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					          Opportunities in Asia

              by Yong Poh Kon
Chairman, ICC Malaysia/Immediate Past President, FMM
                   March 2-3, 2009
ASIA: “a new economic engine”... ADB

• World GDP : Share of 24% (2006)
• Average income growth in the region : 7%
• Trade     :    34% of world trade (2006) &
                 7% of world exports in 2007
• Share of exports in GDP: 50% (2006)
• Accounted for 40% of total increase in world trade (1990 – 2006)
• Asian export boom supported by intra-regional trade which
  accounts for 50% of Asia’s total trade, with China as a hub;
• Largest international reserves & highest savings rate in the world
• Integration of Asia progresses in trade, investment, money &
  finance, cross-border infrastructure: ASEAN, China, Japan, Korea
  are leading integration efforts
Factors for Choice of Location

In order of importance..
1. Market growth rate           7.    Supplies
2. Market size                  8.    Government effectiveness
3. Access to                    9.    Natural resources
    internal/regional markets   10.   Following competitors
4. Skilled labour               11.   Availability of incentives
5. Cheap labour                 12.   Local capital
6. Infrastructure                     market
ASIA: Attractive to Trade & Investment Flows

•   Market: size & growth of the local market: 3,061 million
    population in Asia
      China: 1,323 million
      India: 1,131 million
      ASEAN Population: 570 million
• Good economic growth prospects
• Availability of cheap labour & skilled labour e.g. India
• Progressive regional integration – ASEAN Economic
  Community
• Opening up to FDI e.g. Vietnam
• Noticeable improvements in the business environment
  for foreign companies e.g. Indonesia
UNCTAD World Investment Prospect Survey (2010)

• Preferred location for investors: 2 Asian economies in top
   10 i.e. China followed by India
• Other countries in the top preferred 30 countries:
     Indonesia         Thailand
     Korea             Vietnam
     Singapore         Malaysia

• Sector Focus: Services important because of ‚catching up‛,
  particularly telecommunications, transport, infrastructure
  & internationalisation of business functions e.g. logistics,
  R&D, call centres
Prospect for Asian Economies
                   Current Economic Scenario

• Prospects remain ‘good’ as Asia’s trading partners other
  than US continue to perform reasonably well e.g. emerging
  market economies, Eastern Europe, Latin America, several
  African countries;
• East Asian financial turmoil in 1997/8 led to reforms, better
  regulation and clearer accountability. Prudent monetary &
  fiscal policies have assisted in mitigating the external
  shocks;
• Scope for fiscal and monetary expansion as most of the
  region’s economies enjoy robust budgetary positions and
  scope to wind monetary policy back; and
• High foreign exchange reserves and high stock of savings
  in several of the Asian economies.
Key Indicators
                       Malaysia & Czech Republic
No   Key Indicators

1    Area               329,847 sq km        78.866 sq km
2    Population           27,730,000          10,424,926
3    GDP Growth             6.3%                 6.4 %
     Rate
4    GDP By Sector    Agriculture (8.6%)   Agriculture (3.4%)
                       Industry (47.8%)     Industry (39.3%)
                       Services (43.6%)     Services (57.3%)
5    Inflation Rate         5.4%                 2.1 %
6    GDP Per Capita        $14,400              $22,000
7    Unemployment           3.2%                 4.3%
Key Indicators
                             Malaysia & Czech Republic
No       Key
      Indicators
8    Main             Electrical and electronics,     Motor vehicles and parts,
     industries      palm oil, crude petroleum,         machine tools, electric
                        chemicals, machinery          power equipment, metals,
                     appliances and parts, metal        chemicals, coal, food
                           manufacturing              processing, glass, tourism
9    Exports                $189.6 billion                   $66.5 billion
10   Main Partners       Singapore (14.7%),               Germany (36.1%),
                      US (12.5%), Japan (10.8%),       Slovakia (8.4%), Austria
                           Thailand (4.8%),            (6%), Poland (5.3%), UK
                         Hong Kong (4.3%)                       (4.7%)
11   Imports                 $149 billion                    $68.2 billion
12   Main Partners   China (12.8%), Japan (12.5%),        Germany (31.7%),
                     Singapore (11.0%), US (11%),    Slovakia (5.4%), Italy (5.3%),
                           Thailand (5.6%)           China (5.2%), Poland (4.8%)
Why invest in
 Malaysia?
Why invest in Malaysia?

• Ranked 20 out of 181 economies in WB Ease of Doing
  Business Index in 2008
• Ranked 19th in IMD’s 2008 World Competitiveness
  Yearbook
• 19th largest trading nation. Total trade valued at
  RM1.11 trillion or 210 % of GDP
• Malaysia’s trade with Asian economies
  – Exports: 35.4% or RM234.9 billion
  – Imports: 42.4% or RM221 billion
• Provides Market Access: Malaysia’s FTA partners
  ASEAN, China, Japan, Korea, Pakistan
Why invest in Malaysia?

Strong macro-economic fundamentals
 • Natural resources – oil, gas, tin, timber, palm oil
 • GDP growth: 5%
 • Gross national savings: 38% of GDP
 • Debt service ratio: 3.8%
 • Unemployment: 3.3%
 • Inflation: 2%
 • Exports of manufactured goods – ¾ of total exports
Supportive Government Policies
 • Pro-business policies & responsive government
 • Liberal investment policies
 • Attractive tax and other incentives
 • Liberal exchange control regime
 • Intellectual property protection
Why invest in Malaysia?

 An Educated Workforce
 • Talented, young & productive workforce
 • Multilingual workforce, including English
 • Comprehensive system of vocational
   & industrial training
 • Harmonious industrial relations

Developed Infrastructure
 • Network of well-maintained highways & railways
 • Well-equipped seaports & airports
 • Fully developed industrial parks, including FTZs,
   technology parks and Multimedia Super Corridor (MSC)
 • Advanced MSC Cybercities & Cybercentres
Why invest in Malaysia?

 Conducive Business Environment
 • Market-oriented economy
 • Well-developed financial and banking sector
 • Wide usage of English in business legal and accounting practice
   based on British system
 • Large local business community with international
   business links
 • Large international business community

 Good Quality of Life
 • Friendly & hospitable Malaysians
 • Safe & comfortable living environment
 • Excellent housing, education
   & healthcare/medical facilities
 • World-class shopping & modern amenities
Promoted Activities in Malaysia

• Agricultural production and processing
• Forestry and forestry products
• Rubber products
• Oil palm products and derivatives
• Chemicals and petrochemicals
• Pharmaceutical and related products
• Wood and wood products
• Pulp, paper and paperboard
• Textiles and textile products
• Clay-based, sandbased and other non-metallic
  mineral products
• Iron and steel
• Non-ferrous metals and their products
Promoted Activities in Malaysia

Machinery and machinery components
 Machinery and industrial parts/components
 Machine tools
 Packaging machinery
 Machinery or equipment for the services sector
Transport equipment, components and accessories
 Engines and engine parts
 Automotive parts and components
 Aerospace industry
 Manufacture of train and related equipment
 Ship building and repair
                                               Applications to
Incentives Available                           Malaysian Industrial
• Pioneer Status with Tax Exemption of 100%    Development Authority at
• Investment Tax Allowance of 100%             http://www.mida.gov.my/
        6 th
      World
Chambers Congress
   3 - 5 June, 2009 ● Kuala Lumpur


  Leading Sustainable Growth and Change
3 Plenaries
              to address current critical issues:



       Our Global Challenges


              Food, Water and Energy


          The Economic Implications of
              Climate Change
The World Chambers Congress is:


   the only international forum for chamber leaders to share
  experience and best practices, develop network and address
    latest business issues affecting business and chambers.




 The   Only Global meeting place for Chambers
  15 Workshops…
will be divided into three tracks, enabling delegates to easily access the
sessions that are most important to their sector. Some highlights include:



      BUSINESS                    DEVELOPMENT                       CHAMBER

• Intellectual property       • Web 2.0 in business         • Chambers & the
• Women & business            • Social responsibility         environment
• Creating Sustainable        • Transformational            • Electronic certificate
  Cities                         leadership                   of origin
• Ports: Facilitating         • Customer service            • Preferential certificate
  economic                    • Youth & beyond                of origin
  development &                                             • ATA Carnet
  trade                                                     • ICC Arbitration
• Good governance
3 Business Events




 4th International       Investment         SMIDEX 2009
 Conference on       Opportunities in the
  Excellence in       Manufacturing &
  Manufacturing      Services Sectors in    A showcase
                          Malaysia           for SMEs

  2 June 2009           3 June 2009         3 – 5 June 2009
 Impiana KLCC          Kuala Lumpur          Kuala Lumpur
  Hotel & Spa           Convention            Convention
                           Centre                Centre
Three simple ways to register


        1                       2                       3



     Online:                                            Fax
                          E-mail to:
                                                 Registration Form:
 www.KL2009.com                                   + 603 4257 1133
                      FMM Secretariat:
                    wcc2009@fmm.org.my
 to save time and
   immediately                 or
    secure your
 accommodation       Congress Bureau:
 & tour bookings!   wcc09@asianoverland.com.my
 Congress Fees


Per Delegate: RM3,100.00 (US$885)                 Companion: RM950.00 (US$275)
Delegate registration includes                    Companion registration includes
attendance to :                                   attendance to :
• opening and closing ceremonies                  • opening and closing ceremonies
• all plenary and workshop sessions               • welcome reception
• exhibition area                                 • theme night dinner
• 2 lunches and 5 contact breaks                  • gala evening
• welcome reception
• theme night dinner
• gala evening            One free registration
                            for every 12 full-
                            paying delegates
         For more information




6th World Chambers Congress
     www.KL2009.com



       Federation of Malaysian Manufacturers
                 www.fmm.org.my

				
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