FOR PERI CIRCULATION ONLY • Why Mncs Are Investing in Greater Kuala Lumpur, Malaysia

FOR PERI CIRCULATION ONLY • Why MNCs are Investing in Greater Kuala Lumpur, Malaysia

30% 7.2 million GDP Contribution Population

Main economic Estimated to rise to 10 million by 2020 engine hub 33% Fresh Graduates Move to GKL/KV Upon Graduation 2,793 km2 Area

Commercial and financial capital

KL 118 Bandar Malaysia

MALAYSIA

Page 3 | © 2017 InvestKL. All Rights Reserved GLOBAL MULTINATIONALS IN GREATER KL Principal Hub, Global Supply Chain Centre, Global Sourcing and Procurement Centre, Global Excellence Centre, Global Trading Hub MNC Site Selection Criteria for a Regional Hub

Category Criteria Weight 1.1 Political stability 50% 1.2 Economic stability 15% Business Environment 1.3 Corruption and bureaucracy 15% 1.4 Competitiveness 15% 1.5 Economic freedom 5% 2.1 Intellectual property protection 30% Legal Aspects 2.2 Investor protections 55% 2.3 Labor legislation 15% 3.1 Access to international and intercontinental airport hub 15% 3.2 Quality of overall infrastructure 25% 3.3 Quality of utilities 30% Quality of Infrastructure 3.4 Access to reliable and high quality IT / telecom infrastructure 5% 3.5 Mobile telephone subscriptions 20% 3.6 Office space costs 5% 4.1 Tertiary education enrollment rate 5% 4.2 Flexibility of wage determination 15% 4.3 Labor - employer relations 25% Human Resources 4.4 Language skills 20% 4.5 Labor cost 20% 4.6 Attractiveness of location to international staff 15% 5.1 Total corporate income tax rate 5% 5.2 Personal taxation 5% Taxation 5.3 Ease of paying tax 25% 5.4 Double tax treaty network 5% 5.5 Standard lowest tax rate 60%

Source – EY Country Location Analysis Tool Page 5 ACCESS TO MARKET GATEWAY TO ASEAN, ASIA & BEYOND

By 2020, global demand from the middle class is projected to expand from RISE OF ASIA US$21 trillion to US$35 trillion, with 70% of growth coming from Asia. ASEAN

654 2.94 5%-7% 2nd 5th

MILLION TRILLION GDP LARGEST LARGEST POPULATION COMBINED GROWTH ECONOMY IN ECONOMY IN (APPROXIMATELY) GDP (USD) RATE ASIA THE WORLD (AFTER CHINA)

MALAYSIA’S FUNDAMENTALS

One of ASEAN’s strongest economies and uniquely positioned at the heart of ASEAN Population GDP (2016) 32 million USD 251 billion

Labour Force 2016 GDP Growth 15.1 million 4.2%

Unemployment Rate 2016 Inflation Rate 3.3% 2.1%

Sources: Central Bank of Malaysia (as of February 2017), Department of Statistics Malaysia, IMF and WEO database (as of July 2016), SMBA Economic Outlook 2017

CHILE NEW ZEALAND PAKISTAN INDIA AUSTRALIA JAPAN TURKEY Effective Regional FTAs (6)

ASEAN ASEAN-AU/NZ ASEAN-JAPAN ASEAN-KOREA ASEAN-CHINA ASEAN-INDIA 74 DTAs Elimination of double taxation Reduction of withholding tax ✓ Comprehensive DTAs RCEP Regional Comprehensive Economic Partnership ✓ Population of >3B people ✓ Combined GDP of >US$17 trillion ✓ >40% of the world trade AEC ASEAN Economic Community ✓ Free movement of goods, services, and investments ✓ Freer flow of capital and skills

EASE OF DOING COMPETITIVENESS BUSINESS ASEAN World ASEAN World 1 Singapore 2 1 Singapore 3

2 Malaysia 24 2 Malaysia 23

3 Thailand 26 3 Thailand 32

BUSINESS SERVICES LOCATION ENVIRONMENT ASEAN World World 1 Singapore 1 1 India

2 Malaysia 26 2 China

3 Malaysia

AIR • KUL is 12th busiest international passengers (2017) – preliminary from ACI ✓ 58million total passengers in Year 2017 ✓ 124 cities linked by > than 2000 weekly frequencies/flights

RAIL • 2 Light Rail Transit (LRT): 100 km total track MRT and Elevated Sunway BRT Line • 3 Mass Rapid Transit (MRT) Lines by 2017 totaling 141 km ✓ MRT Line 1: 51 km operational in stages – end ‘16 ✓ MRT Line 2: 52.2 km on going tendering process • 12 Bus Rapid Transit (BRT) Corridors: Sunway BRT corridor in operation • 350km High Speed Rail (HSR) connecting Kuala Lumpur and Singapore to be operational by 2030

Logistics • KLIA Cargo – 710,186 metric tonnes (2017) • Port Klang ✓ 219,842,603 tonnes (2015) ✓ 11,886,685 containers handled (2015)

Source: Port Klang Authority 9 MALAYSIA’S UNIQUE & KEY DIFFERENTIATING FACTOR MULTI-LINGUAL TALENT TO SERVE & SUPPORT THE REGION

MALAYSIA SOUTH KOREA JAPAN Attractive mix of Korean Japanese demographics and strong economic growth CHINA INDIA Mandarin, Cantonese Hindi, Tamil, English Cultural diversity and affinity with the region THAILAND PHILIPPINES Thai, English Tagalog, English Speak languages that serve Asia Pacific MALAYSIA SINGAPORE Bahasa Malaysia, English, Mandarin English Mandarin, Cantonese, Hindi, Tamil, INDONESIA Japanese, Korean Bahasa Indonesia, English Driven by mass immigration from China and India over 3 AUSTRALIA generations and adopting an English open economy approach

✓ High Competency

✓ Language Proficiency nd nd 15.1 million 94.6% 2 2 ✓ Regional Experience Labour Force Literacy Rate Most Talent-Competitive Most English-Proficient UNESCO Institute for Statistics 2015 Country in ASEAN Country in ASIA Source: DOSM (2017) ✓ Highly Motivated IMD World Talent Report 2017 EF English Proficiency Index 2017 TALENT AVAILABILITY & COMPETENCY KEY TALENT SECTORS Competent Senior Managers Availability Board of Financial Services Engineers Information and Professionals Malaysia Communication Global Ranking 6 17 19 23 27 50,000 (ACCA students and Registered members), Technology (ICT) 857 (The Actuarial Society Knowledge Worker Members members) International Experience of Senior Managers 120,645 319,633 285,000

Global Ranking 6 18 22 23 29 Board of Engineers Department of Statistics Department of Statistics Malaysia, 2017 Malaysia, 2015 Malaysia, 2015 Skilled Labour Availability The Chartered Malaysian Healthcare Institute of Institute of Professionals Logistics and Management 46,491(Doctors), Transport Malaysia (MIM) Members 92,681 (Nurses) Global Ranking 6 12 22 35 46 Members Finance Skills Availability 2,000 10,000 191,288

The Chartered Institute of Malaysian Institute of Department of Statistics Logistics and Transport, 2018 Management, 2015 Malaysia, 2015 Global Ranking 13 27 28 42 49

1st 4th Hong Kong 7th Singapore

52nd Shanghai 145th Bangkok Kuala Lumpur WITH TAX INCENTIVES

Least Expensive Source: Mercer Cost of Living Survey 2018 Source: Internal

Prime Office Average Cost of Talent2 Hilton Room Charges3 International School Fees4 Gross Effective Rents1 (US$k/annum) (US$/night) (US$k/annum) (US$/sqm/mth) 500 25 190.3 50.0 22 200 43.4 381 40.0 38.6 400 20 17 150 30.0 300 265 15 13 100 200 205 10 69.8 20.0 13.2 50 10.0 100 5 14.7 0 - 0 0 Hong Singapore Kuala Hong Singapore Kuala Hong Singapore Kuala Hong Singapore Kuala Kong Lumpur Kong Lumpur Kong Lumpur Kong Lumpur

1Source: Knight Frank Research-Asia Pacific 2Source: 2016 Hays Asia Salary Guide 3Source: Hilton Reservation 4Source: International School Tuition Fee Prime Office Rental Index Q12016 (Salary based on Accounts Support (Nett charges based on Deluxe Room) Schedule 2015-2016 position within an MNC) Elementary school (Year 1-Year 5) STATE & RATE OF DIGITAL EVOLUTION MALAYSIA PROGRESSING INTO “STAND OUT” QUADRANT “Clearly, the most exciting region in the world, digitally speaking, is Asia, with China and Malaysia as exemplars. We can expect to see plenty of investor and entrepreneurial interest in this region”.

CLOUD & CYBERSECURITY DATA CENTER

INTERNET-OF-THINGS FINANCIAL (IOT) TECHNOLOGY E-COMMERCE

BIG DATA

INDUSTRY 4.0

GDP contribution of Malaysia’s digital economy is expected to exceed the 20% target by 2020 from the current 17% DIGITAL INNOVATION ECOSYSTEM CATALYZING MALAYSIA AS ASEAN’S ROBUST DIGITAL & INNOVATION HUB

ASEAN DATA ANALYTIC EXCHANGE • Create 20,000 data professionals by 2020, including 2,000 data scientists • Provide analytics sandbox platform • Co-working location

DIGITAL HUBS

• Complete start-up ecosystem • Test bedding and market access opportunities • Digital hub locations

DIGITAL FREE TRADE ZONE

• Invigorate internet-based innovation • Position Malaysia as a regional hub for e-Commerce logistics • Integrated export and import customs declaration

Source: MDeC

Priority Sectors

• Oil and Gas • FMCG • Aerospace • Finance • Healthcare • Engineering

• Construction Pengerang

Razak Exchange (TRX) Razak Exchange

MRT 2 MRT

RAPID RAPID West Express Coast West River (ROL) ofLife Tun BandarMalaysia (MVV) Valley Vision Malaysia

Merdeka PNB 118 PNB Merdeka

MRT MRT 1

•

• • • • • •

• •

Expected

2017

2020 2019 2020 2020 2025 2026 2045 2022 Completion Date 2024

Gateway to ASEAN & ASIA PROVEN TRACK RECORD Hosting Global MNCs 633 4.8% COMPETITIVE CITY MILLION GDP POPULATION GROWTH 1ST Best Nation to Invest In 2.57 2nd 2017 Best Countries Report TRILLION GDP LARGEST ASIAN (USD) ECONOMY 2ND (ASEAN) China Belt and Road Initiative Global Competitiveness Report 2015 - 2016 US$113 Billion AIIB Funding EASY TO DO BUSINESS

US$8 Trillion Anticipated Investments 2ND Global Doing Business EXCELLENT ECOSYSTEM GREAT QUALITY OF LIFE (ASEAN) Rankings 2017 Talent 273,373 46 TH 44 AT A FAIR COST Public/private 4 Graduates Best Shopping International universities in 2015 Destination schools 145TH Connectivity Worldwide Global Cost of Living Survey 2018 2,000 7 hours 23 (#1 = most expensive) Weekly flights to Flight time to World class golf courses 124 cities (KLIA) major Asian ATTRACTIVE INCENTIVES* Infrastructure cities Host since 1991 • Multicultural Malaysia Corporate Income Tax Exemption US$15 bil 196 mil • Investment Tax Allowance Warm, friendly and >350km of rail Passengers • Import & Customs Duty Exemption projects annually welcoming environment • Unrestricted Foreign Knowledge Workers Page 17 *Depending on business commitment Kuala Lumpur International Airport

• 12th Busiest Airport (2017) • 124 Cities • 58 million pax carried in 2017 • 2000 flights weekly • 710,816 metric tonnes of cargo carried in 2017 Page 18 CITY: GREATER KL - RAIL PROJECTS (MRT, LRT Extension, Monorail)

• LRT Lines – 100 km • 12 BRT (Bus Rapid Transit) Corridors • MRT 1 Line – 51 km • HSR – 350 km connecting KL to • MRT 2 Line – 52.2 km Singapore (project to start in 2020)

Page 19 InvestKL MNC Impact to Greater KL

RM11.07B investment 11,195 regional jobs MNCs 76 RM5.78B (52%) realized 7,116 (63.6%) on payroll Examples of InvestKL MNCs

RM128.2M est. annual rental > RM123.6M 1.8million sq ft Est. annual personal equivalent to income tax from 99 Floors employees of MNCs Petronas Twin Towers

Increased Usage of Ancillary Services • Professional Services, Firms • Hotels & MICE • Real Estate Specialists • Banking and Finance

Page 20 Regional Jobs Created - Salary Analysis (end of Q2 2018)

Overall 7,116 Local 5,780 (81%) Expat 1,336 (19%)

Locals vs Expats (Salary Scale)

Realised Jobs 2018 Office Space State No. of MNCs (Q2 2018) Utilization* Kuala Lumpur 52 3,309 885,149

Selangor 24 3,807 897,374

TOTAL 76 7,116 1,782,523

Estimated Annual Rental (2018) RM 128.2 million RM Million New office space 99 floors @ Petronas Twin Towers

The 76 MNCs would occupy 49.5 floors of both Petronas Twin Towers

Average Rental : -Kuala Lumpur RM7 /sqf * KLCC average NLA / floor – 18,000 sqf -Selangor RM5 / sqf

Total Cost Total Length Pax / day Stations £12.32bil 203KM 537,757 94

KLIA Transit LRT

Monorail

MRT Line 1

LRT Kommuter

Page 24 KL River of Life Phase 1 Launched by Prime Minister Najib on 28 August 2017

Page 25 Tun Razak Exchange (TRX) On Track for Launch in 2020

Page 26