In commemoration of Malaysian National Day, August 31st, the “SeoulCity” magazine had an exclusive interview with Mr. Reduan Zabri, Director of MIDA Seoul for introducing Malaysian investment environment to potential Korean investors in the years to come.

Please let us know major issues discussed and agreed between Malaysian Trade Mission and Korean companies during Minister's visit to Korea last April.

Senior Minister and Minister of International Trade and Industry, the Honorable Dato’ Seri Mohamed Azmin Ali led a Trade and Investment Mission (TIM) to the Republic of Korea (ROK) from 1st to 3rd April 2021. The main objectives of the Trade and Investment Mission to the Republic of Korea (ROK) are to enhance bilateral economic relations between both countries and promote Foreign Direct Investment from ROK to Malaysia. We would like to invite more Korean investors to explore business and investment opportunities in Malaysia as well to listen to difficulties from Korean investors. The Trade and Investment Mission (TIM), also the first for this year, was paramount to the rigorous efforts by the Malaysian Investment Development Authority (MIDA) to bring in foreign direct investments (FDIs) into Malaysia, as well as an active promotion of Malaysia’s exports to the global market amidst the economic uncertainties around the globe. During the two (2) days Mission to Seoul, Korea, The Honorable Senior Minister had productive engagements with prominent enterprises and companies in the ROK. The response of the Korean businessmen to the Mission was very encouraging. All of them wholeheartedly welcomed the engagements and also commended that the high-level representation would greatly assist in elevating their confidence to accelerate many business decisions, despite the gloomy and uncertain global economic outlook brought about by the pandemic. In addition, through the business meeting held with potential Korean companies, MIDA have secured cumulatively new potential investment amounted of RM 7.3 billion. Among the major issues that was highlighted by the Honorable Senior Minister during the bilateral and business meetings was Malaysia’s response to changes in investment environment brought by Covid19 pandemic, Malaysia is making efforts to attract foreign investment with rapid changes including finding the optimal balance between economic growth and Environment, Social and Corporate governance (ESG). He also acknowledged the concerns raised by Korean companies on the border restriction thus the Senior Minister shared on the ‘One stop Center’ that was recently established in Kuala Lumpur International Airport, and emphasized that the Government encouraged businesses through creative ideas that are in line with the pandemic era. One Stop Center refers to a business lounge in the airport that provides various conveniences while business travelers entering Malaysia undergo Covid-19 tests and wait for results. Based on Malaysia's rapid inspection capability, business travelers are notified of test results within 3 hours in the lounge and can be exempted from selfquarantine, allowing them to focus on their businesses. Other issues discussed was on Malaysia announcement on the special package of incentives for companies relocating their production facilities to Malaysia. On 5 June 2020, Malaysia announced its short term economic recovery plan (PENJANA). Some of the major investment measures introduced include Tax incentives of 0% tax rate up to 15 years for companies relocating to Malaysia depending on the value of investment.

Please introduce MIDA in detail; Main objective of MIDA, Seoul, history and organization and vision for the future, etc.

Malaysian Investment Development Authority (MIDA) was establishment in 1967 and was hailed by the World Bank as "the necessary impetus for 91 purposeful, positive and coordinated promotional action" for Malaysia's industrial development. Today, MIDA's is Malaysia's cutting-edge, dynamic and pioneering force in opening pathways to new frontiers around the globe to invest in Malaysia. As an agency under Ministry of International Trade & Industry (MITI), MIDA is in charge of the promotion and coordination of industrial development in the country. MIDA is the first point of contact for investors who intend to set up projects in the manufacturing and services sectors in Malaysia. MIDA with its headquarter in Kuala Lumpur, capital city in Malaysia has established a global network of 20 overseas offices covering America, Europe and Asia Pacific to assist investors interested in establishing manufacturing projects and services activities in Malaysia. Within Malaysia, MIDA has 12 branch offices in the various states in Malaysia to facilitate investors in the implementation and operation of their projects. The importance of ROK companies to Malaysia has led MIDA to establish its Seoul office in 1980. This office is responsible for the promotion of Korean investments into Malaysia, to provide potential investors with the latest information on policies and opportunities in the manufacturing and services sectors as well as providing the necessary assistance to potential Korean investors that interested in seeking joint venture partners or technology collaborations in Malaysia. As the government principal agency for the promotion of manufacturing & services sectors MIDA has adopted a more focused and targeted approach in attracting quality investments. The aim of this approach is to generate higher economic returns and growth for individuals and the country, creating a lasting impact on the economy which would lead to a more attractive business environment. As an investment promotion agency, MIDA also provides end-toend solutions for investors including approvals for a manufacturing l icense for manufactur ing activities or production facilities., investment incentives, expatriate posts, import duty exemptions and handhold companies towards the implementation of the project. MIDA leads the investment agenda for the country and adopts an ecosystem approach whereby concerted efforts have been put in place to promote the entire value chain of industry clusters and enhance delivery enablers to support the value chain. MIDA stand with its vision and mission to be the best partner to investors distinguished by the integrity and professionalism of its people and to ensure Malaysia achieves its goal in economic transformation and its aspiration of a developed nation.

Please explain Malaysian investment environment for Korean potential investors and any special favors to foreign investors.

MIDA continues to encourage high-quality investments in the manufacturing sector, especially in the catalytic subsectors, namely, chemicals, E&E (electrical and electronics), M&E (machinery and equipment), aerospace, and medical devices. As for the services sector, there are still immense opportunities within the areas of principal hubs, logistics, healthcare, e-commerce, IR4.0, green technology and renewable energy. Malaysia aspires to indulge in R&D complexity and innovation intensity in aiming the high value-added markets. In addition to that, new generation of businesses has emerged to seize the advantage of the low-touch economy such as digitalised tourism, fintech, next-gen smart factories, the clinical trial hub for developing countries and global online learning. This is even more apparent given the shifts in consumer behaviour, business models, new regulations and supply chain disruptions brought upon by the COVID-19 pandemic. The global economic environment in 2020 was very challenging, as a result of the COVID-19 pandemic, which had its contagion effects 92 on major economies throughout the world. Despite the challenges, Malaysia recorded a total of RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors in 2020. These investments are expected to create 114,673 new jobs in various sectors of the economy once implemented. Moving forward, in realising Malaysia’s aspiration to be a developed nation, Korean companies including SMEs are encouraged to invest particularly in the new growth areas within emerging technologies, capital intensive, high value added, knowledge based, skills intensive, export oriented, automation and R&D. Given Korea’s strengths in high value added and technology intensive industries, more Korean companies are expected to invest in energy efficient vehicles (EEVs), biotechnology, advanced materials, advanced electronics, pharmaceutical, medical devices, petrochemicals, ICT, E-Commerce, animation, machinery and equipment, food products, agrobased products and value-added products from natural halal resources sectors. In tandem with the rise of digital revolution, Malaysia is also embracing Industry 4.0 to raise its competitiveness by encouraging compan ies to adopt smart manufacturing technologies and processes. As small and medium (SME) companies in Korea accounts for over 90% of the country’s robotic firms, there is much that Malaysian SMEs can learn from the Korean SMEs especially in terms of their adaptation to innovation and competitive strategies to become world leaders in advanced technology. As Malaysia attracts FDI from all countries, we are nondiscriminatory. We have an open, liberal and transparent investment regime. Foreign investments are allowed 100% ownership in most manufacturing sectors and many services sectors are also open to FDI through progressive liberalisation. The country continues to emphasise on high impact investments and are focusing on areas that can maximise spill-over benefits to the country such as the petroleum, logistics, transport, robot & automation and export-oriented industries. There are 2 major tax incentives for the manufacturing and services sectors such as Pioneer Status (PS) - Income tax exemption of 70% - 100% of statutory income for 5 to 10 years and Investment Tax Allowance (ITA) - An allowance of 60% - 100% on qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within 5 to 10 years from the date the first qualifying capital expenditure is incurred. Besides providing competitive investment incentives for a period of up to 10 years for new investments, Malaysia has also announced special package of incentives for companies relocating their production facilities to Malaysia. On 5 June 2020, Malaysia announced its short term economic recovery plan (PENJANA). Some of the major investment measures introduced include Tax incentives of 0% tax rate up to 15 years for companies relocating to Malaysia depending on the value of investment. Some of the major investment measures introduced include the relocation incentives, additional Reinvestment Allowance (RA) of 60% for existing companies; tax rebate for new SMEs and incentives for Mergers and Acquisition; the 2-day approval of Manufacturing License for nonsensitive industries; the establishment of Project Acceleration and Coordination Unit (PACU) in MIDA to speed up the implementation of investment projects in Malaysia; and the enhancement of the Domestic Investment Strategic Fund (DISF) to enable a second round of grant approval for majority Malaysianowned companies. With many opportunities available, now it is time for MNCs and global companies to make Malaysia your global supply hub in Asia. We have a robust and reliable local supply chain network that will ease the transition of global companies to set up operations in the country. Reporter Shin Whan-chul 9