Malaysia has over 200 industrial estates or parks developed by government agencies, namely, the State Economic Development Corporations (SEDCs), Regional Development Authorities (RDAs), port authorities and municipalities. In addition to these, new ones are continuously being planned to meet the increasing demand for industrial land. Besides the government agencies, private developers have also developed industrial estates in certain states.
Prices and lease arrangements vary according to location.
A Free Zone is an area in any part on Malaysia declared by the Minister of Finance under the provision of Section 3(1) of the Free Zones Act 1990 to be a Free Commercial Zone or Free Industrial Zone. It is mainly designed to promote entreport trade and specially established for manufacturing companies that produce or assemble products mainly for export.
The activities and industries therein are subject to minimal customs formalities as it is deemed under Section 2 (1A) of the customs Act 1967 to be a place outside the Principal Custom Area except in respect of Prohibition of Imports and Exports under Section 31 of the Customs Act 1967.
Free Commercial Zones (FCZs)
A Free Zone allocated for carrying out of commercial activities which include trading (except retail trading), breaking bulk, grading, repacking, relabeling, transhipment and transit.
To-date there are 17 FCZs located at North, South and West Port of Port Klang, Port Klang Free Zone, Pulau Indah MILS Logistic Hub, Butterworth, Bayan Leas, KLIA, Rantau Panjang, Pengkalan Kubor, Stulang Laut, Johor Port and Port of Tanjung Pelepas.
Free Industrial Zones (FIZs)
Other than minimal customs formalities, FIZs enable export-oriented manufacturing companies to enjoy duty free import of raw materials, component parts, machinery and equipment required directly in the manufacturing process, as well as minimal formalities in exporting their finished products.
To-date there are 18 FIZs located at Pasir Gudang, Tanjung Pelepas, Batu Berendam I, Batu Berendam II, Tanjung Kling, Telok Panglima Garang, Pulau Indah (PKFZ), Sungai Way I, Sungai Way II, Ulu Kelang, Jelapang II, Kinta, Bayan Lepas I,II, III, IV, Seberang Perai, and Sama Jaya.
Companies can be located within FIZs when:
- their entire production or not less than 80% of their products are meant for export
- their raw materials/components are mainly imported. Nevertheless, the government encourages FIZ companies to use local raw materials/components
To enable companies to enjoy FIZ facilities in areas where it is neither practical nor desirable to establish FIZs, companies can set up Licensed Manufacturing Warehouses (LMWs). Facilities accorded to LMWs are similar to factories operating in the FIZs.
Companies normally approved for LMWs are those:
- whose entire production or not less than 80% of their products are meant for export
- whose raw materials/components are mainly imported.
Payment of Duty
Effective 1 January 2011, FIZ and LMW companies are eligible to enjoy import duty exemptions equivalent to CEPT rate if they comply with the following conditions;
- achieve 40% of value of local content, and
- if the local content value does not reach 40%, consideration can be given if the FIZ/LMW companies can prove that the non-originating raw material to the end products produced had undergone substantive transformation process through a mechanism which has been set.
Malaysia enjoys ample electricity supply. The national utility company, Tenaga Nasional Berhad (TNB), supplies power to Peninsular Malaysia, while in East Malaysia, the Sabah Electricity Sdn Bhd (SESB) and the Sarawak Electricity Supply Corporation (SESCO) provide power to the States of Sabah and Sarawak respectively.
Transmission voltages are at 500 kV, 275 kV and 132 kV while distribution voltages are 33 kV, 22 kV, 11 kV and 415/240 volts.
TNB also offers electricity packaged under the thermal generation assets and hydro-generated schemes for the benefit of certain industries that require multiple forms of energy for their processes.
At Kulim High Technology Park (KHTP), a ring formation electrical system, the most advanced of its kind in the region, ensures continuous uninterruptible power supply. This guaranteed, stable power supply meets the strict tolerances required by high technology operations, reflecting the government's thrust to promote such industries.
Water supply and services in Malaysia is under the concurrent jurisdiction of the Federal Government and State Governments. In order to increase the country’s water services quality particularly protecting consumers’ rights, two legislative framework, namely the National Water Service Industry (NSW) Act (2006) (Act 655) and the National Water Services Commission (SPAN) Act (2006) (Act 65) were introduced. With a well-regulated water services in place, this will help to promote efficiency and long term sustainability of the water industry to benefit the consumers, investors as well as the operators. Consumers in Malaysia enjoy a 24-hour water supply and water is reliable and safe in terms of quantity and quality. It is treated according to international standards for drinking water set out by the World Health Organisation (WHO). All domestic, commercial and industrial users are metered. Water tariff are vary from state to state.
Malaysia's fixed line, mobile and satellite communications infrastructure provided by its mobile and other network facilities providers support a full range of domestic and international services encompassing voice, video, data, and other advanced communications services.
Currently, cellular telecommunications serices cover 96% of populated areas, with more than 35.7 million subscriptions. Fixed line and mobile telecommunications are augmented by VSAT and satellite-based land and maritime services.
There are more than 28 internet service providers (ISPs) with a total of 5.6 million subscriptions. The major ISPs are TM, followed by Maxis and Celcom with a market share of 35%, 19% and 18% respectively. The telecommunications infrastructure provides the full range of audio, data and video services with modern and fully digitalised networks deploying both wired and other extended wireless bandwidth to provide high capacity and speed for voice and data transmission. At the domestic level, the country is currently being served by an infrastructure of more than 40GB. In MSC Malaysia, bandwidths capacity of up to 10 GB are provided.
Malaysia is linked to the rest of the world through various fibre optics and satellite consortia such as FLAG, SEA-ME-WE, AAG, MCS, APCN, China-US, Japan-US, Measat and Intelsat. To support the increasing demand for bandwidth, medium and high-end technologies such as ADSL, VDSL2+, FTTP, HSPA, WiMAX are being extensively deployed throughout the country.
Malaysia currently offers competitive tariffs for local, national and international connections as well as leased circuits, with the Internet dial-up and international tariffs being one of the lowest in the region.
Malaysia's central position at the crossroads of South-East Asia makes her particularly attractive as a trans-shipment centre. Air cargo facilities are well developed, especially in the six international airports in Malaysia.
The highly sophisticated Kuala Lumpur International Airport (KLIA) in Sepang, Selangor, has a current capacity of 40 million passengers and more than 1.2 million tonnes of cargo per year.
However, KLIA's 10 hectares of land is planned to accommodate up to 60 million passengers and three million tonnes of cargo per year by the year 2020, and in the future, up to 100 million passengers and five to six million tonnes of cargo per year.
The other international airports are the Penang International Airport, Langkawi International Airport, and Senai International Airport in Peninsular Malaysia, Kota Kinabalu International Airport in Sabah, and Kuching International Airport in Sarawak.
MASkargo is the main cargo division of its parent company Malaysia Airlines (MAS) which operates scheduled, chartered air cargo services, ground handling services as well as airport to seaport cargo logistics via ground transportation.
In addition, MASkargo also offers belly space capacity on its holding company's aircrafts, MAS and its other subsidiaries via the national carrier's 100 international destinations across six continents.
MASkargo operates a state-of-the-art Advanced Cargo Centre (ACC) at the Kuala Lumpur International Airport within a Free Commercial Zone (FCZ). This centre features a secure and sophisticated security system with the latest technology including fully automated procedures, ensuring real-time data tracking and the smooth flow of communication. Among the facilities at the centre are the Animal Hotel, the one-stop Perishable Center and the world's first Priority Business Centre (PBC) for key forwarding agents.
Currently it provides scheduled freighter services from Kuala Lumpur, Penang and Kuching (Malaysia) to Sydney, Shanghai, Taipei, Bangkok, Hong Kong, Manila, Jakarta, Surabaya, Tokyo, Osaka, Frankfurt, Amsterdam, and Sharjah. Currently MASkargo operates its own freighter fleet, two Boeing B747-400F and two Airbus A330-200F.
Recently, the company has been certified with the IATA Secure Freight Programme, which aims to a secure supply chain program, strengthening cargo security. The company also has a product callee I-Port, the world's first airport within a seaport trans-shipment service. This service allows fast handling of sea and air cargo shipment through KLIA from Port Klang. In addition, MASkargo also provides airport-to-airport trucking services in the country.
Air cargo services in Malaysia are complemented by Transmile Air which serves six domestic destinations in Sabah, Sarawak and peninsular Malaysia and 2 scheduled and international destinations namely, Hong Kong and Singapore. The domestic flights to Labuan and Bintulu in East Malaysia cater mainly to the oil and gas industry which requires special handling facilities. In addition to scheduled services, Transmile Air also provides air charter services to the ASEAN and Aisia Pacific region and it has the capability to fly to India, the Middle East and China.
For futher information on MASkargo, please visit the company's website at www.maskargo.com.
Ports in Malaysia can be classified as federal ports and state ports. All federal ports are under the jurisdiction of the Ministry of Transport. At present there are seven major federal ports, namely, Port Klang, Penang Port, Johor Port, Port of Tanjung Pelepas, Kuantan Port, Kemaman Port, and Bintulu Port All these federal ports are equipped with modern facilities. Bintulu Port is the only port which handles liquefied natural gas.
In tandem with the expansion of the economy and trade, ports in the country registered impressive growth in recent years. Two of the ports; Port Klang and the Port of Tanjung Pelepas, are ranked among the top 20 container ports in the world.
The government's policy on ports focuses on:
|a. Being supply-driven, i.e. the provision of ample capacity in ports to ensure that there is zero waiting time for ships.|
b. Enhancing the utilisation of ports through:
|c. Load centering, Port Klang has been made the national load centre and the transshipment centre. Whereas the Port of Tanjung Pelepas has been recognised as a regional transshipment hub.|
Various companies provide comprehensive containerised cargo transportation services in Malaysia. These include container haulage, freight forwarding, warehousing, bunkering, distribution related services, port and customs clearance, and container repair, leasing and maintenance.
Consignees and clients in Malaysia enjoy speedy, efficient and reliable cargo transportation through a network of local branches and offices. Most companies also offer a good international network of agents.
The Malaysian government regulates and enforces all matters relating to land public transport including inland container haulage through the Land Public Transport Commission (SPAD).
Sixty two hauliers cater to varied cargo needs through a diversified fleet of trailers and prime movers which also include modified vehicles. Some come equipped with modern tracking systems to enable contact with haulage vehicles on the road.
Numerous other medium and small-sized operators truck conventional cargoes to destinations in the country. Meanwhile, a block rail feeder service operates to specific destinations and a freight liner service takes care of container deliveries to outstation clients.
This multi-modal (road and rail) transportation system assures prompt delivery of cargo.
Hundreds of freight forwarding agents stationed throughout Malaysia offer nationwide freight forwarding services, while cargo bound for international destinations can be forwarded through various international freight forwarders.
Freight forwarders can also provide assistance to manufacturers in the processing of applications for required permits, licences and duty/tax exemption for the clearance of goods from the Customs authorities.
The Malaysian Highway Authority supervises and executes the design, construction, regulation, operation and maintenance of inter-urban highways in Malaysia. These comfortable expressways link all major townships and potential development areas, and have catalysed industrial growth by enabling efficient transportation.
The country's successful privatisation programme coupled with its strong economic growth has also induced more highway development projects in the last few years.
Today, the North-South Expressway together with the Penang Bridge, the Kuala Lumpur-Karak Highway and East Coast Highway form the backbone of Malaysia's road infrastructure, contributing to the country's rapid socio-economic development.
Keretapi Tanah Melayu Bhd (KTM), which operates in Peninsular Malaysia, is a corporation wholly-owned by the Malaysian government. As the single largest transport organisation in the country, KTM has the capacity to transport several classifications of goods ranging from grains to machinery.
Its network runs the length and breadth of Peninsular Malaysia from the northern terminal in Padang Besar to Pasir Gudang, Johor in the south and through to Singapore. The same northerly line serves wharves and port facilities on Penang Island.
MSC Malaysia is Asia's most exciting investment location for information and communication technology (ICT). Conceptualised in 1996, the MSC Malaysia has grown into a thriving dynamic ICT hub, hosting more than 2000 multinationals, foreign-owned and home-grown Malaysian companies focused on multimedia and communications products, solutions, services and; research and development.
Located at the heart of Asia's fastest-growing markets, MSC Malaysia features state-of-the-art infrastructure and is governed by secure cyberlaws, policies and practices that enable operating companies to thrive and produce continuous innovation.
Under the MSC Malaysia National Rollout also known as the Next Leap, MSC Malaysia has developed standards that will nurture and retain ICT-enabled industries to set up their businesss in competitive environment called Cybercities and Cybercentres.
To date, these MSC Malaysia’s designated areas known as the MSC Malaysia Cybercity/Cybercentre include:
- Technology Park Malaysia (TPM)
- Kuala Lumpur City Centre (KLCC)
- KL Sentral
- Kuala Lumpur Tower
- TM Cybercentre Complex
- Mid Valley City (MVC)
- i-City, Shah Alam
- Bandar Utama
- Bangsar South City
- Penang Cybercity-1(PCC1), Pulau Pinang
- Kulim High Tech Park (KHTP), Kedah
- Meru Raya, Perak
- Melaka International Trade Centre (MITC), Melaka
- Menara MSC Cyberport, Johor
- Putra Square, Pahang
Other areas within the country which have fulfilled the necessary MSC Malaysia qualifying criteria and performance standards will also be conferred with either the MSC Malaysia cybercity or MSC Malaysia cybercentre status based on their readiness in the future.
MSC Malaysia has become the choice location for global innovators and investors. Malaysia's unique competitive advantages stem from its:
- Highly competitive package for MSC Malaysia investors
- Customised incentives and financing
- Strongly committed leadership
- Easy access to rapidly growing markets of ASEAN and the Asia Pacific
- Availability of qualified and educated employees with more than 30,000 ICT diploma & degree graduates annually
- Multilingual, multicultural talents
- Political and institutional stability
- High quality of life
Besides the innovative solutions developed by MSC Malaysia status companies, the MSC is also focused on:
- Smart Card Technology
- Smart Schools
- Creative Multimedia
- Shared Services and Outsourcing
For further information on the MSC Malaysia, visit http://www.mscmalaysia.my