API FORUM (21st March 2013) MIDA

About MIDA Oil & Gas Industry in Malaysia Business & Investment Opportunities Incentives for Investment Domestic Investment Strategic Fund

First point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia Government's principal agency for the promotion of the manufacturing and services sectors in Malaysia Assists companies which intend to invest in the manufacturing and services sectors, as well as facilitates the implementation of their projects Provides information on the opportunities for investments, as well as facilitating companies which are looking for joint venture partners Evaluates the applications for projects in the manufacturing and its related services sectors (Manufacturing Licence, tax incentive, expatriate post, import duty & sales tax exemption
2004 Extend to Services sector 2010 Empowerment

1979 - MIDA 1978 One Stop Agency

1988 Centre of Investment

1963 - FIDA

FIDA

PROMOTION Foreign Direct Investment Domestic Investment Business matching through EConnect Manufacturing & Services

EVALUATION Manufacturing licenses Tax incentives Expatriate posts Duty exemption Regional establishment status

PLANNING Planning for industrial development Recommend policies and strategies on industrial promotion and development Formulation of strategies, programmes and initiatives for international economic cooperation

FOLLOW UP & MONITORING Assist companies in the implementation and operation of their projects Facilitate exchange & coordination among institutions engaged in or connected with industrial development Advisory Services

UPSTREAM

Exploration, Development & Production

CRUDE OIL

NATURAL GAS

MIDSTREAM

Refining

Processing

Liquefaction

Petroleum Products

Petrochemical Plant

LNG

DOWNSTREAM
LPG Regassification Terminal

PGU System

SUPPORTING PRODUCTION DEVELOPMENT

Marine Operations Offshore Operations Refineries / Gas Processing Petrochemical Plants Repairs & Maintenance

EXPLORATION
Environmental & Positional Survey Geological & Reservoir

Engineering Design
Drilling Pipeline Construction Facilities Construction Fabrication / Manufacturing

Health, Safety & Environment and Security Tank Terminal Supply Base Underwater Services

Geophysical Services

Enhanced oil recovery activities

Development of marginal / mature fields

Development of high carbon dioxide gas / deepwater / high pressure high temperature fields Repairs, maintenance and overhaul activities

Infrastructure projects for petroleum operations (e.g. supply base, terminals)

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MANUFACTURING

SERVICES

UPSTREAM - Exploration, development & production of oil & gas MIDSTREAM Crude oil refinery, gas processing & liquefaction DOWNSTREAM - Petrochemicals plant & regassification terminal

Chemicals Containers Drilling equipment & materials Electrical, instrumentation & mechanical Insulations Linepipes Marine Vessel Risers / flowlines Safety & protection system Structural Subsea Valves

Structural maintenance Engineering, repairs and maintenance Engineering design Environmental & positional survey Geological & reservoir Health, safety, environment & security Marine support Offshore facilities Pipeline services Production, drilling & workover services Tank / tank farms Underwater services
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PIONEER STATUS

Income tax exemption of 70-100% for a period of 5-10 years

INVESTMENT TAX ALLOWANCE IMPORT DUTY & SALES TAX EXEMPTION

60-100% on qualifying capital expenditure incurred within 5-10 years can be offset against 70-100% of the statutory income

Full exemption from import duty / sales tax on raw materials/components and machinery & equipment

REINVESTMENT ALLOWANCE

60% on the qualifying capital expenditure incurred for the reinvestment can be offset against 70% of the statutory income
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In July 2012. YAB PM announced five initiatives to promote direct domestic investment:

Domestic Investment Strategic Fund Incentives for Acquiring a Foreign Company for High Technology Incentives for Small Scale Companies Incentives for Companies in Production (Desirous Issue) Incentives for Merger Among Malaysian Services Providers

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RM1 billion

The fund aims to:

Harness and leverage on outsourcing opportunities created by MNCs operating in Malaysia

To accelerate the shift of Malaysia-owned companies in targeted industries to high value-added, high technology, knowledgeintensive and innovation-based industries

Intensify technology acquisition by Malaysian-owned companies

Enable Malaysian-owned companies to obtain international standards/certifications in strategic industries

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Training of Malaysians

Modernisation and upgrading of facilities and tools

MATCHING GRANT (1:1)

R&D activities carried out in Malaysia

Licensing or purchase of new / high technology

Obtaining international standards / certification

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MECHANISM

The fund does not offer an outright grant and is contingent on the investments of the applicants

Matching grants (1:1) on reimbursable basis

To be granted on a negotiable basis based on the request of the companies and the merits of each case

Provided under the Customised Incentive Scheme, Section 127, Income Tax Act 1967

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ELIGIBILITY CRITERIA

Incorporated under the Companies Act, 1965 New and existing companies in the manufacturing and services sectors with Malaysian equity ownership of at least 60% Companies producing promoted products / engaged in promoted activities in the following priority sectors

Aerospace

Medical Devices

Pharmaceuticals

Advanced Electronics

Machinery & Equipment

Renewable Energy

Services

Others (on case by case basis)

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Effective Date of Application

Application received on or after 3rd July 2012 are eligible to be considered for this incentive

Submission

The application shall be submitted to the relevant Division in MIDA (based on products / services undertaken by the company).

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Tel: (603) 22673633 Fax: (603) 22747970 Email: yusrichu@mida.gov.my Website: www.mida.gov.my

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