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Oct

2019
Issue

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M O R E !
MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY

A N D
I N V E S T O R S
G L O B A L
F O R
U P D A T E
I N D U S T R Y

IN THIS ISSUE

Snapshots of Budget 2020


M O N T H L Y

Biotechnology Industry in
Malaysia
Palm Oil Industrial Cluster
(POIC): Unlocking Sabah’s
Potential

Enhancing the Digital Economy


A

Ecosystem
Highlights  
Snapshots
of Budget
2020
B udget 2020 themed,
“Driving Growth and
Equitable Outcomes Towards
Shared Prosperity”, was
announced by the Minister of
Finance on 11 October 2019.
The Budget is anchored on four
thrusts:

Driving Economic Growth in


the New Economy and
Digital Era

The Budget is comprehensive heeds the call in the Budget that


Investing in Malaysians: with a focus on initiatives to Malaysia needs an industrial
Levelling Up Human Capital embrace inclusivity, steer the policy to boost the country’s
country towards digital growth sustainably. The
transformation and enhance implementation of the various
Malaysia’s competitiveness as initiatives to promote economic
the preferred destination for growth under Budget 2020 will be
foreign investments. It is also among the initial steps in
aimed to support the well-being achieving this aspiration, laying
of the B40 group and maintain down the foundation towards
Creating a United, Inclusive the country’s fiscal discipline. improving national
and Equitable Society competitiveness, raising
As MITI and its agencies are productivity, prioritising
currently drafting a new investment in strategic sectors, re-
Industrial Master Plan that energising export-led

MIDA
will chart the growth of the industrialisation and encouraging
manufacturing and services entrepreneurship.
industries post 2020, MIDA

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Revitalisation of Public
Institutions and Finances

 October 2019 | 1
HIGHLIGHTS
Making Malaysia the Preferred Destination for Investment

Strengthening the National Committee of Customised Packaged Investment


Investment (NCI) Incentives of up to RM1 billion annually
The enhanced NCI, co-chaired by MOF and over 5 years to upgrade Malaysia’s best
MITI, will strengthen the governance of the and most promising businesses
committee, enabling a faster decision- Local SMEs and MNCs will be able to
making process on the investment projects upgrade their technological capabilities to
by expediting approvals of targeted projects. be more competitive internationally by
moving up the value chain and participating
in the global ecosystem and supply chain.
Comprehensive review and revamp of This incentive will significantly strengthen
the Promotion Investment Act (PIA)1986, the local supply chain ecosystem and create
special incentives package and additional 100,000 high quality jobs for
incentives under the Income Tax Act Malaysians over the next five
(ITA) 1967 years.

Expected to be ready by 2021, this initiative


will address tax leakages, reduce the An allocation of RM10 million to enhance
existing tax gap, explore new sources of post-approval investment monitoring and
revenue, study the taxation of the digital realisation, ensuring that close attention
economy and review the effectiveness of is paid to resolving implementation issues
various tax incentives as provided by the on a timely basis
law. In line with the Government’s aspiration to
cut the red tape in obtaining investment
approvals in Malaysia, this initiative aims to
Customised Packaged Investment ease the time taken for businesses and
Incentives of up to RM1 billion annually investors to implement their projects in the
over 5 years for foreign investment in country. Unnecessary regulatory costs and
Malaysia to attract targeted Fortune delays in getting business approvals
500 and global unicorns in high will also be addressed under this initiative.
technology, manufacturing, creative
and new economy sectors
Special Investment Tax Allowance of 50%
This strategic tool will attract new quality for the electrical and electronics (E&E)
investments from foreign investors and industry
encourage existing foreign MNCs in Given that the E&E sector is a major export
Malaysia to move up the value chain. This revenue earner and investments
incentive is expected to generate contributor to Malaysia, this incentive will
additional economic activities to support encourage companies in the sector that
Small Medium Enterprises (SMEs), creating have exhausted the Reinvestment
150,000 high quality jobs over the next five Allowance for 15 consecutive years for
years while strengthening the local reinvestment projects, to further reinvest
manufacturing and service ecosystems. in Malaysia and to remain competitive in

MIDA
the international markets.

Extension of Automation Capital Allowances (Automation CA) to 2023

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The extension will encourage more companies to automate their processes and reduce
dependencies on unskilled foreign workers. Companies should be able to boost their production
and profit margins by substituting costly workers for advanced equipment and software. The
Automation CA is also expanded to include the services sector.

 October 2019 | 2
Supporting the Growth of SMEs
The Government has also announced initiatives to further support the growth of the SMEs in
Malaysia. Among the initiatives outlined are:

Increase the chargeable income which is Enhancement to the Skim Jaminan


subject to 17% concessionary income tax Pinjaman Perniagaan (SJPP)
rate from RM500,000 to RM600,000
The Government’s guarantee for Bumiputra
Expected to be ready by 2021, this initiative
Given SMEs’ key role in the Malaysian SMEs, export-oriented SMEs and SMEs
will address tax
economy, this initiative will encourage more investing in automation and digitalisation,
leakages, reduce the existing tax gap,
SMEs to expand their business and invest will be increased from 70% to 80% and the
explore new sources of revenue, study the
more to improve technology capabilities and guarantee fee is reduced to 0.75%. This is
taxation of the digital economy and review
move up the value chain. This will enable part of ongoing efforts to promote
the effectiveness of various tax
SMEs to stay competitive in the market continued  access to financing for SMEs to
incentives as provided by the law.
especially in the Southeast Asia region. remain competitive.

Green Growth
In line with the Government’s aspiration in supporting the climate change action plan in National
Determined Contribution (NDC), Malaysia is committed to reducing 45% of Green House Gas (GHG)
emission intensity by 2030. The Budget 2020 initiative looks to escalate the efforts to achieve the new
target of renewable energy percentage of 20% by 2025, with an additional capacity of 3,991MW.
Simultaneously, the increased use of Green Technology can have an impact on the reduction of
energy consumption from fossil fuels and carbon footprint, and make Malaysia the leading producer
of Green Technology in the global market. The initiatives to drive this reduction include:

Extension of Green Investment Tax Extension of Green Income Tax Exemption


Allowance (GITA) whereby Investment (GITE) whereby:
Tax Allowance of 100% on capital Income tax exemption of 70% of
expenditure is eligible to be set-off against Expected
statutoryto income
be readyfor
by qualifying
2021, this green
initiative
up to 70% of statutory income, extended for will address tax
series activities be extended for a
a period of 3 years until 2023 for qualifying leakages,
period ofreduce theofexisting
3 years tax gap,
assessment until
green projects. explore
2023. new sources of revenue, study the
taxation of the digital economy and review
the effectiveness of for
various
solartax

MIDA
New tax incentive leasing
incentives
activities be introducedthe
as provided by withlaw.
an
income tax exemption of 70% of
statutory income for a period of up to

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10 years of assessment for solar
leasing companies certified by
Sustainable Energy Development
Authority (SEDA).

 October 2019 | 3
Research and Development (R&D)

Income Tax Exemption of 100% up to 10 Allocation of RM30 million for R&D


years on qualifying intellectual property matching grants for collaborations with
income derived from patent and industry and academia to develop higher
copyright software of qualifying Expected
value added to downstream
be ready by 2021, this
uses of initiative
palm oil,
activities will address tax
especially tocotrienols in pharmaceuticals
leakages,
and bio-jetreduce
fuel. the existing tax gap,
In line with the target set under the National
explore new sources of revenue, study the
Policy on Science, Technology and This initiative willdigital
stimulate industries
taxation of the economy and review
Innovation, for Malaysia to achieve R&D internal R&D programs while university
the effectiveness of various tax
Gross Expenditure (GERD) of at least 2.0 researchers identify research
incentives as provided by thethat
law.are useful
percent of Gross Domestic Product (GDP) by for the design and development of new
2020, this will encourage local and foreign processes and products. MIDA will work
companies to increase their investment in hand-in-hand with the Industry-Academia to
innovation and spur patent registration for facilitate the development of innovative
their products/inventions in Malaysia, drive products and technologies that can spawn
the commercialisation of IP from local R&D new industries which will enhance Malaysia’s
activities and foster more post-R&D competitive advantage globally.
activities.

MIDA
E-NEWSLETTER  October 2019 | 4
Promotion of the Tourism Sector
The Budget 2020 initiatives for the tourism industry aims to attract more tourists in conjunction
with Visit Malaysia Year 2020 by promoting more investments and positioning Malaysia as the
preferred destination for hosting international conferences. Additionally, the promotion of the
Healthcare Tourism sector aims for Malaysia to achieve RM2.8 billion in medical tourism revenue
in 2020 with an estimated economic impact of RM10 billion towards the country’s economy. As
such, the Budget has included the following incentives for the tourism sector:

The scope of New investment Income tax Income tax Allocation of


current tax for international exemption of exemption of RM25 million
incentives is theme park be 100% of 50% on statutory to the
expanded to given incentives statutory income of the Malaysian
include as follows: income be company that Healthcare
integrated expanded to any organise: Tourism Council
tourism and Pioneer status entities whose (MHTC) to
sports tourism with tax main activities Arts and strengthen the
projects. exemption of are other than cultural position of
100% of promoting and activities Malaysia as the
statutory organising approved by preferred
income for 5 conferences, Ministry of destination for
years, or provided Tourism, Arts health tourism in
the organiser and Culture; ASEAN for
ITA of 100% on brings in at least and oncology,
the qualifying 500 foreign cardiology and
capital participants International fertility
expenditure annually. sports and treatment.
incurred within recreational
5 years, set off competitions
against up to approved by
70% of Ministry of
statutory Youth and
income. Sports.

MIDA
E-NEWSLETTER  October 2019 | 5
Digital Economy
Digital transformation represents the future business mode of the traditional manufacturing
and service industries. Digitalisation will accelerate industrial progress, help improve consumers'
satisfaction and boost operation management efficiency, as well as allow manufacturing and
services companies to provide goods and services to a larger geographical market.  In order to
build Digital Malaysia, Budget 2020 has introduced the following incentives to further promote
digitalisation and the digital economy within the country:

5G Ecosystem RM25 million to set A 50% matching RM550 million for


Development up a contestable grant of up to smart automation
Grant worth matching grant RM5,000 per matching grants to
RM50 million to fund to spur more company for 1,000 manufacturing
seed technological pilot projects on adoption of and 1,000 services
developments by digital applications digitalisation companies to
Malaysian such as drone measures for automate their
companies to delivery, autonomous SMEs’ business business. This
ride the global 5G vehicle, blockchain operations initiative will benefit
wave which is 100 technology, and including companies that have
times faster than other products and electronic Point of plans for automating
4G. services that leverage Sale System (e-POS), their process which
on Malaysia’s Enterprise Resource in turn, lead to
investments in fibre Planning (ERP) and higher production
optics and 5G electronic payroll rates and increased
infrastructure. system. This productivity, as well
matching grant is as more efficient use
limited to the first of materials and
100,000 SMEs better product
applying to upgrade quality.
their systems.

MIDA
E-NEWSLETTER  October 2019 | 6
Technical and Vocational Education and Training (TVET)

Extension of double tax Extension of scope of A matching grant fund


deduction on expenses double tax deduction of RM20 million to
incurred by companies currently given to support customised
participating in Skim companies undertaking TVET courses
Latihan Dual Nasional Structured Internship undertaken in
(SLDN) for another two Programme (SIP) collaboration with
years. approved by Talent industries.
Corporation Malaysia
This is to ensure that Berhad (TalentCorp) to This will ensure that
apprentices are trained include students from all there will be a
to become knowledge academic fields rather matching of supply and
workers for the than just engineering and demand and enable
development of human technology. local TVET institutions
capital. to offer high
This initiative will technology courses
provide the nation with based on industry
a wider base of qualified requirements.
talent pool.

MIDA
E-NEWSLETTER  October 2019 | 7
MIDA
E-NEWSLETTER
 October 2019 | Advertisement
Industry
Biotechnology
Industry in
Malaysia
Development of Phase 2
Biotechnology 1996 to 2000 – During the
Industry in Malaysia second phase, the National
Biotechnology Directorate
“Science to Business” has been be categorised into four (4) main
(NBD) was formed under
one of the essential criteria phases as below:
 MOSTE to further enhance
being focused by Malaysia in
the biotechnology development
its National Biotechnology  Phase 1
in the country. The objective of
Policy. The Policy aims to Before 1995 - The first
the directorate was to
transform the biotechnology phase of biotechnology
spearhead the development of
industry into one of the vital development in Malaysia
biotechnology in Malaysia
economic contributors to the began with the establishment of
through research and related
nation. basic infrastructures and the
activities as well as to
necessary equipment to
establish Malaysia as a leading
Malaysia is richly endowed undertake biotechnology
centre for the biotechnology
with biodiversity and blessed R&D. In the beginning, a few
industry. Simultaneously,
with a wide array of natural numbers of research institutions
Biotechnology Cooperative
resources that are useful for were assigned to carry out the
Centers (BCC) was created
biotechnology research and R&D. A National Working Group
under NBD to assist in
development (R&D). Ranked on biotechnology was set up
coordinating the National
12th in the world as one of the under the Ministry of Science,
Programme in Biotechnology by
megadiverse countries, it Technology and Environment
building a robust professional
helps to create the necessary (MOSTE) to oversee and
network among universities,
motivation towards coordinate biotechnology
research institutions and
developing a biotechnology activities in the country.
industries to speed up the
industry in the country.
diffusion of knowledge to the
Generally, biotechnology
relevant industry.
development in Malaysia can 

MIDA
E-NEWSLETTER  October 2019 | 8
Phase 3 Phase 4 Driving Malaysian
2001 to 2005 - At the third 2006 and beyond - The Biotechnology Industry
stage of development, the development of biotechnology
collaboration between the industry during this phase was Biotechnology is recognised as
National Biotechnology outlined in the Ninth one of the economic engines
Directorate and the Malaysian Plan. The that will drive Malaysia towards
Massachusetts Institute of government provided an a progressive and high-income
Technology (MIT) initiated allocation of RM2 billion to nation as the country’s
the BioValley Strategic Plan. support the development of conducive environment and
The plan includes the provision physical and soft growth potential presents a
of BioValley Malaysia, a infrastructure in the local multitude of long-term
Malaysian Biotechnology biotechnology industry. opportunities for countries with
Cluster, which is expected to Recognising the importance of mature biotechnology sectors.
accelerate the research and a conducive regulatory Malaysia has been actively
commercialisation of framework to the success of strengthening its biotechnology
technologies. this endeavour, the ecosystem in the last eight
government has intensified years, developing its local
The former Prime Minister, Tun the promotion of foreign and industry and creating a niche
Abdullah Ahmad Badawi domestic investments and for itself as a reputable
launched the National close collaboration with biotechnology hub in Asia.
Biotechnology Policy on 28 April foreign entities to access new Besides cost-competitive
2005. The objective of the policy technology, expertise and skilled labour market, excellent
is to invigorate the biotechnology markets. Efforts are also transportation networks, ICT
industry to become a new taken to improve the infrastructure, strong
economic engine to enhance Intellectual Property government support, active
prosperity and wellness of the (IP) policy and management public-private sector
nation by 2020. In light of this, a framework to encourage participation and cost-effective

MIDA
one-stop agency, namely the innovation and safeguard base of doing business, the
Malaysian Biotechnology investment in the exceptional richness of
Corporation (MBC) was biotechnology sector. biodiversity in Malaysia has led
established to facilitate the to the development of

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industry’s development, including biotechnology in the region.
coordination of regulatory policy
among different agencies.

 October 2019 | 9
In 2018, the Malaysian Future Direction Other key factors that contribute
Investment Development towards the success of the
Authority (MIDA) approved two The establishment of the biotechnology industry are the
foreign-owned biotechnology National Biotechnology Policy is availability of venture capital
projects with investments a clear indication of the funding and a critical mass of
totalling RM2.7 billion, more government’s intense highly qualified biotechnology
than tripled the approved effort in making biotechnology graduates. Malaysia needs to
investments of RM814 million as one of the main pillars of produce a few hundreds of
across six biotechnology economic growth. Research biotechnology graduates every
projects in 2017.  Both projects has shown that the success of year to fill up the jobs created in
are a mix of new and the US biotech industry is the industry.
expansion/diversification centred on nine leading biotech  
ventures and are expected to clusters. Biotech activities MIDA will continue its role in
generate 150 job opportunities will naturally take place around promoting the biotechnology
for the country. centres that have a good industry to attract more local and
connection with research foreign investments, thus create
One of these approved institutes and universities. The employment opportunities and
investments was a new project existing Multimedia Super strengthen the biotechnology
by Leaf Malaysia OpCo Sdn Corridor can guarantee the ecosystem. Continuous support
Bhd to manufacture industrial need for high-speed from the government can be seen
sugars (C5 pentose and C6 communication between these through the introduction of tax
hexose), refined glycerol and centres of excellence and the incentives for companies
lignin with an initial first phase enormous computing power for investing in the manufacturing of
investment value of RM818.3 high-powered biotechnology biotechnology products, which
million, and planned projects. As such, the includes significant incentives
expansion equalling a total of upgrading of existing facilities such as Pioneer Status and
RM2.1 billion. The patented and encouraging researchers Investment Tax Allowance.
Glycell technology will convert through government support Eligibility for PS and ITA is based
biomass (empty fruit bunch would be the way to lure on specific priorities, including
fibre) into fermentable sugars investors and companies in the level of value-added,
which will be used as a major setting up their biotech entities technology used and industrial
intermediate feedstock for in Malaysia. linkages.
bio-based chemicals, including
bio-plastics. The process also
yields refined glycerol and
lignin as additional high-value
by-products for renewable
applications. The project
creates 92 new jobs
opportunities, of which 21
employees will receive salaries
of RM10,000 and above.
 
These new approved foreign
investments are a

MIDA
demonstration of the growing
impact and importance of the
global biotechnology industry.
They are also aligned with the

E-NEWSLETTER
goals of the Bioeconomy
Transformation Programme
and National Biotechnology 
Policy.

October 2019 | 10
Services
Palm Oil Industrial
Cluster (POIC): Corresponding to the
completion of the container

Unlocking Sabah’s
terminal in 2018, POIC
becomes a full-fledged port
aiming to be the “Rotterdam

Potential of the East” through the


emerging of the new
industrial port city. The

T he Palm Oil Industrial


Cluster (POIC) Lahad
Datu was established by the
producing state in Malaysia,
tapping on 1.55 million hectares
of its plantation to supply oil
terminal is equipped with the
first ship-to-shore cranes in
East Cost Sabah and able to
Sabah State Government in palm raw materials for value- accommodate Panamax
2005 to spearhead the adding manufacturing. Apart vessel up to 65,000
development of palm oil- from palm oil, the Lahad Datu deadweight tonnage (DWT).
based downstream activities. POIC comprises other industrial The intrigue features
Through the provision of clusters such as port and completed the look of POIC’s
adequate physical logistics, oil and gas, terminal in becoming the first
infrastructure and policies, biorefineries and small and integrated port infrastructure
POIC serves as a catalyst to medium enterprises. with specific terminals for
accelerate the growth of the Strategically located along the barge landing, liquid, dry bulk
palm oil industry in the Lombok-Makassar Straits, POIC and container cargoes in
region. Presently, Sabah is is well known for its deep Sabah.
the largest oil palm seaport with 20-meter depth.

MIDA
E-NEWSLETTER Figure 1: Strategic location of POIC

October 2019 | 11
On 4 September 2019, the
terminal celebrated a
significant milestone through
the first docking of container
vessel 17224 DWT, MV
Danum 172. Owned by Shin
Yang Shipping Corporation
(SYSCorp), the ship brought
in nine 40ft containers of
cocoa shells and took out
nine 20ft containers of
fertiliser. This remarkable
event augurs well with
Sabah’s bid to generate more
outgoing cargoes. In the
past, containers were going
out empty, and this has
resulted in higher shipping
costs for Sabah. The first call
was also significant to POIC
as an endorsement from a
primary shipper like SYS
Corp in confirming that the
port has connected the dots
in shipping and logistics
required for industrialisation
in Sabah.
Figure 2: MV Danum 172 at POIC Container Terminal on 4
September 2019
The container terminal will
also help Sabah in escalating processes before being the Straits of Malacca.
the process of industrial exported, especially to Lombok-Makassar Straits,
take-off by having more resource-deficit developed which is much safer, as it is
investments in high-value economies such as China, relatively wide and deep,
export-oriented downstream Japan, Korea, Taiwan and provides an excellent
products. It opens up the Hong Kong. alternative to the Straits of
opportunities of being Malacca.  Industrialisation is
connected with the resource- The geographical centrality an important agenda of the
rich regions such as of POIC in East Asia yields Sabah government. As the
Southern Philippines, tremendous advantages for principal investment
Kalimantan, Sulawesi, Papua the harbour to be a logistics promotion agency, MIDA
New Guinea and the hub; handling bulk cargo assists to promote POIC as one
Northern Territory of and transhipment for the of the potential sites for local
Australia. These regions are region. The Lahad Datu POIC and foreign investments.
well known as global can leverage on the Moving forward, MIDA will
suppliers of palm oil, cocoa, growth of global shipping via continue to intensify its

MIDA
rubber, timber and minerals, the Lombok-Makassar collaboration with the Sabah
including coal and Straits, giving rise to government to attract more
petroleum. Resources from massive opportunities in investments that will broaden
these countries can be bunkering and ship-related the state’s economy via value

E-NEWSLETTER
secured and consolidated at businesses, unlocking adding its natural resources.
POIC for further value-added potentials for the maritime
sector in Sabah - emulating

October 2019 | 12
Innovation Ecosystem
Enhancing the Digital
Economy Ecosystem
G lobally, the traditional
manufacturing industry
is in the midst of a major
Product certification is just as
relevant in e-Commerce as in
brick-and-mortar businesses,”
change, marking the dawn said Mr. Mohd Azanuddin.
of smart manufacturing or  
Industry 4.0.  Manufacturers He added that the SIRIM
today face several unique certification mark assures
challenges as they struggle the product’s quality.  Under
the SIRIM Product Certification Mr. Mohd Azanuddin Salleh
to stay competitive and Chief Executive Officer
deliver greater value to Scheme, manufacturers that SIRIM QAS International

customers. A report by have products that comply


consulting firm McKinsey with the specified standards as
well as the proper quality (SMEs) in particular will find it
concluded that the Internet
control system in place will be easier to expand their
of Things (IoT) will generate
awarded a licence to display marketing reach globally.
an annual value of up to
USD11 trillion by the year the SIRIM mark on that
particular product. This way, Gain Market Acceptance
2025, corresponding to
consumers will know that the Globally
some 11% of global GDP [1] .
Initially, the IoT value will be products they purchase,
whether online or in physical SIRIM QAS International can
generated by smart
stores, are genuine,reliable help manufacturers gain
manufacturing; this will be
and safe. greater market acceptance as
followed by smart cities and
its test reports and
smart health. 
Manufacturers and sellers, certifications are
subsequently, will benefit from internationally recognised.
Mr. Mohd Azanuddin Salleh,
higher consumer confidence as SIRIM QAS International is
the Chief Executive Officer
well as wider recognition and recognised by leading
of SIRIM QAS International,
acceptance of their products.  international bodies. Among
sheds some light on
As the test reports and others include:
differences in the
certification process/aspect certifications are Registered Certification
in the pre and post smart internationally recognised, Body with the APM Group
manufacturing environment. small and medium enterprises – an international
  organisation that manages
In the smart manufacturing the ISO/IEC 20000
ecosystem, digital certification scheme
information has become a Accredited by the
major currency. It is, Department of Standards
therefore, imperative that Malaysia
relevant data, applications Accredited by the United

MIDA
and software are protected Kingdom Accreditation
against threats that include Service (UKAS)
terrorism, fraud and piracy. A member of IQNet – an
This is where certification international network of

E-NEWSLETTER
can play a role. leading certification
bodies

[1] McKinsey Global Institute, “The Internet of Things: Mapping theValue Beyond the Hype”, June 2015.

 October 2019 | 13
Adding Value to Digital
Economy

Aspiring to meet the


challenges of the digital
economy, SIRIM QAS
International has introduced
several certifications to
facilitate the transformative
business opportunities of
smart manufacturing. These
include the Information
Security Management System
(ISMS) certification, the ISO
28000 Supply Chain Security
Management System Consequently, IT support and Seamless Cross-border Trade
certification and the ISO/IEC maintenance service providers Experience
20000 IT Service will benefit from the ISO/IEC
Management System 20000 certification, which lays With the spotlight being
certification. out an integrated set of trained on the burgeoning
processes and management digital economy, SIRIM QAS
The former is aimed at approaches to enable the International is committed to
ensuring the security and smooth delivery of IT services consistently enhance its
integrity of information and to customers. services in a bid to meet
is based on the ISO/IEC changing needs. These include
27001 standard, which With IoT revolutionising collaborating closely with
provides specific lifestyles and businesses, government agencies to be
requirements for SIRIM QAS International, which part of the Digital Free Trade
establishing, implementing, has been appointed as the Zone (DFTZ) ecosystem. This
maintaining and improving certifying agency for will enable SIRIM to issue its
an Information Security communications, multimedia certifications and approvals
Management System and hybrid products by the on the digital eServices
certification. Malaysian Communications platform efficiently to
and Multimedia Commission facilitate customs clearance in
The ISO 28000 Supply Chain (MCMC), also plays an essential the DFTZ.
Security Management System role in ensuring that devices  
certification, on the other and networks are “SIRIM is at the forefront of
hand, targets organisations interoperable, safe and legal. innovations; in upholding this,
involved in any stage of the SIRIM QAS International will
production and/or supply According to Mr. Mohd be proactively innovating new
chain. The certification Azanuddin, “All services that will continue to
showcases the capabilities of communications, add value to the digital
businesses to address multimedia and hybrid economy in Malaysia,”
security vulnerabilities products are required to concluded Mr. Mohd
effectively at both strategic obtain certification and to be Azanuddin.
and operational levels and labelled with the MCMC

MIDA
aims to facilitate cross- certification mark. This
border trade and is a mandatory requirement
transportation of goods. under the Communications
Another central aspect of the and Multimedia Act (CMA)

E-NEWSLETTER
digital economy is IT support 1998, and the Communications
and maintenance. and Multimedia (Technical
Standards) Regulations 2000.”

October 2019 | 14
Events
MIDA i-Incentives Portal
Features 126 Federal
Government Incentives

MIDA successfully organised the i-Incentive


Seminar at MIDA headquarters on 2 October 2019.
The event was held to encourage more
participants to embark on technology adoption by
familiarising themselves with technology-related
incentives that are available in the i-Incentive
portal. This portal, launched last year, aims to
simplify the interactions among the relevant
incentives provider towards better management
of information. The Seminar featured a demo briefing on i-
Incentives portal, presentations on technology-
This interactive site currently features 126 related incentives by MIDA and participating
incentives, including tax exemptions, grants, soft ministries and agencies from Ministry of Energy,
loans and equity financing, is managed by 13 Science, Technology, Environment and Climate
ministries and 29 agencies. “We now have over Change (MESTECC), Malaysian Green Technology
2,000 registered users of this portal, and we Corporation (MGTC), Agensi Inovasi Malaysia (AIM)
definitely want to increase the number. We are and Bank Pembangunan Malaysia Berhad (BPMB),
intensifying our promotional efforts and followed by a business clinic session.
reaching out to more businesses out there,” said
Mr Ahmad Khairuddin Abdul Rahim, Senior Moving forward, the i-incentives Seminar is
Executive Director of MIDA at the i-Incentives expected to be conducted in a series tackling
Seminar on Technology titled Search. Submit. different scope and theme. Government agencies
Succeed’. offering incentives are encouraged to take full
advantage of ICCO’s platform and start making
their incentives available for access under a single
portal at http://incentives.mida.gov.my

MIDA
E-NEWSLETTER October 2019 | 15
Events
MIDA at MITI Day 2019, held in Kota Kinabalu,
Sabah on 19 October 2019

Dato’ Azman Mahmud, CEO of MIDA visited the career fair at MITI Day. The event, organised by MIDA,
featured 20 companies and three organisations with over 4,000 job vacancies offered.

MIDA moderated the Pocket talk on e-Commerce The Director of the Industry Talent and Expatriate
and e-Fulfilment in Sabah. Division of MIDA promoted the Career Fair event

MIDA
during the interview by Sabah FM.

E-NEWSLETTER October 2019 | 16


Events
Minister of MITI Launches
the Federation of
Malaysian Fashion,
Textiles & Apparels
(FMFTA) at MIDA
Headquarters

On 29 October 2019, YB Datuk Darell Leiking,


Minister of International Trade and Industry,
launched the establishment of the Federation of
Malaysian Fashion, Textiles & Apparels (FMFTA) in
MIDA headquarters, themed ‘Fashion and
Technology Shaping the Future’. The launching YB Datuk Darell also launched the Handbook of
was attended by over 200 participants, including Malaysian Designers in Fashion, Textiles and
industry experts, designers as well as Apparels produced by MIDA and partners during
representatives of associations. The event the event. The Handbook, which consists of
included a talk on ‘Fashion-Tech Shaping the over 400 designers in the country, will be a useful
Future’, followed by a Fashion-Tech Showcase. reference material for stakeholders to seek
Dato' Sri Tan Thian Poh has been elected as the information and opportunities as well as a medium
Chairman of FMFTA Pro-tem Committee. to promote products and services to both domestic
and international business communities.
According to YB MITI Minister, “FMFTA will
represent the collective and cohesive voice of Dato’ Azman Mahmud, CEO of MIDA, in his opening
the local textiles and apparels industry. This speech highlighted that the Malaysian fashion retail
Federation will play an essential role in industry is very dynamic, in line with the changing
establishing the vital linkages to build a stronger trends and evolving consumer demands. Looking at
comprehensive ecosystem with participation from the upstream and downstream segments of the
multiple stakeholders, focusing on talent, skills industry, a total of 1,195 textiles and apparels
and innovation. This is a crucial stepping stone to projects, worth RM12.6 billion have been
develop and enhance the coordination and implemented within the country, as of
promotion of the local industry, boosting December 2018. These projects have created over
domestic consumption and improving integration 155,000 job opportunities. For the first half of 2019,
of stakeholders into the global value MIDA has approved an additional investment of
chain.” RM94.4 million in 5 projects.

MIDA
E-NEWSLETTER October 2019 | 17
Highlights of October

Mr Ismail Abu Bakar, Executive Director, Manufacturing


Development (Resource), shared MIDA insights on
'Energy and Industry-Driving Future Growth in Sarawak'
during the Sarawak Investment and Business Summit
held on 1 October 2019.

Congratulations to Kemikon for the grand opening of


its operation in Malaysia to produce high-tech
equipment on 3 October 2019 in Pulau Pinang. The
manufacturing facility attests to foreign companies’
confidence in  Malaysia as a strategic location to meet
the growing economic demand in the region.

On 7 October 2019, MIDA team, led by Mr Arham


Abdul Rahman, Deputy CEO of MIDA  had a fruitful
meeting with Datuk Kamarudin bin Meranun,
Executive Chairman of Air Asia Berhad.

MIDA
Following the announcement to organise the High-
Level Dialogue on ASEAN Italy Economic Relations in
June 2020 in Kuala Lumpur, a follow-up meeting with

E-NEWSLETTER
Ambrosetti was held on 7 October 2019 at MIDA
Headquarters led by Mr.Arham Abdul Rahman,
Deputy CEO of MIDA. It was the first visit for
Ambrosetti to MIDA.

October 2019 | 18
Dato’ Azman Mahmud, CEO of MIDA participated as one
of the panelist for the NST Insight Forum held on 9
October 2019. Other panellists were YM Raja Azmi Raja
Nazuddin, Group CEO of Malaysia Airports Holdings
Berhad (MAHB) and Mr Andrew Herdman, Director
General of Association of Asia Pacific Airlines (AAPA).
The session that was broadcasted live on Facebook,
discussed on Malaysia as a preferred aviation hub.

MIDA participated as the strategic partner of the


International Greentech and Eco Products Exhibition
and Conference Malaysia (IGEM) 2019 held from 9-11
October 2019 at KLCC. IGEM was among the essential
platforms for MIDA to create greater awareness of the
facilities available to promote Malaysia’s green agenda.

Dato’ Azman Mahmud, CEO of MIDA, signed an MoU


with the Investment Promotion Agency Qatar (IPAQ)
on 10 October 2019 to enhance cooperation and
investment crossflows between Qatar and Malaysia.

MIDA
MIDA welcomes the official opening of  first facility
of EDA Malaysia Industries Sdn.Bhd. in Malaysia on

E-NEWSLETTER
10 October 2019. This dynamic and experienced
manufacturer of Burn-In and Test Equipment
signifies Malaysia as a preferred destination for long
term investment within the region.

October 2019 | 19
On 10 October 2019, Ms.Yusni Md. Yusop, Director of
MIDA Pulau Pinang presented on 'Investment Incentives
Related to Industry4WRD’ at the TM One, MIDA and
MITI’s Roadshow for the Northern Region. It was indeed
an insightful and engaging session.

Mr. S. Siva, Executive Director of Investment Promotion,


MIDA was one of the panellist for the 1st Session:
Thematic Discussion session held on 12 October 2019 in
conjunction with the 9th Malaysia-China Entrepreneurs
Conference (MCEC 2019) at MITEC Kuala Lumpur.

Ms.Yusni Md. Yusop, Director of MIDA Pulau Pinang


shared on ‘Government Incentives to Support Industry
4.0 Journey’ at the Industry4.0 Forum Series:
'What’s In It For Me'. Held on 15 October 2019,  this
public-private event was a collaboration effort
between MITI  and SME Association of Malaysia.

MIDA On 15 October 2019, MIDA team led by


Mr. S. Siva, Executive Director of

E-NEWSLETTER
Investment Promotion had a fruitful
meeting with the Perak Indian Chamber
of Commerce (PICC) at MIDA HQ.

October 2019 | 20
On 17 October 2019, MIDA Selangor
successfully linked 18 companies with
IKEA Supply (Malaysia) Sdn. Bhd.
through the MIDA Supply Chain
Programme.

On 23 October 2019, YB Yeo Bee Yin,


Minister of Energy, Science, Technology,
Environment and Climate Change
(MESTECC) and Dato’ Azman Mahmud,
CEO of MIDA witnessed the signing of an
MOU between UOB Malaysia and leading
local solar energy service providers,
namely ERS Energy, PlusSolar and
Solarvest to promote the adoption of
solar power by the end-users which
include companies and consumers.

Mr. S. Siva, Executive Director of Investment


Promotion, MIDA was one of the panellists at the
PwC Budget 2020 Seminar held on 23 October
2019. It was an insightful discussion on
‘Encouraging Domestic and Foreign Investments:
What Makes Malaysia Attractive'.

Dato’ Azman Mahmud, CEO of MIDA was invited as

MIDA
the Guest of Honour for the Korea Business
Dialogue 2019 held on 24 October 2019 in
commemoration of the 10th anniversary of the
Korean Chamber of Commerce Malaysia

E-NEWSLETTER
(KOCHAM).

October 2019 | 21
A joint seminar on ‘Doing Business in Asia: Why
Malaysia?’ between MIDA, FINDEC, Business
Sweden was held  in conjunction with the Iskandar
Regional Development Authority (IRDA) working
visit to Stockholm on 24 October 2019 at the
Embassy of Malaysia, Sweden.

Mr. Awangku, Director of MIDA Milan was one of


the speakers at the Seminar on ‘Malaysia: Industry
4.0 & Startups Initiatives’ held in Rome on 25
October 2019. The event was jointly organised by
the Malaysian Embassy in Italy and Diplomacy
in Rome.

On 28 October 2019, MIDA had another successful


collaboration with KPMG.  Mr. Mohamad Reduan
Mohd Zabri, Director of MIDA Seoul was one of the
speakers for Samjong KPMG Investment Seminar
2019. A total of 50 KPMG clients participated in the
seminar.

MIDA
E-NEWSLETTER October 2019 | 22
Ms. Zetty Hamimi, Director of MIDA  Negeri
Sembilan shared insights on various facilities 
available for the businesses particularly SMEs at
the XME Business Park Launching event organised
by Sime Darby Properties in Nilai, Negeri Sembilan
on 30 October 2019. The briefing session was
attended by 70 participants.

On 31 October 2019, Mr. Norhizam Ibrahim,


Director of the Advanced Technology and
Research & Development Division of MIDA
presented on Industry 4.0 related incentives at the
Industry4WRD Summit, held in MITEC,
Kuala Lumpur.

MIDA
E-NEWSLETTER October 2019 | 23
Upcoming Events

MIDA
E-NEWSLETTER  October 2019 | 24
Upcoming Events

MIDA
E-NEWSLETTER  October 2019 | 25
Upcoming Events

MIDA
E-NEWSLETTER October 2019 | 26
Newslinks
MIDA IN THE NEWS

MIDA intensifies efforts to increase i-incentives portal users


MIDA inks MoU with IPAQ to promote investment
MIDA makes strong pitch for O&G industry at Amsterdam's Offshore Energy 2019

ECONOMY NEWS

SPV 2030 to close the wealth gap


Malaysia's economic power to grow as country integrates with Asian economies
Malaysia to boost economy in 2020 as Sino-US trade war drags on
Malaysia an attractive investment destination for UK tech companies – Gobind
Mida: Sarawak may get investments worth billions
'Malaysia firms optimistic about business outlook in Q4'
Besides traditional markets, Malaysian companies should invest in new emerging
markets – MIDA
Malaysia's improved doing business ranking to bolster investor confidence – Economist
Malaysia a strong and trusted partner in Southeast Asia -- Austrian ambassador
US, China investors remain confident in Malaysia's business environment – MITI
Malaysia’s attractiveness as investment destination in weak economy

INDUSTRY NEWS

Plastics recycling industry can contribute up to RM20 bil to economy


MREPC to roll out new incentive for rubber product industry
MyNEWS launches Japanese inspired ready-to-eat food production centre
Tyre-maker launches new plant building in style
Heng Huat to become leader in coconut fibre mart via SKT acquisition
Deputy minister: MITI to provide financial aid to companies registered under Industry 4.0
Rolling out tyres globally
Taiwanese company pumps additional RM40 million to set up new plant in Perak
Ann Joo, Southern Steel in JV for long product steel manufacturing
Ni Hsin to invest Rm10mil to expand into marine, O&G sectors
Trade war rejuvenates 'Silicon Valley' firms in Malaysia
US-China trade war offers upside to Malaysian medical device makers: Fitch Solutions
Penang offers value for foreign E&E firms – Expert
Growing interest in MRO and aerospace sector: MIDA

MIDA
Thabet to make Malaysia its hub
Manufacturing sector underpinned by strong private investment: Tun M

E-NEWSLETTER  October 2019 | 27


SERVICES NEWS

SME players can begin journey towards IR 4.0 with a small step - MTDC CEO
PNB, Hilton to open first Conrad Hotels & Resorts in Malaysia
Getting industry to lead TVET
VSolar signs MoU for Seremban solar energy generation facility
Maxis and Huawei ink agreement to roll out 5G network in Malaysia
Govt committed to commercialising local tech products, apps
Government announces enhancement to principal hub incentive
Solarvest collaborates with UOB in promoting solar energy
Cypark inks deals to jointly develop solar projects
Tax incentives set to benefit solar players
TPM set to house AI park
Ikea to spend RM300M on expansion
Malaysia one of the most benchmarked countries in region for alternative
financing — economist

GLOBAL NEWS

Southeast Asia's internet economy to hit US$300b by 2025 — report

MIDA
E-NEWSLETTER October 2019 | 28
ADVERTISE WITH US

MIDA
E-NEWSLETTER October 2019 | 29
HOST WITH US

MIDA
E-NEWSLETTER October 2019 | 30
ABOUT MIDA

ABOUT MIDA
The Malaysian Investment Development Authority (MIDA) is the Government's principal promotion agency
under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the
manufacturing and services sectors in Malaysia. Starting operations in 1967, MIDA is the first point of contact
for investors who want to take advantages of Malaysia's vibrant economy, world-class infrastructure and
business-friendly environment to set up their profit centre in Asia. For more information, visit                              
 www.mida.gov.my
                                   or email us at investmalaysia@mida.gov.my.

MIDA, your first point of contact for investments in Malaysia.

Malaysian Investment Development Authority


MIDA Sentral
No. 5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel: 603 2267 3633 / 2263 2555 / 2263 2549
Fax: 603 2274 7970
E-mail: investmalaysia@mida.gov.my
Website: www.mida.gov.my

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October 2019 | 31