Enabling innovation smart cities smart living in malaysia presentation by tony collingridge obe_director ukti malaysia


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UKTI Presentation given at the Practical Toolkit for Doing Business In South East Asia event at The Oval Kia, London on 18 October 2012.

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  • 50% of the world’s oil and gas and 30% of the world’s trade pass through the Straits of Malacca. At the heart of the most dynamic and growing economies in the world – India. China, Australia, Indonesia….. Capital KL – 1 hour flight to Singapore, 4 hours drive Hanoi, BKK, Jakarta, Hong Kong all 3 hours flight or less SE Asia, India, China, Middle East close by
  • Diverse racially and religion Muslim majority – moderate Significant others – hindus, buddhists, christians, sikhs, indigenous people Ethnic diversity = attraction Mandarin & other Chinese languages Tamil and other Indian languages Bahasa English FOOD PM Najib time of benign neglect over with UK Bumuputra – impacting on fewer areas of business – liberalisation agenda
  • 12 National Key Result Areas selected to drive economic transformation. Every initiative anchored on Gross National Income (GNI) to ensure contributes towards transforming Malaysia into a high-income economy. Tax Government plans to reduce corporate taxes in the short to medium term to raise country’s competitiveness. Malaysia’s corporate tax currently 25% MNEs and 20% for SMEs. Similar to Indonesia, Singapore-17%, Thailand-23% & Hong Kong-16.5% Comps paid-up capital of up to RM2.5 million tax 25%. SMEs with paid-up capital of up to RM2.5 million tax 20% on initial profit of RM500,000 while balance subject to 25% rate. 2013 reduce income tax by 1% at all tax brackets.
  • Liberalisation of services sector a key plank of the Economic Transformation Programme and to drive Malaysia towards a more service-based economy. However lots of vested interests and progressing through Parliament at different speeds and currently delayed because of imminent General Election.
  • Greater Kuala Lumpur and Klang Valley Focus to grow KL to be the world’s top 20 cities in economic growth. Home to many multinationals. Greater Kuala Lumpur/Klang Valley is one of the 12 national key economic areas under the Economic Transformation Programme. Johor Bahru One of Malaysia’s fastest growing cities. Singapore-Johor causeway links the two countries. Singapore top foreign direct investor. Penang Area: (738 sq km Mainland Penang and 293 sq km Penang Island) 3rd most developed and industrialised state in the country. Number 1 in Malaysia in manufacturing investment and centre for medical tourism.
  • The Government hopes to make Malaysia a regional hub for green technologies – but not much sign of activity Green Technology Financing Scheme (GTFS) - Jan 2010 RM1.5 billion to promote green technology. Soft loans to companies that supply and utilize green technology. Suppliers -max. financing RM50 million and Consumer companies, - financing up to RM10 million.  Under the GTFS, the Government bears 2% of total interest rate on loans given out by banks. & provide a guarantee of 60% on the financing amount, with the remaining 40% to be borne by financial institutions.
  • Government incentives for buildings complying with Green Building Index criteria. Building owners obtaining GBI Certificates from 24 October 2009 until 31 December 2014 are entitled to income tax exemption equivalent to the additional capital expenditure in obtaining such Certificates. Buyers purchasing buildings with GBI Certificates given stamp duty exemption on instruments of transfer of ownership. Exemption amount equivalent to additional cost incurred in obtaining the GBI Certificates.
  • +14,000 Malaysian students are studying at UK universities and an additional 58,000 studying for UK qualifications in Malaysia – larger than any other country in the world. UK educational establishments set up in Malaysia: Nottingham University, Newcastle University’s Medical School, University of Southampton’s Engineering School, Marlborough School. Plans to set up – Reading University, Herriot-Watt University & Epsom College. Hub for Transnational Education Currently, +97,000 foreign students, by 2015, 150,000 forecast. 2013 Budget, £8 billion allocated to education – focus educational technology in schools for teaching and learning. Education Blue Print for the next 15 years recently launched by the Ministry of Education. Economic Transformation Programme initiative Upgrade skills of Malaysian workforce , especially technical and vocational skills. Demand for UK-Malaysia ‘Dual Certification’ training for international recognition.
  • Government’s National Broadband Initiatives : High Speed Broadband (HSBB) and Broadband for General Population (BBGP Objective of ‘Connecting 1Malaysia’ is to create an ecosystem of smart connectivity applications such as cloud computing, teleworking, location based services, smart sensors, fleet management which will accelerate benefits that communications technology can bring to the people of Malaysia and generate RM1.8 billion in GNI.
  • Malaysia has highest standard of healthcare in Southeast Asia after Singapore. Increased wealth spent on private healthcare.   Increasing demand and expenditure on pharmaceuticals and potential in generic pharmaceuticals. Malaysia is keen on joint research projects. The government’s focus in developing the biotech sector will result in improved investment opportunities which will be favourable for businesses and cost effective R&D propositions. Under the Healthcare Economic Transformation Programme; there’s a focus on developing assisted technology for elderly care to foster independent living. Opportunities will cover telehealth, remote patient monitoring, outpatient and community-based care needs for the elderly.
  • Enabling innovation smart cities smart living in malaysia presentation by tony collingridge obe_director ukti malaysia

    1. 1. Smart Cities, Smart Livingin MalaysiaTony Collingridge OBEDirector of UK Trade & Investment - Malaysia
    2. 2. Agenda • Malaysia – Market Overview • Economic Transformation Programme • Malaysia’s Cities • Government Green Initiatives • Key Sectors • Why do Business in Malaysia?
    3. 3. Malaysia’s Strategic Location Heart of Asia
    4. 4. Malaysia - Ethnically DiverseRace, Religion and Politics.Prime Minister NajibPro-Malay (Bumiputra) action
    5. 5. Malaysia’s Economic GrowthEconomic Transformation Programme to turnMalaysia into a developed economy by 2020.Goal to increase per capita income toUS$15,000 by 2020, 2011 figure wasUS$9,700.Requires annual GDP growth of 6% perannum (2011 – 5.1%).Shift to more service-based economyDomestic consumption a key driver ofgrowth.Host of different initiatives ongoing(particularly in infrastructure and education)Ambitious, but is it achievable?
    6. 6. Business AgendaLiberalisation2009 – 27 subsectors, banking & insurancelicences2012 – 17 subsectors • Private hospitals, dental clinics • International schools, private universities • Legal services – 40% equity in joint ventures • Architecture/engineering/accounting
    7. 7. UK-Malaysia Trade Plan to double trade to approx. £8 billion and grow investment by 2016 UK exports to Malaysia in 2011 up 14% to £2.25 billion Overall trade now worth £4.38 billion UK trade surplus of approximately£12 million UK exports of services worth £800 million in 2011
    8. 8. Malaysia’s Cities Penang Population: 1.6 million Area: 1,031 sq kmKuala Lumpur& Klang ValleyPopulation: 5.7 millionArea: 2,900 sq km Johor Bahru Population: 1.8 million Area: 2,217 sq km
    9. 9. Greater KL / KV’s Blueprint Food Hub Oil & Gas Hub Free Industrial Zones MPSelayang MPAJAerospace Hub MBPJ DBKL TRX MPKlang MBSA MPSJ MPKajang PPutrajayaHalal Food Hub Education Hub MPSepang Cyberjaya Medical HubPopulation (2010) : 5.70 million , Size : 2,900.00 sq.km (10 Local Authorities) Source:
    11. 11. Government Green Initiatives Ministry of Energy, Green Technology and Water established April 2009 National Green Technology Policy launched November 2009 – “Green Technology shall be a driver to accelerate the national economy and promote sustainable development” National Climate Change Policy launched in Nov 2009 Range of green initiatives including: – Intensify green technology research and innovations – Green Technology Financing Scheme – Green tax incentives – Develop infrastructure roadmap for use of electric vehicles in Malaysia – International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM)
    12. 12. Built Environment60% of the RM230 billion 10th Malaysia Planbudget allocated for infrastructurePublic-Private PartnershipsGreen Buildings Mission Campaign 2011-2015launched with RM1.5 billion of Governmentfunding and tax incentives for green technology.The Green Building Index (GBI) set up in 2009by Malaysian Institute of Architects andAssociation for Consulting Engineers Malaysiaand supported with Government incentives forthose buildings that comply with GBI criteria.
    13. 13. Energy & EnvironmentMalaysia voluntarily commited to reduce itsemissions intensity of GDP by 40% (based on2005 levels) by 2020.Malaysian Renewable Energy law passed in 2011with feed-in-tariff (FiT) to promote developmentof renewable energy.Renewable energy will increase from <1% in2009 to 5.5% of Malaysia’s total electricitygenerated by 2015, 11% by 2020 and up to25% by 2050.Energy sector not yet liberalised, so foreigncompanies can only have 49% equity while thelocal partner will have 51% and controlling stakein local renewable energy projects.
    14. 14. EducationMalaysia ranks 4th in the world in terms of studentspursuing degrees or professional qualifications.Number of UK educational establishments have setup campuses in Malaysia.Malaysia has the 3rd largest Chevening programmein the world and its alumini numbers 1,250.Hub for transnational education in the region.Demand for educational technology/software forimproving teaching and learning in schools.Demand for technical and vocational skills trainingand UK-Malaysia joint awards/certification.
    15. 15. Digital EnvironmentHigh mobile penetration rate of 133% incomparison to 76% in Southeast Asia.Government’s National Broadband Initiatives helpedachieve a penetration rate of 64%4G networks live in January 2013 and telecomscompanies will be looking for partners in handsets,network capacity, application and content.Digital terrestrial TV will create opportunities formobile TV and 3D TV content when analoguebroadcasting switched off in 2015.‘Connecting 1Malaysia’ is to create an ecosystem ofsmart connectivity applications and generate RM1.8billion in GNI.
    16. 16. HealthMalaysia spends 4.8% of GDP on healthcare.Two-tier healthcare system. Government-rununiversal healthcare system handles 75% ofMalaysia’s healthcare needs and there’s avibrant co-existing private healthcare system.Growing market for healthcare tourism.Private hospital sector fully liberalised and plansto liberalise specialist medical and dental clinics.Plan to become region’s biotech hub andleverage on the country’s diverse naturalresources.Opportunities for UK life science companiesinclude: clinical trials and contract research;contract manufacturing of medical devices andpharmaceuticals.
    17. 17. Why do Business inMalaysia?• Close ties with the UK - English a key•Relationship has never been closer•Similar governmental and legal systems•And do not forget football!•Robust, generally open, high growth economy•Good infrastructure - IT, roads, airport•A good base for the region and Asia•UKTI Support and a strong British Chamber
    18. 18. Thank you My Contacts Tony Collingridge OBE Director of Trade & Investment Tel: +603 2170 2310 tony.collingridge@fco.gov.uk