MIDA Office | MayCham China in Shanghai

ABOUT MIDA

MIDA is the government's principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967, MIDA has been part of the transformation of Malaysia's economic landscape for the past 5 decades. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era

Website: www.mida.gov.my

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Malaysia

Your Profit Center in Asia

China is one of the largest trading partners with Malaysia. The relationship has been dynamic, evolving in the rapidly changing international environment.

Renowned Chinese companies that have made set their global footprints in Malaysia include Xi' an LONGi(integrated solar manufacturing), Xinyi Group(solar PV glass), Alliance Steel (integrated steel manufacturing). China National Machinery Import and Export Corporation (coal-fired power plants) and Sinohydro Corporation Ltd(power project).

Chinese companies are not just leveraging on Malaysia as a base for their manufacturing facilities. Increasingly, many of them are venturing into its vibrant services sector. Among services sectors that are most appealing to these investors are real estate development (Country Garden, Greenland Group, and R&F Properties), development of transportation facilities like railway locomotives and rolling stock (CSR Co), ICT (Huawei), energy generation (China General Nuclear Power Co acquisition of Edra Global Energy) and financial services (Bank of China (BOC) and Industrial and Commercial Bank of China (ICBC).

Malaysia would indeed like to encourage more quality investments from China into the country. Towards this effort, the Malaysian Investment Development Authority (MIDA), the principal investment promotion agency for the country, has established three offices in China, namely Shanghai Guangzhou and Beijing.

These offices are responsible to provide potential investors with the latest investment information on policies and opportunities, as well as to render the necessary assistance to investors who are interested in seeking joint venture partners or technology collaborations in Malaysia.

There is various business opportunities for companies from China to invest in Malaysia’s manufacturing and services sectors. MIDA looks forward to continuously working with Chinese investors in capitalising opportunities present in Malaysia and ASEAN, particularly in high quality and impactful sectors such as electrical electronics, aerospace, chemicals, machinery, oil & gas, hospitality, healthcare, and e-commerce.

To further strengthen Malaysia s position as a preferred regional investment destination, the Government has introduced the Principal Hub scheme in 2015.

This scheme is formulated in tandem with the rising trend of globalization offshoring and outsourcing among MNCs that are increasingly centralising key strategic value-adding functions to maximise value and be more cost efficient

Chinese companies can use Malaysia as a base for conducting their regional and global operations to manage, control, and support their key functions. The Principal Hub activities Include management of risks, decision making, strategic business activities, trading, finance, management and human resource. This scheme will complement the increasing trend of global off-shoring activities by encouraging foreign companies to leverage on Malaysia's position in the ASEAN region.

There are many factors that have enabled Malaysia to attract quality investments over the years. The ongoing economic transformations, which are well-supported by Malaysia’s long term comprehensive plans have increasingly made the country a more profitable place for businesses. Chinese investors can tap into Malaysia’s deep understanding of the region, multi-lingual talent pool and extensive network of free trade agreements with ASEAN. With Malaysia's unmatched connectivity and its business friendly policies, Chinese companies have much to gain in terms of capturing growth opportunities and immediate market access.

In Bloomberg’s 2018 Innovation Index, Malaysia performed best in the area of manufacturing value added, placing 17th due to the country’s industrial roots. According to the World Competitiveness Yearbook (WCY) 2017 compiled by The Institute for Management Development (IMD), the Malaysian economy is ranked 2nd as the most competitive economy among the ASEAN countries. This is broadly consistent with other reports such as the World Bank where we were ranked 7th in the wide Asia-Pacific region. The consistency in various rankings points to the strength of Malaysia s fundamentals, highlighting that its collective effort and policy initiatives are on the right track.

With Malaysia’s strong manufacturing base and comprehensive ecosystems that have been built over the years, the country has many attractive value propositions to become the hub for the development of the Fourth Industrial Revolution (IR 4.0) in the region.

In driving IR 4.0 in Malaysia, MIDA aligns its efforts with the 11th Malaysia Plan, a strategic plan that paves the way for Malaysia to deliver high impact on both the capital and people economies, places emphasis on developing the information and communications technology industry, whereby smart manufacturing is among the focus areas.

The targeted industries highlighted are the three catalytic subsectors of E&E Machinery Equipment and Chemicals as well as the two growth subsectors of Aerospace and Medical devices. As for the services sector, the focus will be in the areas of Principal Hubs, Logistics, the ecosystem surrounding e-commerce, Green Technology and Renewable Energy as well as Waste Management.

History has proven that Malaysia is a resilient nation, despite multiple challenges faced by the global economy. The country has a well-diversified economy resting on the back of its solid economic fundamentals. With its pro-business, prudent and pragmatic policies, Malaysia is the profit centre in Asia.

MIDA looks forward to continuously working together with Chinese investors to capitalise on the opportunities that are present in the ASEAN region. For further information on investment opportunities in Malaysia, please contact the following MIDA offices:

MIDA Shanghai

Mr. Steven Cheng Seng Hock

Investment Consul, Consulate General of Malaysia (Investment Section/Director MIDA)

Units 807-809, Level 8

Shanghai Kerry Centre

No 1515, Nanjing Road (West)

Shanghai, 200040

People's Republic of China

Tel: 86(21)6289 4547

Fax: 86(21)6279 4009

E-mail: steven@mida. gov.my; shanghai@mida.gov.my

Website: http://www.mida.gov.my/home/