Performance Report 2015

Performance
Report 2015
Greater Kuala Lumpur
The Regional Headquarters Location for
Multinational Companies in Asia
InvestKL is an agency under the purview of the
Malaysian Government, which was set up in support
of the Economic Transformation Programme (ETP). Its
main objective is to promote Greater Kuala Lumpur
as a strategic regional base for global multinational
companies (MNCs) to set up their regional business,
innovation and talent hubs.
InvestKL focuses on MNCs particularly engaged in
National Key Economic Areas (NKEAs) such as oil, gas
and energy, engineering services, healthcare, wholesale
and retail and environmental technology. These areas
are recognised to have high growth potential and strong
impact on the economy whilst generating high-income,
knowledge-intensive jobs for the people.
Overseen by PEMANDU, reporting to two lead Ministers
and headed by CEO Datuk Zainal Amanshah, InvestKL
works with numerous Government Ministries, entities
and agencies to formulate attractive fiscal packages,
and helps corporations identify business opportunities
while strengthening their competitiveness regionally and
globally.
Best Investment Attraction Agency
In 2015, InvestKL was among the agencies in Asia
Pacific to be awarded with the Best to Invest Top
Agency Award by Site Selection. The award is a
recognition of excellence demonstrated by leadership
and staff, and serves as a reminder of the importance of
maintaining and building on the winners’ success.
The Best to Invest Top Agency Award is presented
to the winning agencies which had accumulated the
most points in an index of seven criteria including
most professionally responsive to investor inquiries,
most knowledgeable and linguistically diverse staff,
most access to user-friendly databases of sites and
incentives, best information on timing expectations for
permitting and other processes, best access to recent
investors in the region for testimonials, best reputation
for protecting investor confidentiality and best reputation
for after-care services.
Contents
04
Chairman’s Message
05
CEO’s Message
06
Greater Kuala Lumpur
08
InvestKL Achievements
09
Greater KL & Malaysia’s
International Rankings
18
Raising Greater KL’s Profile
17
to
14
Impact on the Economy
12
MNCs in Greater KL
11
Our 2015 Investors
InvestKL Performance Report 2015
Chairman’s
Message
E
stablished in 2011 as part of the
Economic Transformation Programme
(ETP) and Government Transformation
Programme (GTP), InvestKL is tasked to
assist and facilitate the strategic move of
various global multinational companies to
grow their business in Asia out of Greater
Kuala Lumpur (KL). Now in its fifth year of
operations, InvestKL is entering the most
exciting phase of its young history as it
moves pass the half way target to secure at
least 100 companies by 2020. We’ve made
solid progress on many fronts and I applaud
all involved for the impressive achievements.
To date, InvestKL has attracted 51 MNCs
to establish their regional head offices in
Greater KL with a commitment of RM5.88
billion worth of investment. This translates
to over 7,000 regional jobs approved and
committed in response to the operations
of these newly launched regional
headquarters. We are indeed proud as this
is a resounding vote of confidence in our
country and our people.
Over the years, Malaysia has remained
buoyant in the face of many challenges
and uncertainties, and this year will be no
different; We are convinced that 2016 will
be a dynamic one. The constant quest to be
world-class and investor-friendly is what has
established Greater KL to be a compelling
setting for a regional base. In this aspect,
we look forward to the opportunities that the
Trans-Pacific Partnership Agreement (TPPA)
would bring.
Malaysia is set to benefit from the
knowledge and technology sharing that
these MNCs will bring, which will expose
our people to global perspectives and
cultivate innovation. The creation of highvalue jobs will spur the local economy as the
use of local service providers and ancillary
services such as logistics and banking, as
well as enhanced business ecosystem will
strengthen the market.
Undoubtedly, InvestKL’s driving force has
been the trust of its stakeholders. As we
shape Greater KL to become a leading
investment destination, our stakeholders
have entrusted us to partner in our city’s
magnificent transformation into a global
hub. I firmly believe that Greater KL’s
competitiveness will create long-term value
for our stakeholders and their investment.
On behalf of the Board of Directors and
the Management, I would like to extend
our gratitude to the lead Ministers – YB
Dato’ Sri Mustapa Mohamed and YB Datuk
Seri Tengku Adnan Tengku Mansor and
PEMANDU CEO, Yg Bhg Dato’ Sri Idris Jala
for their unwavering support. Our thanks
also to the various government entities and
agencies in particular, The Mayor of Kuala
Lumpur and PEMANDU, stakeholders and
everyone who has worked tirelessly to
bring up the name of Greater KL and help
InvestKL achieve its goals.
Board of
Directors
Datuk Seri Victor Wee
Dato’ Azman Mahmud
Dato’ Sani Mistam
Malaysia has historically been a natural
gateway for MNCs to conduct business.
With the TPPA in place, this will strengthen
Malaysia’s position as a base for MNCs to
not only tap into the domestic market, but
also to utilise Malaysia for growth in the
region. Greater KL’s strategic location in
the heart of ASEAN is well acknowledged
among investors for its state-of-the-art
infrastructure, highly skilled workforce and
cost-competitive operating environment.
Encik Ziad Razak
Datuk Seri Michael KC Yam
Chairman
4
CEO’s Message
T
he year 2015 was a pivotal point of
accomplishment for InvestKL. We have
successfully reached the mid mark of
our target by drawing in 51 MNCs so far to
set up their regional operations in Greater KL.
Investors have always viewed Greater KL as
a strong locale with excellent opportunities for
business and growth. The MNCs appreciate the
knowledge, expertise and commitment of our
people. These attributes are our advantage and
they are what make our business ecosystem a
dynamic one.
Under the 11th Malaysia Plan (11MP), Greater
KL has been named as among the four growth
catalyst cities for national development along
with Johor Bahru, Kuching and Kota Kinabalu.
The competitive cities are part of the 11MP core
strategies in re-engineering economic growth
for greater prosperity and will play an important
role as finance and logistics hubs, as well as
magnets for talent seeking new opportunities.
InvestKL is confident that Malaysia is on course
to become a high income nation by 2020 as
Greater KL continues to benefit from rapid urban
development and strategic investments that are
vital for the transformation agenda. With the new
infrastructure projects and expansion of efficient
transportation networks such as the MRT and
High Speed Rail currently in the pipeline, Greater
KL will be in a better position to provide exciting
prospects for businesses seeking a foothold in
the flourishing Asian region.
to boost the attractiveness of Greater KL as
a top investment destination. This will also be
underpinned by our collaborative efforts with
Kuala Lumpur City Hall (DBKL) to enhance the
ease of doing business, improve accessibility
and elevate Greater KL’s liveability. The Special
Task Force to Facilitate Business (Pemudah)
is also stepping up to ensure smooth and
efficient public-private sector initiatives.
The next phase of growth in Greater KL will
present a historic opportunity for InvestKL to
build more strategic partnerships and advance
our pipeline to attract top tier Fortune 500 and
Forbes 2000 companies en route to meeting
our target of 100 MNCs by 2020. We are in a
good position to attract potential investors in
capitalising on Greater KL’s central location,
credibility, cost competitiveness, cultural
diversity and varied choices of business and
community hubs.
Let me close by expressing my pride in the
InvestKL team for bringing us to this point. My
appreciation goes to our lead ministers, board
of directors and key stakeholders for their
generous support and valuable insights. I trust
you share in our excitement about InvestKL’s
performance and the progress that Greater KL
is heading to for an even brighter future.
In 2016, InvestKL is renewing its focus to move
up and shape Greater KL’s geographical position
as the ideal regional headquarters location for
multinational organisations. We stand to gain
from Malaysia’s competitiveness and vibrant
environment in providing an attractive platform
to support MNCs in improving their operations
and efficiency.
In this regard, InvestKL is committed to building
a relationship of trust to transform Greater KL
into a world-class metropolis and spur the
economic growth of the country. We will be
working closely with key alliances and partners
Datuk Zainal Amanshah
CEO
5
Greater Kuala Lumpur
The Rising Star of ASEAN
The capital city of Malaysia is a thriving metropolis,
with a fast-growing population of almost 1.73 million
in 2015, a far cry from its humble beginnings as a
small tin-mining town in the 1850s. Iconic landmarks
like the Petronas Twin Towers and the KL Tower,
which are among the world’s tallest structures,
dominate the city’s skyline.
Greater KL, also known as the Klang Valley, consists
of Malaysia’s bustling capital city of Kuala Lumpur and
its surrounding areas, spanning about 2,800km2. With
its advanced infrastructure, strong global supplychain, integrated public transportation network, and
young workforce of close to one million, Greater KL is
the heart of Malaysia’s economic growth.
The Malaysian Government aims to position the
city among the world’s top investment destinations.
Among the game-changing projects in the pipeline to
accelerate Greater KL towards becoming a worldclass city, are the High Speed Rail connecting to the
city to Singapore, and the integrated Mass Rapid
Transit (MRT) railway line.
Greater Kuala Lumpur
Existing Business Hubs and Major Developments
KLCC
KL Sentral
Free Industrial Zone
Bangsar
South
Selayang
Ampang
Jaya
Shah
Alam
Petaling
Jaya
Kuala
Lumpur
Klang
Kajang
Subang Jaya
Putrajaya
Port Klang Expansion
(Container Terminal 8)
Sepang
Asia
Aerospace
City
At a Glance
Population:
Size:
Climate:
Time Zone:
Languages:
Gross National
Income:
10 million by 2020
2793 km2
Tropical
GMT+8
English, Malay,
Cantonese, Mandarin,
Tamil and Indigenous
US$184b (RM650b)
estimated contribution
of Greater KL to
Malaysia’s GNI by 2020
Bukit Bintang
City Centre
Tun Razak
Exchange
KL 118
Bandar
Malaysia
KLIA Aeropolis
KL Metropolis
Cybercity
Source: InvestKL, JLL
7
InvestKL Achievements
Since inception in 2011
MULTINATIONAL COMPANIES
ATTRACTED TO GREATER KL
*Out of 100 by 2020
INVESTMENTS
APPROVED/COMMITTED
REGIONAL HIGH SKILLED
JOBS CREATED
*RM1.9 Billion investments realised
*4,786 regional job realised
Highlights of the Year 2015
10
MULTINATIONAL
COMPANIES
SECURED
R
788M
M
REALISED AMOUNT
SPENT
8
672
HIGH SKILLED
REGIONAL JOBS
Greater KL and Malaysia’s International Rankings
Business
Talent
A.T Kearney Global Services
Location Index (2016)
MOST TALENT
COMPETITIVE
COUNTRY IN ASIA
IMD World Talent Report 2015
MOST ATTRACTIVE
DESTINATION
EY:Capital Barometer, SEA
IN ASIA FOR
ENGLISH
PROFICIENCY
Education First English
Proficiency Index 2015
MOST BUSINESS
FRIENDLY COUNTRY
Baseline Profitability Index (BPI) 2015
Liveability
FOR FINANCIAL
MARKET DEVELOPMENT
in World Economic Forum
Global Competitiveness Ranking
(2015-2016)
BEST EXPAT
DESTINATION
EASE OF DOING
BUSINESS 2016
HSBC Expat Survey 2015
by World Bank
MOST COMPETITIVE
COUNTRY
LEAST
EXPENSIVE CITY
by World Economic Forum’s
Global Competitiveness Report
(2015-2016)
Mercer’s Cost of
Living Survey 2015
Most Expansive = 1
9
Milestones With
Our MNCs
Our Investors
A selection of our investors from 2011-2015
11
InvestKL Performance Report 2015
MNCs in Greater KL
by Country, Sectors and Region
By Country
16
16
14
12
10
8
7
6
5
4
4
3
2
1
0
USA
France
UK
Japan
Singapore
China
2
Belgium
By Sectors
16
14
12
10
10
8
7
6
4
2
2
0
BS
2
1
CCI
CG
1
E&E
EDU
1
ES
Legend
W&R
PO
Wholesale & Retail
O&G
Oil & Gas
IP
Industrial Products
GT
Global Commodities Traders
Palm Oil
MN
Mining
HC
Healthcare
FS
Financial Services
12
FS
By Region
Americas
Europe
16
2
2
Italy
Switzerland
APAC
24
1
Australia
11
2
2
2
India
Germany
Netherlands
1
1
Norway
Spain
NKEA
8
7
7
2
GT
ES
EDU
1
0
HC
IP
Others
MN
O&G
PO
Engineering Services
E&E
Electrical & Electronics
CCI
Contents Communication
Infrastructure
Education
CG
Consumer Goods
BS
Business Services
13
2
W&R
Impact
On The
Economy
Regional Jobs Realised
Based on 4,786 realised high skilled job creation by 51 MNCs
8% 0%
2%
10%
1%
0%
31%
8% 0%
2%
10%
Overall
27%
4,786
Local
3,970
31%
4,786
32%
22%
3%
3% 0%
3%
3,970
(18%)
32%
7%
13%
13%
(18%)
Local
32%
Overall
27%
1%
0%
22%
3% 0%
Expat
7%
816
816
(17%)
Expat
35%
74%
(17%)
35%
Junior Executives/Fresh Grad
(RM3k - RM5k)
Senior Management
32%
(RM50k and Above)
Manager
(RM10k - RM25k)
Senior Manager/HOD
(RM25k - RM50k)
Senior Management
(RM50k and Above)
Senior Executive/Technician
(RM5k - RM10k)
Manager
(RM10k - RM25k)
Support/Customer Service
(RM3k and below)
Junior Executives/Fresh Grad
(RM3k - RM5k)
Senior Manager/HOD
(RM25k - RM50k)
Senior Executive/Technician
(RM5k - RM10k)
Support/Customer Service
(RM3k and below)
74%
Local
Expat
Local
Expat
100%
1
100%
80%
1
24
107
24
107
605
56
80%
60%
60%
40%
40%
20%
605
396
396
1259
1259
56
1398
23
23
879
1398
36
879
20%
0%
Support/
Customer Service
(RM3k and below)
0%
Junior Executives/
Fresh Grad
(RM3k - RM5k)
Senior Executive/
Technician
(RM5k - RM10k)
Manager
(RM10k - RM25k)
Support/
Customer Service
(RM3k and below)
Junior Executives/
Fresh Grad
(RM3k - RM5k)
Senior Executive/
Technician
(RM5k - RM10k)
Manager
(RM10k - RM25k)
15
36
2
Senior Manager/
HOD
(RM25k - RM50k)
Senior Management
(RM50k and Above)
Senior Manager/
HOD
(RM25k - RM50k)
Senior Management
(RM50k and Above)
2
lds
fie
Q4
InvestKL Performance Report 2015
Q4
s
o
c
ce
r
Q4
2015
Estimated
Annual Rental
Spillover to Local Economy
Space Utilisation Analysis
Q4
Rental
Kuala
Lumpur
2015
Estimated
Annual Rental
RM39.91
Million
Selangor
RM5/
RM7/
sqft
sqft Rental
Kuala
Lumpur
RM39.91
Million
RM7/
sqft
RM
Million
Selangor
RM5/
sqft
Kuala Lumpur
Selangor
Kuala Lumpur
Selangor
20
17
15
RM
Million
13
20
10
17
7
15
5
13
3
10
0
11.13
7
12.67
10.92
11.13
5
12.67
10.92
20.84
19.06
20.84
14.52
201414.52
2013
19.06
3
2015
TOTAL
0
2013
Kuala Lumpur
2015
*e
qu
51 MNCs
574,320 ft2*
347,400 ft
2
2015 Office Space Utilisation*
2015 Office Space Utilisation*
lds
fie
Q4
Q4
Q4
2015
the size of 10 s
o
c
ce
r
2015 Office Space Utilisation*
22 MNCs
2014
t to
len
iva
29 MNCs
226,920 ft2
Selangor
16
Strategic Partnerships
MNCs in Greater KL are able to gain access to various business
ventures and opportunities the city has to offer. Since our establishment
in 2011, InvestKL has successfully facilitated partnerships and alliances
between local and international corporations. These key partnerships
are vital to cultivate innovation and expansion for various business
ventures and opportunities. Among our highlights:
University of Malaya and VINCI Construction*
On the 20th January 2016, a Memorandum of Understanding
(MoU) was signed between the University of Malaya, Malaysia’s
No.1 ranked higher education institution and VINCI Construction,
a French leading design and build construction company. The MoU, which was facilitated
by InvestKL, will see the two parties jointly work on a collaborative project to encourage and
promote cooperation in research and development in the field of Capacity Building and Local
Talent Development.
This marks VINCI Construction’s first collaboration with a Malaysian University. Over the course
of three years, the project will focus on mutual sharing of best practices and expertise in the
areas of construction and engineering. These include final year projects for undergraduates,
internship and employment opportunities, joint research and development activities,
participation in seminars and academic sessions, worksite visits and other areas agreed by
both parties.
Pemudah, Schlumberger Customs K8*
Schlumberger Limited maintains a strong presence in Malaysia
where its regional headquarters was set up to enhance its
standing and to consolidate its support centres throughout the
Asia Pacific. In order to meet optimal logistics performance in the region, Schlumberger sought
for an improved export clearance procedure to be implemented. A consultation was initiated
and an initiative was then undertaken by the Malaysia Productivity Corporation (MPC), Special
Task Force to Facilitate Business (Pemudah), Royal Malaysian Customs Department (RMCD)
and PKFZ Sdn Bhd to cater effectively for the business requirement of Schlumberger.
An innovative two-pronged solution was found where the customs clearance process in PKFZ
using K8 documentation was further enhanced with an aim to reduce the clearance process for
Schlumberger’s cargoes for regional deployment. The implementation of new online processes
by the RMCD in May 2014 resulted in 85 percent faster cargo clearance and savings of up to
230 minutes and three procedures were eliminated from the entire process during office hours.
This efficiency improvement has successfully facilitated Schlumberger’s operations.
SHRDC and IBM Brighter Blue Program
The 2015 internship programme was a joint initiative by Selangor Human
Resource Development Centre (SHRDC) and IBM, collaborating under
the Industrial Skills Enhancement Program (INSEP). Fresh graduates were
trained and equipped with industry relevant skills before being placed in
actual work environments. The Brighter Blue Program was targeted at fresh graduates with
a minimum CGPA of 2.8. Before being accepted into the programme, they have to take an
aptitude test and be interviewed by specific department Manager.
The selected candidates will then undergo a training duration of six months, during which they
are exposed to Project Management, Wintel and AIX. For the 2015 programme, all of the talents
were from SHRDC pool and the selected 56 interns comprised local students from various
universities. A total of 33 talents were offered positions upon completion of the programme. This
year, the programme was launched again in February with 13 students selected from various
local universities to undergo Cloud Training for 6 months. In August, once the programme ends,
these students will be assessed and if succeeded, they will be offered a position in IBM.
*Taken from public sources
17
InvestKL Performance Report 2015
Raising Greater KL’s Profile
High Impact Engagement in 2015
InvestKL’s Annual Three Minister’s
Event at Pullman Putrajaya
InvestKL in Conversation with the Three Ministers
is an exclusive networking event with MNCs that
have chosen Greater KL to establish its regional
headquarters. The event was attended by relevant
government agencies, partners, alliances and media.
Huffington Post Interview live from
World Economic Forum, Davos
Datuk Zainal Amanshah spoke to HuffPost live at
Davos during the World Economic Forum, about
the corporation’s goal to attract 100 MNCs to
invest in Greater KL by 2020, noting that the
agency is “just under halfway”.
Schlumberger opens Asia Center
for Reliability & Efficiency in Kuala
Lumpur
InvestKL Charity Golf with MNCs
Schlumberger launched its Asia Center for Reliability
and Efficiency dedicated to advanced maintenance
and servicing of oil and gas technologies in Asia
Pacific. The state-of-the-art centre demonstrates the
company’s confidence to Malaysia.
Attended by government agencies and MNCs,
InvestKL hosted a Charity Golf Tournament
for the purpose of demonstrating social
responsibility by raising funds for small
charities in dire needs of resources to sustain
their operations.
January
February
March
December
November
October
Turner International Celebrates its
50th Anniversary
InvestKL Update Series
Kadokawa buys into Gempak
Starz, eyes KL as creative hub
Kadokawa, Japan’s leading creative content
publisher buys into Gempak Starz and
established its ASEAN & Middle East Creative
Content Hub in Greater KL to produce and
export “Made-in-Malaysia” content for the
global market.
Turner International celebrates its 50th anniversary of
presence overseas. Since the company broke ground
on its first project in Hong Kong in 1965, it has
completed iconic projects in more than 60 countries
across five continents. InvestKL attended the event to
be part of the great milestone.
InvestKL Ambassador Breakfast
Session with the Mayor of KL
InvestKL held a Breakfast Session with the Mayor of
Kuala Lumpur to discuss issues surrounding Kuala
Lumpur. International representatives from over 10
countries were present at the session, among them
Ambassadors, Trade Commissioners and Chambers.
18
InvestKL hosted an Update Series on
the topic ‘Roles & Responsibilities of
Directors under Company Act 1965 and
Transfer Pricing’. Speaking at the event
was Mr. Mohamed Sufyan from SSM and
Ms. Anushia Soosaipillai from PWC.
KL’s Aspiration to be ASEAN’s
Corporate Capital
Datuk Zainal Amanshah says the move to make Kuala
Lumpur an attractive destination for multinationals is
a game changer. He tells Bloomberg TV Malaysia’s
Sophie Kamaruddin why the country’s capital is best
placed to be ASEAN’s economic hub.
International SOS’s
Office Launch
In an interview with CNBC, Datuk Zainal
Amanshah, discussed the state of the
Malaysian Economy and says investors
continue to focus on Malaysia’s economic
fundamentals.
International SOS, the largest
international healthcare,
medical assistance and travel
security risk services company
in the world launched its new
office opening in Greater KL.
April
May
June
September
August
July
The Principal Hub Announcement by
MITI Minister, Dato’ Sri Mustapa
The Principal Hub incentive announcement by
the Malaysian Government was developed in line
with an evolving regional management and global
supply trend. It serves to enhance Greater KL’s
competitiveness as a leading regional base for MNCs.
Datuk Zainal Amanshah on CNBC
Bloomberg TV Interview with
Daniel Teng
InvestKL senior director Daniel Teng says
multinationals find Greater KL an attractive
investment destination despite the broader
market volatility. In an interview with Bloomberg
TV, he says KL will soon be home to more
Forbes and Fortune companies.
Datuk Zainal Amanshah on
Bloomberg Television’s First Up
Datuk Zainal Amanshah talks about efforts to
lure foreign investments with Angie Lau on
Bloomberg Television’s “First Up”.
Datuk Zainal Amanshah as a
keynote speaker at the IAME
2015 Conference
Datuk Zainal Amanshah was the keynote
speaker at the International Maritime
Association of Maritime Economists (IAME)
conference, hosted by the Malaysia Institute
for Supply Chain Innovation (MISI), which is a
member of the MIT Global SCALE Network.
19
InvestKL Corporation
16th Floor, Menara SSM@Sentral
No.7, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50623 Kuala Lumpur, Malaysia
T: +603 2260 2270
F: +603 2260 2292
E: [email protected]
W: www.investkl.gov.my