malaysia truly asia 2014 - smmt...uk – malaysia trade fta being negotiated with the eu bi-lateral...

Malaysia – Truly Asia 2014

Agenda

Malaysia– Truly Asia: Introduction

Market Overview

Malaysia’s Growth Agenda

Opportunities & Challenges

Malaysia – Fast-track to Asia

UKTI & BMCC

Next Steps

Malaysia – Strategic Location

Malaysia at

the Heart of

Asia

Agenda

Population: 29.7m

Labour Force: 13.3m

Growth rate: 4.8% in 2013

GDP: MYR987.7bn

Inflation: 3%

Unemployment: 3.1%

Per Capita Income: $USD10,265

Mobile Penetration: 138%

World Economic Forum’s 2013/14 Global Competitiveness Index (GCI): 24th

Malaysia – Key Facts 2013

Why Malaysia?

Love for British Brands

Bi-lateral trade agreement

Robust, generally open, high growth economy

Ex British colony – foundations based on UK

Good infrastructure

UKTI Support and a strong British Chamber

Cost-effective fast-track to Asia

Politically Stable

UK – Malaysia Trade

FTA Being Negotiated with the EU

Bi-lateral trade agreement

Plan to double trade to £8b by 2016

Strong historical and cultural links between UK and Malaysia

UK good exports to Malaysia in 2013 were £1.658bn (up 8% from 2012)

Overall goods trade worth £3.344bn in 2013 (up 2.6% since 2010)

Cost-effective fast-track to Asia

Britain, a leading investor in Malaysia; estimated cumulative investments £20 billion over the last 30 years

Britain in Malaysia

Malaysia in Britain

14 Malaysian firms listed on AIM

Jimmy Choo; Air Asia; Battersea; Wessex Water; Michelle Yeoh

W.I.E.F

Malaysian Kitchen: Trafalgar Square

Market Overview

Economic Transformation Programme to turn Malaysia into a developed economy by 2020; 131 projects; 12 NKEA’s

Goal to increase per capita income to US$15,000 by 2020

Requires annual GDP growth of 6% per annum

Latest IMF forecast expect 5%+ growth to 2017

Shift to more service-based economy

Domestic consumption a key driver of growth

Host of different initiatives ongoing (particularly in infrastructure and education)

Ambitious, but is it achievable?

Vision 2020

Malaysia’s Growth Agenda

ETP; GTP and Liberalisation

2009 – 27 subsectors

Banking & insurance licences

2012 – 17 subsectors

Private hospitals, dental clinics

International schools, private universities

Legal services – 40% equity in joint ventures

Architecture/engineering/accounting

FTA’s

Key Sector Opportunities

Education

Retail

Creative Industries

Manufacturing

Defence

Oil & Gas

Liberalisation of services: Financial, legal

SME’s: Supply Chain

Malaysia – Truly Asia; Malaysia Calling!

Challenges

Lack of transparency – government decision making and procurement

Corruption – not as bad as in some neighbouring countries, but patronage and cronyism major issues

Lack of Government accountability – subservient mainstream media

Entrenched protectionist outlook

Reliance on finite oil revenues and narrow tax base

Bumiputera preferences

Malaysia – Fast-track to Asia - 3b people

S.E.Asia

590m

1.3bn

1.1bn

25m

Malaysia: Regional Links

Regional collaboration: business matching, events, membership benefits, overall regional support

Malaysia: Regional Hub

• ASEAN Worlds largest trading entity

• Combined SE Asia GDP = US$ 2 trillion

• SE Asia Population = 600 million > EU + Middle East + South America + Former Soviet Union

• Bigger export market for UK than the Gulf, China, India or Brazil

BMCC and UKTI

Collaboration; Work closely with UKTI and FCO

Overseas Chamber Initiative Agreement signed with Lord Green in June 2013

1 of 21 markets selected in 1st wave

BMCC Focus on SME’s

Aim to assist UK SMEs to export, trade and do business in Malaysia effectively

Market research, partner identification, client identification, product launch, events, tradeshow

BCC Accreditation

BMCC

50th Anniversary; PM attending Gala Dinner on 6 March

370+ corporate members; 85,000 employees

Member benefits:

Insights and Connections Engaging with industry peers in Business Groups and Committees

Networking: Over 50 Events a Year Sharing knowledge in the bi-monthly

magazine

Speaking at Breakfast Clubs; Knowledge sharing

Access to Advisory Panel and Collaboration Panel

Membership directory both handbook and online

Connecting with UKTI, HC, FCO, Malaysian Govt, EuroCham and other international

Chambers and Associations

Access to international missions and business community: Business Opportunities and

Matching

Malaysia Calling! Welcome to Malaysia

Dr Amita Krishna

amita@bmcc.org.my

+60122320823

+44(0)7778460392

Thank You