Overview: The numbers are almost too good to be believed. Following a brief recession during the global financial crisis, Malaysia's economy has bounced back, and staggeringly so. Malaysia has posted healthy (some commentators have even described it as "robust") growth numbers of 5.6 percent in 2012 and 4.7 percent in 2013. The International Monetary Fund (IMF) expects Malaysia's 2014 gross domestic product (GDP) expansion rate to be 5.2 percent. Some estimates say that number will be even higher. This ebook will profile this burgeoning economy and the many sectors that make it one of the most exciting investment destinations in the world. You may be surprised by the numbers, but by the end of this ebook, you won't be surprised by Malaysia's people.

YBhg. Datu Hj. Mohidin b.

Hj. Ishak,

General Manager, Bintulu Development Authority (BDA)

Malaysia

A Model of consistency

Malaysia has recently enjoyed some of the fastest and most consistent economic growth in Asia, with average annual expansion averaging five to six percent over the past ten years.

The country is considered a middle-income nation with a strong foundation for sustained future growth--almost 30 percent of the Malay population are under 15 years of age, more than 40 percent are 25 to 54, and nearly 8 percent are older than 55.

Malaysia's economy is highly diversified: Palm oil, tin, petroleum, copper, iron ore and other commodities have all played important roles in Malaysia's recent economic success. 50 percent of gross domestic product (GDP) comes from the services sector, with 40 percent from industry and 10 percent from agriculture.

Malaysia also owns substantial oil and gas reserves following the discovery of offshore crude oil and natural gas in the 1970s. Today, Malaysia subsidises gasoline for domestic consumers and is a net exporter of crude oil.

Malaysian lawmakers have eased restrictions on foreign investors wanting to buy into the country's financial sector. Limits on the stakes foreign owners can hold in Malaysian insurance and investment banks have been relaxed. Foreign investors have subsequently increased their holdings in these sectors from 49 to 70 percent.

Malaysia has been divided into five economic growth corridors. Each features its own business

centre that, depending on the location of the corridor, covers different sectors.

These economic corridors aim to bridge development imbalances throughout the country and have been driving the country's economic growth forward through a series of public-private partnerships (PPP).

*Source: CIA World Factbook, Ease of Doing Business Index, BBC News: Country Profiles, Economy Watch: Malaysia, Malaysian Investment Development Authority: Invest in Malaysia, Malaysian Education: Malaysian Centre of Educational Excellence

Official Country Name

Head of Government

Major Cities

Main Languages

Population

Area (km²)

Main Religions

Currency

Main Economic Sectors

GDP per Capita

Main Imports

Main Exports

Federation of Malaysia

Tuanku Abdul Halim (Head of State), Najib Abdul Razak (Prime Minister)

Kuala Lumpur (Capital)

Malay (official), English, Chinese, Tamil, Telugu, Malayalam

30,073,353

329,847

Islam, Buddhism, Taoism, Hinduism, Christianity, Sikhism

Ringgit

Manufacturing, Mining, Agriculture

$17,500 (USD)

China, Singapore, Japan, United States, Thailand, Indonesia, South Korea; Commodities: electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

Singapore, China, Japan, United States, Thailand, Hong Kong, India, Australia; Commodities: semiconductors and electronic equipment, palm oil, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals, solar panels

*Source: CIA World Factbook, Ease of Doing Business Index, BBC News: Country Profiles, Economy Watch: Malaysia, Malaysian Investment Development Authority: Invest in Malaysia, Malaysian Education: Malaysian Centre of Educational Excellence

Malaysia's textile and clothing industry is also now in full bloom. Following nearly half a decade of strong government support, exports from the sector are set to double to $7.5 billion annually by 2020. There has been continued support of public policies that bring high tech and value-added products into the textiles industry. As a result, Malaysian textiles companies are now boasting impressive client lists. Voices of Leaders spoke with one business that is helping to produce apparel for, among others, Nike, Oshkosh, Fila, Disney and Umbro.

other developing nations. Talking about Malaysia as a whole, the contribution othe country in the ASEAN region is really relevant as we are taking the chairmanship position in 2015. Sarawak has contributed almost 10 percent to Malaysia's overall real gross domestic product, becoming one of the richest states in Malaysia. Hence, Sarawak's economy has achieved a steady annual growth rate of between 4.5 to 5 percent over the last few years, generating stronger domestic demand, economic activities of on-going projects in the Sarawak Corridor of Renewable Energy (SCORE) and projects under the 10th Malaysia Plan.

What have been some of the major milestones that BDA has achieved since the last decade?

Datu Hj. Mohidin: Bintulu Development Authority has been developing the Bintulu area for the last 36 years and the industrial development in Bintulu has been quite massive, so I think that we have been successful.

In the last four years, we have developed Samalaju Industrial Park from the jungle to what it is today. It is an area well developed for industrial use where you can find plants for Tokoyuma, Press Metal and other relevant companies.

YBhg. Datu Hj. Mohidin b. Hj. Ishak,

General Manager, Bintulu Development Authority (BDA)

Can you please tell us about the Bintulu Development Authority and the role this agency plays in the area?

Datu Hj. Mohidin: BDA is responsible for facilitating the industrial tertiary sector of the econom[ic] and social development in Bintulu town and Bintulu division. We also manage residential, trade and commerce industry and provide facilities and amenities for the well-being of the people in Bintulu. And another of our objectives is to promote and increase productivity of industry and encourage more efficient utilization of natural resources.

At the same time, the Malaysian Investment Development Authority (MIDA), is currently in charge of bringing investors into the region and then we, the Bintulu Development Authority, are the ones who meet the investors here at the location and assist them in developing their projects.

How would you describe the impact that Sarawak has on Malaysia as a whole?

Datu Hj. Mohidin: Malaysia, in terms of trading, has played a major role in the region if you compare it to

Quote: "We have many opportunities for investment and further development in the oil and gas sector. Bintulu has huge reserves of natural gas and oil offshore and we are in the centre of the liquefied natural gas processing."

YBhg. Datu Hj. Mohidin b. Hj. Ishak, General Manager,

Bintulu Development Authority (BDA)

Crude oil has also attracted big multinational companies such as Petronas and Shell.

Besides the oil and gas, we also have, downstream of this, a palm oil industrial cluster that we are trying to develop at Kiduron. Also, biodiesel is playing an important role. There is significant investment to develop downstream in palm oil, diesel and other products relevant to the agribusiness sector.

On the other hand, Bintulu has to capitalized on its vast population, offering opportunities in the services sector--for example, medical services and education.

What are you doing to attract investors to come to Bintulu and which agencies are facilitating this initiative?

Datu Hj. Mohidin: In Malaysia we have a few agencies that are attracting investors into Malaysia such as the Malaysian Industrial Development Authority (MIDA) under the Ministry of Trade and Industry. This agency has the role of attracting the industrial development and they are in charge of manufacturing licenses and key incentives. MIDA is the government's principal agency for the promotion of the manufacturing and services sectors in Malaysia. Furthermore, MIDA assists companies which intend to invest in these fields, as well as facilitates the implementation of their projects. The wide range of services provided by MIDA include providing information on the opportunities for investments, as well as facilitating companies which are looking for joint venture partners.

As I commented on already, our aim is to foster an investment climate in Bintulu that can attract investors for the long term. Furthermore, foreign companies could bring talent and know-how into Bintulu. This will serve us tremendously.

What is the message of confidence that you would like to send to those investors interested in making the move into Bintulu?

Datu Hj. Mohidin: Our vision is to become a fully developed state by 2020. It is just a matter of time before we will achieve it. The demand exists and the private sector is being awarded by it. The natural resources and the infrastructure existing here, coupled with a vibrant young population, will guarantee any foreign company or investors will consider Bintulu as the preferred state of choice for long-term investment.

"I am confident that with the Sarawak Corridor of Renewable Energy (SCORE), progress will be even greater, taking Bintulu to new heights and making it known internationally."

Datu Hj. Mohidin b. Hj. Ishak, General Manager,

Bintulu Development Authority.

We are assisting the state government to develop the Samalaju Industrial Park. The Samalaju Industrial Park is part of the SCORE and is one of the important areas within this corridor located about 62 km from Bintulu. This area is focused on intensive energy industries. Previously it was under our coordination but now is under the Regional Corridor Development Authority (RECODA). It is a reality that Samalaju Industrial Park is attracting a lot of investment. In addition, we have been developing the industrial area of Kidurong which is about 10 km from Bintulu. The Kidurong area is focusing on the oil and gas sector. Some other projects that we have here are the Malaysia Liquefied Natural Gas Plant (MLNG) from Petronas, as we have gas fields located between 125 km and 275 km offshore Bintulu.

Other big multinationals such as Shell have also set up their operations here, as well as the ASEAN Bintulu Fertilizer plant.

What would you say are the current business opportunities existing in Bintulu, which areas are better place to attract foreign direct investment?

Datu Hj. Mohidin: We have many opportunities for investment and further development in the oil and gas sector. Bintulu has huge reserves of natural gas and oil offshore and we are in the centre of the liquefied natural gas processing. We are also developing the offshore gas to be processed and have value-added services onshore.

Situated on Borneo, the third largest island in the world, the Malaysian state of Sarawak, blessed with the world's oldest tropical rain forests and home to state-of-the-art convention facilities, is fast emerging as a world-class MICE (meetings, incentives, conferences, exhibitions) location, further adding to the country's growing reputation in the international business community as the perfect conference destination.

"The story of Sarawak's rise to become the most successful convention destination outside of Kuala Lumpur shows the impact the meetings industry can have on a developing state," says Dato' Sri Dr. Muhammad Leo Michael Toyad

Abdullah, chairman of the Sarawak Convention Bureau (SCB).

Set up in 2006, SCB has maintained an 80% success rate in bidding for conferences, having supported 277 conventions' bids, says Dato' Sri Dr. Toyad Abdullah, adding that Sarawak recently won the right to host the International Congress and Convention Association (ICCA) conference in 2016, a first for Malaysia, further positioning the country as one of the world's most competitive MICE destinations.

"Malaysia is strategically located, and its probusiness environment will further enhance its role as ASEAN's investment gateway. It has skilled, low-cost labor and

is a place where you can drive your business through technology," says Dato' Eddie Choon Yee Seiong, executive chairman and group managing director of leading jeweler Poh Kong, whose more than 100 outlets throughout Malaysia reflect the country's robust economic growth.

The central state of Pahang, on the east coast of the Malaysian peninsula, is also making the most of its advantages to help drive growth. It has a long coastline, rain forest and highland areas with mountain resorts, making it an increasingly attractive location for a second home for many British citizens.

At the forefront in providing housing needs in the state is Pasdec Holdings Bhd., which has established a reputation for the dependability and quality of its products and services.

"This year, we will focus on developing new townships in Kuantan at Bandar Putra in Tanjung Lumpur, Bandar Damansara Kuantan and Bandar Baru Gebeng. We are also building residential and commercial properties in Chendor, Balok in Kuantan, Rompin and Raub," says Pasdec's CEO and president Dato' Mohd Khairuddin Hj. Abdul Manan. Most of his customers are looking to leave Kuala Lumpur, which is just a 40-minute flight away, he says. "They love the peace and quiet, with the good options for their children's education. Our company is building new infrastructure, and we're engaged in joint ventures to design, build, operate and maintain a highend data center in Pahang to develop the area and take advantage of its potential."

A DYNAMIC OIL SECTOR

A dynamic oil, gas and energy (OGE) sector, being a national key economic area, is crucial to Malaysia's transformation into a highincome nation. Contributing about 20% to the nation's gross domestic product, OGE is a pillar of the Malaysian economy.

As a result, Malaysia is emerging as a cost-efficient regional base with worldclass infrastructure. The country also has a wide pool of skilled professionals and technical experts, says Khairil Aznin Bin Mohamed Khan, managing director and CEO of Kumpulan Agresif Sdn. Bhd. This fast-growing supplier and distributor of flow-handling products, piping and structural materials and specialty piping is involved in providing services and products to suit individual requirements of the oil and gas, petrochemical and marine industries.

"We see ourselves as a partner of choice for foreign investors, adding value to projects: Our primary objective is to meet our customers' stringent expectations, with the emphasis on quality products, accurate logistics, timely delivery, quality certification, cost competitiveness and responsiveness to changing requirements," says Khan, adding that Kumpulan's primary target market is Malaysia, although it's expanding throughout the region. "We already collaborate with one U.K. company and are open to any partner to keep improving our market and offer our services overseas," he says.

Another leading specialist meeting the needs of the oil industry is Oilfield Technical Inspection Sdn. Bhd. (OTI). Managed by a team of professionals who have been in the inspection business (both onshore and offshore) in the energy sector for the past 16 years, OTI provides expertise and equipment in thirdparty engineering inspection, nondestructive testing, quality assurance and control, and certification services. The company has worked on more than 200 projects worldwide, from Russia to Nigeria.

"The first thing is to be technically competent and to achieve everything we promise our customers," says OTI's managing director, Zamrin Mohamed Daud, adding: "OTI provides control and flexibility to our customers and we put our heart into every project. We are proud to provide local knowledge and expertise, combined with the international technology. The key is to exceed the expectations of our customers and of our staff."

TEXTILES: WEARING WELL

Malaysia's textile and clothing exports are set to double to an annual value of $7.5 billion by 2020. This reflects the strong upward trend over the last four years driven by government plans that focus on high tech and higher-addedvalue products, in line with policies for the rest of the Malaysian economy.

Dato' Sri Muhammad Leo Michael Toyad Abdullah currently serves as the Chairman of the Sarawak Convention Bureau. A Malaysian politician, he is also a Member of the Parliament of Malaysia for the Mukah constituency in Sarawak, which represents the Parti Pesaka Bumiputera Bersatu (PBB) in the ruling Barisan Nasional coalition. Toyad was first elected to Parliament in the 1982 election. Since then he held numerous posts in the Malaysian government. During this time he has been Malaysia's Deputy Minister for Foreign Affairs and, after the 2004 election, he joined the full Ministry of Prime Minister Abdullah Badawi as Minister for Tourism.

Dato' Mohd Khairuddin Hj Abdul Manan, a Malaysian, aged 55, was appointed as Chief Executive Officer/President of Pasdec Holdings Berhad on 11 March 2009. He holds a B.A (Hons) in Strategic Environmental Planning Studies from Liverpool John Moores University, England. Dato' Mohd Khairuddin started his career as a Forecaster/Demographer at Binafon Sdn. Bhd. after graduating in 1982 and went on to gain experience and in depth knowledge in the property development and construction industry while serving Rimman International Sdn. Bhd., Housecoff Sdn. Bhd. and Panji Timor Sdn. Bhd. as Project Manager and General Manager. He ventured into his own property development and construction business in 1992 and has undertaken projects in Seremban, Klang Valley, Pahang and Kedah prior to joining Pasdec Holdings Berhad. Among the notable projects undertaken by Dato' Mohd Khairuddin are the Terminal One and Light Industrial Park in Seremban, Water Treatment Plant in Habu, Cameron Highland and Langkawi Hospital in Kuah, Langkawi.

Dato' Sri Dr. Muhammad Leo Michael Toyad Abdullah

Chairman/Sarawak Convention Bureau

Dato' Mohd Khairuddin Hj Abdul Manan

Chief Executive Officer/Pasdec

Ahmad Mustapha Ghazali

Executive Chairman / Prolexus Berhad

Ahmad Mustapha Ghazali, a Malaysian aged 63, was appointed to the Board of Prolexus Berhad on 6 September 1993 and was appointed to the post of Chairman of the Board on 1 October 2002 and was redesignated as Executive Chairman on 25 January 2010. He is a Fellow of the Chartered Association of Certified Accountants (UK), an associate member of the Institute of Chartered Accountants in England and Wales and a member of both the Malaysian Institute of Accountants and the Malaysian Association of Certified Public Accountants. He has an MBA from the University of Leicester, England. He was previously attached to an international accounting firm as a partner and has more than 30 years of experience in statutory audit, financial reporting and corporate finance.

"The world apparel industry is a multi-billion dollar business, and the Prolexus Group is well postioned to offer its customers a competitive advantage."

"We are proud to provide local knowledge and expertise, combined with the international technology. The key is to exceed the expectations of our customers and of our staff."

"I am confident that with the Sarawak Corridor of Renewable Energy (SCORE), progress will be even greater, taking Bintulu to new heights and making it known internationally."

"Our company is building new infrastructure, and we're engaged in join ventures to design, build, operate and maintain a high-end data center in Pahang to develop the area and take advantage of its potential."

Datu Hj. Mohidin b. Hj. Ishak, General Manager,

Bintulu Development Authority

Dato' Mohd Khairuddin Hj. Abdul Manan,

Chief Executive Officer and President, Pasdec

Zamrin Mohamid Daud,

Managing Director, OTI

Ahmad Mustapha Ghazali, Executive Chairman,

Prolexus Berhad