Located in the heart of ASEAN, Malaysia morphed to compete on an equal footing as a leading location for MNCs to set up their regional base by shifting their headquarters to tap across the region. This is spurred by the following factors that boom Malaysia as investors’ choice for their regional operation base:-
- a)The projected double digit growth of e-Commerce in the region, Malaysia plays a powerful role to urge the transformation of the existing digital landscape in charting the path to achieve Malaysia’s National e-Commerce Strategic Roadmap. The launching of the world’s first Digital Free Trade Zone (DFTZ) in Malaysia that will ease access to cross-border infrastructure, remove complex trade regulations and processes, and foster knowledge-sharing among the small and medium E-Commerce players, comprise an Electronic World Trade Platform (EWTP), which will enable SME’s and individuals to undertake free trade globally.
- b)The logistics industry forms the backbone to the supply chain and is recognized as key to stimulate trade, facilitate business efficiency and spur economic growth. Given its strategic location, steady economic growth, presence of major players in shipping and logistics, good regional linkages and strong transport infrastructure, Malaysia has the right endowments to position itself as a regional logistics gateway.
- c)The Principal Hub incentive being introduced in May 2015, MNCs are encouraged to use Malaysia as a base for conducting their strategic regional and global businesses and operations.
Malaysia holds a steady third place behind India and the People's Republic of China (PRC) in the 2016 AT Kearney's Global Services Location Index and has maintained its position since its inception in 2004.
The index which tracks the offshoring landscape in 55 countries across three major categories: financial attractiveness, people skills and availability, and business environment.
Promoted Subsectors: Growth and Performance
Regional establishments currently being promoted by MIDA include Principal Hub, Integrated Logistics Services and Business Services.
As at 31 Dec 2016, a total of 3,776 regional establishment projects have been approved by MIDA. Of these establishments, 2,087 are Representative Offices (REs), 1,069 are Regional Offices (ROs), 271 are Operational Headquarters (OHQs), 32 Global Operations Hub, 35 Regional Distribution Centers (RDCs), 252 International Procurement Centers (IPCs), 11 are Treasury Management Centers (TMCs) meanwhile 19 are Principal Hubs.