BUSINESS AND INVESTMENT OPPORTUNITIES IN THE MACHINERY & EQUIPMENT, SUPPORTING ENGINEERING AND

1. BUSINESS AND INVESTMENT OPPORTUNITIES IN THE MACHINERY & EQUIPMENT, SUPPORTING ENGINEERING AND MEDICAL DEVICES SECTORS IN MALAYSIA

2. Table of Contents • Malaysia and Italy: Key Economic Data • Malaysia’s Visibility • Malaysia’s Economic Development Journey • Malaysian Economy • Malaysia Investment Performance • Investment From Italy • Malaysian Machinery & Equipment Industry • Malaysian Medical Devices Industry • Malaysia – Strategic Gateway To Asia • International Competitiveness Rankings • Why Malaysia? • MIDA’s Functions

3. Malaysia and Italy: Key Economic Data Source: World Factbook

4. Malaysia’s Visibility Petronas Diversity Palm Oil 39 % of world’s palm oil production and 44% of world’s exports Multiracial, multicultural and multilingual Malaysians living in harmony Ranked 68thin FORTUNE Global 500®, with revenue over US$97 billion Gloves Silicon Valley of Malaysia Islamic Banking Malaysia is the largest supplier of examination and surgical gloves - 50% of the global demand High-tech manufacturing hub Over 30 years of experience and world leader in Islamic banking with a strong legal and regulatory Framework

5. The Malaysia’s Economic Development Journey Innovation, ETP & High Income • 2011 Technology Intensive Export-Oriented & Labour-Intensive Economic Corridors & Services Resource-Based & Heavy Industries Import Substitution Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12

6. National Key Economic Areas (NKEAs) Wholesaleand retail Tourism Financial services Healthcare Oil, gas & energy NKEAs selected which can materially impact economic growth Greater KL Electrical & electronics Agriculture Education Comms Content Infrastructure Business services Palm oil

7. Malaysian Economy

8. MALAYSIA’S KEY ECONOMIC INDICATORS * As at 29th March 2013 Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE

9. GDP BY INDUSTRIAL ORIGIN Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12

10. Malaysia Investment Performance

11. USD 53.1 BILLION Total Investment Approved 2012 6,442 PROJECTS 182,841 JOBS

12. Total Investment Approved By Sectors In 2012 USD 53.1 billion Manufacturing 25.2% Primary 2.4% Services 72.4%

13. REALISED INVESTMENTS IN MANUFACTURING SECTOR BY MAJOR COUNTRIES AS AT 31 DEC 2012 REALISED INVESTMENTS IN MANUFACTURING SECTOR BY MAJOR COUNTRIES AS AT 31 DEC.2011 Source: MIDA

14. REALISED INVESTMENT IN THE MANUFACTURING SECTOR BY MAJOR SECTORS, AS AT 2012 Source: Malaysian Investment Development Authority

15. Investments from Italy

16. APPROVED PROJECTS & INVESTMENT IN THE MANUFACTURING SECTOR WITH ITALIAN PARTICIPATION Source: Malaysian Industrial Development Authority (MIDA)

17. APPROVED PROJECTS & INVESTMENT IN THE MANUFACTURING SECTOR WITH ITALIAN PARTICIPATION BY INDUSTRY, 1980 – 2012 Source: Malaysian Industrial Development Authority (MIDA)

18. APPROVED REGIONAL ESTABLISHMENT WITH ITALIAN PARTICIPATION, 2006 – 2012 APPROVED REGIONAL ESTABLISHMENT WITH USA PARTICIPATION, 2006 - 2011 Source: Malaysian Industrial Development Authority (MIDA)

19. MAJOR ITALIAN MANUFACTURING COMPANIES OPERATING IN MALAYSIA

20. MALAYSIA’S GLOBAL TRADE PERFORMANCE Total Trade from 2010 – 2012(USD) Source: Malaysia External Trade Development Corporation, MATRADE

21. MALAYSIA MAJOR TRADING PARTNERS, 2012 Source: Malaysia External Trade Development Corporation, MATRADE

22. Investment Policies & Incentives

23. PROMOTED ACTIVITIES IN THE MANUFACTURING SECTOR High technology, capital intensive & knowledge driven industries: Industries manufacturingintermediate goods: • Alternative Energy Sources • Biotechnology • Advanced materials • Advanced electronics • Optics and photonics • Petrochemicals • Pharmaceuticals • Medical devices • ICT • Aerospace • Machinery & equipment • Components & parts • Moulds and dies Resourced-based industries: • Oil & Gas • Food & Agro based • Value-added products from natural resources

24. PROMOTED ACTIVITIES IN THE SERVICES SECTOR PROMOTED ACTIVITIES IN THE SERVICES SECTOR • Regional Establishments • Operational Headquarters (OHQ) • International Procurement Centre (IPC) • Regional Distribution Centre (RDC) • Logistics • Integrated Logistics Services • Cold Chain Facilities • Tourism • Hotel • Tourist project • Recreational camp • Convention centre

25. INVESTMENT POLICIES Foreign Equity Repatriation of Funds Liberal Expatriate Post Approvals

26. MAJOR INCENTIVES PROVIDED

27. MILESTONES Machinery and Equipment Sector

28. Machinery & Equipment and Advanced Engineering Imports RM52.9 billion# Production RM32.6 billion* Companies M&E (1073) , ESI (1004) 2,077 Employees 133,859 Exports RM 25.2 billion# Industry Snapshot – Malaysia (2012) Specialised / Process M&E Metal Working M&E General M&E, Modules & Components Power Generating 4 main categories Mould & Die Forging Machining Surface Engineering Stamping Heat Treatment Casting Activities/services * Source from Frost and Sullivan at 2008 with consideration of 5% growth # Matrade

29. COMPANIES IN PRODUCTION M&E AS AT 2012 MALAYSIA’S ENERGY VISION

30. MAJOR M&E MANUFACTURED IN MALAYSIA MALAYSIA’S ENERGY VISION • Assembly & test equipment for electronic industry • Production equipment for oil and gas industry • Natural rubber/latex/palm oil processing machinery and equipment • Factory automation equipment • Vibratory road rollers, C-frame for tractors, buckets & arms for excavators, hydraulic cylinders, bushes & pins • Filling/wrapping/strapping machine • Concrete mixers & asphalt batching plants • Cranes, lifts & escalators • Refrigeration plants/cold room equipment • Plant/packaged air-conditioners & cooling towers • Pressure vessels & industrial boilers • Blowers & fans • Dehumidifiers & compressors • Power/hydraulic presses & shearing & bending machines • Welding machine

31. Oil & Gas Eco-System Clients PSCs (Production Sharing Contract) Stages/ Cycle X-masTree, Topside SpecialisedM&E Drilling M&E for Services Pigging Turbo M&E Surveying (Land and Sea Seismic Equipment) Wellhead FPSO Down-hole tools Umbilical Jacket ROV Flexible pipes Process Module Valves MNCs with presence in Mlaysia Solar Alert Supporting Services : Exotic Materials, Forging (1), Machining (10) & Surface Engineering (3) Research, Training & Infra – UM, USM, UPM, UKM, UTM, UTP , GMI, NCMTT, ADTECH, INSTEP, Free zone Supply Base

32. E&E Industry Cluster (Semiconductor processes) Wafer Fabrication Back-end processes Wafer Processing • Wafer Testing & Dicing • Crystal Growth • Etching & Metallisation • Assembly & Packaging (Back-end) • Slicing & Polishng • Photolithography Process Silterra X-Fab Infineon On Semiconductor Fuji Electric MEMC Tech Intel Infineon Linear Tech. Carsem Unisem ASE Freescale Semiconductor NXP Texas Instrument Clients Diamond Wire Saw Edge Grinding Wafer Polisher Epitaxial Deposition Furnace Crystal Puller Automatic Test Equipment (ATE) , Back-end processing Etching Equipment PVD, CVD Equipment Laser Lithography Companies Supporting Services/ Facilities Cleanroom Class 1 to 100 Total engineering solutions for high precision – Frencken , Kobay , UMS Group TPM, Kulim High Tech, Sirim, PSDC, UTM, USM, UM Research, Training & Infra

33. Medical Devices Eco-System Implants & Surgical Instruments Consumables Healthcare Equipment Medical Gloves, Contraceptives, Catheters, woundcare, Opthalmology, IVD, SUD Electronic Modules Life Science Instruments Electrodes, Hospital beds Products Pacemakers, Orthopedics, Surgical instruments Clients Machinery/ ESI Companies Supporting Infrastructure Sterilization Packaging Certification Testing Industry Group Education Training Regulatory UM, USM UKM Medical Device Act 2012 UKM Bio compatibility Lab Source : AMMI

34. INVESTMENT OPPORTUNITIES IN M&E & ESI Targeted Sectors • Robotics & Automation • Metalworking Machinery • Packaging Machinery • Material Handling Equipment • Oil & Gas • Semiconductor Processing • Food & Beverage • Agricultural • Plastic Processing • Forging • Casting • Machining • Surface Engineering • Heat Treatment • Stamping • Mould, tool & die

35. SPECIAL INCENTIVES FOR M&E • Incentive Quantum Criteria:- • Targeted Machinery & Equipment • Level of Investment • Level of Technology and R&D • Transfer of Technology • Spin off/ Outsourcing

36. MILESTONES MEDICAL DEVICE INDUSTRY IN MALAYSIA

37. Medical Device Companies in Operation MALAYSIA’S ENERGY VISION Total: 190 companies in Malaysia (manufacturing, distribution, sales) Source : AMMI

38. Major Foreign Medical Device Companies in Malaysia MALAYSIA’S ENERGY VISION

39. Medical Device Industry Ecosystem MALAYSIA’S ENERGY VISION Consumables Implants & Surgical Instruments Healthcare Equipment Technology Latex/ Plastic Metal Machining Electronics Furniture Medical Gloves, Contraceptives, Catheters, woundcare, Opthalmology, IVD, SUD Electronic Modules Life Science Instruments Electrodes, Hospital beds Products Pacemakers, Orthopedics, Surgical instruments Companies Supporting Infrastructure Sterilization Packaging Certification Testing Industry Group Education Training Regulatory Machinery & Engineering Supporting Industry Electronic Manufacturing Services Medical Compounds Clinical Research Center

40. Business Opportunities: Malaysia as a Medical Device Hub in Asia MALAYSIA’S ENERGY VISION Global Supply Chain Management

41. Engineering Supporting Services

42. MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER

43. MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER

44. MALAYSIAN ENGINEERING SUPPORTING CAPABILITIES MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER

45. MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER MALAYSIA – YOUR MANUFACTURING SOLUTION PROVIDER

46. Why Malaysia ?

47. WHY MALAYSIA? • Political & Economic Stability • Pro-business Government • Liberal Investment Policies • Transparent Policies • Policy of Welcome • Sound Banking System • Well Developed Infrastructure • Harmonious Industrial Relations • Trainable & Educated Labour Force • Quality of Life • Excellent Track Record

48. MALAYSIA & ASEAN MALAYSIA AND ASEAN Malaysia is strategically located in the very heart of Southeast Asia; between India and China:

49. PREFERENTIAL MARKET ACCESS • Foreign companies based in Malaysia can enjoy preferential market access via Free Trade Agreements concluded by Malaysia: Potential market of 600 million Combined GDP of USD2.3 trillion, as of 2012 Already zero tariffs for 99% of products ASEAN Economic Community and Single market by 2015

50. GATEWAY TO ASEAN AND ASIAN ECONOMIES • Strategic location: Malaysia is a gateway to other markets with preferential access through Free Trade Agreements (FTAs) ASEAN REGIONAL / BILATERAL FTAS China Japan Korea India Australia New Zealand Chile • Potential market of 2.7 billion • Tariff reduction and • elimination mostly by 2016 ON-GOING FTA NEGOTIATIONS Turkey TPP EU • Potential market of 1.08 billion