Table of Contents

About Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic ABOUT KEDAH - KEY FIGURES

“Rice bowl of

AREA : CAPITAL : 9,426 sq km

GDP: GDP GROWTH: Districts : RM37,170 M 3.2 % (2016) (2016) 12

CLIMATE: POPULATION FDI: 2.1 million RM24 billion Tropical 2008-2016 Monsoon ABOUT KEDAH – GROSS DOMESTIC PRODUCTS (GDP)

By Year Contribution by Sector (2016) 2013-2016

(RM 1.1 M) 3% RM (Million) 13% 38000 37170 Others (RM 4.8 M) 37000 36008 36000 55% Agriculture 35000 34098 (RM 20.4 M) (RM 0.9 M) 34000 29% 32740 33000 Manufacturing 32000 31000 30000 Services 2013 2014 2015 2016

GDP

Agriculture Manufacturing Services Others

Source : Department of Statistics Malaysia ABOUT KEDAH - LOGISTICS NETWORK

Roads • State road 7,880.942 Km

• Federal road PLUS 1,157.049 Km

Expressway TEKIH

• Length: 293 km (PLUS) 32 km (BKE) 74 km (TEKIH) 24 km (-Changlun)

Penang Rail Port • 6 ETS stations in Kedah linked from Padang Besar to Gemas

• 4 hours (Alor Setar – KL Sentral) ABOUT KEDAH - UTILITIES

RELIABLE UTILITIES A reliable utilities system is in place to ensure uninterrupted supply of electricity, clean high speed internet access.

GAS Telecommunication

Reliable gas supply & High speed internet access network coverage

Electricity Water

Stable & uninterrupted Clean & ample water electricity supply Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic PROJECTS APPROVED IN KEDAH

2016

RANK No. of Project Employment Domestic FDI TOTAL RM RM RM 6 / 14 35 2,428 state 615 Million 1.5 Billion 2.1 Billion

2017 (Jan-Sept)

RANK No. of Project Employment Domestic FDI TOTAL RM RM RM 6 / 14 26 1,543 state 864 Million 424 Million 1.2 Billion

Source : PROJECTS APPROVED BY MAJOR INDUSTRIES IN KEDAH,

(2016) (2017)

4% 4% 1% 5% 2% 2% 24% 15%

3%

13% 3% 7%

2%

69%

46% Food Manufacturing Leather & Leather Products Chemical & Chemical Products Wood & Wood Products Chemical & Chemical Products Electronics & Electrical Products Fabricated Metal Products Non-Metallic Mineral Products Fabricated Metal Products Machinery & Equipment Machinery & Equipment Electronics & Electrical Products Miscellaneous Transport Equipment Scientific & Measuring Equipment Non-Metallic Mineral Products Rubber Products Miscellaneous Transport Equipment Source : PROJECTS APPROVED BY MAJOR COUNTRIES

(2016) (2017) Others Canada Cayman Jan-Sept 1% 1% Island Germany Taiwan Japan 1% 3% 1% 4% China 3% Singapore

20% Japan 48%

China Germany 28% 90%

Total : RM 425 M Total : RM 1.15 B Country Investment Country Investment Country Investment (RM) (RM) (RM) China 116 Million Canada 19 Million Singapore 1.2 Million Germany 13 Million Cayman 9.2 Million Taiwan 7.8 Million Japan 205 Million Island United 6.2 Million Singapore 86 Million China 41 Million States Taiwan 2.8 Million Germany 1.4 Billion Others 1.2 Million Others 1.1 Million Japan 66 Million Source : Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic ADVANTAGES OF INVESTING IN KEDAH

FAST APPROVAL COST-EFFECTIVENESS

WE OFFER

SWIFT CONNECTIVITY RELIABLE UTILITIES POLITICAL & ECONOMIC STABILITY

QUALITY TRAINABLE BUSINESS INCENTIVES WORKFORCE PROMOTED ACTIVITIES

Logistics Electrical & Tourism Electronic

Education & Equipment / Training Machineries 12 Green PROMOTED Healthcare / Technology ACTIVITIES Medical Devices

Aquaculture / Automotive Horticulture

Rubber & Rubber Advance Downstream Agriculture Activities Halal Products INCENTIVES

Kedah enjoys incentives that provided by MIDA. Major incentives are as follows:

Pioneer Status (PS) Reinvestment Allowance (RA) or Round Incentives

Investment Tax Allowance (ITA) Exemption Import Duty & Sales Tax (Machinery & Equipment) & Import Duty for Raw Materials / Components Less Develop Area (LDA) – On case basis

We also offer:

• Attractive land price

• Reduction of land premium (Subject to approval by State Authority Council) Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic HIGHER LEARNING INSTITUTIONS IN KEDAH

UUM

FAST FACTS

547 - Primary school 201 - Secondary school >38 - Universities, Colleges, Training Institutions & International Schools HUMAN RESOURCES - Vocational Education

• Well-trained and skilful human capital.

• Constant supply of high performing workforce

• Industries oriented

• There are skill and management institutions to provide auxiliary skills and management education to the workforce so that workers are kept abreast of new development in the specifics areas of specialisation.

Kedah Industrial Skills and Management Development Centre

Trains and develops human resources either in collaboration with companies operating in Kedah or in areas that require development or upgrading of competencies. Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic EXISTING INDUSTRIAL PARKS

LOCATION OF INDUSTRIAL PARKS DEVELOP YEAR MAJOR TYPE OF NO AREA AREA STARTED INDUSTRY ( ACRES)

E&E, rubber based products, 1. Kulim 1978 plastic, textile, automotive 430.16 component Food packaging, E&E, ‘plastic Sungai injection and moulding’, textile, 2. 1989 622.31 Petani farmaseutikal, medical equipment Timber, Pharmaceuticals, E&E, Bakar 3. 1980 health products, automotive 558.28 Arang components Timber, Automotive Tikam 4. 1975 Components, Electric & 89.10 Batu Electronic. SME (Food & Beverages, rubber Mergong 5. 1980 based products, 102.30 II Pharmaceuticals) Mergong Automotive Spare part, E&E, 6. 1988 100.49 Barrage Concrete products Steel fabrication, medical Kuala 7. 1994 devices, rubber based products, 348.58 Ketil timber & E&E. Bukit Automotive components, 8. kayu 1995 338.88 Logistics & Storage Hitam 9. Gurun 2003 Automotive Industry 379.81 Kulim Hi- 10. Tech 1992 Hi-Tech Industry 4,510.00 Develop by : Kedah State Development Corporation Park Total 7,479.91 KULIM HI-TECH PARK

FAST FACTS

 Centrally located within Malaysia’s Northern Region

 26 km from North Butterworth Container, Penang Port

 45 km from Penang’s Bayan Lepas International Airport

 Directly linked to the North-South Highway and East-West Expressway via Butterworth Kulim Expressway KULIM HI-TECH PARK

Targeted Hi-Tech Sectors Master Plan • Wafer Fabrication & Related Activities • Semiconductor & Related Activities • Green Energy (Solar Cell/ Fuel Cell/ Polymer Battery/Renewable Energy) • Advanced Electronic Industries • Medical and Scientific Instruments • Process Control and Automation Equipment • Optical and Electro-optical Application • Optoelectronics • Biotechnology • Advanced Materials • Contract R&D Services • Aerospace • New and Emerging Technologies KULIM HI-TECH PARK

MAJOR TENANTS

TOTAL FOREIGN DIRECT INVESTMENT (FDI) > RM42 BILLION AUTOMOTIVE HUBS

Area – Gurun & Padang Meha, Kulim

GURUN

PADANG MEHA, KULIM NEW GROWTH AREAS

KEDAH KEY GROWTH AREAS KEDAH SBEZ / KSTP RUBBER CITY Kedah is fast transforming into a centre for high technology industries in the region. Many international, multi-national and global industrial players and corporations have made Kedah their home E-base that serves the thriving world economy. We have the right mix-talent pool, infrastructure, ecosystem and MORE

BUKIT KAYU HITAM KEDAH SCIENCE & SPECIAL BORDER TECHNOLOGY PARK ECONOMIC ZONE Size Area : 1,900 acres Size Area : 11,800 acres Location : Industrial Area Location : Bukit Kayu Hitam, Kubang Pasu Key Industry : Green Technology, Component Key Industry : Industry R&D and Manufacturing, (Kota Perdana Industrial ICT, Advanced Materials, Park) - Services & Biotechnology, Agro-Science Automotive Hub & Halal Science Government Administration Complex KEDAH RUBBER Commercial / Medical Hub / CITY Housing Enclave / Theme Park Mix Development Size Area : 1,300 acres East Business District Central Business District Location : Ladang Bukit Industry (Kedah Science & Ketapang, Padang Terap Technology Park) Key Industry : Catalytic anchor tenants, Specialized latex, rubber products, precision engineered rubber products & green rubber products. NEW GROWTH AREAS SPECIAL BORDER ECONOMIC ZONE BUKIT KAYU HITAM

• To develop Bukit Kayu Hitam Border Town as Special Border Economic Zone (Free Tax Zone)

• Bukit Kayu Hitam is one of entry point to Malaysia from .

• PRECINTS 1) Industry (Kota Perdana Industrial Park) - Services & Automotive Hub 2) Government Administration Complex 3) Commercial / Medical Hub / Housing Enclave / Theme Park 4) Mix Development 5) East Business District 6) Central Business District 7) Industry (Kedah Science & Land Size : Technology Park) 11,800 acres NEW GROWTH AREAS PROPOSED LANDBRIDGE BETWEEN SONGKHLA PORT & PENANG PORT NEW GROWTH AREAS VIDEO OF SPECIAL BORDER ECONOMIC ZONE BUKIT KAYU HITAM NEW GROWTH AREAS KEDAH SCIENCE & TECHNOLOGY PARK (KSTP)

- FAST FACTS Located at Bukit Kayu Hitam Industrial Area (North part of Kedah)

. 2 km bordering Thailand

. 45 km north of Alor Setar

PROPOSED SITE Area - 1,900 acres

New growth centre within IMT-GT KEDAH SCIENCE & TECHNOLOGY PARK(KSTP) KEDAH &TECHNOLOGYSCIENCE NEWGROWTH AREAS TARGETTED INDUSTRIES NEW GROWTH AREAS KEDAH RUBBER CITY

Fast Facts Masterplan

U

• Area – 1,250 acres PMU Ke • Located in the heart of Ke Padang the Natural Rubber Stesen Penyelidikan Sanai PPU Lembaga Getah Economic Belt. Malaysia

• Close to the PPU TAN GKI Malaysia-Thailand AIR border PPU TS R LR P L S K R A • Supported by both the K Malaysian and Thai governments. Ke Padang Terap NEW GROWTH AREAS CORE INDUSTRIES

The Rubber City will focus on four core rubber sub-industries producing high value add downstream products from both natural and synthetic rubber …

Core Industries

Catalytic Anchor Tenants Specialized Latex and Rubber Products

 Large, well-recognized leading rubber  Innovative, high value-add and specialized product manufacturers, e.g. latex / nitrile products for niche customer segments, e.g. gloves, passenger and commercial tyres, specialty / surgical gloves, catheters, latex condoms mattresses, adhesives, “intelligent” rubber

Precision Engineered Rubber Products “Green” Rubber Products

 Precision moulded rubber products for  Rubber-based products which are produced different industrial sectors, e.g. seals, gaskets, using environmentally-friendly raw bearings for automotive, medical devices, materials and / or processes, e.g. Ekoprena aerospace, construction sectors tyres1, reclaimed rubber products such as rubberised bitumen; or which contribute to lower carbon footprint

Legend Catalytic Sub- High Value Add Sub-category category TOURISM – ISLAND

- Popular tourist destinations - Located 30 km off the mainland - Close to Thailand, (Koh Lipe island) - Direct flight from Singapore & China - Consists of almost 104 small surrounding islands. - World Geopark status by UNESCO - Duty-Free Island - Characterized by beautiful hills, valleys, mountains, jungles, beautiful unspoiled beaches, waterfalls, rice fields and quaint villages TOURISTS ARRIVAL (2011-2016)

Mainland Langkawi Island Total Year Domestic International Total Domestic International Total Domestic International Total

2011 664,923 116,260 781,183 947,950 1,054,120 2,002,070 1,612,873 1,170,380 2,783,253

2012 656,551 98,127 754,678 983,790 1,114,301 2,098,091 1,640,341 1,212,428 2,852,769

2013 809,641 28,388 838,029 940,970 1,021,498 1,962,468 1,750,611 1,049,886 2,800,497

2015 1,058,347 52,116 1,110,463 1,019,418 1,169,246 2,188,664 2,077,765 1,221,362 3,299,127

2016 1,031,461 52,483 1,083,944 1,442,943 1,228,988 2,671,931 2,474,404 1,281,471 3,755,875

Source : Tourism Malaysia Langkawi’s Tourism Map Popular Events in Langkawi

14th Royal Langkawi 13th KFC Langkawi Professional Golf Of Tuba Trail Run Langkawi International International Regatta International Malaysia (PGM) LADA Water Festival Regatta Perdana & Langkawi ASAF Sailing Cup Championship (ADT)

Langkawi International Laksa Carnival (LILAC) Raja Muda Selangor Ironman Langkawi Langkawi Ultra Langkawi International Regatta Malaysia Marathon International Maritime and Aerospace Exhibition (LIMA)

XTERRA Asia Pacific Le Tour De Langkawi Tour Championship LUXURY HOTELS IN LANGKAWI Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic UPCOMING & POTENTIAL PROJECTS Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic Table of Contents

About Kedah Upcoming & Potential

Business Environment Success Story of KHTP

Investment Promotion Q & A Session

Talented Human Resources

Kedah Investment Holistic Session Want a BIG PIECE of Asia’s Action? KEDAH IS SPOT-ON!

Block C, Level 3, Wisma Darul Aman 05503 Alor Setar, Kedah, Malaysia

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