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EY KL Calling 2020

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KL calling: dynamic, digital, diverse Investors guide Foreword The next phase of Kuala Lumpur’s growth is pivoting towards next-gen industries, including Industry 4.0. In recent years, Kuala Lumpur has garnered investments from high-tech multinational corporations in advanced medical technologies, digital e-platforms, Internet of Things, robotics and higher-value Global Business Services. Malaysia’s world-class infrastructure, supportive government policies and agencies Dato’ Abdul Rauf Rashid and future-ready digital talent proficient in EY Asean Assurance Leader English and Asian languages continue to Malaysia Managing Partner attract international businesses to establish Ernst & Young PLT their regional headquarters and centers in Kuala Lumpur. Beyond 2020, I envision that Kuala Lumpur will holistically evolve to become a smart digital city, driven by a balanced community purpose, i.e., to serve its residents’ needs and systemically improve common facilities and amenities for the well-being of Malaysians, business residents, expatriates and international visitors. Malaysia welcomes investors to recognize Kuala Lumpur’s 3 D strengths: dynamic, digital, diverse, and participate in Kuala Lumpur’s next exciting transformation! Selamat datang ke Kuala Lumpur! KL calling: dynamic, digital, diverse | 1 Our strategy is to be as close as “possible to our customers to understand their needs and to Malaysia’s fundamentals remain develop suitable products and “ solutions to fulfil their strong and attractive to investors. requirements. As the region’s most competitive manufacturing Despite the COVID-19 pandemic, powerhouse, Kuala Lumpur we remain in active discussions emerged as a natural favorite. with potential investors. Although some investors are ABB taking a wait-and-see approach, others remain committed to their investments as they hold a long- About 16 months into our term view. “ journey, we found that our Kuala Lumpur talent hires are hungry In addition, we are in talks with to develop themselves through global multinational corporations the experience of a fast-growing from the high-value services, organization and exposure to our Japan and Asia-Pacific markets, technology and logistics sectors as well as our information who are interested to expand technology support to world- their capacity or set up their wide users. regional headquarters here in Kuala Lumpur. Edwards Lifesciences Muhammad Azmi Zulkifli CEO, InvestKL KL’s international port, Port “Klang, and other Malaysian ports are located in the best route, connecting the Pacific Ocean and the Indian Ocean. Beyond ASEAN, Malaysia’s central location also provides excellent connectivity to Asia-Pacific. United Imaging Healthcare KL calling: dynamic, digital, diverse | 2 Dynamic | Digital | Diverse KL calling: the time is now | 3 Contents Executive summary 5 ► KL’s G.R.O.W.T.H. pillars 7 ► Green ecosystem ► Rapid growth dynamics ► One integrated place ► World: global connectivity ► Talent diversity, future-ready ► High-tech, digital-ready Dynamic regional hub 9 ► KL: Asia-Pacific’s central transport nexus 10 ► KL: Asia-Pacific’s Industry 4.0 hub 11 Digital: next-generation sectors 13 ► Digital e-platforms 15 ► Robotics and industrial products 19 Viewpoint: ABB Malaysia Sdn Bhd ► Internet of Things 25 Viewpoint: Orange Business Services ► Advanced medical technologies 31 Viewpoint: United Imaging Healthcare, Asia-Pacific ► Global Business Services 37 Viewpoint: Edwards Lifesciences Malaysia Diverse ecosystem 43 ► Diversified, sustainable economy 44 ► Diverse green initiatives 46 ► Future-ready, multi-cultural talent 47 Appendices 48 Executive summary Over five decades, Kuala Lumpur has evolved to become a dynamic, digital and diverse regional hub in Asia. The evolution of Kuala Lumpur (KL) has been remarkable – from a tin mining town to a major regional hub with diversified industries, including global semiconductors, banking and capital markets, prime grade real estate developments, Positive change need world-class universities and multimodal transport “ not come at the expense hubs for international aviation, rail and shipping. of tradition and KL’s next transformation path is pivoting towards faith...we see this in next-generation digital industries, from digital e- platforms, Internet of Things (IoT), robotics, Malaysia, where vibrant advanced medical technologies through to high- entrepreneurship is value Global Business Services (GBS). propelling a former In addition to a suite of attractive tax incentives for colony into the ranks of high-tech sector investments, KL is gaining global advanced countries. investors’ attention as Asia’s truly 3 D city that is dynamic, digital and diverse. In contrast to other high-density cities in the region, KL has balanced Barack Obama growth attributes, including a green ecosystem, 44th President rapid growth dynamics, integrated transport United States of America facilities, world-class connectivity, future-ready multilingual talent and high-technology capabilities. KL stands future-ready to be Asia’s next strategic investment hub – it has the right balance of talent and dynamic business ecosystem to optimize regional operating models and to elevate corporations’ expansion into ASEAN and the Asia- Pacific region. KL calling: dynamic, digital, diverse | 5 Did you know? Malaysia’s competitiveness Best country in the 1st world to invest in CEOWORLD Magazine 2019 among ASEAN countries 1st for lowest cost of living Mercer’s 2020 Cost of Living Survey most competitive Before the COVID-19 pandemic, with 2nd market within ASEAN the challenging global business World Economic Forum (WEF)’s Global environment, leading multinational Competitiveness Report 2019 corporations (MNCs) were optimizing their business models to aspire for “high-value, high-impact” central in ASEAN on digital operating models. The COVID-19 2nd readiness pandemic has catalyzed the Cisco Global Digital Readiness Index 2019 acceleration of MNCs’ decisions to centralize their Asia-Pacific operations in the most strategic and most attractive global cost-competitive location to better rd destination for GBS manage their supply chain 3 management activities. AT Kearney 2019 Global Services Location Index In optimizing operating models, the search for flexible tax regimes in Asia-Pacific on becomes imperative. Malaysia’s 6th digital transformation flexible tax regime, including the Principal Hub incentive and high-tech Asia Digital Transformation Index 2018 sector incentives, has attracted MNCs to locate their regional headquarters operations in KL. The recent wave of in ease of doing global investors include Industry 4.0 12th business high-technology manufacturers and World Bank’s Ease of Doing Business 2020 service providers. out of 141 countries 27th In competitiveness WEF’s Global Competitiveness Report 2019 KL calling: dynamic, digital, diverse | 6 KL “GROWTH” pillars G R O W Green Rapid One Worldwide: ecosystem growth dynamics integrated place global connectivity ► Malaysia’s National ► Malaysia’s gross ► Two international airports, ► KL, capital city of world’s Sustainable domestic product Kuala Lumpur International leading business destination Development Goals (GDP) growth Airport (KLIA)1 and KLIA2, ► 12th for ease of doing (SDGs) Roadmap anticipated to recover both of which are linked to business among 190 focuses on the and projected to major cities in Asia-Pacific, countries1 implementation of increase by 6.9% Europe and the Middle East ► 3rd preferred GBS national strategies and (World Bank) in 2021 location among global approaches to advance ► Major international seaport, destinations2 multisectoral efforts ► Mobile and broadband Port Klang (includes ► World’s best country to towards attainment of penetration near 130% Northport and Westport), invest3 the 2030 Agenda and National has trade connections to Fiberisation and over 120 countries and ► KL, capital city of world’s ► KL’s green and Connectivity Plan links to more than 500 leading open economy recreational space per (NFCP) delivery target ports; upcoming projects ► Significant external trade capita is projected to of 30Mpbs in 98% of include RM140b Carey – trade to GDP ratio: 129% double to 20m2 by populated areas by Island maritime city 2020; 2.5m street trees 2023 comprising industrial parks, ► KL, MNCs’ preferred targeted by 2030 free trade zones and mixed investment location ► New rail-based Mass commercial, residential ► Foreign Direct Investment ► KL aims for 40% Rapid Transit (MRT) developments (FDI), 2019: RM82.4b recycling rate by 2040; transport, Sungai ► Top 5: China Mainland, carbon neutrality by Buloh-Kajang line, ► KL rail links to ASEAN US, Singapore, Taiwan, 2050; e-waste collection connects 31 stations include connectivity to Japan centers around KL serving 1.2m people in Thailand and Singapore. ► Number of foreign KL Future rail projects include companies in Malaysia: ► Green building the High Speed Rail (HSR) 4,844 (2019) certifications to from KL to Singapore; and ► MNCs in Greater KL: 91 encourage construction East Coast Rail Link (ECRL) (2019) companies to adopt from KL to Port Klang and ► MNCs’ regional hubs in advanced green Kuantan Port (East Coast). Greater KL: strategic technologies central location to manage ASEAN and ► Green technology tax Asia-Pacific operations incentives for sustainable and green projects Notes: Sources: 1World Bank’s Ease of Doing Business 2020 ► KL City Hall (DBKL) official website ► SDGs Coordination & Partnership, United Nations of Malaysia ► Bank
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