ROYAL TOWN OF KLANG AN INVESTMENT PROSPECT

Prepared By Investment & International Relations Division Corporate Department Klang Municipal Council

KLANG OVERVIEW

KLANG OVERVIEW
Size 574sqkm/62,678 hectares

Population
District State Division

1,200,000 Million
Klang Selangor Port Klang, Klang Town, Kapar, Meru, Pulau Indah & Pulau Ketam Laporan Rancangan Tempatan & Laporan Pelaksanaan Rancangan Tempatan Klang 2020 20 km to Shah Alam 40 km from Kuala Lumpur 85 km from Cyberview 90 km from KLIA
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Local Plan

Approximate Distance

KLANG OVERVIEW
Status Royal Town in Selangor State Major industrial tourism and commercial in Klang Valley The 12th biggest port in the world & 1st in Malaysia Heritage town Pulau Indah Industrial Park Selangor Halal Hub Worldwide Industrial Park Westport, Northport & Southport Port Klang Free Zone (PKFZ) Port Klang Bandar Sultan Sulaiman Selat Klang/Pandamaran 3500 acres
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Industrial Areas

Logistic Hub Free Trade Zone Shipping Hub

Total Industrial Areas

KLANG OVERVIEW

KLANG POTENTIAL INVESTMENT AREA

WHY INVEST IN KLANG

WHY INVEST IN KLANG (Cont.)

1. SUPPORTIVE GOVERNMENT POLICIES

1.1 Pro Business Policies 1.2 Responsive Government 1.3 Liberal Investment Policies 1.4 Attractive Tax & Other Incentives Pioneer Status Full income tax exemption Investment tax allowance

WHY INVEST IN KLANG (Cont.)

2. EDUCATED WORKFORCE 2.1 Talented young and productive workforce. 2.2 Multilingual workforce speaking two to three languages Including English. 2.3 Comprehensive system of vocational and industrial training including advanced skill training

WHY INVEST IN KLANG (Cont.)

3. DEVELOP INFRASTRUCTURE

3.1 Network Of Well-maintained Highway and Railways Federal Highway links Kuala Lumpur to Port Klang North Klang Valley Expressway (NKVE) South Klang Valley Expressway(SKVE) A major rail network links Kuala Lumpur to Port Klang 3.2 World Class Seaport & Airport KLIA Sepang Port Klang is the countrys largest port which comprises of the North Port, South Port & West Port.
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WHY INVEST IN KLANG (Cont.)

4. HIGH-QUALITY TELECOMMUNICATION NETWORK & ULITITIES 4.1 Telecommunication Telekom Malaysia/Maxis/Celcom Broadband/Wireless/Internet 4.2 Utilities Water Supply (SYABAS) Energy (TNB) Gas (Gas Malaysia Sdn Bhd)

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WHY INVEST IN KLANG (Cont.)

5. VIBRANT BUSINESS ENVIRONMENT 5.1.1 Market-oriented economy. 5.1.2 Well developed financial and banking sector. 5.1.3 Wide use of English in business communication.

6. QUALITY OF LIFE
6.1.1 Friendly 6.1.2 Safe & Comfortable Living 6.1.3 Excellent housing & amenities 6.1.4 Splendid healthcare/medical facilities

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WHY INVEST IN KLANG (Cont.)

6.1.5 Excellent educational institutions. 6.1.6 World class recreational/sport facilities. 6.1.7 Excellent shopping with local & international Aeon Jusco/Big Tesco Carrefour Giant/Econsave GM Wholesale

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AVAILABLE INDUSTRIAL PARK IN KLANG

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SELANGOR HALAL HUB

Industrial area Developed area (acres) Total Size Available (Acres) Selling Price Per sq.ft (RM) Developer

Selangor Halal Hub Pulau Indah(SHH PI) Phase 1, 2 &3

1000 acres

380 acres RM30.00/ sq.ft

Central Spectrum (M) Sdn Bhd

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SELANGOR HALAL HUB (Cont)

1. Facilities at Selangor Halal Hub Pulau Indah:
1.1 Next to major port facilities, West Port trading to 120 countries and 500 ports around the world 1.2 Near to MILS Logistics Hub offers manufacturers and processors ready facilities of halal logistics services and on demand cold rooms. 1.3 Strategic location excellent connections to all major highways and major cities within Klang Valley 1.4 Fast track approvals 1.5 Selangor Halal Hub Pulau Indah Informex (Information and Exhibition) center 1.6 Sungai Chandong Besar bridge, Pulau Indah which will connect Phase 2 and 3 of Selangor Halal Hub Pulau Indah.
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PORT KLANG FREE ZONE

Industrial area Developed area (acres) Total Size Available (Acres) 549.9 acres Leased Price Per sq.ft (RM) RM1.80/psf /annum Developer

Port Klang Free Zone

Open Land (640 acres)

PKFZ

Light Industrial 404 unit Units-LIU (512 Unit) Leased Office Block-LOB (640,000sq ft)

RM18.00/psf /annum

62,406.60 RM22.80/psf sq ft /annum

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PORT KLANG FREE ZONE (Cont)

2. Facilities at Port Klang Free Zone 2.1 Strategic Situated in Port Klang which is along the worlds busiest shipping route. The Straits of Malacca connected to Westport and offers excellent sea,road, rail & air connectivity. 2.2 Globally Connected by major shipping lines to 500 ports, with trading links to 120 coutries 2.3 Investor-friendly Politically stable country with an abundant & educated workforce 2.4 Cost-competitive 100% foreign equity & free tax status for up to 10 years (subject to terms and conditions)
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PORT KLANG FREE ZONE (Cont)

2. Facilities at Port Klang Free Zone (cont.) 2.5 One stop centre on-site customs and other goverment agency support services 2.6 Productive environment with top notch business amenities and services for business to grow and prosper 2.7 Fully-equipped with state-of-the-art infrastructure for manufacturing, warehousing & distribution 2.8 Innovative design modelled after the worlds most successful free zones Jebel Ali free zone 2.9 Excellent incentives and tax benefits, with full backing from the Malaysian goverment

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WORLDWIDE INDUSTRIAL PARK

Industrial area Developed area (acres) Total Size Available (Acres) Selling Price Per sq.ft (RM) Developer

Worldwide Industrial Park (Sungai Kapar Indah)

Open Land (181.11 acres) Ready Built Factory (11.45 acres)

181.11 acres 80 units 12,360 sq.ft (Built-up area)

RM60.00/ psf.

Cekal Unggul Sdn Bhd

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WORLDWIDE INDUSTRIAL PARK (Cont)

3. Facilities at Worldwide Industrial Park
3.1 On the outskirts of Klang, spreads the vast Worldwide Industrial Park- a park that encompasses over 252 acres of land. 3.2 Hidden away from the hustle and bustle of towns and cities, the Worldwide Industrial Park is a mix of commercial and industrial developments. 3.3 With direct access to North Port and West Port as well as being accessible from the Kuala Lumpur International Airport, local and foreign investors are pouring in to enjoy its facilities and location.

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WORLDWIDE INDUSTRIAL PARK (Cont)

3. Facilities at Worldwide Industrial Park 3.4 Currently drawings are being prepared for light and medium industries to set up their factories and headquarters here in Worldwide Industrial Park, providing plenty of job opportunities as well as adding economic and business prestige to the Klang Valley.

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STATISTICS ON INVESTMENT PROJECTS IN KLANG DISTRICT

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10,000 9,000 8,000 7,000 6,000

1218

2,000
8,746 8,865
1871

1,800 1,600

1664

6,057
1374

6,724 5,934
1267

1526

1,400 1,200 1,000 800

Billion (RM)

Million (RM)

5,000 4,000 3,000

1125

4,183

1065

3,435
3,382
667 584 613 637

600 400

2,000
324 606

478

434

1,000 0 2004 2005 2006 2007 Year 2008 2009 2010 2011
Foreign

200 0
Domestic No. of employment

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STATISTICS ON INVESTMENT PROJECTS IN KLANG DISTRICT

Total Capital Investment (RM Million) Year No. of Project No. of Employment Domestic 2004 2005 60 49 76 73 4,183 3,435 8,746 6,057 365,576,344 478,166,624 Foreign 371,780,705 584,275,108 Total 737,357,049 1,062,441,732

2006
2007 2008 2009 2010 2011 Total

1,124,959,838
1,374,054,479 1,217,963,107 666,816,433

612,997,523
636,849,266 433,941,102 1,064,715,900

1,737,957,361
2,010,903,745 1,651,904,209 1,731,532,333

80
61 81 80 560

5,934
3,382 6,724 8,865 47,326

1,266,665,285 1,663,614,171 8,157,816,281

1,871,280,645 1,525,896,210 7,101,736,459

3,137,945,930 3,189,510,381 15,259,552,740

Sources: MIDA/SSIC/MPK (Investment & International Relations Division)

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APPROVED MANUFACTURING PROJECTS IN KLANG DISTRICT BY LOCATION (JAN-DIS 2011)

Location
Projects
Potential Employment

Domestic Investment (RM) 631,341,420

Foreign Investment (RM)

Total Capital Investment (RM)

Pulau Lumut / Pulau Indah Pelabuhan Klang Klang Kapar

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1,122

804,213,430 1,435,554,850

18 34 5

3,151 3,907 212

567,210,315 407,500,972 20,503,495

435,829,822 1,003,040,137 172,648,973 43,612,231 580,149,945 64,115,726

Bukit Rajah IE
Pandamaran Rantau Panjang Klang Pandamaran IE Total 80

2
5

139
206

0
17,600,000

56,309,783
12,562,550

56,309,783
30,162,550

2
2 8,865

72
56

13,050,000
6,407,969 1,663,614,171

0
719,421 1,525,896,210

13,050,000
7,127,390 3,189,510,381

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Klang Potential Investment Area

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INDUSTRIAL PARKS IN KLANG DISTRICT

Worldwide Ind. Park, Kapar Bandar Sultan Suleiman (Ph. 4) Selangor Halal Hub, Pulau Indah

Port Klang Free Zone

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INDUSTRIAL PARKS IN KLANG DISTRICT

1.1 Pulau Indah Industrial Park
Located off the coast of Selangor at Westport, the biggest port in the region and a bustling zone of business opportunity for investors. Covering a sprawling 2,154.64 hectares (5,324.11 acres), this environment friendly park is more than an industrial development. It is also a residential development featuring a resort lifestyle and an enhanced commercial and institutional centre that brings potential customers practically to your doorstep.

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INDUSTRIAL PARKS IN KLANG DISTRICT (Cont.)

2.1 Selangor Halal Hub

Selangor Halal Hub, Pulau Indah is poised to become a conducive regional hub in halal product industry. Covering an area of 800 acres designated for high-tech and modern factories for industries of manufacturing and processing halal products to cater to the increasing demand of halal products.

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SELANGOR HALAL HUB

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INDUSTRIAL PARKS IN KLANG DISTRICT

3.1 Port Klang Free Zone - An Overview
3.1.1 PKFZ is an integrated 1,000 acre free commercial and industrial zone providing facilities for international cargo distribution centre. 3.1.2 PKFZ is situated in Port Klang, adjacent to port, the worlds 12th ranked port in 2012 in terms of throughput volume. 3.1.3 The project is a mixed development comprising manufacturing activities complemented by amenities designed to facilitate the growth of regional distribution or international procurement centre.
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INDUSTRIAL PARKS IN KLANG DISTRICT

3.1.4 PKFZ has been designed to promote entreport trade and manufacturing industrial involved in producing goods primarily for export. 3.1.5 Gazetted as a Free Zone, PKFZ incorporates both commercial and manufacturing activities that are further supported by quality and value-added services. 3.1.6 Port Klang Authority, which is a statutory corporation has an oversight of the development of port facilities in Port Klang.
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PORT KLANG FREE ZONE

PKFZ

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EXISTING INVESTORS IN KLANG

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EXISTING INVESTORS IN KLANG

NO 1. PROJECT Selangor Halal Hub LOCATION Pulau Indah DEVELOPER Central Spectrum (M) Sdn Bhd AREA 800 acres SECTOR Halal Hub for Upstream & Downstream Manufactures Activities Raw Material Food & Beverage Confectionary Products Dairy Products Non-Food Products Oil & Gas Logistic Warehouse Halal Industry High-Tech Industry Automotive GIANT COMPANIES KLK Oleon S/B F & N Dairies S/B Mewah Oil Perkasa Bahagia Premier Agro S/B Felda S/B Ramly Food Industries S/B FFM Mills S/B Batam Height Kawan Food Bhd Central Sugar S/B

2.

Port Klang Free Zone

Pulau Indah

Port Klang Authority

1000 acres

Aker Solution (M) S/B Ann Joo Metal S/B Biodiesel SP/LD S/B Cargill Palm Products Sims Coppers S/B CWT Warehousing Baker Huges S/B

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EXISTING INVESTORS IN KLANG (Cont.)

NO. 3. PROJECTS Logistic Hub LOCATION Pelabuhan Klang Kawasan Perindustrian Bandar Sulaiman 1,2,3 &4 Taiwanese Industrial Park Selat Klang Utara Industrial Area Perdana Industrial Park DEVELOPER Perbadanan Kemajuan Negeri Selangor (PKNS) AREA 2,000 Above SECTOR Distribution Warehouse Storage Haulers & Forwarding Logistic GIANT COMPANIES Gougar Logistics (M) S/B Tamada Warehouse S/B MISC Integrated Logistics Bhd Century S/B Kontena Nasional Bhd Samsung Electornic Prosonic S/B

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EXISTING INVESTORS IN KLANG (Cont.)

NO 4. PROJECT Shipping Hub LOCATION Pelabuhan Klang Westport Northport Southport DEVELOPER Individual AREA 2,000 Above SECTOR Repairing Built Workshop Dredging Others GIANT COMPANIES Inai Krai S/B Benalec S/B NGV Tech S/B Aker Solution S/B Oriental Sheet Piling S/B Muhibbah Engineering S/B

5.

Others Industries

Sg. Kapar Industrial Park Worldwide Industrial park Meru Industrial Park

Individual

1500 above

Rubber High Tech Industry Chemical Transportation Electronics

Top Glove Bhd Kossan Rubber Maxter Glove Manufacturing s/b Sendok Group Holding

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG DISTRICT

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG DISTRICT(Cont)

RUBBER PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY(Cont)

ELECTRONICS & ELECTRICAL PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG DISTRICT(Cont)

FOOD & HALAL HUB PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

CHEMICAL PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

PLASTIC PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

BASIC METAL PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

FABRICATED METAL PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

OIL & GAS / SHIPYARD PRODUCTS

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

FURNITURE & FIXTURES PRODUCTS & LOGISTIC HUB

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THE MAJOR INDUSTRIAL & SERVICING IN KLANG INDUSTRY (Cont.)

SERVICING & AUTOMOTIVE

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INCENTIVES FOR INVESTMENTS

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INCENTIVES FOR INVESTMENTS (Cont.)

Incentives for Investments in General Promoted Activities/Products 1. Pioneer Status (PS)

(Sabah, Sarawak, Perlis, Kelantan, Terengganu, Pahang and the District of Mersing in Johor)

Promoted Areas:

Income tax exemption of 100% on statutory income for 5 years Other Areas
(including Selangor)

Income tax exemption of 70% on statutory income for 5 years

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INCENTIVES FOR INVESTMENTS (Cont.)

2. Investment Tax Allowance (ITA)

Promoted Areas
ITA of 100% of qualifying capital expenditure incurred within 5 years, to be utilised against 100% of statutory income.

Other Areas
ITA of 60% of qualifying capital expenditure incurred within 5 years, to be utilised against 70% of statutory income.

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INCENTIVES FOR INVESTMENTS (Cont.)

3.

Incentives for High Technology Companies

PS with tax exemption of 100% of statutory income for 5 years. ITA of 60% (100% for promoted areas) for 5 years. Allowance can be offset against 100% of statutory income. Criteria

Undertaking promoted activities/products (High Technology List). Local R&D expenditure - at least 1% of annual gross sales. At least 7% of total workforce have degrees or diplomas in science & technology with minimum 5 years experience in related fields.

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INCENTIVES FOR INVESTMENTS (Cont.)

4. Incentives for Strategic Projects

PS with tax exemption of 100% of statutory income for 10 years. ITA of 100% for 5 years. Allowance can be offset against 100% of statutory income.

Criteria
Projects of national importance which involve: heavy capital investments; high levels of technology and are integrated; the ability to generate extensive linkages; and significant impact on the Malaysian economy.
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INCENTIVES FOR INVESTMENTS (Cont.)

5.

Reinvestment Allowance (RA)

RA of 60% on qualifying capital expenditure [deducted against 70% of statutory income (100% in promoted areas) ] Granted for 15 consecutive years commencing from the year the first reinvestment is made Granted to manufacturing/agricultural companies which incur capital expenditure for the following: - Expansion of production capacity - Modernisation and upgrading of production facilities - Diversification activities - Automation of production facilities
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INCENTIVES FOR INVESTMENTS (Cont.)

6.

Import Duty Exemptions

and

Sales
Duty on

Tax
Raw

Exemption from Import Materials/Components

Exemption from Import Duty and Sales Tax on Machinery/Equipment

Exemption from Import Duty, Excise Duty and/or Sales Tax exemption on Machinery, Equipment and Materials for Selected Services Sub-sectors

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BRAND KLANG AS A BUSINESS INVESTMENT HUB

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BRAND KLANG AS A BUSINESS & INVESTMENT HUB

1. Port Klang Gate Way to Malaysia 2. Port Klang(West/North/Southport) Port Klang is Malaysias largest port and its designated load centre. It is strategically located on the coast of Selangor, Malaysias most progressive and developed state and at the crossroads of what is considered the busiest shipping route in the world-the straits of Malacca. This makes Port Klang ideally placed to capitalizes on both the international & domestic market. 3. Klang Is Royal Town & Heritage Klang Railway Station Gedung Raja Abdullah

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BRAND KLANG AS A BUSINESS & INVESTMENT HUB

Klang Fire Station Raja Mahadi Fort Kota Bridge Little India Jalan Tengku Kelana Alam Shah Palace The Royal Gallery 4. Tourism Hub 5. Selangor Halal Hub 6. Port Klang Free Zone 7. Logistic Hub

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INVESTMENT FUTURE PLANNING MPK

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INVESTMENT FUTURE PLANNING

1. Focusing on Manufacturing & Servicing & Halal Industry. 1.1 Manufacturing 1.1.1 Electrical & Electronics 1.1.2 Marine-Based Industrial & Port-Related Activities & Services 1.1.3 Transport Equipment Industry 1.1.4 Petrochemical & Polymer Industry

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INVESTMENT FUTURE PLANNING(Cont.)

2.1. Servicing 2.1.1 Integrated Logistic Services 2.1.2 ICT Services 2.1.3 Distributive Services 2.1.4 Health Services 2.1.5 Education & Training Services 2.1.6 Tourism Services

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INVESTMENT FUTURE PLANNING(Cont.)

3.1 Halal Industry 3.1.1 Raw Materials 3.1.2 Food & Beverages 3.1.3 Dairy Products 3.1.4 Non-Food Products (Pharmaceutical/Cosmetics/Herbal & Leather) 3.1.5 Packaging/Storage/Warehouses & Distribution

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ACTIVITIES & PROGRAMMES

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There were 4 activities had been conducted by Klang Municipal Council.

Years 2009 2012 Programmes/Activities 1.1 Receiving the delegates from the foreign country, chamber of commerce & industry, ambassador and others Minister(Commercial) Sri Lanka High Commission Taipei Economics & Cultural Office In Malaysia Minister(Economics) Embassy of The Republic Indonesia Shanghai/Hongzhou/Xiamen Romania Economy & Trade Investment Counselor Tea Talk On United Kingdom Trade Investment Saxouy-Anhart from Jerman Province of Qinghai, China Province of Xiamen, China Province of Yiwu, China Province of Urumqi, China Kingdom of Lesotho Bukit Tinggi Sumatera Indonesia Bangladesh China, Yiwu, 3rd Nanyang Culture Festival Xiamen Pakisatan,Turkey,Chinese Taipei, India, Iran
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ACTIVITIES (Cont.)
Progmmes/Activities 1.2 Promoted Klang as an investment Hub 1.3 Investor Friendly Programme - Assist investor in solving any problems that may occur with regards to their day-to- day operations. 1.4 Tours Industries Parks/Factories 1.5 Business Partnerships & Collaborations between promotion agencies, business chamber and council 1.6 Trade Mission & Networking & Business To Business 1.7 Entrepreneur Programme Small Medium Enterprise

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RECEIVING/INVITING THE DELEGATES FROM FOREIGN COUNTRY/CHAMBER/AMBASSADOR

DELEGATES FROM OVERSEAS

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RECEIVING/INVITING THE DELEGATES FROM FOREIGN COUNTRY/CHAMBER/AMBASSADOR(Cont)

DELEGATES FROM OVERSEAS

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INVESTORS-FRIENDLY

INVESTORS FRIENDLY

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COLLABERATION BETWEEN MPK AND RELATED AGENCY INVESTMENT/CHAMBERS

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SUPPORTING/ COLLABERATION

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THANK YOU!! TERIMA KASIH

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