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High Level Dialogue on Asean Italy Economic Relations

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High Level Dialogue on Asean Italy Economic Relations HIGH LEVEL DIALOGUE ON ASEAN ITALY ECONOMIC RELATIONS Second Edition Shangri-La Hotel, Singapore Wednesday, April 11 and Thursday, April 12, 2018 FACILITATING INNOVATION, START-UPS AND DIGITAL HUBS IN MALAYSIA High Level Dialogue on ASEAN Italy Economic Relations, Singapore 11 – 12 April 2018 ARHAM ABDUL RAHMAN DEPUTY CHIEF EXECUTIVE OFFICER MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (MIDA) MALAYSIA’S ECONOMIC DEVELOPMENT JOURNEY Malaysia has successfully transformed from a predominantly agriculture-based economy in the 1970s, to a more diversified economic structure. Digital 1970s 1990s Economy, Technology Industry 4.0 & Export oriented & National intensive E-Commerce labour intensive Transformation 2015 1960s Innovation, ETP Import & high income substitution 1980s 2000s Resource-based & Economic corridors heavy industry & services 1 MIDA TAKING THE LEAD New Economic Model (NEM) Economic Transformation Programme (ETP) Wholesale Tourism and retail Financial Business services services Oil, gas Greater KL NKEAs selected which can materially & energy impact economic growth Electrical & Agro electronics Comms Content Education Infrastructure Eleventh Malaysia Plan (2016-2020) Palm oil Healthcare “Promoting investment to • NKEAs – 11 industry sectors and Greater KL spearhead economic growth” • Total investment target – USD444 billion (RM1.4 trillion) • Private sector led economy – USD410 billion (92%) • 73% Domestic Direct Investment (DDI) • Real GDP growth between 5%-6% per annum Non- NKEAs • Private investments growth of 9.4% or RM291 billion per annum Advanced • Catalytic and Growth (3+2) Sub-Sectors Aerospace Machinery Transport Logistics Environmental & Equipment Equipment Material Management APPROVED PROJECTS IN MANUFACTURING SECTOR BY MAJOR EU COUNTRIES (AS AT DECEMBER 2017) US$ Billion Germany 12.3 Netherlands 7.7 United Kingdom 5.6 France 3.2 Spain 1.3 Ireland 0.8 Sweden 0.7 Italy 0.7 Denmark 0.6 Italy is the 8th largest Investor from EU with 123 Belgium 0.4 projects (USD784.7 million) 4 ITALIAN FOOTPRINT IN MALAYSIA MANUFACTURING SERVICES REGIONAL ESTABLISHMENT MSC STATUS POTENTIAL COLLABORATION BETWEEN ITALY AND MALAYSIA ITALIAN INDUSTRIAL ADVANCED AUTOMOTIVE FASHION STRENGTH MACHINERY TECHNOLOGY ELECTRIC & ELECTRONIC MACHINERY & EQUIPMENT PRINCIPAL HUB TRANSPORTATION OIL & GAS ENGINEERING REGIONAL EQUIPMENT SERVICES ESTABLISHMENT POTENTIAL FASHION DESIGNING COLLABORATION E-COMMERCE (FOOTWEAR & APPAREL) HALAL FOOD ASEAN 2030 ASEAN Currently 6th largest economy Source: Australian Government publication ‘ASEAN Now’ (November 2017) 7 WAY FORWARD Study on Future of Manufacturing: Industry 3+2 Industry 4.0 Taskforce National Industry 4.0 • Infrastructure and Ecosystem Policy Framework • Funding and Incentives • Talent and Human Capital • Technology and Standards EmbracingEmbracing • SMEs and Industry 4.0 Industry 4.0 in Launching of National IoT Industry 4.0 in Strategic Road Map Malaysia Malaysia Productivity Blueprint Malaysia A blueprint created to address productivity challenges holistically in order to boost economic growth Malaysia Digital Economy 2017: Building Analytics Capabilities: To implement programme including e-commerce 20,000 data professionals and 2,000 data systems, digital maker movement including new scientists by 2020 location for Malaysia Digital Hubs. Establishment of Digital Free Zone to stimulate internet based innovation 10 MALAYSIA DIGITAL ECONOMY INFRASTRUCTURE Malaysia Digital Hub is a place for growing startups to co-exist with the ecosystem to develop their next big idea in technology. Benefit GOVERNMENT SUPPORT • Hyperspeed broadband with more DIGITAL than 100Mbps connectivity • Access to funding • Talent upskilliing HUB • IP Protection • Founders network • Corporate and tech support • Affordable cost of doing business • Malaysia tech entrepreneur FINANCE programme 11 FUNDING SCHEME Incentive for the production of: Matching grant under the Domestic • Robotics and factory automation equipment Investment Strategic Fund (DISF) • Specialised production M&E to upscale Smart Manufacturing facilities Full Pioneer Status and Investment Tax Allowance Incentive for Transformation to Industry 4.0 Capital Allowance for ICT Equipment and Software Expenditure incurred on the purchase of ICT equipment and computer software packages Soft Loan Scheme for MSC4Startups Business Accelerator MSC Malaysia Status Programme (BAP) Automation & For more info: Modernisation (SLSAM) https://incentives.mida.gov.my/ 15.
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