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Asean Economic Community AEC – 2015 FORUM “ Selangor the Gateway to AEC”

Asean Economic Community AEC – 2015 FORUM “ Selangor the Gateway to AEC”. An Overview of Opportunities and Challenges 3 rd December 2013. FMM SELANGOR . GDP GROWTH RATE (%). * *. FMM SELANGOR . Malaysia’s Standing. 24 th Trading Nation in the World

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Asean Economic Community AEC – 2015 FORUM “ Selangor the Gateway to AEC”

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  1. AseanEconomic CommunityAEC – 2015 FORUM“Selangor the Gateway to AEC” An Overview of Opportunities and Challenges 3rd December 2013 FMM SELANGOR

  2. GDP GROWTH RATE (%) * * FMM SELANGOR

  3. Malaysia’s Standing • 24th Trading Nation in the World • 18th Most Competitive Country (WEF) • 6th In Ease of Doing Business • Strong Banking Institution • Ease of Credit Facility (WB) • GDP Growth 4% +. FMM SELANGOR

  4. Malaysia’s Restrictions • Limitation of Labour • Cost of Labour • Cost of Infrastructure • Cost of Production • Limitation of Specific Raw Materials. FMM SELANGOR

  5. Business Communities Dilemma Between 2013-2015, Businesses need to deal with: • Minimum wage • New retirement age • GSP removal • GST Implementation • TPPA • MEUFTA • AEC • Removal of Subsidies. FMM SELANGOR

  6. Opportunities Under AEC Market Statistics MalaysiaAsean Population 30M 600M GDP US$490B US$2300B Per Capita Income US$10,300 US$3,700 Growth 4% >6%. FMM SELANGOR

  7. Opportunities under AEC • Huge market of over 600M • Business opportunities: • Growing Market • Rising Middle Class • Higher Per Capita Income • Affluent Lifestyle • Education • Increasing Tourism/Medical Tourism. FMM SELANGOR

  8. Opportunities under AEC • Outsource/shift production to low cost Areas • Shifting operations to Raw Materials Source • Specialization of production for MNC’s • JV for economies of scale. FMM SELANGOR

  9. SME’s Concerns under AEC • Influx of cheap items-through Asean countries • Dumping directly or indirectly through Asean • Competition from low cost manufactures and service providers. FMM SELANGOR

  10. Improve efficiency, productivity or move on • Complement high end sector • J.V –similar, downstream, upstream Selangor Gateway to Asean • Opportunities to supporting industry • Competition to existing industry High End Industry/ Services Sector Marginal Industry/ Services Sector Selangor Towards a Developed State Supporting industry • Huge opportunity • Branding. Education/ Tourism/ Medical Tourism Halal Sector FMM SELANGOR

  11. Asean as a Community • Nationalistic sentiments • Political stability and policy • Legal procedures • Language/culture/customs • NTB to prevent entry-e.g. quality standard, buy local… FMM SELANGOR

  12. Asean as a Single Market • Command better bargaining power • Efficient use of capacity/resources • Higher per capita Income • Eradicate poverty within Asean • Equal opportunity within Asean • Balanced growth • Ready for open market. FMM SELANGOR

  13. Business Enhancement • Capacity Building for Local SME’s • R&D assistance center • Quality enhancement to assist SME • 3rd Country Financial Assistance • Specific Agency to guide SME’s going abroad. FMM SELANGOR

  14. Business Enhancement Asean • Bureucratic Requirement’s to be simplified • Harmonization of Legal, Taxation, Immigration, Customs, Standards… FMM SELANGOR

  15. How Selangor State can Prepare for AEC • Set up more Industrial Parks, for example, a Halal hub • Ensure all infrastructure & utilities such as water, electricity, high speed broadband are readily available • Are the Ports able to handle the expected higher volume of trade after the implementation of AEC? • Can the State provide investment incentives to both FDI & DDI? FMM SELANGOR

  16. Final Preparation for a Broader Perspective Implementation should be phased out and implemented at a comfortable phase for all. AEC is broad based and not just a G to G initiative it involves the whole asean community If AEC is successful then we should be ready for the broader perspective. FMM SELANGOR

  17. Thank YouAbdul Samad IbrahimVice Chairman and Chairman of the Strategic Policies and Economic Affairs Working Sub-Committee FMM - Selangor FMM SELANGOR

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