API FORUM (21
stMarch 2013)
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
3 1963 - FIDA 1978 – One Stop Agency 1979 - MIDA 1988 – Centre of Investment 2004 – Extend to Services sector 2010 - Empowerment
FIDA
4 PROMOTION
•Foreign Direct Investment •Domestic Investment
•Business matching through E-Connect
•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 & co-ordination among institutions engaged in or connected with industrial development
Exploration, Development & Production CRUDE OIL Refining Petroleum Products NATURAL GAS Processing Petrochemical Plant LPG PGU System Liquefaction LNG Regassification Terminal UPSTREAM MIDSTREAM DOWNSTREAM
6
EXPLORATION
DEVELOPMENT
PRODUCTION
SUPPORTING
Environmental & Positional Survey Geological & Reservoir Geophysical Services Engineering Design Drilling Pipeline Construction Facilities Construction Fabrication / Manufacturing Marine Operations Offshore Operations Refineries / Gas Processing Petrochemical Plants Repairs & Maintenance Health, Safety & Environment and Security Tank Terminal Supply Base Underwater ServicesEnhanced 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
• 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 MIDSTREAM – Crude oil refinery, gas processing & liquefaction DOWNSTREAM - Petrochemicals plant & regassification terminal
• Income tax exemption of 70-100% for a period of 5-10 years
PIONEER STATUS
• 60-100% on qualifying capital expenditure incurred within 5-10 years can be offset against 70-100% of the statutory income
INVESTMENT TAX
ALLOWANCE
• Full exemption from import duty / sales tax on raw materials/components and machinery & equipment IMPORT DUTY &
SALES TAX EXEMPTION
• 60% on the qualifying capital expenditure incurred for the reinvestment can be offset against 70% of the statutory income
REINVESTMENT ALLOWANCE
10
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
The fund aims to:
Harness and leverage on outsourcing opportunities created by MNCs operating in
Malaysia
Intensify technology acquisition by Malaysian-owned companies Enable Malaysian-owned companies to obtain international standards/certifications in strategic industries
To accelerate the shift of Malaysia-owned companies in targeted industries to high value-added, high technology,
knowledge-intensive and innovation-based industries
RM1 billion
12 MATCHING GRANT (1:1) Training of Malaysians R&D activities carried out in Malaysia Obtaining international standards / certification Licensing or purchase of new / high technology Modernisation and upgrading of facilities and tools
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
14 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)
