Why Malaysia

WHY MALAYSIA

• Strategic Location

• Abundant resources

• Various investment opportunities

• Recognition of Made‐In‐Italy

• Investment flows abroad

AREAS OF INTEREST

• Technological systems, constructions and infrastructures

• Plant, machinery and equipment

• Electricity and renewable sources

• Environment: water supply and treatment; sewerage, waste management and remediation activities

Strategic Location

Situated at the centre of the region of South-East Asia, the country has, in fact, an advantageous system of investment incentives, widespread knowledge of English, a good infrastructure, a skilled workforce generally and reasonable cost, which can ensure the “System Italy” a constant and strong presence in the region.

Abundant Resources

For Italian companies today it is no longer enough to focus on exports, but it is also necessary to think in terms of industrial collaboration in order to better penetrate foreign markets. For Malaysia we should not only talk about advantage of the lower costs of labour but focus to appropriate agreements of joint ventures with local partners, relying on a resource for which Italian companies are widely credited and can also carry around without having to spend huge amounts of capital, an intangible asset such as a creative talent, a style and design in many ways

Various investment opportunities

The package of infrastructure investments, launched for the five-2012/2017, for the modernization of the country provides for very heavy investment in transport, railways, ports airports, oil industry and the information technology and communications, where our companies can capture interesting opportunities for collaboration.

Recognition of Made-In-Italy

In a country like Malaysia Italian companies have the possibility to emerge, thanks to their specializations, as well in the areas typical of the “Made in Italy”, as in the production of some intermediate capital goods: from machine tools and metallurgy to automotive, from basic chemistry to medicine, biotechnology, from the field of hydraulics to the environmental protection and green energies.

Investment flows abroad

Malaysia is also a major investor abroad. The major multinational and local sovereign Wealth Funds have made considerable investments in the UK, Gulf Countries, India, China, Turkey, Australia and New Zealand. There are then the conditions where you identify interesting prospects for business (real estate, tourism, acquisition of highly specialized niche companies, the food industry or the jaws of the fashion industry) where the Malaysian companies can invest in Italy.

[ultimatetables 5 /]

*Source: Based on data published by the IMF

AREAS OF INTEREST

Technical plants installers, construction and infrastructure

As in most Asian countries, Malaysia is subject to a continuous development of the infrastructure construction sector. At this development is accompanied of course, in addition to the concrete building construction, all that part relevant to the technological systems (electrical, plumbing, sanitary, communications and surveillance) with particular emphasis on systems for air conditioning, home automation and energy efficiency.
In parallel, we are witnessing a steady increase in the number of architects and interior designers operating in Malaysia and wider dissemination of information and brands, domestic and foreign, that shape and influence an increasingly demanding public. As part of this development has also occurred the growth in the furniture sector for specialized categories. Among those we find furniture stores, shopping malls, restaurants and other public places, which must combine technical and functional requirements, recognized design and office furniture. Also in this sector, the Italian industry plays a leading role, thanks to the creativity of the design and the ability to offer wide ranges of product especially in both style and materials.

Plant, machinery and equipment

The manufacture of machinery and equipment industry has experienced a good technological progress. The Malaysian government has launched a development policy for the production of machines with high added-value technology, to allow the continuous improvement of the level of industrialization of the country and to oppose the competition of neighbour Asian countries with cheaper labour. In addition, the Third “Industrial Master Plan” has set a target of making Malaysia a “hub” for regional production and distribution of machinery and high-tech equipment, as well as a regional centre for the maintenance, refurbishment and improvement of technological special machines. The areas to which priority is given are: systems and special machinery for industry, equipment for the generation of electricity, machines for working metal, without forgetting the machines for processing plastics and wood. In the field of mechanics, which is a good percentage of Italian exports, our country has a position in relation to the transfer of technology and after-sales care facilities. In any case, the government encourages foreign investment to promote innovation, the creation of talent, research and development and marketing to maximize growth of the industrial sector.
This sector, which accounted for 32,1% of our exports in 2011 increased by 19,0% compared to 2010 thanks to a recovery in exports of all main compartments: hydraulic fittings and plumbing, boiler shells, tanks or similar, engines and motors, non-electric, apparatus and equipment for civil construction, pumps, compressors, exhaust hoods, centrifuges and equipment for water filtering or purification and electrical rotating machines.

Energy and renewables

Also Malaysia has not been oblivious to the appeal of sustainable energy, became the priority of many countries in the world, although this country has oil resources – albeit nearing depletion – and natural gas deposits. Malaysia does not neglect therefore create all favourable conditions for the supply of renewable energy, particularly with respect to solar. A policy of support for the development of renewable energy has created the “Sarawak Corridor of Renewable Energy” (SCORE), which has a very large area. Several memoranda of intent have been signed by various local and foreign entities with a value of about 20 billion euro. It was created for the purpose a financial consortium which includes RHB Islamic Bank, Bahrain Unicorn Investment Bank, Asian Finance Bank and Kuwait Finance House. The main objective of the acquisition of green technology affects not only the development of renewable energy and energy efficiency, but also the reduction of greenhouse gas emissions, which according to the national programs should be able to decrease by 40% by 2020.
As for Europe, it was launched a program of cooperation between Malaysia and the European Union that, as of June 2010, launched a series of initiatives in preparation of the transfer of technology and know-how in the field of renewable energy, energy efficiency, application of the “Clean Development Mechanism” under the Kyoto agreement, the eco-sustainable treatment of waste, and the development of “green” buildings. As part of this cooperation, the EU will also fund a project to encourage the production of biomass from local SMEs, providing a fund of 1,8 million euro. Fifty small businesses that produce biomass according to European standards will be selected to enjoy EU funding.
As part of the 10th Economic Development Plan (2011-2015) some key areas for national development have been identified, among them remaining of primary importance the industry “oil & gas” either as both extraction and production, either as background supporting activity to the petrochemical industry. The sector contributed in 2011 for 20% of national GDP. To support its growth have been created viable infrastructure, both for offshore exploration, both for the creation of three petrochemical areas that have attracted foreign investment, in particular by United States, Germany and Japan. The State Petronas is obviously the biggest investor.

Environment: water supply and treatment; sewerage, waste management and remediation activities

The care of the environment is one of the priorities of Malaysia. In particular, it is becoming an urgent problem relating to the treatment of waste. The treatment of urban waste has been rather neglected until now and Kuala Lumpur is now facing serious problems both to reduce the amount of waste and to carry out the recycling, although it is estimated that approximately 7-8% of them are recycled . Within two years, the storage capacity in the appropriate sites will be full and therefore there is a need of a new method for the management and treatment of waste. In this context, it is interesting the transfer of technology for their management and treatment. the reduction of greenhouse gas emissions will be encouraged through the conversion of organic materials into “compost”, as well as will be encouraged the transformation in energy of the emission of gases produced from waste. Similarly, the government is focusing on the improvement of water quality, elevating technical standards and services to users. In this regards,
the Government has allocated last year 580 million euro for water supply and water treatment . The Government also intends to achieve a 30% water savings, eliminating waste. Currently water consumption in Malaysia, excluding the agricultural sector alone accounts for 54% of demand (33 million cubic meters), is equal to 8 billion litres per day, which is estimated to become 10,5 in 2015 The Government will therefore be obliged to invest in water supplies, sewers, water treatments. Malaysia has a good technology for water treatment and is acquiring contracts abroad. The local operators in the sector are particularly interested in partnerships with foreign operators for works and supplies outside of Malaysia.