INVEST IN MALAYSIA OPPORTUNITIES IN GREATER KL ARENA REAL ESTATE - - PowerPoint PPT Presentation
INVEST IN MALAYSIA OPPORTUNITIES IN GREATER KL ARENA REAL ESTATE NETWORK ALLIANCE CONVENTION & EXHIBITON 25 TH 27 TH AUG 2017 | BERJAYA TIMES SQUARE HOTEL DATUK SERI MICHAEL K C YAM SMW, Presentation by: DSNS CHAIRMAN,
ARENA REAL ESTATE NETWORK ALLIANCE CONVENTION & EXHIBITON 25TH – 27TH AUG 2017 | BERJAYA TIMES SQUARE HOTEL
DATUK SERI MICHAEL K C YAM SMW,
DSNS
CHAIRMAN, INVEST KL CORPORATION Presentation by:
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29,782 30,698 32,596 34,839 36,078 37,738 39,315 5.1 5.6 4.7 6 5 4.2 5.6
20,000 30,000 40,000 5 10 15 20 2011 2012 2013 2014 2015 2016 Q1 2017 RM Real GDP
So urc e : E PU, Ba nk Ne g a ra Ma la ysia a nd MI E R
(%)
(RM)
REAL GDP AND PER CAPITA GNI (2011 - 2017)
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Real GDP Growth (%)
Source: Economist Intelligence Unit
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MALAYSIA’S FUNDAMENTALS REMAIN SUPPORTIVE OF GROWTH
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Greater Kuala Lumpur/ Klang Valley Oil, Gas & Energy Palm Oil & Rubber Financial Services Tourism Business Services Electrical & Electronics Wholesale & Retail Education Healthcare Communications, Content & Infrastructure Agriculture
DRIVING MALAYSIA’S GROWTH AND COMPETITIVENESS
ECONOMIC TRANSFORMATION PROGRAMME (ETP) ETP G ETP GOAL OALS S BY 2020 BY 2020
12 12 NATI ATION ONAL K AL KEY EY ECON ECONOM OMIC AR C AREAS EAS
NKEA
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GREATER KUALA LUMPUR (GKL)/ KLANG VALLEY (KV) FAST FACTS 7.2 million
Population
2,793 km2
Area
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Local Authorities
33%
Fresh Graduates Move to GKL/KV Upon Graduation
Commercial and financial capital
(4 times the Size of Singapore)
30%
GDP Contribution Main economic engine hub
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BIG TALENT POOL
GROWING SUPPLY OF QUALITY TALENT
94.6%
Literacy Rate
UNESCO Institute for Statistics 2015
>130
Public & Private Universities/Colleges
45 public & private universities in GKL
2.5 million
Graduates p.a.
200,000 projected tertiary enrolment by 2025
High Competency Language Proficiency Regional Experience Highly Motivated
14.7 million
Labour Force
Total of 21.7 million working age population (15-64)
Source: Ilmia (As at Q22016)
100,000 330,000 211,500 2,830 10,000 180,000
Board of Engineers Malaysia Registered Members Financial Services Professionals
11,000 (ACCA member), 600 (The Actuarial Society members)
Information and Communication Technology (ICT) Knowledge Worker The Chartered Institute of Logistics and Transport Malaysia Members Malaysian Institute of Management (MIM) Members Healthcare Professionals
33,000 (Doctors), 60,000 (Nurses), 20,000 (Skilled- Workers)
KEY TAL EY TALEN ENT SECTOR T SECTORS
Board of Engineers Malaysia, 2015 Malaysian Institute of Management, 2015 The Chartered Institute of Logistics and Transport, 2015 Department of Statistics Malaysia, 2014 Department of Statistics Malaysia, 2014
NOTABL OTABLE PER E PERFOR ORMAN ANCE I CE INDICATOR CATORS
Yearly growth in number of patents from 2007 – 2011, Malaysia was 28th in the world in 2011 Increase in total higher education enrolment (2004 – 2014) to 1.2 million students Increase in Bachelor degree enrolment (1990 – 2010) Increase in Masters and PhD enrolment (1990 – 2010) Increase in number of citations from 2005 – 2012
contributed by 5 MRUs Increase in publications from 2007 – 2012, highest in the world
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Cost Length Pax / day Stations
US$6.56bil 51KM 400,000 31
MRT LINE 1
FULLY OPERATIONAL AND LAUNCHED BY PRIME MINISTER NAJIB ON 17 JULY 2017
MRT Line 1 LRT Kommuter Monorail KLIA Transit LRT
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COST EFFECTIVE PLACE
FOR DOING BUSINESS AND AFFORDABLE QUALITY LIFESTYLE
COST COST OF OF L LIVI VING
Kuala Lumpur
Shanghai 151st Singapore 4th 7th 1st
Least Expensive Most Expensive
Hong Kong 74th Bangkok
Source: Mercer Cost of Living Survey 2016
190.3 69.8 14.7
50 100 150 200
Hong Kong Singapore Kuala Lumpur
Prime Office Gross Effective Rents1 (US$/sqm/mth)
1Source: Knight Frank Research-Asia Pacific
Prime Office Rental Index Q12016
2Source: 2016 Hays Asia Salary Guide
(Salary based on Accounts Support position within an MNC) 38.6 43.4 13.2
20.0 30.0 40.0 50.0
Hong Kong Singapore Kuala Lumpur
Average Cost of Talent2 (US$k/annum)
381 265 205
100 200 300 400 500
Hong Kong Singapore Kuala Lumpur
Hilton Room Charges3 (US$/night)
3Source: Hilton Reservation
(Nett charges based on Deluxe Room) 17 22 13
5 10 15 20 25
Hong Kong Singapore Kuala Lumpur
International School Fees4 (US$k/annum)
4Source: International School Tuition Fee
Schedule 2015-2016 Elementary school (Year 1-Year 5)
WITH TAX INCENTIVES
Source: Internal
COM COMPETI PETITI TIVE VE TAX R TAX REG EGIME
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Special Purpose Investment Promotion Agency
(set up in July 2011)
MANDATE: ATTRACTING AND FACILITATING 100 LARGE MULTINATIONAL COMPANIES (MNCs) TO ESTABLISH THEIR
BUSINESS, INNOVATION, AND TALENT HUB IN GREATER KUALA LUMPUR
UNDERSTANDING BUSINESS NEEDS AND DEVELOPING A COMPREHENSIVE SOLUTION FOR MNCs
Talent facilitation
Connection with relevant authorities
Establishing business
Collaboration with universities
INVESTKL: ATTRACTING 100 LARGE MULTINATIONALS TO GKL BY
2020 Hidden Champions Large SMEs
(Revenue >USD 500 million) 16
Total 100 MNCs
2011 2018 – 2020 2012
OVERALL INVESTMENT, JOBS AND MNCS – ON TRACK (64% OF K
Graph not according to scale
2013 2014 For notation, TOTAL from July 2011 – 31 December 2016 Total MNCs Secured : 64 Total Approved / Committed Investment : RM8.825 billion
Total Realized Amounts Spent by MNCs in Malaysia
: RM2.9 billion (35.2%) Total Committed High Skilled Regional Jobs
: 9,011
Total High Skilled Regional Jobs on Payroll
: 5,012 (55.6%)
2015
2016
2017
Investment Committed*
RM2.981B
Regional Jobs Committed *
1,862
*committed / approved
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REALIZED VS APPROVED/COMMITTED INVESTMENT COMMITMENTS
Investments Regional Jobs
On Track 36%
Realized
On Track 56% Realized
Employees on payroll
8,896 9,335
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Salary Analysis (Q4 2016) Locals vs Expats (Salary Scale)
Overall 5,233 Local 4,318 (83%) Expat 915 (17%)
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KL Sentral
Petaling Jaya
Bangsar
Mont Kiara
Mont Kiara)
Sepang
KLCC City Centre
Subang Jaya / Shah Alam / Klang
Cyberjaya
KL General
Note: 70% of MNCs are located in Kuala Lumpur
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State
Realised Jobs (Q4 2016) 2016 Office Space Utilization* sqft
Kuala Lumpur 44 2,069 248,280 Selangor 20 3,164 379,680 TOTAL 64 5,233 627,960
Ave r age Re ntal :
umpur RM7 / sqfT
RM5 / sqfT
RM Million
Estimated Annual Rental (2016)
RM 43.6 million
*Estimated utilization at 120 sqfT/person KLCC average NLA / floor – 18,000 sqft
The 64 MNCs would
New office space
35 floors
@ Petronas Twin Towers
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Kuala Lumpur
USD2.21b
USD7b
– USD5b
tons annually for export to India
Trade Zone
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PRIME OFFICE RENTS FOR UPPER FLOORS IN SKYSCRAPERS AROUND THE WORLD
CITY USD$ psf pa RM psf pm HONG KONG 278 100 NEW YORK 158 57 TOKYO 150 54 LONDON CITY 114 41 SAN FRANCISO 113 41 SYDNEY 91 33 BOSTON 77 28 SINGAPORE 72 26 SHANGHAI 72 26 BEIJING 63 23 CHICAGO 59 22 PARIS 57 21 MUMBAI 53 19 FRANKFURT 53 19 TORONTO 49 18 KUALA LUMPUR 22 8
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2014
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NZ AUS HK SG US
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KL Internet City and DFTZ
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1950s
1970s
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NOTES
[1] Network companies refer to related companies (any entity within the group including subsidiaries, branches, joint ventures, franchises) or unrelated companies
within the applicants’ supply chain and business with contractual agreements
[2] P&L Management focuses on the growth of the company with direct influence on how company resources are allocated - determining the regional/ global
direction, monitoring budget expenditure and net income, and ensuring every program generates a positive ROI
I. Local incorporation under Companies Act 1965 II. Paid-up capital of more than RM2.5 Million III. Minimum annual sales of RM300 Million (Additional requirement for companies applying for tax exemption on trading income) IV. Serve and control network companies[1] in at least three (3) countries outside Malaysia V. Carry out at least three qualifying services, of which one of the qualifying services must be Regional P&L/ Business Unit Management from the strategic services cluster as follows:
1. Regional P&L [2] / Business Unit Management 2. Strategic Business Planning & Corporate Development 3. Corporate Finance Advisory Services 4. Brand Management 5. IP Management 6. Senior-level Talent Acquisition & Management
1. Bid & Tender Management 2. Treasury & Fund Management 3. Research, Development & Innovation 4. Project Management 5. Sales & Marketing 6. Business Development 7. Technical Support & Consultancy 8. Information Management & Processing 9. Economic/ Investment Research Analysis 10. Strategic Sourcing, Procurement and Distribution 11. Logistics Services
1. Corporate Training and Human Resource Management 2. Finance & Accounting (Transactions, Internal Audit)
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