Specifically mida will reach out to domestic

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Unformatted text preview: ndustrial Development Authority (MIDA) to include attracting domestic investment. Specifically, MIDA will reach out to domestic investors, both broadly through roadshows and mass communications as well as through targetted identification and negotiation. MIDA will also assist domestic investors in their negotiations with government agencies on incentives, regulations and navigating administrative procedures. In addition, MIDA will co-ordinate and consolidate the various efforts of the five growth corridors – Iskandar Malaysia, Northern Corridor Economic Region, East Coast Economic Region, Sarawak Corridor of Renewable Energy and Sabah Development Corridor. In addition to these domestic sources of capital, 27 percent of the capital required to finance the EPPs is estimated to be sourced in the form of foreign direct investment (FDI), amounting to a total of RM358 billion over the 10 years to 2020. Some of the NKEAs, particularly Greater Kuala Lumpur/Klang Valley, Electronics and Electrical (E&E) and Oil, Gas and Energy, rely on attracting FDI. Malaysia’s FDI performance has lagged many countries in the region over the past decade. In 2009, Malaysia received just RM4.9 billion of FDI, a reduction of 81 percent on the 2008 inflow. Over the same period, FDI inflows into the entire Southeast Asian region reduced by just 22 percent, and increased in the Philippines (26 percent) and Singapore (54 percent). To attract both the substantial amounts of domestic and foreign investment required, Malaysia will fundamentally strengthen its investment attraction activities. This began with the corporatisation and empowerment of MIDA announced in the Tenth Malaysia Plan and the expansion of its scope to cover domestic investment. The specific requests from the various EPPs will sharpen the focus of these reform efforts. There are two categories of investor attraction: targetted outreach to potential investors and partners as well as broader-marketing campaigns (Table 3-1). Economic Transformation Programme 95 A Roadmap For Malaysia Targetted outreach activities include identifying and negotiating with specific investors to participate in identified projects. For instance, we will target foreign investors to participate in five oleo hubs in the Palm Oil NKEA and encourage existing investors to bring in advanced packaging lines in the E&E NKEA. MIDA will be responsible for working with the respective industry to lead these investor-outreach activities and will act to achieve the key milestones for the EPPs. In addition to these targetted activities, MIDA will also undertake broader marketing campaigns in relevant NKEAs in order to promote Malaysia as an attractive investment location. An example is organising international roadshows to position Malaysia as a world-class data centre hub. Table 3-1 Description Enablers required from EPPs Lead agency Targetted outreach for 11 EPPs, including Malaysian Industrial partners • E&E: Encourage assembly and test players already GNI impact (RM billion) Development Authority 20.3 in Malaysia to bring in advanced packaging lines; outreach to IC design firms and substrate manufacturers • Palm Oil: Attract targetted foreign investors to set up their plants in five oleo hubs • Tourism: Attract entertainment outlet operators to invest in gazetted entertainment zones Broad...
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This note was uploaded on 02/24/2014 for the course ACCOUNTING financial taught by Professor Alan during the Spring '14 term at Howard.

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