ASEAN BUSINESS FORUM : BUSINESS AND INVESTMENT OPPORTUNITIES IN MALAYSIA AMBASSADOR KENNEDY JAWAN BILBAO, SPAIN 29 SEPTEMBER 2015
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1 ASEAN BUSINESS FORUM : BUSINESS AND INVESTMENT OPPORTUNITIES IN MALAYSIA AMBASSADOR KENNEDY JAWAN BILBAO, SPAIN 29 SEPTEMBER
2 PRESENTATION OUTLINE Association of Southeast Asian Nations (ASEAN) - ASEAN Economic Community Snapshots of Malaysia - Key Facts - Transformation Programs Development Corridors Why Invest in Malaysia Spanish Companies in Malaysia Conclusions 2
3 Association of Southeast Asian Nations (ASEAN) 3 3
4 Association of Southeast Asian Nations (ASEAN) Potential market of over 625 million people Combined GDP of USD2.4 trillion, as of 2013 Already zero tariff for 99% of products ASEAN Economic Community and Single market by
5 ASEAN COMMUNITY 2015 STRONG COMMITMENTS GOOD PROGRESS TOWARDS ASEAN COMMUNITY 2015: 5
6 ASEAN ECONOMIC COMMUNITY 2015 MALAYSIA assumed Chairmanship of ASEAN in 2015 The ASEAN economy will double by 2020, with nominal GDP increasing from US$2 trillion in 2012 to US$4.7 trillion 6
7 SNAPSHOTS OF MALAYSIA - Key Facts - Transformation Programs 7
8 Malaysia (Regional Location) 8 8
9 MAP OF MALAYSIA 9
10 Malaysia Key Facts Area 329,847 square km *Spain : 504,645 square km Population 29.5 million *Spain : 48 million Capital Kuala Lumpur (pop: 1.5 million) Urban population 73 % Political System Constitutional Monarchy Parliamentary democracy Voting System Constituency based first-past the post (Westminster style) Independence Malaya (21 August 1957) (Malaysia : 16 September 1961) Ruling Party Barisan National (National Front) comprising a coalition of 12 political parties Prime Minister : Dato Seri Najib Tun Abdul Razak 10
11 Malaysia Key Facts GDP (USD billion) GDP Per Capita (USD) 10,331 10,457 11,062 Real GDP Growth (%) (1st quarter) Inflation (%) Unemployment Exchange Rate (Ringgit Malaysia per Euro) 2015 (22/9/15) 11
12 Government s Transformation programs 12
13 GOVERNMENT TRANSFORMATION PROGRAMME (GTP) Reducing Crime Reduced overall reported Index Crime by 4.3% (vs target of 5%) Fighting Corruption Improved Malaysia s position on Transparency International s Corruption Perceptions Index by one notch to 53rd spot from 54th Improving Students Outcomes Increased pre-school enrolment levels to 81.7% (vs target of 88%) Government Transformation Programme (GTP) Raising Living Standards of Low-Income Households Trained and developed 1,000 woman entrepreneurs (vs target of 1,000) 6 National Key Result Areas (NKRAs) Improving Rural Development Built 719km of roads for rural Malaysians Connected 19,996 households to 24-hour electricity (vs target of 19,811) Improving Urban Public Transport Increased public transport customer satisfaction level to 71% (vs target of 70%) Addressing Cost of Living Established 70 new Klinik 1Malaysia (vs target of 70) 13 13
14 VISION 2020: TOWARDS SUSTAINABLE ECONOMIC GROWTH Preservation And Enhancement Of Unity In Diversity 1 Malaysia People First, Performance Now April Effective Delivery Of Government Services New Economic Model A high income, inclusive and sustainable nation Smooth Implementation Of Government s Development Programme Government Transformation Programme (GTP) Economic Transformation Programme (ETP) 5 Year Plan 6 National Key Result Areas (NKRAs) 6 Strategic Reform Initiatives (SRIs) January 2010 March 2010 Macroeconomic Growth Targets & Expenditure Allocation June th MP 14
15 12 NATIONAL KEY ECONOMIC AREAS (NKEAs) Wholesale & Retail Tourism Education Agriculture Financial Services Business Services Healthcare Oil, Gas & Energy Electrical & Electronics Palm Oil Greater KL Comms.Content Infrastructure 15
16 BUSINESS AND INVESTMENT OPPORTUNITIES IN MALAYSIA 16
17 MALAYSIA 17
18 CORRIDORS OF DEVELOPMENT IN MALAYSIA NCER : NORTHERN CORRIDOR ECONOMIC REGION Focus on: Modern Agriculture Manufacturing & Design Tourism Logistics Education & Health Spanish Company: 1.Norel-Wilmar SDC : SABAH DEVELOPMENT CORRIDOR ECER : EAST COAST ECONOMIC REGION Focus on: Agro-based Industry Tourism Logistics Manufacturing Focus on: Spanish Company: Tourism 1.Molecor Oil & Gas Manufacturing Agriculture Education Spanish Company: 1.Befesa SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY Focus on: Resource Based Industry Energy Tourism IRDA : ISKANDAR MALAYSIA To be a hub for the services sector: Creative Industry Financial Services Education Tourism and Logistic Industry Healthcare Electrical & Electronics Services Spanish Companies: 1.Bahru Stainless (Acerinox) 2.CTI Technical Ceramic 18 18
19 CORRIDORS OF DEVELOPMENT IN MALAYSIA 19
20 HIGH SPEED RAIL & MRT MRT HIGH SPEED RAIL Launched by the Prime Minister of Malaysia on 8 July st line - Stretches 51km. Construction has begun in July 2011 and is expected to be completed by 2017 Capability to transport 400,000 passengers a day 2nd line Stretches 56km and construction will commence in 2015 Estimated total cost is USD12 bil Travel from Kuala Lumpur to Singapore in 90 mins Aims to be operational by 2020 Stretches 350km Estimated total cost is USD14 bil Malaysian and Singaporean government have assessed various combinations of potential options across structure, ownership, funding sources and procurement 20
21 WHY INVEST IN MALAYSIA 21
22 STRONG BILATERAL TIES Excellent Political relations People to people contact and awareness Government to Government Business to Business People to People Malaysia s Prime Minister & Spanish Foreign Minister, H.E Jose Manuel Garcia-Margallo Kuala Lumpur, 28 March
23 VISIT OF THE MALAYSIAN SPEAKER OF SENATE, JUNE 2014 TRADE MISSION BY MALAYSIA MINISTER OF INTERNATIONAL TRADE AND INDUSTRY, OCTOBER
24 Trade Mission Chairman of the Malaysian Industrial Development Authority (MIDA) 3 September
25 WHY MALAYSIA? Political and Economic Stability Well Developed Infrastructure Pro-business Government Trainable and Educated Human Resource Liberal Investment Policies Sound Banking System 25
26 WHY MALAYSIA? Quality of Life Welcoming To Foreigners Industrial Harmony British Legal System Strategic Location In ASEAN 26
27 RANKING 2014 Source: World Bank 27
28 INTERNATIONAL SCHOOLS IN MALAYSIA More than 40 international schools offer over 10 curricula, including the International Baccalaureate 28
29 SPANISH PRESENCE IN MALAYSIA 29
30 APPROVED MANUFACTURING PROJECTS FROM SPAIN (2007 JUNE 2014) Year Investment (USD million) Employment , , (Jan-Jun) Company Product Location Bahru Stainless (Acerinox) Stainless steel Johor State Befesa Zinc SAU Recycling of steel dust Perak State Eastern Petroleum Bitumen Melaka State Molecor PVC Pipe Pahang State Norel-Wilmar Processing of animal feed additive Penang State30
31 SPANISH PRESENCE IN MALAYSIA Engineering IT Solutions PVC Pipe Stainless Steel Ceramic & Sanitaryware Environmental Management Medium Voltage Switchgear Lubricant Hotel 31
32 Conclusion EMBASSY OF MALAYSIA IN SPAIN Paseo De La Castellana, Edificio Centro Madrid, Spain Tel: (34) / (34) Fax: (34) mwmadrid@kln.gov.my 32
33 Malaysian Industrial Development Authority (MIDA) 42 Avenue Kleber Paris, France Tel: (331) / 3689 Fax: (331) mida.paris@wanadoo.fr 33
34 CONCLUSION 34
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