“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, INVEST KL CORPORATION
MALAYSIA AND KL’S ECONOMIC FUNDAMENTALS 2
STRONG ECONOMY REAL GDP AND PER CAPITA GNI (2011 - 2017) RM Real GDP (RM) (%) 39,315 37,738 20 40,000 36,078 34,839 32,596 30,698 29,782 15 30,000 10 20,000 6 5.6 5.6 5.1 5 4.7 4.2 5 10,000 0 - 2011 2012 2013 2014 2015 2016 Q1 2017 So urc e : E PU, Ba nk Ne g a ra Ma la ysia a nd MI E R 3
MALAYSIA’S GDP IN USD$ 4
ASEAN : POSITIVE PROSPECTS Real GDP Growth (%) Source: Economist Intelligence Unit 5
STEADY POPULATION GROWTH 6
MALAYSIA’S FUNDAMENTALS REMAIN SUPPORTIVE OF GROWTH 7
CITIES vs CITIES & THE BIRTH OF INVEST KL 8
DRIVING MALAYSIA’S GROWTH AND COMPETITIVENESS ECONOMIC TRANSFORMATION PROGRAMME (ETP) 12 12 NATI ATION ONAL K AL KEY EY ECON ECONOM OMIC AR C AREAS EAS NKEA ETP GOAL ETP G OALS S BY 2020 BY 2020 • GNI per capita of USD 15,000 • 3.3 million additional jobs • USD 444 billion investments Greater Kuala Lumpur/ Oil, Gas & Energy Palm Oil & Rubber Financial Services Klang Valley Tourism Business Services Electrical & Electronics Wholesale & Retail Communications, Content Education Healthcare Agriculture & Infrastructure 9
10
GREATER KUALA LUMPUR (GKL)/ KLANG VALLEY (KV) FAST FACTS 2,793 km 2 30% 7.2 million 10 GDP Contribution Population Area Local Authorities Commercial and 33% Main economic financial capital engine hub Fresh Graduates Move to (4 times the Size of Singapore) GKL/KV Upon Graduation 11
BIG TALENT POOL GROWING SUPPLY OF QUALITY TALENT High Competency >130 94.6 % 2.5 million 14.7 million Language Proficiency Public & Private Graduates p.a. Literacy Rate Labour Force Regional Experience Universities/Colleges UNESCO Institute for Statistics 2015 200,000 projected tertiary Total of 21.7 million working enrolment by 2025 45 public & private universities in GKL age population (15-64) Highly Motivated Source: Ilmia (As at Q22016) NOTABL OTABLE PER E PERFOR ORMAN ANCE I CE INDICATOR CATORS KEY TAL EY TALEN ENT SECTOR T SECTORS Board of Financial Services Information and Engineers Professionals Communication Increase in total higher education enrolment Malaysia Technology (ICT) 11,000 (ACCA member), (2004 – 2014) to 1.2 million students Registered Knowledge Worker 600 (The Actuarial Society members) Members Increase in Bachelor degree enrolment (1990 – 2010) 100,000 330,000 211,500 Increase in Masters and PhD enrolment (1990 – 2010) Board of Engineers Department of Statistics Department of Statistics Malaysia, 2015 Malaysia, 2014 Malaysia, 2014 Malaysian The Chartered Healthcare Increase in publications from 2007 – Institute of Institute of Professionals 2012, highest in the world Logistics and Management Increase in number of citations from 33,000 (Doctors), 60,000 2005 – 2012 Transport Malaysia (MIM) Members (Nurses), 20,000 (Skilled- of publications from 2003 – 2012 Members Workers) contributed by 5 MRUs Yearly growth in number of patents from 2007 – 2,830 10,000 180,000 2011, Malaysia was 28 th in the world in 2011 The Chartered Institute of Malaysian Institute of Logistics and Transport, 2015 Management, 2015 12
MRT LINE 1 FULLY OPERATIONAL AND LAUNCHED BY PRIME MINISTER NAJIB ON 17 JULY 2017 Cost Length Pax / day Stations US$6.56bil 51KM 400,000 31 KLIA Transit LRT Monorail MRT Line 1 LRT Kommuter 13
COST EFFECTIVE PLACE FOR DOING BUSINESS AND AFFORDABLE QUALITY LIFESTYLE Most Expensive COM COMPETI PETITI TIVE VE TAX R TAX REG EGIME 1 st COST OF COST OF L LIVI VING 4 th Hong Kong Singapore 7 th Shanghai 74 th 151 st Bangkok Kuala Lumpur WITH TAX INCENTIVES Least Expensive Source: Mercer Cost of Living Survey 2016 Source: Internal Prime Office Average Cost of Talent 2 Hilton Room Charges 3 International School Fees 4 Gross Effective Rents 1 (US$k/annum) (US$/night) (US$k/annum) (US$/sqm/mth) 500 25 22 50.0 190.3 381 200 43.4 38.6 400 20 17 40.0 150 13 300 15 265 30.0 100 205 200 10 20.0 69.8 13.2 50 10.0 100 5 14.7 - 0 0 0 Hong Singapore Kuala Hong Singapore Kuala Hong Singapore Kuala Hong Singapore Kuala Kong Lumpur Kong Lumpur Kong Lumpur Kong Lumpur 1 Source: Knight Frank Research-Asia Pacific 2 Source: 2016 Hays Asia Salary Guide 3 Source: Hilton Reservation 4 Source: International School Tuition Fee 14 Prime Office Rental Index Q12016 (Salary based on Accounts Support (Nett charges based on Deluxe Room) Schedule 2015-2016 position within an MNC) Elementary school (Year 1-Year 5)
OBJECT OF INVEST KL AND ITS PERFORMANCE 15
INVESTKL: ATTRACTING 100 LARGE MULTINATIONALS TO GKL BY 2020 Special Purpose Investment Promotion Agency of the Government of Malaysia For Greater KL (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 Hidden Champions Large SMEs (Revenue >USD 500 million) UNDERSTANDING BUSINESS NEEDS AND DEVELOPING A COMPREHENSIVE SOLUTION FOR MNCs Connection with relevant authorities Collaboration with universities Government agencies & authorities Research & development Customs & immigration Internship programs Tax consultants & banks Seminar participation Establishing business Talent facilitation Office leasing Employment pass Residence pass Company registration Business licenses Talent sourcing 16
OVERALL INVESTMENT, JOBS AND MNCS – ON TRACK (64% OF K For notation, TOTAL from July 2011 – 31 December 2016 Total MNCs Secured : 64 : RM 8.825 billion Total Approved / Committed Investment Total Realized Amounts Spent by MNCs in Malaysia : RM2.9 billion (35.2%) : 9,011 Total Committed High Skilled Regional Jobs Total High Skilled Regional Jobs on Payroll : 5,012 (55.6%) 13 14 Total 100 12 10 MNCs Investment Committed* 10 10 RM2.981B Regional Jobs Committed * 1,862 5 2018 – 2020 2011 2012 2013 2014 2015 2016 2017 Graph not according to scale 17 *committed / approved
REALIZED VS APPROVED/COMMITTED INVESTMENT COMMITMENTS - ON TRACK (Q4 2016) 8,896 Investments On Track 36% Realized Employees on payroll Regional Jobs 9,335 On Track 56% Realized 18
REGIONAL JOBS CREATED Salary Analysis (Q4 2016) Overall 5,233 Local 4,318 (83%) Expat 915 (17%) Locals vs Expats (Salary Scale) 19
IMPACT OF INVEST KL ON THE REAL ESTATE INDUSTRY 20
LOCATION OF INVESTKL’S MNCS IN GREATER KL Note: 70% of MNCs are located in Kuala Lumpur KL Sentral • Wilhemsen (1 Sentral) • Darden (Menara CIMB) KLCC City Centre • Red Lobster (Plaza Sentral) Mont Kiara • Verdandi (Plaza Sentral) • Subsea 7 (G Tower) • Service Source (1 • Saipem (Menara Shell) • Tecnicas (G Tower) Mont Kiara) • International SOS (Nu Tower) • Schlumberger (Rohas P’kasa) Petaling Jaya • Irfaz (Solaris) • Codemasters (Plaza Sentral) • Cameron (KLCC) • Atalian • Promat (Wisma Tune) • Wilson (Plaza Sentral) • McDermott (M. Hup Seng II) • Aecom • Hobsons (Plaza Sentral) • Honeywell (M. Hup Seng) • Dieffenbacher • Cerner (Nu Tower) • UIL (Etiqa) • Vinci • Rhodium (KL Sentral) • RCMA (KLCC) Arcadis • • Worley Parsons (Intermark) • EPSON • Turner Int (Intermark) • TTDA • Bechtel (The Weld) • Philips HC • SPIE (Changkat T45) • Sucden (UBN Tower) • Oceaneering (Wisma Goldhill) • Oracle (Wisma Goldhill) • ABI (KLCC) Bangsar • Indra (Bangsar South) • Worldline (Centrepoint MV) Subang Jaya / Shah Alam • Cargill (Bangsar South) / Klang • Valmont (Gardens S. Tower) • Linde • TPSC (Mid Valley) • Clariant • KBR (Bangar) KL General • Oleon • Zurich (Menara Zurich) • SC Johnson • Kadokawa (B. Tasik Selatan) • Rentokil • Voith (Dolomite BP) • Agusta • CREC (Faber Towers) • HSIS • IFFCO (Etiqa Twins) • Huntsman • Menard • Colas Rail Cyberjaya • AMER • IBM Sepang • NOVARTIS • CRH • Horizon 21
OFFICE SPACE UTILIZATION Realised Jobs 2016 Office Space State No. of MNCs (Q4 2016) Utilization* sqft Kuala Lumpur 44 2,069 248,280 Selangor 20 3,164 379,680 TOTAL 64 5,233 627,960 Estimated Annual Rental (2016) RM 43.6 million RM Million New office space 35 floors Ave r age Re ntal : - Kuala L umpur RM7 / sqfT - Se langor RM5 / sqfT @ Petronas Twin Towers The 64 MNCs would occupy 35 floors of one Petronas Tower *Estimated utilization at 120 sqfT/person KLCC average NLA / floor – 18,000 sqft 22
RECENT MAJOR G2G ANNOUNCEMENTS 14 Agreements - USD32.7b • • 16 G2G MoUs • 15 commercial agreements – USD5b • 7 commercial MoU – Kuala Lumpur USD2.21b USD2b urea plant , 2.5m • tons annually for export to • Saudi Aramco – Petronas India USD7b 4 G2G MoU • • World’s first Digital Free Trade Zone 23
Recommend
More recommend
