BUSINESS AND INVESTMENT OPPORTUNITIES IN KEDAH, MALAYSIA JAMECA-MAJECA JOINT CONFERENCE, TOKYO, JAPAN BRIDGING INVESTORS - BUILDING OPPORTUNITIES DATO AHMAD SHUKRI TAJUDDIN Managing Director Invest Kedah
MALAYSIA S FAST FACTS Total area : 329,000 sq km 14 states GDP ( Malaysia ) 2012 : 5.5% 2013 : 4.7% 2014 : 6.0% 2015 : 5.0% Population 29 mil - multiple ethnic group Stable and probusiness government.
MALAYSIA - TREND OF GROWTH DOMESTIC PRODUCTION (GDP) OVER YEARS 8 7 6 5 7.4 5.2 5.5 4.7 6 5 4 3 2 1 0 2010 2011 2012 2013 2014 2015 Gross Domestic Product (GDP) 2010 2011 2012 2013 2014 2015 GDP at current prices (million) 21,440,123 RM797,327 23,806,765 RM885,339 291,169,66 RM971,252 27,396,096 29,755,936 31,108,530 RM1,018,821 e RM1,106,580 p RM1,156,881 p GDP at constant 2010 prices (RM million) 18,195,199 RM676,653 19,139,226 RM711,760 24,530,698 RM912,261 25,686,941 27,226,286 28,574,577 RM955,260 e RM1,012,506 p RM1,062,647 p GDP Growth (%) Rates : RM1 MYR = 26.89 JPY (May 2016) 7.4 5.2 5.5 4.7 e 6.0 p 5.0 p
MALAYSIA - GROWTH DOMESTIC PRODUCTION (GDP) Percentage Share of GDP and SMEs at Constant 2010 Prices for year 2014 1.1% 0 9.2% 5.7% 9.0% 21.7% OVERALL GDP RM1,012.5 billion 23.0% 0.4% 12.4% SMEs GDP RM363.5 billion 53.5% 4.3% 58.6% Source: Department of Statistics, Malaysia
KEDAH DARUL AMAN FAST FACTS Area size 9,500 sq km (2.9% of Malaysia) 13 districts including Langkawi Island Population: 2 mil Known as Rice Bowl of Malaysia Climate - tropical monsoon Average temperature between 24 C to 39 C
ECONOMIC GROSS DOMESTIC PRODUCT -KEDAH 9 8 7 6 5 4 3 2 1 0 8.5 5.6 4.8 4.3 4.2 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 GDP at constant 2005 prices (Million) 591,526 RM 21,998 641,676 RM 23,863 840,070 RM 31,241 880,781 RM 32,755 917,997 RM34,139p GDP per capita at current prices (Million) 369,576 RM 13,744 414,052 RM 15,398 432,606 RM 16,088 447,153 RM 16,629 465,761 RM17,321p GDP Growth (%) 4.3 8.5 5.6 4.8 4.2p Rates : RM1 MYR = 26.89 JPY (May 2016) Source: Department of Statistics, Malaysia
TOTAL APPROVED MANUFACTURING PROJECTS IN KEDAH (2010 Sep. 2015, FDI vs. DI 180 161.2 160 ( Billions) DI FDI 140 121.5 120 100 80 65.4 60 43.0 40 20 9.7 3.8 6.6 9.3 2.8 20.7 8.7 23.7 0 2010 2011 2012 2013 2014 2015 (Jan-Sep) Source :
PROJECTS APPROVED BY MAJOR INDUSTRY IN KEDAH, JANUARY - SEPTEMBER 2015 AND 2014 Jan-September, 2015 2014 Industry NO. Total Capital Investment (RM) Total Capital Investment ( ) NO. Total Capital Investment (RM) Total Capital Investment ( ) Electronics & Electrical Products 7 820,558,715 22,064,823,846 9 3,994,927,788 107,423,608,219 Transport Equipment 11 129,207,141 3,474,380,021 6 116,076,975 3,121,309,857 Plastic Products 4 99,877,659 2,685,710,250 6 36,904,360 992,358,240 Machinery & Equipment 5 43,409,610 1,167,284,412 - - - Wood & Wood Products 3 36,346,022 977,344,531 6 15,139,276 407,095,131 Chemical & Chemical Products Scientific & Measuring Equipment 4 33,707,498 906,394,621 6 85,929,289 2,310,638,581 2 32,700,000 879,303,000 6 674,635,783 18,140,956,204 Rubber Products 1 7,000,000 188,230,000 1 4,854,344 130,533,310 Fabricated Metal Products 1 1,935,000 52,032,150 3 262,627,103 7,062,042,799 Rates : RM1 MYR = 26.89 JPY (May 2016) Source :
PROJECTS APPROVED BY MAJOR COUNTRY IN KEDAH, JANUARY - SEPTEMBER 2015 AND 2014 January September 2015 2014 Country No. Foreign Investment (RM) Foreign Investment ( ) No. Foreign Investment (RM) Foreign Investment ( ) Japan 6 754,754,363 20,295,344,821 1 5,715,047 153,677,613 Taiwan 4 88,459,661 2,378,680,284 3 7,324,303 196,950,507 Korea, Rep 3 17,316,090 465,629,660 - - - USA 2 7,168,715 192,766,746 1 771,000,000 20,732,190,000 Singapore 7 5,210,276 140,104,321 5 1,556,357 41,850439 Canada 1 5,000,000 134,450,000 - - - Germany 1 1,289,436 34,672,934 3 3,210,270,160 86324164602 China 1 305,266 8,208,602 1 99,600,000 2,678,244,000 Rates : RM1 MYR = 26.89 JPY (May 2016) Source :
INDUSTRIAL PARKS LOCATION OF INDUSTRIAL PARKS BUKIT KAYU HITAM NO AREA YEAR STARTED DEVELOPMENT AREA ( ACRES) SUNGAI PETANI TIKAM BATU MERGONG II MERGONG GURUN BAKAR ARANG KUALA KETIL KHTP 1. Kulim 1978 430.16 2. 3. Sungai Petani Bakar Arang 1989 622.31 1980 558.28 4. Tikam Batu 1975 89.10 5. Mergong II 1980 102.35 6. Mergong Barrage 1988 100.49 7. Kuala Ketil 1994 332.00 8. Bukit kayu Hitam 1995 348.4 9. Gurun 2003 376.82 KULIM 10. Kulim Hi- Tech Park 1992 4032 Total 6,991.91 Organized by : Kedah State Development Corporation
KEDAH KEY GROWTH AREAS
PROMOTED ACTIVITIES Electrical & Electronic Equipment / Machineries Healthcare / Medical Devices Automotive Rubber & Rubber Downstream Activities Advance Agriculture Aquaculture / Horticulture Green Technology Tourism Education & Training
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 MASTER PLAN Targeted Hi-Tech Sectors 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) USD 8.5 BILLION / 914 BILLION
AUTOMOTIVE HUBS Area Gurun & Padang Meha, Kulim GURUN KULIM
KEDAH INTEGRATED FISHERY TERMINAL LOCATION Bandar Baharu
KEDAH INTEGRATED FISHERY TERMINAL Strategically located - FAST FACTS Malaysia in one of Indian Ocean Tuna Commission (IOTC) Long coastline and deep water Fishing villages in the vicinity Close to business and financial centers Complete logistic infrastructure Comply with Kedah Reclamation Masterplan
KEDAH SCIENCE & TECHNOLOGY PARK (KSTP) - FAST FACTS Located at Bukit Kayu Hitam Industrial Area (North part of Kedah) Bordering Thailand 45 km north of Alor Setar PROPOSED SITE Area - 1,900 acres New growth centre within IMT-GT
RUBBER CITY Fast Facts Masterplan Area 1,500 acres Located in the heart of the Natural Rubber Economic Belt. To UUM Sintok Commercial Commercial Close to the Malaysia-Thailand border Commercial Supported by both the Malaysian and Thai governments. NOT TO SCALE
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 Large, well-recognized leading rubber product manufacturers, e.g. latex / nitrile gloves, passenger and commercial tyres, condoms Specialized Latex and Rubber Products Innovative, high value-add and specialized products for niche customer segments, e.g. specialty / surgical gloves, catheters, latex mattresses, adhesives, intelligent rubber Precision Engineered Rubber Products Precision moulded rubber products for different industrial sectors, e.g. seals, gaskets, bearings for automotive, medical devices, aerospace, construction sectors Green Rubber Products Rubber-based products which are produced using environmentally-friendly raw materials and / or processes, e.g. Ekoprena tyres 1, reclaimed rubber products such as rubberised bitumen; or which contribute to lower carbon footprint Legend: Catalytic Sub-category High Value Add Sub-category
SMALL AND MEDIUM SIZE ENTERPRISE (SME) SME Halal Market Manufacturing / Assembly Transportation Packaging/ Process Marketing/ Trading Food Processing - 630 million Asean population - Muslim population (Food / Cosmetic)
TOURISM LANGKAWI ISLAND - Popular tourist destinations - Located 30 km off the mainland - Close to Thailand, (Koh Lipe island) - 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
KEDAH VALUE PROPOSITION Government Support After Sales Services Infrastruture Readiness Matured Market (Market potential) Location IP Protection Cost Effectiveness Human Capital International Linkages 25 Support Services (Supply Chain)
Want a BIG PIECE of Asia s Action? KEDAH IS SPOT-ON! C Block, Level 3, Wisma Darul Aman 05503 Alor Setar, Kedah, Malaysia +604 732 5326 +604 732 5357 +604 732 5484 info@investkedah.com.my www.investkedah.com.my