malaysia : the global outsourcing hub for high technology

Transcription

6/21/2012
MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR HIGH
TECHNOLOGY MANUFACTURING
N. Sangaran
Director
Machinery and Engineering Supporting Industries Division
MIDA
19 June 2012
CONTENT OUTLINE
About MIDA
Malaysian Economy
Investment Trends
Outsourcing Opportunities
2
Malaysia: Your Premier Investment Destination
1
6/21/2012
About MIDA
MILESTONES
The principal Malaysian
Government agency
responsible for the
promotion and
coordination of industrial
development in the
country
First point of contact for
investors who intend to
set up projects in the
manufacturing and
services sectors in
Malaysia
2011 : Rebrand as Malaysian Investment Development Authority
27 March 2004 : Government Mandated MIDA to Promote
Investments in the Services Sector
Established in 1967 under Act of Parliament, 1965
4
4
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6/21/2012
FUNCTION OF MIDA
Foreign Direct Investment
Domestic Investment
Cross Border Investment
Business matching through E-Connect
Manufacturing Services
Evaluation
Manufacturing licenses
Tax incentives
Expatriate posts
Duty exemption
OHQ, RDC, IPC and R&D status
Planning
Planning for industrial development
Recommend policies and strategies on
industrial promotion and development
Formulation of strategies, programmes and
initiatives for international economic
cooperation
Promotion
Follow-up
&
Monitoring
5
Assist companies in the implementation and
operation of their projects
Facilitate exchange & co-ordination among
institutions engaged in or connected with
industrial development
Advisory Services
6
Immigration Department
Royal Malaysian Customs
Department of
Environment
Tenaga Nasional Berhad
Telekom Malaysia Berhad
Labour Department
Based Outside MIDA
Based In MIDA
MIDA “ONE STOP CENTRE”
Department of Occupational
Safety and Health
Ministry of Finance
Ministry of Health
Ministry of Tourism
Ministry of Human Resource
Ministry of Higher Education
Multimedia Development Corp.
(MDeC)
Construction Industry Development
of Malaysia (CIDB)
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6/21/2012
MIDA WORLDWIDE NETWORK
London
San Jose
Chicago
Los Angeles
Houston
Boston
Paris
New York
Stockholm
Frankfurt
Munich
Milan
Dubai
Seoul
Shanghai
Guangzhou
Mumbai
Tokyo
Osaka
Taipei
Bangkok
Singapore
Johannesburg
Sydney
24 Overseas Centre
7
Malaysian Economy
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4
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MALAYSIA’ S KEY ECONOMIC INDICATORS
2010
2011p
2012f
Real GDP (%) Growth
7.2
5.1
4.0-5.0
Inflation (%)
1.7
3.2
2.5-3.0
8,140
9,508
10,134
Unemployment (%)
3.2
3.1
3.2
Trade Surplus (US$ bil)
34.2
46.7
48.6
International Reserves (US$ bil)
106.5
132.3
136.1
8.5
9.6
-
Per Capita Income (US$)
Retained Imports Equivalent (months)
Source: Central Bank of Malaysia/Department of Statistics Malaysia/MATRADE
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Investment Trends
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INVESTMENT IN THE APPROVED MANUFACTURING PROJECTS,
2008 – APRIL 2012
Year
No. of
No. of
Projects Employment
Proposed Investment
(RM billion)
Domestic
Foreign
Total
2008
919
101,173
16.7
46.1
62.8
2009
766
64,330
10.5
22.1
32.6
2010
910
97,319
18.1
29.1
47.2
2011
846
100,533
21.9
34.2
56.1
Jan – April
2012
268
29,918
10.1
7.8
17.9
3,709
393,273
77.3
139.3
216.6
Source:
MIDA
TOTAL
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APPROVED REGIONAL ESTABLISHMENT
JANUARY – DECEMBER 2011
No. of
Approvals
Investment
(RM million)
Operational Headquarters (OHQ)
18
163
International Procurement Centre (IPC)
6
70.5
Regional Distribution Centres (RDC)
1
10
Representatives Offices (RE)
55
23.9
Regional Offices (RO)
32
24.4
Total
112
291.8
Type of Establishment
Source: MIDA
12
6
6/21/2012
PROMOTED ACTIVITIES IN THE MANUFACTURING SECTOR
High technology, capital intensive &
knowledge driven industries:
• Alternative Energy Sources
•
Biotechnology
•
Advanced materials
•
Advanced electronics
•
Optics and photonics
•
Petrochemicals
•
Pharmaceuticals
•
Medical devices
•
ICT
•
Aerospace
13
Industries manufacturing
intermediate goods:
•
•
•
Machinery & equipment
Components & parts
Moulds and dies
Resourced-based industries:
• Food
• Value-added products from
natural resources
Outsourcing
Opportunities
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6/21/2012
OUTSOURCING TREND
Present
Global
Outsourcing
Component
Suppliers
Integrators and
Assemblers
Value
Added
15
Value
Added
and
R&D
Manufacturing
Solution Providers
Solution Providers
STRATEGIC REASONS FOR OUTSOURCING
Reducing cost and improving economics
Focus on core function
Access to specialised services and diverse technologies
Enhance risk management
Gain a competitive advantage through faster delivery
times
Level the playing field
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6/21/2012
OPPORTUNITIES FOR CROSS-BORDER NEMs
Key figures of cross-border Non-Equity Modes, selected industries, 2010
Estimated NEM-related worldwide
Sales
Value added
Employment
Employment in
developing
economies
USD billion
USD billion
million
million
Contract Manufacturing – selected technology/ capital intensive industries
Electronics
230 - 240
20 - 25
Automotive components
200 - 220
60 - 70
1.1 - 1.4
0.3 - 0.4
20 - 30
5 - 10
0.1 - 0.2
0.05 - 0.1
Pharmaceuticals
1.4 - 1.7
1.3 - 1.5
Source : UNCTAD report on Non-Equity Modes of
International Production and Development
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GLOBAL MARKET SHARE
Global Market Sales Forecast for 2013
(USD billion)
Global NEM Investment
Value (USD billion)
25 – 30% is
estimated for
outsourcing
of
components
and services
Aerospace & Defense
273
Machinery
184.7
Semiconductor
90.6
Oil & Gas Equipment &
Services
82.2
Health Care Medical
Equipment
51.2
Source : Datamonitor
Measurement of NEM activity is difficult, given the lack of national and international statistics
that cover NEM-specific transactions.
Source : UNCTAD
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MALAYSIA’S SOURCING CAPABILITIES
Consistent quality
Financially not strong
Little initiative in R&D and D&D by SMEs
Cost competitive for
high technology
products
WEAKNESSES
STRENGTHS
On-time delivery
English literacy
Strong government support
THREATS
Foreign exchange
Reluctance of SMEs to venture out into the
global market
Lack of mid level technical expertise
Fragmented industry - Little cooperation
among supporting companies to collaborate
for common opportunities
Material cost
Lack of high end component manufacturing
& high end supporting companies
India and China
Global economic downturn
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M&E INDUSTRY CLUSTER
Specialized
Cluster/ Industry
E&E/ Semiconductor/ Solar
Process/ Products/ Components
Integrators/ Assemblers
Supporting
services
Wafering
Front-End
• Stoppani
• Pac Tech
• UMS (CVD)
Tooling/ Maintenance
• Kiswire , Tokyo Rope
• Hoya, Entegris
Engineering solutions
for high precision
modules & fabrication
• UPECA, Kobay, Lypometal, Atasmi, etc.
Surface engineering
• AKN, Dipsol, Metek Kitamura, etc.
Infrastructure & Shared facilities
• Technology Park Malaysia (TPM)
Back-End
•
•
•
•
•
•
•
•
SRM Integration
BesiApac
Ismeca
ASM
Greatech
Creden
Genetec
AGS Automation
• Zurah Industrial Park (ZIP)
• Kulim Hi-Tech Park (KHTP)
Research & Training
20
• Standard and Industrial Research
Institute of Malaysia (SIRIM)
• Malaysia - France, British, Spanish,
Japan, German Institute
• Penang Skills Development Centre
• Advanced Technology Technical Centre
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6/21/2012
Specialized
Cluster/
Industry
Oil & Gas
Factory Automation
Process/
Products/
Components
Exploration and
Production
Process
Equipment/
Fabricated Parts
Robotic/
mechatronic
devices
Vision
Inspection
Material
handling
Integrators/
Assemblers
•
•
•
•
•
•
• KNM
• MMHE
• Sime
Sembawang
• Tepat Teknik
• Kencana HL
• Dialog
• Hittech
• Ixmation
• Frencken
• ViTrox
• AFA
• Pentamaster
• AT Engineering
• Cheng Hua
• Alliance
Contract Mfg
• KEU Control
• GSE-M
Technology
Supporting
services
FMC
Halliburton
Aker
Cameron
Asiaflex
Schlumberger
Machining
Metal structures
Tooling fabrication
• UMS
• U-Metal
Engineering
• Indah Tool Automation
• Kobay Tech
-
• Upeca
• AT Precision Tooling
• CLT Engineering
Forging
• ………
Infrastructure &
Shared Facilities
Research &
Training
• Standard and Industrial Research Institute of
Malaysia (SIRIM)
• Malaysia - France, British, Spanish, Japan,
German Institute
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Cluster/
Industry
Integrators/ Assemblers
Supporting
services
Metalworking
•
•
•
•
•
•
AIDA
TPM
Sunfluid
Eonmetall
Hydralink
Li Chin (S.E.A)
Power Generating
• Noorisba
• Turboservices
• …………(renewable
energy)
General
•
•
•
•
Favelle Favco
IMPSA
MHE-Demag
Dunham Bush
Casting
HICOM Diecasting, ZincAlu, Sumber Terang, Nostalgia
Heat
Treatment
Micromagna Engineering, Yeh Chang, Oriental, Umetoku
Forging
Infrastructure
Billion Fortune, MKF, Unique Forging, Kentzu
Research & Training
22
• Standard and Industrial Research
Institute of Malaysia (SIRIM)
• Malaysia - France, British, Spanish,
Japan, German Institute
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6/21/2012
MALAYSIAN INDUSTRY CLUSTERS
Cluster/
Industry
Aerospace
Solar
Medical Devices
R&D, Design
•
•
•
•
•
ACM
IAC
Spirit
CTRM
Strand
• SME
Aerospace
•
•
•
•
•
Bosch
Qcells
AUO Sunpower
Panasonic
SERI
• HBE
Grating
•
•
•
•
St. Jude
SBI
Symmetry
BBraun
• OSA
• Granulab
• Straits
Othopaedics
Parts
Manufacturing
& Assembly
•
•
•
•
Honeywell
SAM
IAC
Spirit
Aerosystems
•
•
•
•
CTRM
SME
Upeca
ACM
•
•
•
•
First Solar
AUO Sunpower
Solar TIF
MSR
• PVHitec
• Helios
Photovoltaic
• Raniden
Solar
•
•
•
•
•
St. Jude
Aesculap
Jabil
Avalon
Stryker
• Delphax
• Osa
• Straits
Orthopaedic
Supporting
services
•
•
•
•
•
Innopeak
Hampshire
Strand
Aerotech
Edag
• GT
• IAC
• All Metal
Services
•
•
•
•
•
Stoppani
UMS
Balda
Huber Suhner
Pentamaster
•
•
•
•
•
•
•
•
Synergy Health
Isotron
Steripack
Sirim
Maintenance,
Repair &
Overhaul (MRO)
•
•
•
•
SAE
Agusta Westland
Malaysia Airlines
SME Aviation
•
•
•
•
Materials
•
•
•
•
TDK
Rohm
Sandvik
Accellent
Policies &
Regulations
• National Aerospace Blueprint
23
KLAS
Airod
CTRM
ATSC
•
•
•
•
STR
Dsem
Iretex
Polytool
Tokuyama
MEMC
Imex Semicon
Bosch
• Feed-in-Tariff
• Green
Technology
Master Plan
• Tyco
• Heraeus
• Zapp
• Medical Devices Act 2011
MALAYSIA – YOUR MANUFACTURING SOLUTION
• Consistent quality of production
and on-time delivery
• Lower cost for high technology
products
• High volume, low mix demand
for the electrical & electronics,
telecommunications and
automotive industries
• Low volume, high mix niche
products for the medical,
machinery & equipment, oil &
gas and aerospace industry
• IP protection, laws and
regulations
• Financial incentives and
operational support
Sourcing Capabilities
• Engineering supporting industry
(more than 1,000 cos.)
• Metal fabrication (well
established)
• Semiconductor/ electronics
components
• Silicon wafer, Wafer fab, IC
packaging and testing, IC design
house, PCB, PCBA, LED, Other
passive components (about 380
cos.)
• Plastic components (480 cos.)
• Rubber components (180 cos.)
• Design centres
• Technical facilities
• Specialized
colleges
• Research
institutions
Infrastructure
Competitive Edge
24
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6/21/2012
MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR HIGH TECH
MANUFACTURING
Outsourcing
Manufacturing of modules,
components & parts
Manufacturing related
services
Individual components/ services
Integrated services/ total solution
- Product conception to serial production
- Manage the entire process including logistics, warehousing, packaging, testing
and certification
D&D/ R&D
Raw material
components
sourcing
Modules/
parts
production
Sub/ final
assembly
QC
Delivery
Outsourcing Supply Chain Management
25
MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR HIGH TECH
MANUFACTURING
Customers
Speedy
response
Manufacturing
Solution Providers
Managing the Entire Supply Chain
R&D
Production
Electronic Engineering
Mechanic Engineering
Software Engineering
Continuous Prod. Improvement
Project Management
Prototyping
Interface and Hardware Design
Electronics
Plastics
Metalworks
Engineering Supporting
Box Builds
High Level Assembly
Finishing + Testing
Packaging
26
Quality
Management
TQM
ISO
Six Sigma
SPC
Kaizen
Services
IPC
RDC
Logistics
Warehousing
Value Analysis
Cost Reductions
Supply Chain
Management
Regulatory Services
Certification Services
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6/21/2012
WAY FORWARD
Enhance local R&D and
technology
development
Strengthen and
complete industry
clusters
Malaysia :
Global NEM Hub
Manufacturing Solution
Providers
27
Human Capital
Development
MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR MANUFACTURING WAY FORWARD
Malaysia’s Potential
−
−
−
Target Industries
−
−
Malaysia is currently a major outsourcing destination for MNCs in the
E&E, automotive, machinery manufacturing and oil& gas industries
Growth and future targets include the aerospace, medical, defense and
photovoltaic industries
Total Solution Providers
−
28
Capabilities are recognised internationally
Diverse range of precision activities
Good network of engineering supporting industries capable of meeting
OEMs requirements
Providing integrated services from product conception to serial
production and manage the entire processes including logistics,
packaging, testing and certification
14
6/21/2012
MALAYSIA : THE GLOBAL OUTSOURCING HUB FOR MANUFACTURING WAY FORWARD
Promotional Tools
−
−
−
Technology
−
Increase MSC level 3, 4 & 5 graduates
Re-training existing technical staff
Institutional Support for Research and Product Innovations
−
29
Keeping abreast with new/ latest technology and ability to advise OEMs on
product development
Human Resource Availability
−
−
Websites to enhance business communication system and promote
capabilities
Promotional missions and participations in international exhibitions
Promotion of high technology and high end industries to locate to Malaysia
Continuous support and assistance for R&D and D&D of products and
processes
RECENT POSITIVE DEVELOPMENTS
3rd Attractive Location For Outsourcing Destinations
– A.T. Kearney Global Services Location Index 2011
4th For Investor Protection
– World Economic Forum 2012, Global Competitiveness Report
10th For FDI Confidence Index 2012
– A.T Kearney
18th For Ease Of Doing Business
– World Bank’s Doing Business 2012 Report
30
15
6/21/2012
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
31
FACILITATION OF INVESTMENT
MIDA as a One Stop Agency :
a)
b)
Approval of projects
After-care services
Under the National Committee on
Investment (NCI)
Evaluation of applications for:
4 Manufacturing licence
4 Tax incentives
4 Import duty exemptions on raw
materials, components and
machinery
4 Expatriate posts/work permits
4 Regional establishments such as
Operational Headquarters,
International Procurement Centres,
etc.
32
16
6/21/2012
Thank You.
Please visit us at:
www.mida.gov.my
[email protected]
17

malaysia : the global outsourcing hub for high technology

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