2016 Investment Performance Report Strengthening the Growth Momentum - PowerPoint PPT Presentation

MALAYSIA 2016 Investment Performance Report Strengthening the Growth Momentum 1

2016: Year of Many Challenges… On the global front • Significant deceleration in developed market economies led to weak aggregate demand • Volatile international financial markets, including currency fluctuations • Sentiments from world events such as Brexit • Uncertainties around the rebalancing of the Chinese economy • Commodity prices and global economic activities remain subdued • Evolving US economic policies on global trade • Elevated geopolitical risks further amplifies economic challenges 2 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

2016: Year of Many Challenges… Cont’d In the Malaysian context • Continued volatility in the exchange rate • Over-reliance on foreign workers • Low productivity levels • More intense competition from regional peers • Misperceptions among investors 3 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

2016: Year of Many Challenges… Cont’d Despite these challenges and issues, Malaysia still manages to maintain its investment growth momentum. This is reflected in the following slides on the investment performance of Malaysia’s manufacturing, services and primary sectors for 2016 4 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

FDI INFLOWS 5

Global FDI Inflows Global FDI flows fell 13% in 2016, reaching an estimated US$1.52 trillion, as global economic growth remained weak and world trade volumes posted anaemic gains. 3,000 2,500 1,870 2,000 1,700 1,560 1,520 1,494 1,490 1,470 1,400 1,330 1,230 1,500 1,190 1,000 500 - Note: *Estimated Source: UNCTAD Global Investment Trends Monitor No.25, 2 February 2017 6 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Malaysia’s FDI Inflows In 2016, Malaysia’s FDI inflows drops slightly by RM Million 5% vis-à-vis the more 50,000 43,435 significant drops in 41,176 38,175 40,000 global FDI and 35,600 developing economies 28,537 30,000 of 13% and 20% 20,000 respectively 10,000 0 2012 2013 2014 2015 2016 Source: DOSM 7 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Malaysia’s FDI Inflows – by Sector RM43.4 bil. RM41.2 bil. In 2016, FDI inflows in the Services sector increased to 12.6 RM Billion (29%) RM20.9 bil. 20.9 1.1 compared with (50.7%) (2.5%) RM12.6 bil. recorded in 2015 17.1 2.0 (4.8%) (39.4%) 11.0 (26.8%) 7.6 13.2 (18.4%) (30.4%) 2016 2015 Mining Manufacturing Construction Services Source: DOSM 8 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

ASEAN Investments FDI by ASEAN countries into Malaysia decreased by 27% to RM Billion RM7.8 bil. compared to RM10.8 bil. in 2015 10.8 7.8 Singapore and Thailand are the major ASEAN countries contributing to the FDI inflow with investment of RM6.7 bil. (16% of the total FDI inflows) and RM1.3 bil. (3% of the total 2016 2015 FDI inflows) respectively. Source: DOSM 9 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Malaysia FDI Stock FDI Stock by Sector as at Dec 2016 FDI Stock by Major Sources as at Dec 2016 Agriculture, 2% % Country Manufacturing, RM billion 43% Contribution 1. Singapore 115.7 21.2 Services, 47% 2. Japan 70.5 12.9 3. Netherlands 48.2 8.8 Mining, 7% Construction, 4. Hong Kong 44.1 8.1 1% 5. USA 36.2 6.6 FDI Stock as at end of Q4 2016 totaled RM 545.6 600 6. Switzerland 25.5 4.7 500 7. Germany 19.7 3.6 400 8. British Virgin Islands 19.3 3.5 RM billion 300 9. Norway 19.1 3.5 200 Sub-total (top 9 economies) 398.3 73.0 100 Total FDI Stock 545.6 0 As at end of 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: DOSM RM billion 255 271 313 366 406 446 475 505 546 10 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

TOTAL APPROVED INVESTMENTS IN 2016 1 1

Total Approved Investments 2016 FDI 207.9 193.0 RM RM59 bil. Billion (28%) RM 207.9 bil. DDI RM 148.9 bil. (72%) 72 : 28 RM207.9 Domestic:Foreign 2016 2015 billion Projects Approved Employment opportunities 2016 2015 15% 2016 2015 4.5% 4,972 5,207 153,060 180,244 12 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Total Approved Investments Cont’d Total RM Billion Approved 207.9 250 193.0 Investments 8.2 3.8 200 in 2016 58.5 74.7 Primary 150 increased by Manufacturing 7.7% 100 Services 141.2 114.5 50 0 Year 2016 2015 Source: MIDA 13 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Investments by Sector & Source Primary RM8.2 bil. Services sector 4% remains strong and continues to lead RM 207.9 bil. with investment of Manufacturing Services RM141.2 bil. RM58.5 bil. RM 141.2 bil. 28% 68% Domestic Investments continue to spearhead private 2016 2015 investments Domestic Investments Domestic Investments RM148.9 bil. RM 156.9 bil. 72% 81% 28% DDI 19% Foreign Investments Foreign Investments FDI RM59 bil. RM36.1 bil . 14 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

INVESTMENTS APPROVED IN THE MANUFACTURING SECTOR 1 5

Approved Investments in the Manufacturing Sector Manufacturing Approved investments RM Million declined by 21.7% year- 80,000 on-year 74,693 70,000 Year 2016 2015 58,492 60,000 RM58.5 RM74.7 Approved 50,000 21.7% bil. bil. Investments 40,000 30,000 Projects 733 680 20,000 7.8% 10,000 0 64,120 66,494 Jobs 4.2% 2016 2015 16 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

New & Expansion/Diversification Projects Approved Manufacturing Expansion/ Diversification projects reflects Expansion / RM58.5 Diversification investors' Projects prevailing billion RM30.8 bil. New Projects confidence in 53% RM27.7 bil. Malaysia’s 47.% investment environment 17 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

DDI vis-à-vis FDI Manufacturing DDI slightly surpasses FDI in investments approved in 2016 2016 2015 DDI RM52.8 bil. RM27.4 bil. FDI (71%) (47%) RM58.5 RM74.7 billion billion RM21.9 bil. (29%) RM31.1 bil. (53%) 18 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Sources of FDI Manufacturing RM Billion China, the Netherlands, 5.0 Germany, the UK and 4.5 Republic of Korea were 4.7 4.0 the main sources of FDI, 3.5 contributing more than 3.0 3.2 half of total foreign 2.5 investments approved 2.6 2.6 2.0 2.2 2.1 1.9 1.4 1.3 1.5 1.0 0.5 0.6 - 19 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Approved Investments from ASEAN Countries Manufacturing 2,113.8 ASEAN countries RM Million contributed RM2.3 bil. or 8% of total foreign investments approved in manufacturing sector 169.9 4.6 Singapore Thailand Indonesia 20 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Employment by Category 38% skilled job Manufacturing opportunities created 60 5,108 from projects approved 11,505 0.1% 8% 18% 8,372 in 2016 13% 38% 64,120 jobs 10,844 Craft Skills 1,800 1,664 17% 1,600 1,440 28,231 1,400 1,198 1,200 44% 1,033 1,000 821 718 800 631 600 400 Managerial 200 Technical & Suoervisory 0 Skilled Workers Craft Skills Sales, Clerical & Others Unskilled Workers 21 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016

Quality Projects Approved in 2016 Lotte Chemical Titan (M) Sdn. Bhd. Lotte Chemical Titan (M) Sdn. Bhd. Existing Investments : RM 3,995.4 mil. Existing Investments : RM 3,995.4 mil. Additional Investments : RM 1,502.7 mil. Additional Investments : RM 568.4 mil. Product/Activity: Expansion of Ethylene, Propylene, Product/Activity: Benzene, Toluene Expansion of Polypropylene Existing employment : 1,074 574 Engineers/Professional personnel Existing employment : 1,074 306 Management personnel 574 Engineers/Professional personnel 194 Skilled workers 306 Management personnel 194 Skilled workers Additional Employment: 36 32 Engineers/Professional personnel Additional Employment: : 29 4 Management personnel 21 Engineers/Professional personnel - Skilled workers - Management personnel Location: 8 Skilled workers Johor Location: Highlights: Johor This expansion project will be using a new technology for cracking naphtha feedstock, based on fluidised Highlights: catalytic cracking technology which has the flexibility to This project will increase the capacity of polypropylene convert a variety of feedstock into high- value olefins resin to meet the demand of domestic and overseas (ethylene, propylene) and aromatics (benzene, toluene). market. The proposed polypropylene plant will utilise This project is also in line with the 11th Malaysia Plan. propylene produced by them internally. 22 MALAYSIA INVESTMENT PERFORMANCE REPORT 2016