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Market //////////////FOOD & BEVERAGES INDUSTRYREPORTKuala Lumpur / ////////////////////Prepared by Flanders Investment & Trade, Malaysia Office.C/O TAPiO Management Advisory Sdn. Bhd.Level 33, Ilham TowerNo. 8, Jalan Binjai50450 Kuala LumpurMalaysiaT: 60 3 40 43 60 ndtrade.com

TABLE OF CONTENT1.2.3.4.Malaysia Economic Outlook .3Malaysia As A Gateway to ASEAN and Asia .4Executive Summary . 7Market Features: Food & Beverages Industry .94.1Market Overview4.24.3Agriculture & Processed Food EcosystemKey F&B Sectors10114.44.5Foreign Players in the F&B sectorKey Players in the F&B Industry12125.Market Potential: Food & Beverages Industry . 135.1Current Challenges and Needs135.25.3Potential Opportunities for Flemish CompaniesGlobal Halal F&B Market Opportunities14186.Market Access.206.1Channel of Distribution206.26.3Market Entry ModeRegulatory Framework21227.List of Trade Events . 247.1Malaysia International Halal Showcase (MIHAS)247.27.3Selangor International ExpoMalaysian International Food & Beverage Trade Fair (MIFB)24247.47.5Malaysia International Packaging & Food Processing Exhibition (M’SIA-PACK & FOODPRO)Malaysia International Retail and Franchise Exhibition (MIRF)25257.6Food and Hotel Malaysia (FHM)258.Flanders Investment & Trade Malaysia: Contact . /////////////pagina 2 van 27FOOD & BEVERAGES INDUSTRY REPORT20.11.2020

1. MALAYSIA ECONOMIC OUTLOOKAnnual Data2019Population:32.68 millionGross Domestic Products (GDP): 312.12 billionEducation First (EF) English Proficiency Index Ranking in Asia:National Language:3MalayMajor Export Products in 2019 (in billion)Total Exports:Major Import Products in 2019 (in billion)Total //////////////////20.11.2020FOOD & BEVERAGES INDUSTRY REPORTpagina 3 van 27

2. MALAYSIA AS A GATEWAY TO ASEAN AND ASIAMalaysia Population:Market Population: ASEAN: 650 millionCHINA: 1,435 millionIndia: 1,366 millionTotal Market Reach from Malaysia in 6h:Below 2 Hours fromMalaysiaSingapore, Thailand, Cambodia,Myanmar, Indonesia, VietnamWithin 2 Hours fromMalaysiaBrunei, LaosWithin 4 Hours fromMalaysiaPhilippines, Sri Lanka, Taiwan,Myanmar, Bangladesh, Hong KongWithin 6 Hours fromMalaysiaChina, Pakistan, Nepal, India,Korea6 Hours fromMalaysiaJapan, Afghanistan, Mongolia,Papua New GuineaWhy Investors Choose Malaysia?Heart of ASEANStrategically situated at the heart ofASEAN; with good interconnectivity,strong relations and trade linksregionally, providing easy access tothe whole of Asia for business.Investor FriendlyFriendly policies for investors tosupport growth including attractivetax and capex incentives as well as100% ownership of land and businessequity for foreign investors.Educated WorkforceA young, well-trained and welleducated workforce. All ASEANlanguages are spoken in Malaysia,with business regularly conducted inEnglish.Advanced TechnologyRated as 5th in Asia for DigitalReadiness (UNCTAD), Malaysia ishighly focusing on technologicaladvancement with many I4.0initiatives.Developed InfrastructureOne of Asia’s best in infrastructure,with future planned technology,logistics and transport and financemajor infrastructure projects tosupport business.Strong Legal FrameworkWell established and trusted judicialsystem providing robust support andprotection for business development.2nd in ASEAN for IP Protection (USChamber International IP Index.)Sources: IMF, Arcadis Infrastructure Index, MIDA, WB - Doing Business, PwC, US Chamber International IP Index, UN Conference on Trade and Development //////////////////pagina 4 van 27FOOD & BEVERAGES INDUSTRY REPORT20.11.2020

International Business and Trade Infrastructure through Malaysia1. China-Malaysia QinzhouIndustrial Park (CMQIP)QinzhouMalaysia is the only country in the ASEAN region to havea Free Trade Zone with China. It is located in KuantanPort at the Malaysia-China Kuantan Industrial Park(MCKIP) and serves as a sister port to the China MalaysiaQinzhou Industrial Park (CMQIP). It is a part of the ChinaBelt and Road Initiative.Advantages:Kuantan2. Malaysia-China KuantanIndustrial Park (MCKIP)Enhancing Gateway Tax-Free Businesscapabilities to Asiawith Chinaand tradeKuantan Free Tradeconnectivity with Zone allows foreignadjacent ASEAN companies to exportcountries.to China tax-free.Circumventingthe US-ChinaTrade WarOther Trade Infrastructure in Malaysia*761718500 Sub-regional Infrastructure Support for MalaysiaIndonesia-Malaysia-Thailand Growth Triangle (IMT-GT)ThailandEstablished in 1993, the IMT-GT is a cooperation betweenIndonesia, Malaysia and Thailand in 32 member provinces toprovide a regional framework for accelerating economictransformation in the region.NakohnSiThammarat;Narathiwat; Pattani; Phathalung;Satun; Songkhla; Trang; Yala;Chumphon; Krabi; Phang Nga;Phuket; Ranong; Surat ThaniInitiatives and Development ProjectsMalaysiaMelaka; Kedah; Kelantan;Negeri Sembilan; Penang;Perak; Perlis; SelangorIndonesiaAceh; Bangka Belitung; Bengkulu;Jambi; Lampung; North Sumatra;Riau; Riau Islands; South Sumatra;West SumatraBoosting Infrastructure Facilitating Easier Tradeand Connectivityand InvestmentHuman Resources,Education and Culture Boosting Sub-regionalInfrastructure inEconomic Corridors.less-developed Multiple policyareas.development Multiple majorprojects to supporttransport and digitaltrade andinfrastructureinvestment.projects. Utilising country's LiberalisedcomplementarinessTransportsand comparativeAgreements.advantages to Singapore-KL Highmutually grow.Speed Rail projectapproved by IMT-GT. Improving quality oflife througheconomicdevelopment. Encouraging cultureand social exchange. Enhancement ofHuman ResourceDevelopmentthrough IMT-GTUniversity Network(UNINET).Sources: MIDA, MCKIP, IJM Corporation, Asian Development Bank (ADB), IMT-GT, //////////////20.11.2020FOOD & BEVERAGES INDUSTRY REPORTpagina 5 van 27

OtherTradeInfrastructurein Malaysia*Listof FreeTrade Agreements6 Regional Free Trade Agreements7 Bilateral Free Trade Agreementsa)b)c)d)e)f)g)a)b)Malaysia-Chile Free Trade Agreement (MCFTA)Malaysia-Australia Free Trade Agreement(MAFTA)Malaysia-Turkey Free Trade Agreement(MTFTA)Malaysia-India Comprehensive EconomicCooperation Agreement (MICECA)Malaysia-Japan Economic PartnershipAgreement (MJEPA)Malaysia-New Zealand Free Trade Agreement(MNZFTA)Malaysia-Pakistan Closer Economic PartnershipAgreement (MPCEPA)c)d)e)f)ASEAN-China Free Trade Agreement (ACFT)ASEAN-Hong Kong, China Free TradeAgreement (AHKFTA)ASEAN-Korea Free Trade Agreement(AKFTA)ASEAN-Australia-New Zealand Free TradeArea (AANZFTA)ASEAN-India Free Trade Agreement(AINDFTA)ASEAN-Japan Comprehensive EconomicPartnership (AJCEP)List of Free Commercial and Industrial Zones17 Free Commercial Zonesa)b)c)d)e)f)g)h)i)j)k)18 Free Industrial ZonesNorth, South and West Port of Port KlangPort Klang Free ZonePulau Indah MILS Logistic HubButterworthBayan LeasKLIARantau PanjangPengkalan KuborStulang LautJohor PortPort of Tanjung Pelepasa)b)c)d)e)f)g)h)i)j)k)Pasir GudangTanjung PelepasBatu Berendam IBatu Berendam IITanjung KlingTelok Panglima GarangPulau Indah (PKFZ)Sungai Way ISungai Way IIUlu KelangJelapang IIl)m)n)o)KintaBayan Lepas I,II, III, IVSeberang PeraiSama JayaHalal Parks in //////////////////pagina 6 van 27FOOD & BEVERAGES INDUSTRY REPORT20.11.2020

3. EXECUTIVE SUMMARYESTIMATED VALUE (EUR IN MLLION)The Malaysia Food and Beverages Industry (F&B) is identified as a fast-growing market and one of themain contributors to the national account. In 2018, the Malaysia F&B Industry was valued at around 22.12 billion, growing annually at a rate of 7.6%. The F&B industry in Malaysia is very diverse with awide range of processed food for Asian taste and dietary preference as well as many western recipes.This industry is predominantly dominated by small and medium-sized companies (SMEs). Besides SMEs,many foreign and MNCs companies are manufacturing processed food products in the country too. TheF&B sector is very diverse including cocoa and chocolate products, fishery products, cereals and cerealproducts, processed fruits and vegetables, confectionery, food ingredients, herbs and spices, beverages,animal feed, and others. Malaysia is heavily dependent on the importation of many staples such as rice,meat and seafood products for domestic consumption. Many raw materials, such as dairy milk andwheat are imported for further production and export. Identified key F&B sectors are as follows:3,5003,000KEY F&B SECTORSESTIMATED IMPORT AND EXPORT VALUE IN 7591,3851,138431232500246127 250Livestock &LivestockProductsDairy Product Cereal/ Flourbased ProductsCocoa andCocoaProductsFruit andVegetablesPalm Oil-basedProductsHerbs andSpicesKEY F&B SECTORSImport ValueExport ValueThe F&B services that are certified Halal by the Department of Islamic Development (JAKIM) are knownto have higher market opportunities owing to the vast majority (60%) of the Muslim population. TheF&B distribution market is highly fragmented due to a large number of similar products and players inthe market. The channel of distribution includes small-scale retailers (e.g. hawker, convenience store,peddler and market stall), large-scale retailers (e.g. department store, supermarket, hypermarket andshopping centre), and e-commerce platform, i.e. online shopping platforms that are growing inpopularity tremendously especially during the COVID-19 times.In 2020, the COVID-19 pandemic has triggered the Malaysian Government to take more drastic action inaddressing the food security issue and food supply chain disruptions problems accounting to heavyreliance on imports. The pandemic has also accelerated the growth of E-commerce industry as thenumber of online shoppers that opt to switch from physical shopping to online purchasing is increasing.This trend has also triggered the Malaysian retailers’ business to transform and embrace digitalmarketplaces. It is difficult for many SMEs to capitalize on this new trend as many of them struggle toimplement efficient production performance which is considered as the primary contributor toinefficient local production and indirectly affect the cost of goods and ///////////////////20.11.2020FOOD & BEVERAGES INDUSTRY REPORTpagina 7 van 27

While the companies are experiencing advancements, the industry itself is going through considerableconsumer, food safety, and regulatory challenges. Technical improvements in food science andtechnology, both in the sector and beyond, are presenting lucrative opportunities. However, a slightchange in innovation and ideas is needed for companies to prosper. To foster joint research anddevelopment and knowledge transfers, the Malaysian Government encourages foreign direct investmentby introducing many investment-friendly policies, such as import duty or tax exemption and pioneerstatus.List of Opportunities available for Flemish Companies in Malaysia:No.SectorsKey Market Opportunities1.Health and functional productsNutrition bars, functional cereal, functional drink, proteinproducts and vitamins & supplements2.Convenience food productsFrozen food and ready-to-eat meal3.Raw materials for the foodDairy milk, wheat, corn, potatoes, sugar beets,processing sectorfresh/frozen/chilled pork, assorted fruits and vegetables4.Coffee and complement products Biscuit and cookies5.Restaurant/F&B retail chainVegan and plant-based options, open kitchen, Juiceestablishment opportunitiespairings/non-alcoholic beverages, use of local ingredientsand pick-and-go establishments.6.Infant formula sectorDemands in raw materials such as wheat and dairyingredients7.Global Halal opportunitiesFlemish companies are encouraged to get their productcertified “Halal” for larger market exposure i.e. Muslim andnon-Muslim ///////////////////pagina 8 van 27FOOD & BEVERAGES INDUSTRY REPORT20.11.2020

4. MARKET FEATURES: FOOD & BEVERAGES INDUSTRY4.1 MARKET OVERVIEWThe Malaysian Food and Beverages (F&B) Industry is a fast-growing market which is known as one ofthe main contributors to the national account with revenues of around 22.12 billion in 2018, growingannually at a rate of 7.6%. In 2019, the estimated Gross National Income (GNI) had increased from 286billion (2018) with 9,255.95 estimated GNI per capita at the current price to 302 billion (2019) with 8,836.54 GNI per capita at the current price. This has indicated a rise in the purchasing power ofMalaysians to afford higher quality imported products which are relatively more expensive.In recent years, the changes in Malaysians’ lifestyle led to an increased demand for organic and healthyfood. The F&B industry is characterised by a large export market, mainly palm oil-based products, asMalaysia is recognised as one of the two largest exporters of palm oil in the world. Malaysia is alsoheavily dependent on the importation of many staples such as rice, meat, seafood and dairy productsfor domestic consumption.Malaysia F&B Industry is dominated by small and medium enterprises (SMEs). Besides, the local andforeign multinational corporations (MNCs) with manufacturing activities in Malaysia are notable as well.In terms of domestic consumption, there is a high demand for imported F&B products positioningMalaysia as a net food importer. With the Malaysian Government's continuous effort to provideincentives and liberalise trade, Malaysians now have the accessibility towards a wide range of localproduced and imported F&B products.4.1.1Food Processing SectorThe Food Processing sector accounted for about 10% of Malaysia’s manufacturing output, growing at arate of 3% annually. The sector recorded an export value of 3.98 billion to over 200 countries and animport value of around 4.10 billion in 2018. The main imports of processed foods were edible productsand preparations, sugar and sugar confectionery, dairy products (for processing), prepared/preservedvegetables and fruits, cocoa and cocoa preparations.There are over 8,000 establishments in Malaysia, mostly Small and Medium Enterprises. Majority of theprocessed food of exports is edible products and preparations, cocoa and cocoa preparations, preparedcereals & flour preparations, margarine and shortening and dairy products (final products). Singapore,USA, Thailand and the Republic of China are recognised as the key trading partner of Malaysia in termsof import and export value.4.1.2Food Distribution SectorMalaysia’s Food Distribution sector refers to the supply and distributes of local-produced and importedproducts to the end-user through Retail and Services sectors. In 2017, Malaysia’s F&B Distribution marketvalue was estimated at 20.48 billion and is expected to achieve 30.34 billion by 2022. The Food Retailsector is a fast-growing market, comprising small-scale retailers (i.e. local sundry shop) and large-scaleretailers (i.e. supermarket and department stores). Most high-end food retailers are saturated in themetropolitan areas, delivering imported premium F&B products to middle-to-high income populations.The online grocery market concept is relatively new in Malaysia and is mainly used by the urbanpopulation. However, there are a few large-scale retailers that are offering in-house grocery deliveryservices, such as Tesco, Jaya Grocer and Aeon Big. Besides, there are several third-party grocery //////////////////20.11.2020FOOD & BEVERAGES INDUSTRY REPORTpagina 9 van 27

services such as Happy Fresh, GrabMart and Honestbee. These services possess a massive boost duringthe year 2020 due to the movement restrictions imposed by the Government in overcoming theCoronavirus Pandemic.4.1.3Food Service SectorWith Malaysia’s diverse and multicultural population, Malaysia’s Food Service sector includes a widerange of local and international cuisines. In recent years, there is a rapid growth in fine diningrestaurants, international chains, and cafes. It is estimated that over 31% of Malaysians are spendingtheir disposable income dining out. Over 60% of the Malaysian population are Muslims; this provides amore significant opportunity to F&B services that are certified Halal by the Department of IslamicDevelopment (JAKIM).4.2 AGRICULTURE & PROCESSED FOOD ECOSYSTEMResearch & DevelopmentInfrastructure Universities/ ResearchInstitutions Halal R&D Laboratories Industrial parks / FreeIndustrial Zones Halal ParksImported ProductsAgriculture SectorDressed/Frozen/ tion MarketProcessedValueFoodProductsFood Ingredients/Flavours/ Additives Standards & Certifications Halal torHuman Capital Universities/ College/ Institutions Training InstitutionsProduction & Services Machinery / IT Packaging Financial Provider Logistic & ServicesMinistries, Agencies & Associations /////////////////pagina 10 van 27FOOD & BEVERAGES INDUSTRY REPORT20.11.2020

4.3 KEY F&B SECTORS4.3.1Livestock & Livestock Products SectorThe poultry segment is the main contributor to the Livestock sector. 60% of the meat processingindustry is accounted for poultry processing. Malaysia is self-sufficient in Poultry meat and Pork, withrecorded Self Sufficiency Ratio (SSR) of 98.1% and 91.9% respectively in 2018. Malaysia is highlydependence in imports of beef and mutton, with recorded SSR of 29.9% for beef and 11.2% for mutton in2018. Malaysia mainly imports beef and mutton from Australia, New Zealand and India. In Malaysia, allimports of meat products are strictly regulated by the Department of Islamic Development (JAKIM).Currently, the Malaysian government targets to increase the production of beef and mutton to reducethe dependence on imports.4.3.2Dairy Products SectorMalaysia import dairy raw materials from countries such as New Zealand, Australia, the USA, andThailand for further processing. Processed dairy products for exports includes milk powder, sweetenedcondensed milk, pasteurised or sterilised liquid milk, ice cream, yoghurt, and other fermented milk.4.3.3Cereal Products/Flour-based Products SectorCereal Products/Flour-based Products sector is well developed in Malaysia, comprising the production ofbiscuits, bakery items, and noodles. Raw materials are imported to Malaysia for further processing, suchas wheat and wheat flour (2018est: 301 million) from Australia, Canada, Russia and the USA. Products forexports include premixes, bread, pastries, frozen cakes, snack foods, bread, instant noodles andvegetarian food.4.3.4Cocoa and Cocoa Products SectorMalaysia is the 2nd largest cocoa bean processing country in Asia and 8th in the world, accounting for22% of the market of cocoa-based products in the Asia-Oceania region. In 2019, the estimated value ofchocolate exports stood at 233.8 million compared with 211.24 million in 2018, an increase of 10.7%.4.3.5Fruit and Vegetables SectorFruits and vegetables are imported for domestic consumption and food processing. Fruits are mainlyimported for puree/juice, snacks, pickles and jam production, whereas vegetables are mostly importedfor saucing and pickles production. Malaysia imports potatoes from the People’s Republic of China,Germany, the USA and the Netherlands for the downstream activities such as manufacturing of snacks.4.3.6Palm Oil-based Products SectorMalaysia is known as the world’s largest producer and second world’s largest exporter of palm oil-basedproducts. Main exporting palm oil-based products are RBD palm oil, RBD palm olein and stearin, andspeciality fats such as cocoa butter and margarine. The main export partners include India, Europe, thePeople’s Republic of China, Pakistan, and the Philippines.4.3.7Herbs and Spices SectorMalaysia is known as the world’s 8th largest producer of pepper. Malaysia is diverse in agriculturalproducts that yield various kinds of spices. Those spices include black and white peppers, ////////////////20.11.2020FOOD & BEVERAGES INDUSTRY REPORTpagina 11 van 27

cinnamons, curry powder, capsicum and pimento fruits. Many countries such as Japan, Singapore,Thailand, South Korea, United States, Indonesia, and China are importing Malaysian spices, and thedemand increases annually.4.4 FOREIGN PLAYERS IN THE F&B SECTORMalaysia’s F&B Distribution market is highly fragmented due to a large number of similar products andplayers in the market. For instance, over 100 players in meal, poultry and egg distribution, over 1,800players in fish and seafood distribution and over 100 players in dairy product distribution. Most of thedistributors involved in the distribution of diverse product range from different companies. Brandestablishment and marketing strategies efficiency will influence the foreign company’s capability incapturing the market share.4.5 KEY PLAYERS IN THE F&B INDUSTRYNestle (Malaysia) Berhadhttps://www.nestle.com.my/Fraser & Neave Holdings Berhadhttps://www.fn.com.my/PPB Group Berhadhttp://www.ppbgroup.com/Dutch Lady Milk Industries Berhadhttps://www.dutchlady.com.my/MSM Malaysia Holdings Berhadhttp://www.msmsugar.com/FFM ////////////////////////////////////////pagina 12 van 27FOOD & BEVERAGES INDUSTRY REPORT20.11.2020

5. MARKET POTENTIAL: FOOD & BEVERAGES INDUSTRY5.1 CURRENT CHALLENGES AND NEEDS5.1.1Raising Awareness on Food Security IssueThe rapid urbanisation and consumption growth are expected to pressure the nation’s food security.The COVID-19 pandemic has triggered the Malaysian Government to act to and address food securityissues. Malaysia is highly relying on the imports of F&B products, except poultry, eggs, pork and fisheries.Malaysia is also relying on imports of raw materials for food processing, such as the import of wheat forbread production. The Malaysian Government engaged with University Putra Malaysia (UPM) in planningR&D on pre- and post-harvest technologies related to agriculture and food security issues. Furthermore,almost all animal feed for the livestock industry is imported, which makes the sector heavily reliant onimported Animal feed. The Malaysian Government is urging the producers to implement latesttechnologies and partner with foreign players to facilitate knowledge transfers and to FastTrack theusage of the newest production methods.5.1.2Inefficient Food Supply ChainThe COVID-19 pandemic has alarmed the Malaysian Government on the potential food supply chaindisruptions due to heavy reliance on imports of raw materials/ingredients and final food products.Border closure and higher scrutiny have inevitably led to food supply chain disruptions - from thesourcing of raw materials to the production of goods and transportation of finished products. Theavailability of unskilled labour is also considered one of the factors that will disrupt the food supplychain, i.e. production and harvesting of food. The Government is pushing hard with grants andincentives to enable local companies to embrace Industry 4.0 technologies as well as automatization toovercome the shortage of unskilled labour.5.1.3Rising Cost of Goods and ServicesThe rise of food prices is mainly induced by the increase in input prices (i.e. fertilisers, chemicals, land,labour and machinery); market demand exceeds the industrial supplies. It stretches the capabilities ofinefficient food production methods in the country. The domestic demand on all food items is increasingin parallel with the rise of living standard and income level. However, the inefficient local productionmethods, which are mainly due to obsolete pre- and post-harvest technologies, has increased theinstability of local production. This has led to an increase in imports to cater to the domestic demandand has empowered importers or foreign exporters to control the food items market price. TheGovernment is trying to counter this problem by introducing many grants for local producers to assistthem in upgrading their inefficient production methods.5.1.4High Price SensitivityEven though the spending power of Malaysians is increasing, Malaysians are practising caution when itcomes to purchasing and are more conscious of the increased price. Malaysian supermarkets andhypermarkets ranked as the 2nd most prolific promotion-seekers in Asia-Pacific. Malaysians love gooddeals. Therefore, it should come as no surprise that monetary factors are the main drivers of thepurchasing decision. Brand equity or product origin is definably playing a significant factor in Malaysia.However, product price still is a large factor, which has demanded the retailer/ manufacturer to get theright balance between price and ////////////////20.11.2020FOOD & BEVERAGES INDUSTRY REPORTpagina 13 van 27

5.1.5Increase the Presence of E-Commerce and Shift in ConsumerBehaviourMalaysia’s E-Commerce industry has grown rapidly in recent years, driven by rising usage of smartphoneand shoppers’ willingness to buy from overseas. Especially in 2020, the COVID-19 outbreak hasaccelerated the growth of the E-Commerce industry. Approximately 62% of Malaysians are shoppingonline now, mostly via mobile devices (47%) and it is expected to grow at a rate of 31.4%, reaching anestimated value of 4.8 billion by 2021. The COVID-19 pandemic has triggered the transformation of theMalaysian retailers’ business strategy toward E-Commerce and Internet-Of-Things (IoT).5.1.6The incapability of Small and Medium Enterprises (SMEs)Most of the SMEs are facing issues that undermine their production performance - lack of knowledge andfinancial resources. To save costs, SMEs tend to overlook the importance of factory design (i.e. foodprocess, technology). This has the potential to cause many manufacturing problems in the future, andthe fixing costs are relatively higher than the initial design costs. Even though the MalaysianGovernment is offering grants and incentives, the lack of knowledge becomes a stumbling block for SMEsto modernise their food process and smoothen their business process (i.e. branding, distributionchannels and communications channels).5.2 POTENTIAL OPPORTUNITIES FOR FLEMISH COMPANIES5.2.1Government Initiatives Towards Foreign Direct InvestmentThe Malaysian Government provides support to the foreign investor in the Malaysian market. MalaysianGovernment has been introducing tax incentives, both direct and indirect, to encourage foreign directinvestments as well as foreign trade, such as Import Duty and Sales Tax Exemption. The direct taxincentives grant partial or total relief from income tax payment for a specified period, while indirect taxincentives are in the form of exemptions from import duty, sales tax and excise duty. For investments inthe manufacturing sector, the Malaysian Government has allocated incentives such as Income TaxExemption, Pioneer Status, Import Duty Exemption and incentives for R&D activities.For more information, please refer to: Malaysian Investment Development Authority ///////////////////////////////

a) Pasir Gudang Tanjung Pelepas Batu Berendam I d) Batu Berendam II e) Tanjung Kling Telok Panglima Garang Pulau Indah (PKFZ) h) Sungai Way I Sungai Way II Ulu Kelang k) Jelapang II l) Kinta m) Bayan Lepas I,II, III, IV n) Seberang Perai o) Sama Jaya