Transcript (DDI) Initiatives Domestic Investment Strategic Fund (DISF)

DOMESTIC DIRECT INVESTMENT
(DDI) INITIATIVES
MITI&& ITS
ITS AGENCIES
MITI
AGENCIES
MALAYSIA PRODUCTIVITY CORPORATION
HALAL INDUSTRY
DEVELOPMENT CORPORATION
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MALAYSIA AUTOMOTIVE
INSTITUTE
Chairman
MIDA’S NEW ORGANISATION
STRUCTURE
Chief Executive Officer
Manufacturing
Development
(Resource)
Services
Development
(I)
Chemical &
Advanced
Material
Oil & Gas
Food Tech. &
Sustainable
Resources
Life Sciences
& Medical
Technology
Metal & Metal
Alloy
Healthcare,
Education &
Hospitality
Clean Tech.
&
Environment
Mgmt.
R&D and
Design
Deputy CEO
(Manufacturing &
Services Development II)
Senior Executive Director
(Strategic Planning &
Investment Ecosystem)
Deputy CEO
(Manufacturing &
Services Development I)
Investment
Promotion
Strategic
Planning
Investment
Ecosystem
Management
Services
Foreign
Investment
Coordination
Strategic
Planning &
Policy
Advocacy
Licence &
Incentives
Compliance &
Monitoring
Finance Mgmt.
Domestic
Investment
Investment
Info. Centre
Investment
Comm.
Investment
Analysis & Info.
Database
National
Investment
Secretariat
Technology &
Business
Frontier
IT System
Development
IPAs
Coordination,
ICM Secretariat
& Pipeline
Tracking
Infrastructure,
Utilities & After
Sales
Manufacturing
Development
(Non-Resource)
Services
Development
(II)
E&E
Regional
Establishment,
Logistics &
Supply Chain
Administration
Human
Resource
Mgmt.
Legal & Govt.
Relations
Internal Audit
Production &
Advanced
Engineering
Building
Technology &
Lifestyle
Transportation
Technology
Business &
Professional
Services
IT & Comm.
Services
Capacity
Development
Mgmt. &
Industry Talent
Tariff
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Functions of MIDA
Promotion




Foreign Direct Investment
Domestic Investment
Business matching
Manufacturing Services
Evaluation





Manufacturing licenses
Tax incentives
Expatriate posts
Duty exemption
OHQ, RDC, IPC and R&D status
Planning
Follow-up /
Monitoring
 Planning for industrial development
 Recommend policies and strategies on industrial
promotion and development
 Formulation of strategies, programmes and
initiatives for international economic cooperation
 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
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The Mission
Investment Targets under Economic Transformation
Programme (ETP), by 2020
73% DDI
92%
(RM953 billion)
(RM1.3 trillion)
Private
Investments
RM1.4
trillion
27% FDI
8%
Public
Investments
* Industrial Master Plan 3 (IMP3)
Investment Ratio, DDI:FDI is 60 : 40
Domestic Direct Investment (DDI) Initiatives
Domestic Investment Strategic Fund (DISF)
Incentives for Acquiring a Foreign Company
for High Technology
Incentives for Small Scale Companies
Incentives for Companies in Production
(Desirous Issue)
Incentives for Merger Among Malaysian
Services Providers
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D.I.S.F
RM1 billion for the fund under the
10th Malaysian Plan
Provided under the Customised
Incentive Scheme, Section 127, Income
Tax Act 1967
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Objectives of the Fund
To accelerate the shift of Malaysian-owned companies
in targeted industries to high value-added, high
technology, knowledge-intensive and innovation-based
industries
To enable domestic investors to develop new sources
of competitive advantage and to become active
participants in the global ecosystems of industries.
To assist capable Malaysian companies to make the
quantum leap required in driving the national
investment agenda in transforming the economy
The fund is not a business start-up fund but it is
applicable to local companies which have
new/additional investments
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Priority Sectors
Aerospace
Machinery & Equipment
Medical Devices
Pharmaceuticals
Advanced Electronics
Renewable Energy
Services including Design, R&D, testing, quality and
standard certification, technical and skills training,
engineering services, and logistics service providers
Other industries, on a case by case basis
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Scope of the Fund
The fund will provide matching grants (1:1) on
reimbursable basis to cater for expenditures incurred
for the following activities:
Training of Malaysians
R&D activities carried out in Malaysia
Licensing or Purchase of New Technology
Obtaining International Standards/Certification
Modernisation and upgrading of facilities and tools to
undertake manufacturing or services activities for
Multinational Corporations (MNCs) and Malaysian
conglomerates (Outsourcing activities)
Definition of Outsourcing: A subcontracting process that involves manufacturing,
manufacturing related services, business services and delegation of some/all
operations to an external entity, usually specialised in that operation.
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Eligibility
For Training, R&D, International Standards / Certification
and Licensing and Purchase of New Technology:
Incorporated under the Companies Act, 1965
New and Existing companies in the Manufacturing & Services
sectors with Malaysian equity ownership of at least 60%
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Eligibility
For Upgrading and Modernisation of Facilities for
Outsourcing activities:
New Company
A subsidiary of an existing
company operating in the
relevant industry
The parent company must
have proven track record in
the relevant industry
Effective equity of at least 60%
owned by Malaysians;
Existing Company
A company which undertakes
reinvestments in the form of
expansion / modernisation /
diversification;
The company must have the capability
and proven track record in the relevant
industry;
Effective equity of at least 60% owned
by Malaysians
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Approved Projects under D.I.S.F.
As at 31 July 2013:
International Standards/Certification
RM1.5 million
Licensing & Purchase of New/High
Technology
RM2.65 million
RM238.3 million
A total of 40 projects
Electrical & Electronics
Machinery & Advanced
Engineering
Services
Training
RM39.1 million
Transport
Life Sciences
ICT
Wood-based
R&D
Capital
RM80.8 million
R&D
RM114.2 million
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Training of Malaysians
Types of Training
Pre-operational / Operational Training
On-the-job Training
Validation
D&D and R&D
In-house Training (Internal, External or Overseas
Trainers)
External Training (within Malaysia)
Overseas training
Eligible
Courses such as product technology,
process technology, equipment
technology, equipment
maintenance, quality control, tools
& facilities and other training
related to the approved project.
Not Eligible
Motivational courses / workshops /
seminars
Language courses
Management / Marketing courses
Further study (Postgraduate; PHD /
Masters)
Training related to safety
Based on Guideline on Training Grant under Strategic Fund
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Research & Development
Definition of R&D – systematic or intensive study carried
out in the field of science & technology
Eligible
Improvement of
materials, devices,
products, produce or
processes
Design, Development and
Prototyping
Based on Guideline on R&D Grant under Strategic Fund
Not Eligible
Quality Control of products, or
routine testing of materials,
devices, products or produce
Research in social
sciences or humanities
Routine data collection
Efficiency surveys or
management studies
Market research or sales
promotion
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Purchase of Machinery and Equipment for Modernisation and
Upgrading of Facilities and Tools for Outsourcing activities
Eligible Expenditure
Special machinery / equipment which is only used in the
relevant industry.
Special production machines can be considered if these are
additional machines and not replacing existing machines;
whereby these machines are required to penetrate new
markets or industries
Special machinery / equipment which is required by MNCs /
Malaysian conglomerates for vendors to undertake
outsourcing activities
Non-Eligible Expenditure
Normal production machinery / equipment
which is used in the general production line
Normal testing machinery / equipment
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Licensing or Purchase of New/High Technology
The fund covers technology acquisition through:
Technology Licensing; and
Acquisition of Technology
Eligible Cost of Licensing / Acquisition of Technology :
Patent
Design
Blueprints
Manufacturing/Services Know-How
Technical support
Note: Eligibility does not include costs of acquisition of trademark,
copyright and proprietary information
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Submission
Submit application form:
- ML 08 or ICA/JA-1 or ICA/JA-3 for New companies ;
- ML 08 or ICA/JA-2 or ICA/JA-4 for Existing
companies.
Supporting documents / additional
information related to the grant
application
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Thank you
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