8 October 2019, Kuala Lumpur –The Government has announced enhancements to the Principal Hub (PH) incentive, which was previously introduced in 2015. Companies with existing operations in Malaysia can now further leverage Malaysia as a base for conducting their regional or global businesses. The key functions of principal hub companies include management of risks, decision making, strategic business activities, trading, finance, management and human resource.

Effective 2019, companies approved with the enhanced Principal Hub incentive, also known as PH 2.0, will be able to enjoy a concessionary 10% tax rate for their operations in Malaysia. This is to replace the previous tax treatment whereby companies with existing Malaysian operations could only enjoy tax exemption on incremental income. New companies that have yet to establish a presence in Malaysia can enjoy up to 0% tax rate for 10 years based on their level of commitments.

This enhancement of the PH tax incentive is timely as Malaysia continues to innovate its policies and strategies to attract investments so that the country will be strongly integrated into the region as well as other markets. The review aims to make Malaysia competitive with other countries in the region as the optimal headquarters hub in Asia Pacific.

The relaxation of certain conditions under this revised incentive will potentially appeal to more homegrown companies exploring expansion opportunities by venturing into new, high value–added services and expanding their supply chain in the region.PH 2.0 excludes the need for companies to serve a minimum number of countries outside Malaysia.Nevertheless, they are required to serve a minimum number of network companies.

The PH incentive has been invaluable in attracting companies to establish their hubs in the country. Multinational corporations are able to tap on Malaysia’s strategic location within the Asia Pacific region, world-class infrastructure as well as multi-lingual talent pool to optimise their operational efficiency. This has created positive spillover effects for the Malaysian economy such as high value jobs, increase in R&D activities as well as transfer of technology and knowledge to the local industry ecosystems.

Since the introduction of the PH incentive in 2015, the Malaysian Investment Development Authority (MIDA) has approved 35 principal hub projects, with total approved investments of RM35.5 billion and potential creation of over 2,700 high value jobs. These projects cut across various key sectors from electrical and electronics (E&E), aerospace, oil and gas, chemicals and information technology.

Additionally, the inclusion of new conditions such as internships, training and collaborations with local institutions will further accelerate the creation of more high-value jobs and talent pool in Malaysia.

Eligible companies are encouraged to submit their applications to MIDA as soon as possible, as only applications received before 31 December 2020 are eligible to be considered for the PH 2.0 incentive. Companies can obtain more information at www.mida.gov.my.

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About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become an active and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

For more Information:

Ms. Wahida Abdul Rahman

Director, Business Services & Supply Chain Innovation Division, MIDA

Tel: 03-2267 6622 | Email: [email protected]

KUALA LUMPUR, 16 October 2019 — In conjunction with the Malaysia Medical Device Expo 2019 (MyMEDEX 2019) the Malaysian Investment Development Authority (MIDA) organised a panel session titled ‘Revolutionising Medical Technology’ at the Malaysian International Trade and Exhibition Centre (MITEC), Kuala Lumpur today.

Mr. Zabidi Mahbar, Deputy Chief Executive Officer of MIDA, who moderated the panel, kicked off the conversation by stressing the importance of MedTech to the Malaysian economy and the need for the industry to capitalise innovation and forge a robust local supply chain to remain a leading player within the sector.

“The Malaysian total healthcare expenditure is estimated to exceed USD20 billion by 2025 with a projected compound annual growth rate of 11% from 2015 to 2020, thus making the medical devices industry as one of the most vital and dynamic sectors in Malaysia. With the ever-increasing technological advancements in the field, manufacturers, especially the local ones, are encouraged to explore emerging and innovative segments to remain competitive and relevant in the future,” said Mr Zabidi.

Joining the conversation were panellists from SWCorp Sdn. Bhd., UWC Holdings,Medical Device Authority (MDA) and Ministry of Health (MOH).

In the first half of 2019, MIDA approved 10 projects in the medical devices industry worth RM501.2 million, 20.4% higher compared with RM416.3 million approved in the same period last year. Of this, RM260.8 million were from foreign investments, representing 52% of the industry’s total approved investments for the period of January to June 2019.

MYMEDEX 2019 is an initiative by MDA supported by MIDA for the second year in a row. It is held to highlight the latest innovative technologies and advances of global medical devices. The event offers a unique opportunity for all stakeholders to immerse in an insightful one-stop centre for medical devices solutions.

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About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook, @OfficialMIDA.

For more information, please contact:

Puan Balkish Mohd Yasin

Director, Life Sciences & Medical Technology Division, MIDA

03-2267 3458

[email protected]

29 October 2019, Kuala Lumpur – YB Datuk Darell Leiking, Minister of International Trade and Industry, launched the establishment of the Federation of Malaysian Fashion, Textiles & Apparels (FMFTA), at an event themed ‘Fashion and Technology Shaping the Future’ at the Malaysian Investment Development Authority (MIDA) headquarters today. Dato’ Sri Tan Thian Poh has been elected as the Chairman of FMFTA Pro-tem Committee. The launching was attended by over 200 participants, including industry experts, professionals, designers as well as representatives of associations to commemorate this commendable milestone in the industry. The event also included a talk on ‘Fashion-Tech Shaping the Future’, followed by a Fashion-Tech Showcase.

MITI mooted the idea to unite all associations in Malaysia’s textiles and apparels industry under one umbrella last year. According to YB MITI Minister, “FMFTA will represent the collective and cohesive voice of the local textiles and apparels industry. This Federation will play an essential role in establishing the vital linkages to build a stronger comprehensive ecosystem with participation from multiple stakeholders, focusing on talent, skills and innovation. This is a crucial stepping stone to develop and enhance the coordination and promotion of the local industry, boosting domestic consumption and improving integration of stakeholders into the global value chain.”

YB Datuk Darell also launched the Handbook of Malaysian Designers in Fashion, Textiles and Apparels produced by MIDA and partners during the event. The Handbook, which consists of over 400 designers in the country, will be a useful reference material for stakeholders to seek information and opportunities as well as a medium to promote products and services to both domestic and international business communities.

Dato’ Azman Mahmud, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), said, “The Malaysian fashion retail industry is very dynamic, in line with the changing trends and evolving consumer demands. Looking at the upstream and downstream segments of the industry, a total of 1,195 textiles and apparels projects, worth RM12.6 billion have been successfully implemented within the country, as at December 2018. These projects have created over 155,000 job opportunities. For the first half of 2019, MIDA has approved an additional investment of RM94.4 million in 5 projects. Looking forward, the industry has ample room to grow and flourish.”

“The Government understands that moving up the value chain would require financial resources that might not be readily accessible to many local stakeholders. Therefore, various initiatives such as Pioneer Status, Investment Tax Allowance, Automation Capital Allowance and grants such as the Domestic Investment Strategic Fund (DISF) and Digital Transformation Acceleration Programme (DTAP) are provided to facilitate eligible companies to grow their businesses,” added Dato’ Azman.

The Government also provides facilities such as the Capital Allowance for ICT Equipment and Software, Bank Pembangunan Malaysia Berhad (BPMP)’s Industry Digitalisation Transformation Fund and MIDF’s Soft Loan Scheme for Automation and Modernisation (SLSAM) to assist companies in their digitalisation and automation journey. More recently, the Budget 2020 provides matching grants for intelligent automation of business processes. An allocation of incentives on patents and copyrights software for R&D activities undertaken within Malaysia is also provided under Budget 2020. This is to encourage industry players, including the Malaysian textiles and apparel companies to undertake higher value-added activities and to step up to the next level of development.

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About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

About the event

The launching of FMFTA was organised by MIDA in partnership with the Malaysia Textile Manufacturers Association (MTMA), Malaysian Textile and Apparel Centre (MATAC), the Embassy of Sweden, Raffles College, UBCT, GGS System and Serba Dinamik Solution.

The Handbook of Malaysian Designers in Fashion, Textiles and Apparels is a compilation of over 400 local designers in the country, led by MIDA, in cooperation with Majlis Rekabentuk Malaysia (MDC), Kuala Lumpur Fashion Week (KLFW), Malaysian Footwear Manufacturers’ Association (MFMA), Malaysian Official Designers’ Association (MODA), Kraftangan Malaysia, Bumiputra Designers Association (BDA), P.W. Gold & Silver Ornament Merchants Association (PWGS), Majlis Amanah Rakyat (MARA), Perbadanan Kemajuan Kraftangan Malaysia and Bill Keith Asian Designers Guild (ADG).

For more information

Ms. Najihah Abas, Director, Building Technology & Lifestyle Division, MIDA

Tel.: 03- 2267 6717| Email: [email protected]