south.
Its key economic activities are
closely related to manufacturing
for heavy industries and logistics,
which include the electrical and
electronics, chemical, oleochemical,
food and engineering-based
industries. It also contains ports,
logistics and warehousing.
> SEE PAGE 10

Incentives for investors

IN April, the International Trade
and Industry Ministry, along with
the Malaysian Investment
Development Authority, released
detailed guidelines for four new
tax incentives that aim to promote
balanced, inclusive development
and accelerate the shift of
manufacturing and services
sectors from labour-intensive to
high value-added, knowledgeintensive and innovation-based
industries.
They are:
l Incentive for less developed
areas Malaysias economic
corridors aim to encourage
investment in manufacturing or
services activities in less
developed areas as this provides
opportunities for employment and
rural development.
l Incentive for industrial
area management This
incentive is offered to upgrade
industrial estate management in
the country.
Park managers will undertake
the marketing and maintenance
of industrial parks, which will
reduce dependence on
encourage both local and foreign
investors to increase automation
in their production.
Incidentally, one of the new
MIDA incentives is capital
allowance to increase automation
in labour-intensive industries.
With all these plans in place and
steady investment growth in
targeted sectors, Malaysia has the
potential to achieve greater
economic success over the next
few years.

government funding.
l Capital allowance to
increase automation in labourintensive industries To further
encourage the move towards
automation in manufacturing
industries, a one-off incentive is
being offered to companies that
adopt it.
High labour-intensive industries
will be entitled to a 200% capital
allowance for undertaking
automation on the first RM4mil
expenditure incurred from this
year till 2017.
l Incentive for the
establishing of principal hub
The Principal Hub Incentive
Scheme is available to all
international companies
registered in Malaysia with
significant headquarters-related
business services or activities
here.
The incentive is in the form of
tiered rates of tax reductions
based on the level of value
created, and will also spur local
employment as Malaysian-owned
businesses are able to provide
services to these companies.
With 2020 a mere five years
away, the collective efforts of state
and federal governments on the
countrys development are putting
Malaysia on track to realising
Vision 2020.
The shift in the direction of the
countrys economic focus signals
an exciting new phase for local
industries, which also matches the
education and expectations of the
younger generation as well as the
resources currently available.

THE STAR, TUESDAY 30 JUNE 2015

THE STAR, TUESDAY 30 JUNE 2015

8 invest malaysia

Strengthening regional growth

SEVERAL industrial parks have
been set up by East Coast Economic
Region Development Council
(ECERDC) in the East Coast
Economic Region (ECER) in hopes
of further driving investments into
the region.

established names such as

Mercedes-Benz, Volkswagen,
Suzuki and DRB-Hicom.
Last year, PAP saw the
reinvestment by Mercedez-Benz
through the construction of the
firms completely knocked down
warehouse.
PAP recorded investments worth
RM1.2bil as of end-March this
year.

The Malaysia-China Kuantan

Industrial Park (MCKIP) not
only welcomes investors
from Malaysia and China, but
also from Asean countries
and beyond.

Malaysia-China Kuantan
Industrial Park (MCKIP)
This sister park of ChinaMalaysia Qinzhou Industrial Park
(CMQIP) is the first joint industrial
park development between
Malaysia and China, an industrial
giant in the east.
It was accorded the National
Industrial Park status and is
identified along with CMQIP as an
Iconic Project for Bilateral
Investment Cooperation between
both governments.
A primary investor is Alliance
Steel (M) Sdn Bhd, a subsidiary of
China conglomerate Guangxi Beibu
Iron & Steel Investment Co Ltd
(China).
The firm is investing RM4.2bil
into building a modern integrated
steel plant in MCKIP. The plant is
scheduled for completion in 2017
and is projected to produce 3.5
million tonnes of high carbon steel
and H-shaped steel annually.
Although primary infrastructure
construction works are still
ongoing, MCKIP has already
attracted RM9.7bil in investments.
Investments in MCKIP are expected
to create more than 12,000 new job
opportunities by 2020, a majority

Gambang Halal Park

(GHP) and Pasir Mas
Halal Park (PMHP)

of which will be in the following

target industries:
l Energy-saving and
environmentally friendly
technologies
l Alternative and renewable
energies
l High-end equipment
manufacturing
l Advanced materials
manufacturing

Special Economic Zone (ECER SEZ),

which offers vast investment
opportunities and synergies to
biotech industry players.
KBP recently witnessed the
official opening of the worlds first
integrated bio-methionine and
thiochemicals facility worth
RM2.1bil that is owned by South
Koreas CheilJedang (CJ) and
Frances Arkema.
The integrated facility will be
the first in the world to use
fermentation process in producing
bio-methionine, an amino acid
commonly used in the
manufacturing of animal feed.

Kertih Biopolymer Park

(KBP)
Developed by ECERDC, KBP is
one of the key projects in the ECER

Areas of development

Special Economic
Zone (ECER SEZ)

33.42bil

31,714

Cross-border
development

4.86bil

5,018

KTCC-Kenyir-Dungun
growth triangle

5.06bil

8,647

Mersing-Rompin KDA*

2.72bil

2,387

Gua MusangKuala Lipis KDA

6.10bil

3,252

Bentong-Raub KDA

5.77bil

7,626

DARA-Jengka KDA

0.63bil

116

Others

14.48bil

14,948

Terengganu
Kuala
Terengganu
Kuala
Berang

Dungun

1
Kertih

Pahang
Raub
Bentong

Bandar Tun
Abdul Razak

Gambang

Kuantan
Pekan

Bandar
Muadzam
Shah

6
7

Mersing

Total jobs created

*KDA key
development area

Table A.

Kuala Lipis

SINCE 2007 up till March

this year, the East Coast
Development Region (ECER)
has attracted a total of
RM73.04bil private
investments.
These investments are
spread across the
manufacturing, tourism,
agrobusiness, bio-economy
and oil, gas and petroleum
sectors.
ECERs development can
be understood by studying
the key development areas
highlighted in the map.
Table A further explains the
investments.

Total private
investments (RM)

Besut

Gua Musang

This industrial park boasts

Name

Bachok
Tok Bali

Kelantan

Pekan Automotive Park

(PAP)

Nodes

Kota Baru

Jeli

With the operation of the

CJ-Arkema manufacturing facility,
Malaysia is now the worlds first
producer of green bio-methionine.
The plant exported its first batch of
EAA to Indonesia in January.
The CJ-Arkema RM2.1bil facility
is the largest investment in
Malaysias biotechnology sector
to date with a potential total
investment of RM3bil over a
period of 10 years.

Spread of private investments in ECER (as at March 2015)

2
Tumpat
Rantau Panjang
Bukit Bunga

The countrys booming halal

industry is supported by these two
ECER Halal Parks in Gambang,
Pahang and Pasir Mas, Kelantan.
GHP will specialise in the
production of both halal food and
non-food products, which include
pharmaceuticals, cosmetics and
self-grooming products, additives
and ingredients, and gelatine.
It is now ready to commence
operations and discussions with
potential investors are underway.
PMHPs Entrepreneurs Business
Complex houses Kolej Universiti
Islam Sains dan Teknologi (KUIST)
and is expected to welcome five
other tenants by the second half
of this year.
This halal park will focus on
the production of downstream and
high-value halal food products
such as nutraceuticals, herbs,
sauces, and agro- and meat-based
products.

1.98%

0.22%
0.77%
3.08%

2.46%

Pulau
Tioman

7.70%

54.54%
18.47%

Endau
Rompin
Mersing

Focus
industries

4.11%

0.10%

6.57%

Manufacturing RM39,834,396,855
Tourism RM13,489,500,728
Bio-economy RM5,622,000,000
Oil, gas and petrochemicals RM4,801,944,776
Infrastructure RM3,000,000,000
Property RM2,250,000,000
Logistic RM1,800,000,000
Education RM1,445,302,792
Agriculture RM561,019,954
Construction RM162,413,493
Services RM75,814,841

The pie chart details the breakdown of investments in the ECER by industry in the
past eight years. Manufacturing remains the top sector in this development corridor
followed by tourism and bio-economy. The healthy mix of industries attracts various
investments from around the world, creating a diverse pool of possibilities.

THE STAR, TUESDAY 30 JUNE 2015

TRADITIONALLY the centre of

Malaysias tin industry, Perak, the
second largest state in peninsular
Malaysia, played a big role in
Malaysias early economic growth.
Today, while the tin mining
industry does not have as much
impact on Peraks economy, it has
left a legacy of knowledge and
skilled manpower that has created
economic growth within the
metal fabrication, machinery
and equipment, foundry and
engineering sectors that service
the automotive, railway, and oil
and gas industry worldwide.
These industries along with
others such as natural resourcebased industries, transport
equipment, marine industries, food
manufacturing, and electrical and
electronics continue to provide
jobs and business opportunities to
the local people, says Datuk Ir
Muhammad Hafni Ibrahim, chief
executive of InvestPerak, the state
governments investment
promotion agency.
Peraks gross domestic product
(GDP) growth over the past few
years has been steady the state
GDP has expanded between 5.3%
and 7.1% annually since 2010
with the manufacturing and
services sectors providing greatest
growth.
According to Ir Muhammad
Hafni, under the Perak Industrial
Development Action Plan
(Pidap), Perak aims to have its
manufacturing sector contribute
to 25% of its state GDP by 2020,
up from the current 19%.
To achieve this target,
> FROM PAGE 4
WHILE many Malaysians are
aware of the economic ambitions
of Iskandar Malaysia, not everyone
knows about the lofty plans in
store for the creative industry.
The Iskandar Regional
Development Authority (IRDA) is
on a mission to promote this key
economic sector, which includes
small and medium creative
businesses.
We recognise that Malaysia
needs to diversify its economy by
including higher value-added
activities, especially in the creative
sector, which has been identified
as one of the main economic pillars
of Iskandar Malaysia, says Ismail
Ibrahim, chief executive officer of
IRDA.
The opening of Pinewood
Iskandar Malaysia Studios (PIMS) is
a key step in turning Iskandar
Malaysia into Asias new creative
destination.
The state-of-the-art facility built
on 20ha of land is one of the largest
and most advanced film facilities
projects in the Asia-Pacific region,
aptly established at a time when
Asia is experiencing its fastest
growth in film production.
IRDA partners with the
Multimedia Development
Corporation to cultivate creative
multimedia talents through
activities such as ICONApps, which
is a bootcamp for mobile app
developers.
There are also future plans to
build capacity in other creative
areas, including television, fashion
and music. To get the ball rolling,
however, IRDA is betting on the
power of the film industry.
Pinewood partners with IRDA to
train a new generation of world-

invest malaysia 9

Great northern
opportunities
There are great opportunities
for investment into modern
industrial parks in Perak.

InvestPerak is encouraging the

development of new industries
such as iron and steel while
supporting the continued growth
of existing industries.
The presence of Vale SAs
regional iron ore distribution hub
in Teluk Rubiah, Manjung, presents
Perak with a great opportunity to
create an iron and steel hub in the
state.
This aim is spurred by the
presence of quality iron ore and
limestone as well as the fact that

Datuk Ir
Muhammad
Hafni Ibrahim.

Perak has sufficient coastal land

and geographical advantages for
such projects.
The Perak state government is
working closely with the Federal
Government to ensure that this
iron and steel hub becomes a
reality in the near future.
We need to leverage on Vales
iron ore hub so that our economy
can benefit from its presence.

The iron and steel downstream

industries have great potential
to become the new economic
growth sector for Perak, says
Ir Muhammad Hafni.
With this hub, Malaysia can rely
less on imports of quality steel slab,
billets and blooms to produce
quality and high value-added iron
and steel products.
This will greatly benefit the
countrys economy and support
further national development,
says Ir Muhammad Hafni.
There are also investment
opportunities in infrastructure
projects, and InvestPerak is calling
for developers to explore the
possibilities of establishing new
and modern industrial parks to
accommodate quality investments,
including high value-adding
activities, technology, capital, and
skill- and knowledge-intensive
industries with strong linkages to
domestic industries.
Perak is currently experiencing
depletion in the availability of fully
developed and sellable industrial
land. As a result, we have missed
out on a few potential major
investments.

Stage for success

Kota Iskandar is an iconic filming location.

class creative talent.

Pinewood Studios has hosted
several major film productions
over its long history, including
blockbuster movies such as the
Harry Potter and James Bond
series.
Its new studio PIMS in Nusajaya
has all the facilities necessary to
drive the country as the film
destination of choice in South-East
Asia.
We chose to focus on film
because it encompasses the most
creative sub-sectors within it,
explains Ismail.
Large film projects can provide
employment for not just hundreds
of local crew, but also thousands of
local vendors in music, fashion
design, performing arts,
advertising, publishing and
animation. A single successful
blockbuster film can have huge
knock-on effects for the local
economy just look at how the
Lord of the Rings films boosted
tourism in New Zealand.

Among the facilities PIMS offers

are:
l Five film sound stages ranging
in size from 15,000sq ft to 30,000sq
ft
l Two 12,000sq ft high-definition
equipped television studios with a
combined audience capacity of
1,360 people
l 35,000sq ft of production office
space spread over six production
office areas
l 36,800sq ft of construction
workshop space, including a
woodmill, plaster shop, fibreglass
shop and paint shop
l Post-production facilities,
including editing rooms with
television sound and vision
post-production facilities
l Three serviced backlots with
30 acres (12.1ha) of natural forest
Pinewood Iskandar Malaysia
Studios will draw investments,
skills and technologies that will
boost not just the film industry
but also other creative industries,

says Ismail.
Pinewood Studios chose
Iskandar Malaysia because it has
all the right elements to become
the film hub of South-East Asia,
including the countrys cultural
ethnic diversity. With a skilled
English-speaking workforce and
creative talents, the country can
provide Pinewood Studios with
everything it needs to establish its
presence in Asia.
Iskandar Malaysia also offers a
strategic location with its proximity
to both Singapore and Kuala
Lumpur, together with major
airports serving the Asia-Pacific
region.
While Malaysia has hosted
previous Hollywood films such as
Entrapment and The King and I, the
time is right for a string of
international blockbusters to put
the country back on Hollywoods
map and keep it there.
More importantly, the success of
Iskandar Malaysias creative hub
could kick-start bigger and brighter

Incentives for investors

into industrial parks
Fast-track status for
qualified industrial park
projects
Nominal premium cost for
application of State
Government land for
qualified industrial park
projects
Exemption from late
payment penalty for unpaid
quit rent and assessment
tax for a certain period for
qualified industrial park
projects
Discounts on fee for the
conversion of agricultural
land to industrial land for
the development of qualified
industrial park projects
The availability of new and
modern industrial parks will make
the state an attractive investment
destination for years to come as
investors can leverage on Peraks
strategic location, competitive
operational costs and diverse
industrial base, explains Ir
Muhammad Hafni.
The Perak state government has
also initiated the Perak Southern
Corridor Development plan to
develop the southern region in the
state. This plan will cover the Hilir
Perak and Batang Padang districts.
The Perak State Development
Corporation is taking the lead in
implementing the plan.

> SEE PAGE 11

projects for local directors and
stars.
IRDA intends to leverage its
close relationship with government
authorities to expedite approval
permits for international film
projects. Separate permits
are required for foreign film
productions at the federal and state
levels, but Ismail is confident that
IRDA will be able to untangle the
red tape at all levels for companies
looking to film in Iskandar
Malaysia.
Foreign film productions will
also benefit from the 30% Film
in Malaysia Incentive from the
National Film Development
Corporation Malaysia.
This production rebate incentive
is made available to foreign
companies that use Malaysia for
location filming or post production,
and involves a 30% cash rebate on
Qualifying Malaysian Production
Expenditure.
If IRDAs vision of Asias new
creative destination becomes a
reality, every level of the creative
value chain will benefit from job
opportunities created by these film
projects pre-production,
production, post-production,
distribution/marketing as well as
SME support services (including
hospitality, logistics, food and
beverages, equipment rental and
building materials).
The technology transfer from
these projects, in the form of
enhanced skills and experience for
local creative professionals, will
strengthen the local creative
ecosystem. PIMS is expected to
attract RM3.8bil in foreign film
projects by 2020.

n For more information, visit

www.iskandarmalaysia.com.my

THE STAR, TUESDAY 30 JUNE 2015

10 invest malaysia

> FROM PAGE 6

l Senai-Skudai
This flagship contains electrical
and electronics and engineering
industries as well as logistics, such
as airport services.
It is also the centre for
agricultural and food processing,
information and communication
technology and retail tourism.
The establishing of Universiti
Teknologi Malaysia (UTM) is
associated with the education
aspect that is enforced within this
flagship.
The Senai International Airport
has made this area a transit
destination with a potential for
creating large-scale commercial
and airport-related businesses.

A bright
future ahead

and palm oil-based feedstock

products.
Other projects include the Kertih
Biopolymer Park and Kuantan
Integrated Biopark.

l Tourism
The economic growth of ECER
depends greatly on tourism. This
economic sector covers three
segments heritage and culture,
urban and coastal tourism, and
environment and ecotourism.

l Agriculture
This sector is driven by private
sector investments, which are
aimed at nurturing sustainable
growth along the complete value
chain for crops, livestock and
fisheries.
NCIA aims to increase
productivity and competitiveness
in the region, deepen links with
other industry sectors, venture into
new areas as well as conserve and
utilise natural resources in a
sustainable way.

Northern Corridor
Economic Region
The Northern Corridor Economic
Region (NCER) is overseen by the
Northern Corridor Implementation
Authority (NCIA).
The NCER focuses on the
acceleration of economic growth
and the elevation of income level
in hope of becoming a world-class
economic region by 2025.
It has five areas of economic
focus:
l Agriculture
The agriculture sector will be
resuscitated to increase demands
in both domestic and foreign
exports.
The NCIA intends to heighten
this sectors output to bring up the
living standards of local farming
communities.
An integrated support system
has been enforced to modernise
current farming techniques
and promote it to the younger
generation.

l Manufacturing
Technology and engineeringbased activities in NCER have
transformed over the past 40 years,
enabling the region to have a large
and educated workforce, a vast
and sophisticated logistics network
to support the key economic
sectors, a thriving business culture
and the presence of large
multinational corporations.
As it moves towards Phase 2 of
its development plan, the NCER
aims to retain its lead in this sector
through its various Centres of
Excellence.

l Tourism
Recognised as one of the worlds
leading tourism hubs, Malaysias
rich heritage of natural attractions,
culture and cuisine as well as
healthcare and wellness facilities
are big draws.
The northern region contains
abundant tourist attractions,
not least its biodiversity and
eco-tourism opportunities.
The NCIA encourages investors
to explore the development of
high-quality, innovative and
sustainable tourism facilities in
the region.

Timber and timber products

continue to be big contributors
to Malaysias economy.

development in the manufacturing,

tourism and agriculture industries.
The main mediums of
transportation and logistics
infrastructure that support NCERs
connectivity are the international
airport, international ports and the
extensive road network.
Due to its increasing momentum
of growth, the NCIA foresees the
Second Penang Bridge, the IpohPadang Besar Electrified Double
Tracking project and the expansion
of the Bayan Lepas Airport
Passenger Terminal as potential
projects to enhance the regions
infrastructure.

l Education and human

capital
The NCIAs focus in this area is
the development of soft
infrastructure to strengthen the
nations talent base.
The NCIAs aims in this respect
are:
> To support the key industries by
enhancing and broadening the skill
base of the regions human capital.
> To enhance the skill set and
employability of human capital to
meet the needs of the private
sector in agriculture,
manufacturing, tourism and
logistics.
> To increase the number of
research- and development-based
activities among hi-tech
companies.
> To enable the rural communities

l Human capital development

Malaysias natural
attractions draw large
numbers of tourists,
making it one of the worlds
leading tourism hubs.

Sarawak Corridor of
Renewable Energy

to participate in the agenda of

development.

East Coast Economic

Region
The East Coast Economic Region
(ECER) covers more than 66,000sq
km equivalent to more than half
of peninsular Malaysia and is
blessed with a plethora of natural
resources.
Developed in 2008, the ECER
Master Plan acts as the guideline
for the development of this region
until 2020.
It aims to transform the region
into a major international and
local tourism destination, an

exporter of resource-based and

manufactured products, a vibrant
trading centre and a logistics hub.
The Master Plan also intends to
abolish poverty and improve
income distribution in a
sustainable manner for ECER.
The ECER has identified five
economic clusters for development
focus:
l Manufacturing
The rich resources in the
ECER allow the region to be a
competitive manufacturing
destination that provides great
opportunities for investors.
A number of industrial parks
have been developed for the
establishing of major industrial
initiatives:
> Pekan Automotive Park
> Malaysia-China Kuantan
Industrial Park
> Gambang Halal Park
> Pasir Mas Halal Park
> Kemaman Heavy Industry Park

l Oil, gas and petrochemicals

l Logistics
NCER is located strategically
within the Indonesia-MalaysiaThailand Growth Triangle,
providing it with a great
opportunity to become a major
processing centre and entrepot.
The vibrancy of NCER has been
boosted through the wellestablished logistic ecosystem,
which acts as a key for

As an effort to attain sustainable

socio-economic development, ECER
has endorsed a multi-pronged
approach in addressing the specific
human capital needs of the region.
This effort is undertaken to
prevent any of its citizens from
being left out of the socio-economic
development.

Malaysia is expanding its investments in oil palm plantations.

The oil, gas and petrochemical

cluster is centred in the Kertih
Integrated Petrochemical Complex
(KIPC) in Terengganu and Gebeng
Integrated Petrochemical Complex
(GIPC).
Both the KIPC and GIPC are part
of the Petronas Petrochemical
complex.
KIPC focuses on ethylene-based
petrochemicals and biopolymer
products while GIPC concentrates
on polypropylene-based
petrochemicals, oil palm biomass

The Sarawak Corridor of

Renewable Energy (SCORE) is the
second largest corridor in Malaysia
in terms of land area, covering
more than 70,000sq km.
SCORE boasts an abundance of
natural resources, including
renewable resources such as
hydropower.
Due to the rise of energyintensive industries in SCORE, the
Regional Corridor Development
Authority (Recoda), the agency that
manages the regions development,
has established training centres
and technical colleges to create
skilled workers that can boost the
development of growth nodes.
Ten priority sectors have been
identified for development:
l Aluminium
For the past few years, there has
been a steady increase in the
international demand for
aluminium.
With its massive availability of
inexpensive energy and excellent
position, SCORE has taken the
opportunity to further develop its
aluminium industry.

l Glass industries
SCORE aims to collaborate with
strategic partners to develop flat
glass (also known as float glass)
operations in Similajau.
This collaboration has the ability
to jump-start a downstream
industry for future demands in
architectural glass and doubleglazed insulating glass units.

l Steel
Due to the low energy costs and
increasing developmental needs of
developing South-East Asian
countries, SCORE has remained an
attractive location for steel
investments. The development of
this industry has also created more
job opportunities for locals.

> SEE NEXT PAGE

THE STAR, TUESDAY 30 JUNE 2015

invest malaysia 11

> FROM PREVIOUS PAGE

states economy, making it a

leading economic region and a
favourable destination for
investment, work and living.
Several focus areas have been
identified:
l Tourism
This sectoral focus targets
visitors who may make this state
their second home.
Sedia intends to make Sabah a
premier eco-adventure destination
and a high-end lifestyle destination
with luxurious holiday villas and
signature resorts.
In addition, it is encouraging
investors to anchor new signature
tourism products and activities
into their businesses.

l Oil-based industries
The Sarawak state government
views SCORE as an ideal location
for producing renewable energy in
the form of biodiesels.
This is due to the huge area of
planted land that can sufficiently
supply alternative oil-based energy.

l Palm oil
While available oil palm
plantation land in peninsular
Malaysia and Sabah are almost
exhausted, Sarawak is still
expanding its plantation
investments.
Significant investment is still
needed to meet food security goals
and the global demand for oils.

l Fishing and agriculture

Tanjung Manis Halal Hub is
situated strategically for the
development of large-scale
aquaculture production in the
region.
The state government has
invested about RM1.5bil in
infrastructure development in
this sector.

l Livestock
Recoda aims to boost the
development of modern
smallholder livestock production
systems to bring benefit to rural
communities and meet customer
requirements for quality.

l Timber-based industries
Timber and timber products are
the fourth biggest contributor to
Sarawaks gross domestic product.

l Agriculture

Banking on
natural resources
High-value processed timber
products are still in high demand
and the SEDC is encouraging more
investments into this industry.

l Marine
Situated off the South China Sea,
Sarawak has become the busiest
international maritime trade route
in the world.
The state aspires to develop a
reputation for building, repairing
and maintaining medium-sized

vessels via a particular focus on

offshore support vessels.

l Tourism
Several areas have been
identified by the Sarawak
Tourism Board for development
purposes.
Due to Sarawaks biodiversity,
more emphasis has been put on
the conservation and preservation
of its natural environment to boost
ecotourism.

Sabah Development
Corridor
The Sabah Development
Corridor (SDC) will be the catalyst
for Sabahs economic growth until
2025.
Overseen by the Sabah Economic
Development and Investment
Authority (Sedia), the corridors
high-income service-based
economic model aims to enhance
the quality of life and boost the

Sedia is focusing on increasing

the overall food self-sufficiency
level of the state, planting highvalue crops for export and
downstream processing, and
providing assistance in poverty
abolishment.
This focus area promotes the
use of science and technology in
science-industry linkages to ensure
that agricultural products are
sustainable and safe.

l Manufacturing
This sectoral focus aims to
enhance the infrastructure and
human capital within the state to
promote high-value jobs and high
value-added downstream activities.
Sedia also encourages foreign
investments into manufacturing
to speed up the growth of the
upcoming manufacturing activities
in Sabah.

Driving Peraks development forward

> FROM PAGE 9
THE Perak Investment
Management Centre, better known
as InvestPerak, serves as the first
point of contact for investors into
Malaysias northern state of Perak.
Headed by its chief executive
Datuk Ir Muhammad Hafni
Ibrahim, InvestPerak reports
directly to the chief minister of
Perak, Datuk Sri Diraja Dr Zambry
Abdul Kadir, who is also the
agencys chairman.
Formed in 2006 as the state
governments principal investment
promotion agency, InvestPerak
offers services to support the
creation of new businesses and the
expansion of existing ones, and
promotes companies that offer
high impact to broaden and
strengthen the economic base of
Perak.
Our role is to guide potential
investors in taking their first steps
in Perak and to assist them in
executing their preliminary
investment work, such as site
selections, feasibility studies and
sometimes facilitating them in
identifying local partners. We also
assist existing investors in the state
in solving issues they face that are
under our purview, says Ir
Muhammad Hafni.

Supporting growth
As the Perak state governments
investment promotion agency,
InvestPerak complements the role
played by the Malaysian
Investment Development Authority

InvestPerak is focusing on developing several natural resource-based projects such as Vale SAs iron ore distribution hub (left) and limestone quarrying in
Kinta.

(MIDA) at the Federal Government

level.
It also works closely with other
state and Federal Government
departments and agencies, local
authorities, utility providers,
business chambers and industrial
associations to ensure continuing
growth of the manufacturing
industry and an ecosystem
conducive to growth for the
industry in Perak.
To play our role, it is crucial
that InvestPerak continuously
engages and works closely with
these various government
departments and agencies. We all
have a common objective to

The manufacturing industry plays an important role in Peraks economic

development.

ensure that investors in Perak are

being taken care of and prosper.
We are all committed to seeing the
smooth implementation of our
investors projects in Perak, says Ir

Muhammad Hafni.
The commitment shown by
InvestPerak and their counterparts
is paying off.
Based on the Malaysia

Investment Performance Report

2014 produced by MIDA for the
period between 2010 and 2014,
Perak is ranked fourth in terms of
number of implemented
manufacturing projects, only
outranked by the traditional
manufacturing powerhouses
Selangor, Johor and Penang.
With InvestPerak at the helm,
Peraks steady growth will soon see
the state achieve its development
potential while it continues to
contribute to the nations overall
advancement.

n For more information, visit

www.investperak.gov.my

THE STAR, TUESDAY 30 JUNE 2015

12 invest malaysia

Golden state at the forefront

SELANGOR generated 23.5% of
Malaysias gross domestic product
(GDP) last year, proving its pivotal
role in the development of the
country.
Surrounding the federal
territories of Kuala Lumpur and
Putrajaya, this state is home to 5.79
million people who live and work
in the thriving industrial heartland
that is the Klang Valley.
Manufacturing has been a major
economic focus for decades as
evidenced by the numerous
factories and plants located
throughout the state, especially in
Shah Alam and Klang.
Foreign and domestic
investments into the states
manufacturing projects totalled
RM7.04bil last year and more than
RM122bil over the past 16 years.
The role of attracting and
managing investments coming into
Selangor is filled by Invest
Selangor, the pioneering
investment promotion agency in
the country.
Invest Selangor is entrusted by
the state government to create a
favourable climate for business
and investment while providing
support to investors as a one-stop
agency.
Over the past 15 to 16 years,
Invest Selangor has facilitated
more than RM120bil of direct
investments into the state, says
Selangor Mentri Besar Azmin Ali.
He calls this a great and promising
achievement.
Invest Selangor was formed
under the name Selangor State
Investment Centre (SSIC) in 1999.
Earlier this year, the company
underwent rebranding to formally
become Invest Selangor a move
aimed to create a stronger, clearer
brand and avoid
misinterpretations.
Hasan Azhari Idris, chief
executive officer of Invest
Selangor, expresses hope that this
new, dynamic name can help
create awareness of the company
among potential local and foreign
investors.

Playing on strengths
Under the 11th Malaysia Plan,
the Federal Government strategises
to increase productivity and
foreign direct investments,
especially in higher value-added
and knowledge-intensive activities.
Invest Selangor recognises this and
has accordingly set its goals to
match those of the nation.
Annually, Selangor produces
approximately 10,000 knowledge
workers who hold at least a
diploma qualification, which
comes as no surprise given that,
the state is home to the largest
number of local and international
branch universities, colleges and
other institutions of higher
learning in Malaysia.
Better qualified graduates
contribute to intellectual growth,
which further drives a knowledgebased industry. This spells a shift
from the focus on labour-intensive
manufacturing to more capitalintensive high-end projects
incorporating the latest
technological advancements.
As Selangor is a major
contributor to the countrys GDP,

Azmin Ali, Selangor Mentri Besar.

(From right) Datuk Jeffrey Ng, Madhu Sudan Nair, Jeffrey Tan, Michael Kang, Datuk Soh Thian Lai, Elizabeth Wong
Keat Ping, Datuk Teng Chang Khim, Hasan Azhari Idris, Datuk Seri Stanley Thai Kim Sim, Abdul Latif Shaari and Datuk
Andrew Goh at the launch of Selangor International Expo in May.

Why invest in Selangor?

Political stability
Strategic location


Economic strength

Developed infrastructure
Progressive leadership

and efficiency
Investment opportunities

Datuk Teng Chang Khim, Selangor

state senior executive councillor.

Hasan Azhari Idris, chief executive

officer of Invest Selangor Berhad.

the investments should be aligned

with the developmental direction
of the country, says Hasan.
Manufacturing remains a top
priority as the service industry
cannot grow without its support.
In view of this, Invest Selangor
has zeroed in on five industry
clusters that hold most
development potential in the
current economic climate.
These are:
l Electrical and electronics,
including consumer and industrial
electronics, electronic components
and electrical products.
l Life sciences, including
biotechnology, pharmaceuticals,
chemicals, and medical devices
and services.
l Food and beverages, including
dairy and confectionary products,
soft drinks, frozen food processing,
raw materials and halal
compliance.
l Transport and equipment,
including automotive, aerospace
and maritime sectors.
l Machinery and equipment for
industrial use.

chairman of the Investment,

Industry and Commerce, Small and
Medium Enterprises (SME) and
Transport Standing Committee,
who recently visited these
countries with Hasan in efforts to
promote Selangor and examine the
international climate for business
and investment.

Selangor is also a major player

in the countrys booming halal
industry as more than one quarter
of the halal-certified corporations
in Malaysia are located in the state.
Within Asia itself, countries
such as South Korea and Japan are
already displaying great interest in
Malaysias halal industry, says
Datuk Teng Chang Khim, Selangor
state executive councillor and

Building bridges
Teng also recently launched the
Selangor International Expo (SIE)
2015, which will be held from
November 26 to 28 at the Mines
Exhibition Centre.
Having identified Selangor as
one of the most advanced states in
Malaysia, this expo will bridge the
growth of Malaysias economy with
the world, he said in his
welcoming speech.
The expo will see local and
international trade members set up
booths to showcase their latest
products and services, establish
networks and link businesses, and
attract potential buyers.
It will leverage on current
innovative trade trends and
Selangors strategic location in
between two emerging Asian
economies China and India to
promote the state as a global
trading hub.
Invest Selangor also recognises
the role of SMEs in growing the
national economy and engages
them through the Selangor
Information Technology and
E-commerce Council (SITEC).

The councils latest initiative is to

familiarise SMEs with e-commerce
platforms by bringing together
industry experts and
entrepreneurs in a nine-month
training programme.
By exposing SMEs to the virtual
market, we provide them with
opportunities to move with current
trends and minimise marketing
costs while tapping into a greater
pool of potential customers, says
Teng.
Training will begin on July 1 and
will include classes, conferences
and mentoring. The best of the best
will be listed in the Selangor Online
100 within a year.
SITEC will also provide
co-working spaces in its centre,
where entrepreneurs can gather to
exchange views and ideas in a
dynamic work environment.

Opportunity for growth

Selangor is a prime location for
investment in the country given
the strong industrial base and rich
host of facilities and infrastructure
in place to support development.
The state boasts excellent
connectivity via 17 highways and
major air and sea ports. Urban
centres such as Petaling Jaya and
Shah Alam are well facilitated with
top educational institutions and
first-class living amenities.
Accessibility is continuously
being upgraded through initiatives
such as the ongoing Mass Rapid
Transit and Kuala LumpurSingapore High Speed Rail projects.
On top of this, investors in
various sectors will be provided
tax incentives by the Malaysian
Government direct tax incentives
grant partial or total relief from
income tax payment for a specified
period, while indirect tax

incentives are in the form of

exemptions from import duty, sales
tax and excise duty.
According to Hasan, attractive
investment packages, an
environment conducive to business
and consistent policies and laws
are the main factors of attraction
for investors.
Speaking on Invest Selangors
plans for the future, Azmin says,
Our recent experience during
investment missions to Japan and
South Korea indicates further
demands. We will also be in China,
several European countries and
Asean nations over the next few
months.
He adds that the state is now
working on a new transportation
masterplan and an economic
development agenda, which will
enhance infrastructure in Selangor
while supporting its growth and
development.
Selangor is rife with investment
opportunities and business owners
should take advantage of the
strong existing bases even in the
relatively young but booming halal
and aerospace industries to build
businesses that will flourish in this
majestic state.

n For more information, visit

www.ssic.com.my
Various offerings to
support development
These are the industrial
parks that play a large
part in the advancement
of industries in Selangor:
Pulau Indah Industrial
Park
Selangor Halal Hub
Port Klang Free Zone
Selangor Science Park 2
Mahkota Industrial Park
Tanjung Industrial Park
Sg Buaya Industrial Park
BerjayaCity Industrial
Park, Bukit Tagar
i-Zone Bernam Jaya
Extensive infrastructure
and facilities are also
available, including:
Telecommunications
Water
Energy
Housing facilities
Education
Transportation
Sea
Rail
Air
Road