Free Trade Zones (FTZ)

Index cards by country

Malaysia Free Zones

Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Malaysia

Official Terms for Free Zones Year of promulgation of the first text of law concerning the Free Zones Free Industrial Zones Free Commercial Zones 1971

Possibility to be established as Exact number of Free Zones Free Points 28 Yes (Licensed Manufacturing Warehouse)

Table of contents

General information...... 4 List of operating Free Zones...... 5 Free Trade Zones (FTZ):...... 9 Contacts...... 17 Free Zones Web sites selection...... 18

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MYANMAR CAMBODIA VIETNAM

Ho Chi Minh City

PHILIPPINES

THAILAND

19 16 24 17 Bandar Seri Begawan 01 06 04 05 BRUNEI Kuala Lumpur 21 02 Medan 18 03 14 26 22 27 MALAYSIA 09 13 23 08 10 28 20 07 12 15 11 24 SINGAPORE

INDONESIA

INDONESIA Palembang

FREE ZONES IN MALAYSIA 200 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones

01 - Bayan Lepas FIZ 15 - Port of Tanjung Pelepas (PTP) 02 - Sungai Way FIZ 16 - Rantau Panjang Free Commercial Zone 03 - Ulu Kelang Free Industrial Zone 17 - Butterworth Free commercial zone 04 - Kinta Free Industrial Zone 18 - Pulau Indah MILS Logistics Hub (MLH) 05 - Jelapang II 19 - Pengkalan Kubor Free zone 06 - Prai Free Industrial Zone (alternatively known as Perai 20 - Stulang Laut FCZ FIZ, or as Seberang Prai FIZ) 21 - Northport Free zone 07 - Sama Jaya Free industrial zone 22 - Westports Free zone 08 - Telok Panglima Garang Free Industrial Zone 23 - Southpoint Free zone 09 - Batu Berendam Free Industrial Zone 24 - Bayan Lepas Free Trade zone 10 - Tanjung Klingand Free Industrial Zone (alternatively 25 - Johor Port Free zone known as Tanjung Kling Free Trade Zone) 26 - Digital Free Trade Zone (DFTZ) 11 - Pelepas Free Industrial Zone 27 - Kuala Lumpur International Airport (KLIA) 12 - Pasir Gudang Free Industrial Zone Free Commercial Zone. 13 - Pulau Indah Free industrial zone 28 - Senai Free Zone (SFZ) 14 - Port Klang Free zone (PKFZ)

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General information Free zones official definition:

“A free zone is a designated, secured area in which commercial and industrial activities are carried out and gazetted by the Minister of Finance as stated under section 3(1) Free Zones Act 1990 (Act 438). There are two types of free zone that is the free zone for commercial activities (FCZ) and free zone for industrial activities (FIZ). Customs control at the free zone is at the minimum and basically only at the exit point”. Source: Royal Malaysian Customs. The Guide on Free Commercial Zone revised. 5 January 2016. http://gst.customs.gov.my/en/rg/SiteAssets/specific_guides_pdf/FREE_COMMERCIAL_ZONE_05012016.pdf

Licensed Manufacturing Warehouse (LMW) definition:

“Licensed Manufacturing Warehouse (LMW) is a premise licensed under section 65 and 65A of the Customs Act 1967 and is a facility provided for export orientated industries. It is documentarily controlled by Royal Malaysian Customs and is subjected to all customs laws and regulations.” http://gst.customs.gov.my/en/rg/SiteAssets/specific_guides_pdf/FREE_INDUSTRIAL_ZONE_MANUFACTU_WAREHOUSE_05012016.pdf

“In efforts to encourage a more balanced dispersal of export-oriented industries in all the states in the country, the Royal Malaysian Customs has introduced the LMW facility in states where the setting up of FIZ are neither feasible nor practical. The setting up of LMWs is provided for under Section 65 and 65A of the Customs Act 1967”. “A manufacturing company which exports at least 80% of its production and import the bulk of its raw materials/components qualifies to apply for the LMW facility. However a company which has obtained an approval from MITI for a lower export condition, the level of export, which is normally not less than 60% will be allowed by the Customs for the approval of LMW”. http://share.nanjing-school.com/dpgeography/files/2012/10/info.worldbank.org-s9hsat.pdf

Number of free 27 Free zones: zones -13 Free Industrial Zones (FIZ), with different phases of development and different sites; -14 Free Commercial Zones (FCZ).

-Licensed Manufacturing Warehouse (LMW): no statistics

N. of act. comp. in No information Free Zones

Main sectors of Electronics and Electrical Industry, Petrochimicals, Food products, Plastics, Medical activity equipment, General assembly industries, Services, Logistic, Warehousing, e-commerce, etc..

Total job numbers No recent information. But 350 000 job in 2007 Through the SEZ’s special incentives, it is hoped to attract MYR90bn (USD26bn) in domestic and international investments by 2020, and to create more than 220,000 new job opportunities. http://www.lowtax.net/information/malaysia/malaysia-special-economic-zones.html

Distribution of China, Singapore, Hong Kong, USA, Japon, Australia, Thailand, etc. investors

Exports and sales In 2010, 58% of total export of Malaysia

Free zones contri- No recent information bution to the nat. eco.

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Corporate Tax and Eligibility for Free Industrial Zones Incentives • To qualify for location in a FIZ, a company has to export at least 80% of its output and its raw materials/ components are mainly imported, even though the government does encourage the use of local raw materials/components. If a FIZ company has obtained an approval from the Ministry of International Trade and Industry to reduce its export condition to 60%, it can also apply to the Customs to be allowed to export 60% instead of 80%. • Companies operating in a FIZ can enjoy duty-free imports of raw materials, including packaging materials and machinery and equipment used directly in the production of approved products as in their Manufacturing Licence (ML) (unless these manufacturers are exempted from ML). The FIZ manufacturers are also exempted from the payment of sales tax, excise duty and service tax. • FIZ will have minimal customs control and deemed to be a place outside Malaysia and is not subjected to the applications of the Customs Act 1967, Excise Act 1976, Sales tax Act 1972 and Services Tax Act 1975, except with regards to the Prohibition of Imports and Exports under Section 31 of the Customs Act 1967. http://share.nanjing-school.com/dpgeography/files/2012/10/info.worldbank.org-s9hsat. pdf

Eligibility for Licensed Manufacturing Warehouses

Companies normally approved for LMWs are those: • whose entire production or not less than 80% are meant for export • whose raw materials/components are mainly imported

http://indianhighcommission.com.my/Pdf/malaysiahandbook.pdf

Free Zone law -Free Trade Zone Act 1990 and Free Zones Regulations 1991 http://www.commonlii.org/my/legis/consol_act/fza1990125/ https://www.google.fr/?gws_rd=ssl#q=telok+panglima+garang+free+industrial+zone&s- tart=10&* -Free Trade Zone Act 1971

List of operating Free Zones 1 - Bayan Lepas FIZ Location Bayan Lepas, Penang Island.

Surface Area 1.300 acres (Phase 1; Phase 2; Phase 3; Phase 4) https://www.google.com/maps/d/viewer?mid=1poEoDlSC6utLWZjSXFY6u4W3_v4&hl=en&ll=5.308394 396881062%2C100.29099799999995&z=14

Contacts Free Industrial Zone phase 1-4 Bayan Baru, 11900 Bayan Lepas, Penang, Malaysia Tel. : +60 13-405 3459

Observations The island of Penang was a free port until 1969. Bayan Lepas Free Industrial Zone, or FIZ, has started in 1972 It’s a high-tech industrial zone on the southern part of Penang Island. The Bayan Lepas Industrial Zone is the main labour market in Penang, drawing from a pool of skilled and semi-skilled workforce locally and from the neighbouring states. Since its inception in the 1970s, the Bayan Lepas FIZ has grown to become the “Silicon Val- ley of the East” (Motorola, Intel, AMD, Osram, Hewlett Packard, Bosch, Hitachi, Clarion, etc.

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2 - Sungai Way FIZ Selangor. Location Located right along Damansara-Puchong highway, which connects commuters to many other major highways, such as Sprint highway, NKVE, MRR2, and federal highway.

Surface Area -Sungai Way I -Sungai Way II

Contacts Sungai Way Free Trade Zone Jalan SS8/6, Petaling Jaya, 47300 Selangor

Observations Opened in 1972. Sungai Way Free Trade Zone comprises large factories capable of catering to a wide range of manufacturers. Many factories within the area come with approximately from 1-acre to 7-acres of land; most of which comes equipped with offices, canteen, warehouses and parking. http://www.propwall.my/petaling_jaya/sungei_way_free_trade_zone/1801

3 - Ulu Kelang Free Industrial Zone Location Kuala Lumpur

Surface Area -

Contacts Ulu Kelang Free Trade Zone 54200 Kuala Lumpur, Malaysia

Observations -

4 – Kinta Free Industrial Zone Perak. Location Coordinates: 4°40'24"N 101°7'28"E

Surface Area -

Contacts Kinta Free Industrial Zone Jalan Klebang 1/5 31200 Chemor, Perak Malaysia

Observations Activities: Stainless Steel, Electronic, Handling Equipment, Cd Players Dsp Amplifier, Tungsten Carbide Cutting Tools, Fabrication of Telescopic, Chip Resistors, optical subsys- tems, etc.

5 - Jelapang II Location Perak

Surface Area -

Contacts Free Industrial Zone Jelapang 2 30020 Ipoh, Perak. http://www.mbi.gov.my/en/businesses/free-trade-zone

Observations Activities: Stainless Utensil, Ferrite Cores, Telephone Accessories, Antenna Coil Assembly, Jack Connector Sockets, Plastic Injection, Rubber Connectors/Sheets, Power/window was- her, Permeable Hose, Electronics Stamped Parts, etc.

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6 - Prai Free Industrial Zone (alternatively known as Perai FIZ, or as Seberang Prai FIZ) Location Located in Central Seberang Perai District, Penang, Malaysia.

Surface Area

Contacts Prai Free Industrial Zone 1, 13600 Perai, Pulau Pinang, Malaysia

Observations Activities: Toys, Electronic, Printing and Photo Process, Food & Beverages products, Manu- facturing and marketing of Polyester Staple Fibre, Manufacturing and marketing of ABS resins, etc.

7 - Sama Jaya Free industrial zone Sarawak 9.1 KM to Kuching Main Town Location 11 KM to Kuching Air Port 4.3km to Muara Labuan Light Industrial Park

Surface Area 813 hectares

Contacts Sama Jaya Free Industrial Zone 93350 Kuching, Sarawak, Malaysia

Observations Business priorities: Hi-Tech & Electronics Sama Jaya FIZ is a hub for solar industries. It’s a Cluster development of the electrical and electronics industry, one of the Malaysia National Key Economic Areas (NKEA). Sama Jaya Free Industrial Zone attracts major multinational technology companies wanting to build manufacturing operations. Processes ranging from silicon wafer foundry to circuit semiconductor design are now fully established and steps are being taken to promote solar industries. http://www.etawau.com/Geography/Sarawak/01_Kuching/Kuching/AerialView/Sama_Jaya.htm

8 - Telok Panglima Garang Free Industrial Zone Location Selangor

Surface Area -

Contacts Telok Panglima Garang Free Industrial Zone, Jalan Emas, Kuala Langat, 42500, Telok Panglima Garang, Selangor, 42500, Malaysia Tel.: +60 3-3122 6201

Observations Opened in 1973. Electronic and semiconductor industry.

9 - Batu Berendam Free Industrial Zone Location Batu Berendam, Mukim of Bachang, Central Manufacturing District of Malacca.

Surface Area Batu Berendam I, Batu Berendam II

Contacts Jalan Melaka Baru, Batu Berendam 51580 Malaysia

Observations Opened on 1973. Two sites : Batu Berendam I, -Batu Berendam II, Electronic 7 WFZO Index cards - Malaysia

10 - Tanjung Klingand Free Industrial Zone (alternatively known as Tanjung Kling Free Trade Zone) Tanjung Kling is a mukim in Central Malacca, Location

Surface Area -

Contacts Tanjung Kling Free Trade Zone, Tanjung Kling, Melaka, 76409 Tanjong Kling, Malaysia

Observations No information

11 - Pelepas Free Industrial Zone Location Port of Tanjung Pelepas (PTP)

Surface Area 600 acres

Contacts Pelabuhan Tanjung Pelepas Sdn Bhd (328719–K) Block A, Wisma PTP, Jalan Pelabuhan Tanjung Pelepas TST 507, 81560 Gelang Patah Johor, Malaysia Tel +607-504 2222 - Fax +607-504 2288 [email protected]

Observations Manufacturing (Flextronics, JST Connectors, Schenker Logistics, CIBA Vision and many others). http://sitenet.com/features/2009/nov/Port-of-Tanjung-Pelepas-Malaysia/

12 - Pasir Gudang Free Industrial Zone Mukim Plentong, Johor Bahru District, Johor, Malaysia. Location 35 km east of Johor Bahru.

Surface Area -

Contacts Free Trade Zone Tg Langsat, Pasir Gudang, Johor

Observations Opened in 1974. The Pasir Gudang port in Johor, Malaysia is a fully integrated multi-purpose port with bulk and break bulk facilities. It has a handling capacity of 1.2 million TEUs and has the world's largest palm oil storage facility in its free trade zone.

13 - Pulau Indah Free industrial zone Location Port Klang, Selangor

Surface Area -

Contacts Port Klang Free Zone (M) Sdn Bhd, Perlabuhan Klang 42009 Selangor, Malaysia [email protected] http://www.pkfz.com/

Observations This Free zone is the integrated Free industrial zone of the Port Klang Free zone (PKFZ).

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Free Trade Zones (FTZ): 1 - Port Klang Free zone (PKFZ) Kuala Lumpur. Location PKFZ is situated in Port Klang, adjacent to port, the world’s 12th ranked port in 2014 in terms of throughput volume.

Surface Area 1,000-acre

Contacts Port Klang Free Zone (M) Sdn Bhd Perlabuhan Klang 42009 Selangor Malaysia [email protected] http://www.pkfz.com/

Port Klang Free Zone (M) Sdn Bhd Perlabuhan Klang 42009 Selangor Malaysia Tel.: 603-31015568 - Fax: 603-31014489 Email: [email protected]

Observations Port Klang Free Zone or PKFZ is an integrated 1,000-acre Free Commercial (FCZ) and Industrial Zone FIZ) providing facilities for international cargo distribution and consolidation centre. PKFZ is situated in Port Klang, adjacent to port, the world’s 12th ranked port in 2014 in terms of throughput volume. The project is a mixed development comprising of manufacturing activities comple- mented by amenities designed to facilitate the growth of regional distribution centres or international procurement centres. PKFZ has been designed to promote entreport trade and manufacturing industries involved in producing goods primarily for export. Gazetted as a Free Zone, PKFZ incorporates both commercial and manufacturing activities that are further supported by quality and value-added services. PKFZ offers consolidated facilities where factories and logistics firms can be located in the same zone so as to allow for easier co-ordination and smoother supply chain management. http://www.pkfz.com/pkfz-profile/

Incentives available to investors include: • Duty, sales tax and service tax exemption • 100% foreign equity • 100% repatriation of capital and profits (except for certain products) • Industrial Allowances • Tariff Extensions • Export Incentives • R&D Incentives • Training Incentives • Halal Incentives

Other services under PKFZ’s one-stop centre include: • Solutions for human resource requirements • Environmental Protection • Equipment Usage

http://www.pkfz.com/investment-incentives-2/

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2 - Port of Tanjung Pelepas (PTP) Location Gelang Patah, Johor. South of the country.

Surface Area 400 acres.

Contacts Pelabuhan Tanjung Pelepas Sdn Bhd (328719–K) Block A, Wisma PTP Jalan Pelabuhan Tanjung Pelepas TST 507, 81560 Gelang Patah Johor, Malaysia Tel +607-504 2222 - Fax +607-504 2288 [email protected]

Observations Malaysia’s most advanced container terminal, The Port of Tanjung Pelepas (PTP) is strategically located at the confluence of the main east-west shipping lanes, offering Shipping Lines minimal deviation time of 45 minutes. PTP is situated in a sheltered bay and has no tide restrictions. Local cargo movement to major industrial estates is accessible through the second Ma- laysia-Singapore expressway and the north-south highway. In addition to road, sea and air inter-modal linkages, PTP is also connected to the national rail grid passing through Peninsular Malaysia from Singapore to Southern Thailand. PTP has 14 linear berths totaling 5.04 km. The terminal is equipped with 57 Super Post Panamax cranes, 10 of which have a 22-box outreach catering for the next generation of Super Post Panamax vessels. These cranes also have twin-lift capability to further enhance productivity. PTP’s currently averages over 32 moves per hour/crane, and berth productivity stands at 100 moves per hour minimum.

http://www.ptp.com.my/about-us/introduction

PTP was accorded with Free Zone status in 1997 and the Free Zone Authority in 1998 to administer, manage and operate its Free Zone area. The Free Zone laws are governed by Free Zone Act 1990 that is enforced by Ministry of Finance, Malaysia. The Free Zone in PTP promulgates the local container trade volumes of the port and forms part of the hinter- land cargo catchment area.

Free Zone land comprises of 5 phases with a total acreage of 1,583. Phase 1 and Phase 2 which account for approximately 635 acres are developed with basic infrastructure such as electricity supply, water supply, telecommunications facilities, roads and drainage. To date, more than 80% of the developed land in phase 1 and 2 has been subleased to various local and global companies. Phase 3, 4 and 5 which constitute 948 acres, can be potentially developed to expand the current Free Zone development.

Warehousing and logistics which comprise of regional procurement, consolidation, distribution and trading centers. Export driven light to medium scaled manufacturing industries such as food processing, packaging and other value added activities

http://www.ptp.com.my/services/free-zone/freezone

3 - Rantau Panjang Free Commercial Zone Location District of Pasir Mas, Kelantan.

Surface Area 263 hectares

Contacts Rantau Panjang Kelantan 17200 Malaysia

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Observations Commercial activities such as trading (excluding retail trade), break-bulking, grading, relabeling, repacking and other value-added activities are allowed to be carried out in FCZ. “The entire development would cover 263 hectares and address issues related to urban design and wellbeing of the population, flood mitigation, planned residential and commercial use, and security issues. Apart from plans to attract 4-star hotels and restaurants and parks and recreation facilities, a proposed furniture factory would help to improve local productivity, worker skills and family incomes. There are also plans to reinstate the use of the railway as a means of attracting tourists”. https://www.adb.org/sites/default/files/related/41573/scoping-study-sbez-imt-gt.pdf

4 – Butterworth Free commercial zone Location North Butterworth Container Terminal, Penang Port.

Surface Area -

Contacts Penang Free Commercial Zone (Butterworth Wharves Bagan Dalam) 12100 Butterworth, Pulau Pinang, Malaysia

Observations Butterworth is a town in North Seberang Perai, Penang.

5 – Pulau Indah MILS Logistics Hub (MLH) Location Located in Pulau Indah, Selangor

Surface Area 1 acre site, opposite Westport Control Tower. • MLH Phase 1 development: - 23,000 square meters. - Dry area - 23,000 pallet positions • MLH Phase 2 development: - Frozen and Chilled storage - 11,000 pallet positions

Contacts MILS Logistics Hub (MLH), Lot 8807, Jalan Perigi Nenas 7/1, Taman Perindustrian Pulau Indah, 42907 Pelabuhan Klang, Selangor, Malaysia. Tel.: +60 (3) 3161 2400 - Fax : +60 (3) 3161 2500

Observations MILS Logistics Hub (MLH) - a new generation, world class logistics facility offering a com- plete range of logistics services which is supported by a single integrated IT platform with a world-wide reach via the web. Located in Pulau Indah, Selangor, the development of MLH has been divided into 3 phases, with the completion of the final phase resulting in the formation of a 90,000 square meter multi modular storage and processing facility. The first phase, completed in June 2007, provides 23,000 square meters of warehouse space. Other available services include inventory management, haulage and distribution services, freight and customs management and a container yard. Other value added services include cold storage, Vendor Managed Inventory (VMI), light assembly, Post Delivery Inspection, yard management, sterilization and fumigation.

• Serving primarily consumer goods, consumer electronics and related sectors. • A one stop-shop offering a full range of logistics services door-to-door Asia-wide, including custom delivery where required. • Flexible world class facilities featuring ultra-high security combined with best practice environmental compliance. • Free Commercial Zone Status. • Supported by web based supply chain execution and visibility systems providing linkage to customers' ERP solutions. • Provides a competitive Regional Hub solution as compared to neighbouring countries. • Sterilization and Fumigation services. • Dry, frozen and chilled storage and warehousing services. • Global network of Logistics Hubs (Middle East, Europe, others).

http://www.daganghalal.com/Directory/ProductDetails.aspx?cid=1089&pid=7572

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6 – Pengkalan Kubor Free zone Border town on the Malaysia-Thailand border. Kampung Pengkalan Kubor in the region of Kelantan is a place located in Malaysia - some Location 215 mi (or 347 km) North of Kuala Lumpur, the country's capital. http://www.maplandia.com/malaysia/pengkalan-kubor/

Surface Area -

Contacts Tel: +609 747 7554 (Tourism Malaysia, Kelantan)

Observations Duty free zone. Located on the Malaysia-Thai border, this duty-free zone is the place to go for a wide variety of t-shirts, souvenirs, household items and more. Unlike air-conditioned exclusive duty-free shops at the airport, these are open-air stalls where visitors can immerse them- selves in the local style of shopping and haggle for the best prices.

7 - Stulang Laut FCZ Location Johor Bahru (5 km from Johor Bahru Town Centre).

Surface Area -

Contacts Stulang Laut FCZ Johor Bahru – 80300, Malaysia Tel.: 07-2218000 Facebook : https://www.facebook.com/pages/The-Zon-Mall-JB-Duty-Free- Zone/301461209940000

Observations -

8 – Northport Free zone Port Klang Location http://www.northport.com.my/npv2/contactus.html

Surface Area -

Contacts Port Klang Authority Jalan Pelabuhan Utara, Selangor 42005 Port Klang Malaysia Tel. : 603 - 3168 8211 - Fax : 603 - 3168 7626 Email : [email protected]

Free zone Department: Tel.:03-3168 8211 Ext.: 1016 - Fax: 03-31650542 Email: [email protected] http://www.northport.com.my/npv2/conventionalcargoservices.html

Northport (Malaysia) Bhd (146850-A) Jalan Pelabuhan, Pelabuhan Utara, 42000 Port Klang, Malaysia. Tel: 603 - 3169 8888 - Fax: 603 - 3169 8080 E-mail: [email protected]

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Observations Port Klang consists of three ports operate by private operators namely Northport, West- ports, and Southpoint. The status of Free Commercial Zone was given to Northport on 1 April 1993, Westports on 20 June 1996 and Southpoint on 19 February 2004. Port Klang Authority was assigned as the Free Zone Authority to administer the Free Zones (Northport, Westports and Southpoint) in Port Klang. During privatisation by the government of Malaysia (early 1990s), Port Klang was subdivi- ded into 3 terminals which are now known as Northport, Southpoint and Westports. http://www.pka.gov.my/index.php/facilities-/free-zone.html

Non-containerised cargoes are handled at two facilities in Northport – a dedicated conventional cargo terminal in Southpoint, and the conventional cargo terminals in Northport for break bulk, liquid and dry bulk cargoes. Southpoint, formerly known as Southport, is the oldest section of Northport. Southpoint which has undergone massive rehabilitation and renewal offers a very broad range of facilities and services for handling a variety of conventional cargoes including liquid bulk, dry bulk and break bulk cargoes. http://www.northport.com.my/npv2/conventionalcargoservices.html

• Business priorities: • Direct transshipment • Consolidation of cargo for subsequent shipment • Trading • Regional distribution • Inspection and sampling • Sales and re sales • Storage and deferment of duty • Value adding -- Break-bulking -- Packing/re-packing -- Packaging/repackaging -- Sorting/grading -- Labelling/relabeling -- Repair of goods in storage and transit

9 - Westports Free zone Located on the island of Pulau Indah (formerly Pulau Lumut) and strategically located Location along the Straits of Malacca, Westports today has positioned itself as the "pit stop" for Container vessels plying the world's busiest shipping lane.

Surface Area

Contacts Westports Malaysia Sdn Bhd (Formerly known as Kelang Multi Terminal Sdn Bhd) P.O. Box 266, Pulau Indah, 42009 Port Klang, Malaysia. Tel.: 603 - 3169 4000 / 3169 4200 - Fax : 603 - 3169 4119 http://www.westportsmalaysia.com/

Port Klang Authority Jalan Pelabuhan Utara, Selangor 42005 Port Klang Malaysia Tel. : 603 - 3168 8211 - Fax : 603 - 3168 7626 Email : [email protected]

Free zone Department: Tel.:03-3168 8211 Ext.: 1016 Fax: 03-31650542 Email: [email protected]

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Business priorities: • Direct transshipment • Consolidation of cargo for subsequent shipment • Trading • Regional distribution • Inspection and sampling • Sales and re sales • Storage and deferment of duty • Value adding -- Break-bulking -- Packing/re-packing -- Packaging/repackaging -- Sorting/grading -- Labelling/relabeling -- Repair of goods in storage and transit

10 – Southpoint Free zone Location Port in Klang District, Selangor, Malaysia.

Surface Area -

Contacts Port Klang Authority Jalan Pelabuhan Utara, Selangor 42005 Port Klang Malaysia Tel. : 603 - 3168 8211 - Fax : 603 - 3168 7626 Email : [email protected]

Free zone Department: Tel.:03-3168 8211 Ext.: 1016 - Fax: 03-31650542 Email: [email protected]

Port Klang Authority was assigned as the Free Zone Authority to administer the Free Zones (Northport, Westports and Southpoint) in Port Klang. During privatisation by the government of Malaysia (early 1990s), Port Klang was subdivi- ded into 3 terminals which are now known as Northport, Southpoint and Westports. http://www.pka.gov.my/index.php/facilities-/free-zone.html

Southpoint also acts as a niche port to handle transhipment activity for the Indonesian barge traffic due to its proximity to the Sumatran ports of Tanjong Balai, Dumai, Pekan Baru, Buatan and Perawan. Located in the centre of Port Klang town, Southpoint which is aptly termed "port-in-town", has its advantages whereby hundreds of freight forwarders and shipping agencies, banks, and other Government agencies such as the Customs, Im- migration, Harbour Masters, are all located nearby.

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Observations Southpoint has eight wharves (from Wharf 1 to Wharf 7A). The first four have a depth between 9m and 10.5m to cater for ocean-going vessels up to 40,000 displacement tonnes whilst Wharves 5 to 7A with depths of about 6m can accommodate coastal ships of up to 6,000 displacement tonnes. http://www.northport.com.my/npv2/conventionalcargoservices.html

11- Bayan Lepas Free Trade zone Location Located on the southern part of Penang island

Surface Area -

Contacts Bayan Lepas Free Trade Zone, 11900 Kampung Jawa, Bayan Lepas, Pulau Pinang

Observations -

12 - Johor Port Free zone Johor Bahru District, Johor, at Pasir Gudang Location http://www.johorport.com.my/contact-us/google-map

Surface Area -

Contacts Johor Port Berhad P.O. Box 151, 81707, Malaysia, Pelabuhan Johor Pasir Gudang, 81707 Pasir Gudang, Johor Tel: +607 - 253 5888 - Fax: +607 - 251 0980 Email: [email protected] http://www.johorport.com.my/

Observations Built by the Johor Port Authority and run by Johor Port Berhad in 1977, it is the first port in Johor and is designed as a multi-purpose port that caters to practically all types of cargo. It is the first port in Malaysia to be located within a free trade zone. Johor Port's warehouses are exempted from customs duties.

13 - Digital Free Trade Zone (DFTZ) Location In KLIA Aeropolis

Surface Area 17.5ha site of the former Low-Cost Carrier Terminal (LCCT).

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Contacts Zalinda Zainon General Manager, Corporate Communications Malaysia Digital Economy Corporation (MDEC) Tel: 03 8315 3229 Email: [email protected]

Observations Since March 2017

Centralised customs clearance, warehousing and e-fulfillment facility. It will later lead to the launch of Alibaba’s regional e-fulfillment centre at the end of 2019.

The implementation of e-commerce under the Masterplan has been brought forward from 2020 and beyond to 2017. This will boost the local e-Commerce sector as one of the main catalysts for the digital economy and increase gross domestic product (GDP) contri- bution. DFTZ will be a regional logistics hub to cater for the e-commerce business. When DFTZ is fully developed by 2025, the e-fulfillment hub is anticipated to handle and move up to US$65 billion worth of goods around the ASEAN region. It will facilitate cross-border movement of goods as well as ensure seamless air connectivity. It could deliver packages within 72 hours to ASEAN countries through the good air connectivity at KLIA and sea connectivity via Port Klang. Additionally, DFTZ is expected to create 60,000 jobs. http://www.mot.gov.my/my/Kenyataan%20Media/Tahun%202017/Media%20Statement%20By%20 Ministry%20of%20Transport%20on%20Digital%20Free%20Trade%20Zone.pdf

• “The DFTZ is the world’s first special trade zone that will promote the growth of e-commerce by providing a state-of-the-art platform for SMEs and enterprises to conduct the businesses and services. • This will be Alibaba’s first e-hub outside its home base in China. It’s meant to allow SMEs (small and medium enterprises) and “the younger generation” more access to global markets by lowering trade barriers. • It’s part of Jack Ma’s plan to build an Electronic World Trade Platform (eWTP). • It’s part of the National E-commerce Strategic Roadmap which aims to double Malay- sia’s e-commerce growth from 10.8% to 20.8% by 2020. • Malaysia plans to formulate an attractive package for the DFTZ to encourage more people to join the country’s e-commerce sector. • Future plans include establishing an “independent satellite support service” which will complement the DFTZ facility”. https://vulcanpost.com/606229/malaysia-najib-razak-jack-ma-digital-free-trade-zone-breakdown/

“DFTZ has potential to double the growth rate of local SME’s goods exports by 2025 and create 60,000 jobs by then. Currently, SMEs contribute 37% GDP today where 97% of businesses are SMEs and microenterprises. With DFTZ, it can grow up to 60% to 80%. The DFTZ will also be connected directly to Hangzhou’s Cross-Border E-commerce Pilot Zone (which is also the location of Alibaba’s headquarters) via Alibaba’s OneTouch e-services platform. It’ll digitize many of the trading operations like customs clearance, foreign exchange services, financing services and logistics solutions which will ease bilateral trade”. https://vulcanpost.com/606229/malaysia-najib-razak-jack-ma-digital-free-trade-zone-breakdown/ http://www.mdec.my/news/malaysia-launches-worlds-first-digital-free-trade-zone

14 - Kuala Lumpur International Airport (KLIA) Free Commercial Zone. Location Kuala Lumpur, Sepang, Selangor Darul Ehsan

Surface Area 203 acres

16 WFZO Index cards - Malaysia

Contacts Malaysia Airports (Sepang) SDN. BHD. 3rd & 4th Floor, Airport Management Centre, KL International Airport, 64000 KLIA, Sepang, Selangor Darul Ehsan.

Nor Azlina Binti Mohd Isa General Manager Engineering, Malaysia Airports (Sepang) Sdn Bhd Tel.:03-87762000 - Fax: 03-8776 8111 Email: [email protected]

Observations The Free Commercial Zone at KLIA is also certified with MS ISO 9001:2000 Quality Mana- gement System.

15 - Senai Free Zone (SFZ) Location Situated adjacent to Senai International Airport

Surface Area 80 acres (Phase 1) and 528 acres (Phase 2)

Contacts Senai Airport Terminal Services Sdn. Bhd. (242383M) Senai International Airport, 81250, Johor Bahru, Johor Darul Ta'zim, Malaysia. Tel +607 599 4500 - Fax +607 599 6624 http://www.senaiairport.com/corporate/about-us/contact-us

Observations Ideal for regional distribution centre, warehousing activities, logistics provider and export-oriented manufacturing base.

“The Senai free zone (SFZ) is managed by Senai Airport Terminal Services Sdn Bhd (SATS). As part of the Senai International Airport, SFZ is just five minutes away from Senai Cargo Terminal and within a four-hour flight radius of Hong Kong, Guangdong, North Australia, India, the Philippines, Indonesia and Indochina. “SFZ has a strategic and cost advantage. With Tanjung Pelepas, Johor Port, KTM Railway and Senai International Airport within proximity, SFZ creates better logistics for movement of cargo to all over the world. As it is located outside the primary commercial centres SFZ assures lower land, labour and operational costs”. http://www.airport-technology.com/projects/senai-international/

“Senai Airport Terminal Services Sdn Bhd (Senai Airport Terminal Services), a Member of MMC Group is the airport operator for Senai International Airport or formerly known as Sultan Ismail International Airport. Built in 1974, the airport was operated by Malaysia Air- ports Holdings Berhad until November 2003 and subsequently acquired by Senai Airport Terminal Services which later acquired by MMC Corporation Berhad in 2009. Senai International Airport serves as the aviation gateway for Iskandar Malaysia and southern region, and is dedicated to providing routes and services essential to cater the needs of both tourism and business traveller. Equipped with 3,800-metres runway, Senai International Airport can handle aircraft ranging from small Cessna’s to large jets such Airbus A380 and Antanov 125”. https://www.mmc.com.my/page32.html

Contacts Ministry of Industrial & Entrepreneur Development, Trade & Investment Sarawak (Mieti Sarawak) Malaysia 12th & 13th Floor, Wisma Sumber Alam, Jalan Stadium, Petra Jaya 93500 Kuching Sarawak, Malaysia Tel: (60)-82-313212 Fax: (60)-82-445337 / 312723

17 WFZO Index cards - Malaysia

Royal Malaysian Customs Department Website: www.gst.customs.gov.my GST Hotline: 03-88822111 Customs Call Centre: Tel: 03-78067200 / 1-300-888-500 Fax: 03-78067599 Email: [email protected]

Malaysian Investment Development Authority No.5, Jalan Stesen Sentral 5 Kuala Lumpur Sentral 50470 Kuala Lumpur Malaysia Tel: 603 2267 3633 Fax: 603 2274 7970 Email: [email protected]

GST Division Royal Malaysian Customs Department Level 3 – 7, Block A, Menara Tulus, No. 22, Persiaran Perdana, Presint 3, 62100 Putrajaya. Email: [email protected]

Free Zones Web sites selection • https://www.export.gov/article?id=Malaysia-Foreign-Trade-Zones • http://www.amrc.org.hk/sites/default/files/Malaysia%20Free%20Industrial%20Zone.pdf • http://www.mima.gov.my/mima/wp-content/uploads/catalyzing%20economic%20transformation.pdf • http://www.mida.gov.my/home/developed-infrastructure/posts/ • http://www.asean.or.jp/ja/wp-content/uploads/2013/09/2d4f2ab0b375d5c9869b4fb1bb076cc1.pdf • http://www.ptp.com.my/about-us/introduction • http://www.mida.gov.my/home/why-malaysia/posts/ • http://www.sarawak.gov.my/web/home/page/200/investor/ • http://www.pkfz.com/ • http://www.khtp.com.my/ • http://www.mida.gov.my/home/why-malaysia/posts/ • https://www.adb.org/sites/default/files/related/41573/scoping-study-sbez-imt-gt.pdf • http://indianhighcommission.com.my/Pdf/malaysiahandbook.pdf • http://www.tradecouncil.org/downloads/Investing%20in%20Iskandar%20Malaysia%20R121015.pdf