Together with ASEAN
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Together with ASEAN ANNUAL REPORT 2014 ANNUAL REPORT 2014 4 5 Contents CLOSING THE DISTANCE INVESTMENTS IN THE SERVICES SECTOR MIDA’s strategic activities are key to attracting investments that will The services sector continued to be the most important driver of help Malaysia reach its goals 4 Malaysia’s economic growth 28 ORGANISATION INVESTMENTS IN THE MANUFACTURING SECTOR The Board of Directors, Management Team and Organisational Despite the uncertainty that plagued the global economic Structure of MIDA in 2014 8 environment, the manufacturing sector retained investor confidence 34 THE AUTHORITY AND ITS FUNCTIONS THINK STRATEGIC MIDA is Malaysia’s principal investment promotion agency, working MIDA continued to spearhead the national investment agenda in line in service of the nation’s economic development agenda 14 with Malaysia’s strategic goals in 2014 48 TOGETHER WITH ASEAN FINANCIAL HIGHLIGHTS Tan Sri Amirsham A. Aziz, Chairman of MIDA, foresees new MIDA’s audited financial statements for the year ending 31 December opportunities as ASEAN comes closer together 16 2014 58 AWAKENING INNOVATIVE STRENGTHS APPENDICES Dato’ Azman Mahmud, Chief Executive Officer of MIDA has his eye MIDA’s participation in local and overseas events, VIP visits and other set on quality innovation-based investments 20 activities and promotions in 2014 78 ASIA’S BRIGHT SHORES MEET MIDA A milestone year for both Asia and MIDA in attracting direct MIDA is represented by 24 offices worldwide and throughout investment 24 Malaysia’s states 90 MIDA Annual Report 2014 www.mida.gov.my 6 7 in the Global Competitiveness Index (GCI) 2014-2015, ahead of Switzerland (ninth place) and Luxembourg (tenth place). Malaysia also climbed five places to be recognised as the sixth most attractive investment destination in the world as ranked by the Baseline Profitability Index (BPI) 2015 released by Foreign Policy Magazine. Our appeal as an investment destination is critical for attracting inflows into the manufacturing, services and primary sectors in order to spearhead the country’s economic growth and help it achieve its targets. The Tenth Malaysia Plan has to date achieved average private investment of RM162 billion per year at current prices and the Eleventh Malaysia Plan (11MP) has targeted an average private investment of RM291 billion per year (current prices) in order for Malaysia to reach its economic transformation goals and become a developed nation by 2020. Fuelling high-impact growth The 11MP has outlined the Malaysian alaysia maintained its prized status National Development Strategy (MyNDS), as a beacon for foreign direct which aims to rapidly deliver high impacts Minvestment (FDI) in 2014, becoming on both the capital and people economies at the seventh top recipient of FDI inflows in a low cost to the Government. Investments Closing the Distance Asia during 2014 ahead of the Republic into areas such as transportation, logistics, of Korea, Taiwan and Vietnam. This came trade facilitation, ICT infrastructure, at a time when developing economies in energy and utilities will directly support MIDA’s strategic activities are key to attracting Asia were becoming the new centre of the capital economy. At the same time, investments that will help drive Malaysia towards its gravity for investment. About 55 per cent of quality investments into knowledge- goal of becoming a high-income and knowledge-driven total global FDI inflows, or USD681 billion, intensive activities will go hand-in-hand economy. The country’s strong fundamentals and proven went to developing economies, with nearly with the national strategic thrust to improve half a trillion dollars going to investment labour productivity and create high-skill track record will serve it well in attracting more quality destinations in Asia. job opportunities, benefitting the people investments and weathering the challenges to come. economy. Investments into sustainable Investors around the world have come to technologies will also support the recognise the many advantages of doing Government’s green growth strategy. business in Malaysia. The World Economic Forum (WEF) ranked the country as the Bringing this strategy to fruition will not be eighth most efficient government globally a simple task. As the country’s principal MIDA Annual Report 2014 www.mida.gov.my 8 9 Investment 2010 – 2014 in RM billions (Total above columns) Foreign Investment Domestic Investment 250 235.9 219.4 200 167.8 154.6 150 159.9 171.3 105.6 86.6 100 132.9 61.1 50 68.0 59.5 64.6 44.5 34.9 0 The Domestic Investment Strategic Fund for incentive approving and monitoring 2010 2011 2012 2013 2014 (DISF), launched in 2012, is aimed at authorities; and serving local and foreign boosting the participation of Malaysian- investors. Source: Department of Statistics Malaysia owned companies in high value added, high-technology, knowledge-intensive and Malaysia has become a first choice for innovation-based industries. A total of 148 many technology companies and other agency for investment promotion, MIDA will economic powerhouse of tomorrow and projects benefitted from approved grants multinationals because of its educated need to focus its strategic activities and work is projected to become the world’s fourth- of RM631.8 million as of the end of 2014, workforce and supportive labour even harder to defy economic headwinds largest economy by 2050. As the Chair of with more than half of the grants going to environment. To maintain and extend and build upon the momentum of Malaysia’s ASEAN for 2015, Malaysia has been well- the Electrical & Electronic and Machinery & Malaysia’s competitive edge in talent, MIDA investment performance to date. positioned to steer the regional grouping Advanced Engineering industries. works with the relevant Ministries and toward the implementation of the ASEAN agencies to manage local talent development With the world’s investors flocking to the Asia Economic Community (AEC), which will MIDA’s policy advocacy role is also important and workforce training. region in search of investment opportunities, reduce barriers to trade and investment, for bridging the gap between industry needs the Government has wasted no time in and ensure expanded opportunities for and Government policies. The Investment The market adjustment in China, protracted extending its trade promotion activities businesses throughout the region. Coordination and Collaboration Office Euro zone crisis, plunging oil prices and abroad. MIDA participated in seven trade and (ICCO) under MIDA is aimed at improving weakening of the ringgit signal that a bumpy investment missions to China, India, Europe, coordination and effectiveness of the road lies ahead. It will take all of MIDA’s Japan and the Republic of Korea. These Bridging key gaps total incentives offered by all Ministries domestic and global promotional activities, missions, together with the efforts of MIDA’s and Agencies. Its responsibilities include close partnerships with Government overseas offices, have done much to raise Although foreign investment plays a major coordination and advisory for agencies that agencies, and the commitment of industry Malaysia’s profile abroad. part in Malaysia’s future growth, it is the manage tax and non-tax incentives; providing players to overcome these challenges and contributions of domestic investors that visibility on incentive performance and gaps find new opportunities. Within Asia, the Association of Southeast will ultimately sustain the expansion of our Asian Nations is poised to become the economy. MIDA Annual Report 2014 www.mida.gov.my 10 11 Board of Directors IDA’s Board of Directors comprises Sabah. The Board also has eight members thirteen (13) members headed from the private sector representing the Mby a Chairman appointed by the commercial, manufacturing, financial, Minister of International Trade and Industry. industrial and services sectors. TAN SRI AMIRSHAM A. AZIZ DATUK NOHARUDDIN DATO’ AZMAN MAHMUD Chairman, MIDA NORDIN Chief Executive Officer Other Board members include the Secretary Chief Executive Officer (from 10 February 2014) General of the Ministry of International Trade Three Board meetings were held in the year (until 9 February 2014) and Industry, a senior representative from 2014. the Ministry of Finance, the Chief Executive Officer of MIDA and the Permanent Secretary of the Ministry of Industrial Development for TAN SRI DR REBECCA DATO’ SITI HALIMAH DATUK HAJI HASHIM DATUK NG PENG HONG FATIMA STA MARIA ISMAIL PAIJAN @ NG PENG HAY Secretary General Secretary Permanent Secretary Chairman Ministry of International Tax Analysis Division, Ministry of Industrial Wellcall Holdings Berhad Trade and Industry (MITI) Treasury Development, Sabah DATUK DR K. GOVINDAN DATUK NORIYAH AHMAD DATO’ GOOI SOON CHAI TENGKU DATO’ ZAFRUL Group Chief Co-Chairman Senior Vice President TENGKU ABDUL AZIZ Executive Officer Malaysia-Thailand Joint Order Fulfillment Chief Executive Officer RAM Holdings Berhad Authority (MTJA) & Infrastructure CIMB Investment Keysight Technologies Bank Berhad Malaysia Sdn Bhd STUART L. DEAN DATUK SERI SAW CHOO DATU HAJI ISMAWI Chief Executive Officer BOON HAJI ISMUNI GE ASEAN President Director GE Global Growth Federation of Malaysian State Planning Unit, & Operations Manufacturers (FMM) Sabah MIDA Annual Report 2014 www.mida.gov.my 12 13 Management Team DATUK NOHARUDDIN DATO’ AZMAN MAHMUD DATUK PHANG AH TONG DATUK N. RAJENDRAN ARHAM ABDUL RAHMAN INON ABDUL HAMID TENG YIT CHAN MOHD RASLI MUDA NORDIN Chief Executive