Diary Of Events

Seminar on Trade and Investment Opportunities in Swaziland. 29 August 2007

20073rdquarterdiary1His Majesty King Mswati III of the Kingdom of Swaziland led a 25-member delegation of high-level officials and businessmen to Malaysia.

In conjunction with the visit, MASSA co-organised a Seminar on the “Business and Investment Opportunities in the Kingdom of Swaziland” with the High Commission of the Kingdom of Swaziland, Kuala Lumpur and Malaysian Industrial Development Authority (MIDA) at the Kuala Lumpur Convention Centre (KLCC).

The objective of this Seminar was to provide Malaysian companies with an understanding of the Swaziland investment climate by offering an insight into Swaziland’s potential for business and investment.

Mr Phiwayinkosi E Ginindza, General Manager of Swaziland Investment Promotion Authority (SIPA) delivered the Welcome Remarks at the Seminar. The panel of speakers at this Seminar are Mr Zizwe Vilance, Director FDI, SIPA, Mr Henry Shongwe, Mr Sam Ntshalintshali , Mr Eric Maseko and Mr Bongani Dlamini , Marketing Manager STA and financial partners, Tibiyo TakaNgwane and Swazi Bank.

The Hon. Lutfo Dlamini, Minister of Enterprise and Employment, Swaziland also delivered a presentation on “Investing in the Kingdom of Swaziland’.

His Majesty King Mswati III of Swaziland delivered a Keynote Address at the Seminar. His Majesty the King later hosted a lunch for all participants at the Seminar. Individual business meetings were also held for Malaysian businessmen to meet with the Swaziland delegation. 100 participants comprising MASSA members and Malaysian businessmen attended the Seminar.

 


 

MIDA Familiarisation Programme, 2 – 13 July 2007

20073rdquarterdiary2Malaysian Industrial Development Authority (MIDA) organised a familiarisation programme for Officials of Investment Promotion Agencies (IPAs) from the South-South Countries at Hotel Istana , Kuala Lumpur.

On 10 July 2007, Ms Ng Su Fun, Executive Secreta ry of MASSA presented a paper on “Malaysian Private Sector’s Experience in Investing Abroad” to the IPAs officials attending this programme.

 

 

 

 


 

Visit of South African Delegates, 17 July 2007

A business delegation from the Northern Cape Province of South Africa visited MASSA. The visit was facilitated by the South African High Commission of Kuala Lumpur.

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Visit of Trade and Investment Government Officials from African Countries , 1 – 8 September 2007

20073rdquarterdiary4MIER, in collaboration with JICA, undertook a joint training 2007 course on “Facilitation of Trade and Investment in the Indian-rim Economic Region for African Countries” for 10 officials engaged in trade and investment related work from Kenya, Madagascar, Mozambique, Tanzania and Uganda. The officials visited MASSA Secretariat on 4 September 2007.

 

 

 


 

MASSA Visit to NCI Cancer Hospital & Nilai Inland Port, 5 September 2007

MASSA organised a visit for members to the NCI Cancer Hospital and Nilai Inland Port.

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Country Feature: The Kingdom of Swaziland

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a11_img3Located between the Republic of South Africa and Mozambique, the independent Kingdom Of Swaziland has a total population of about 1.1 million people. Its capital city is Mbabane. Considered by some to be the Switzerland of Africa, beautiful Swaziland is rich in culture and boasts one of the most developed infrastructures in Africa. The official languages are Siswati and English, which is widely used in business and commerce. Over the years, the country has managed to attract many leading multinational companies to set up operations here. This can be mainly attributed to the country’s low cost base with abundant natural and agricultural resources as well as its strategic location for exports to South Africa, Africa and the rest of the world.

Strategic Location
Swaziland is the perfect investment and trade gateway into the Southern Africa region due to its excellent geographical location. Although it has a very small domestic market, Swaziland is often seen as a quicker and cheaper way to access other South African markets. Investors will have easy access to these markets through the country’s communication links with SADC and COMESA member states. Excellent transport and telecommunications infrastructure ensures that companies can move goods easily to anywhere in the world without the obvious restrictions of operating in a landlocked country. Swaziland’s cost-effective access to major entry ports enables smooth importation of machinery, equipment and raw materials, as well as facilitates exports to market destinations abroad.

Economic Overview
Swaziland’s landlocked economy is primarily driven by the agriculture sector. The country’s key foreign exchange earners include sugar and wood pulp. The economy is heavily dependent on South Africa from which it receives approximately 90% of its imports and sends 60% of its exports. Customs duties from the Southern African Customs Union and worker remittances from South Africa make up a large part of the income earned domestically.

Trade and Investment Opportunities in Swaziland
Swaziland offers an abundance of investment opportunities in various areas and sectors. For the Malaysian investor, there are many attractive business prospects which promise good returns on investment.

For instance, many opportunities can be found in the agriculture and agro-processing sector, which is a major contributor to Swaziland’s GDP. In fact, 70% of the population depends on this sector for their livelihood. Activities include sugar cane production, citrus fruit, maize and other cereal crops, cotton, forestry, ethanol production and livestock. Sugar has historically been referred to as Swazi gold , and aptly so as Swaziland is a leading low-cost producer of sugar globally.

There are also many opportunities available in the Manufacturing, Assembly & Processing sector – mostly for exports, import substitution and value addition to a wide range of natural resources like timber, coal, sugar, textiles, fruits, vegetables and other unprocessed resources.

The ‘International Services’ sector include International Financial Services (offshore) , Back Process Outsourcing (BPO), Contact (call) centres and the country being used to host the regional headquarters of multinational companies.

Rich deposits of minerals are mined and prospected in Swaziland such as asbestos, coal, quarried stone, soapstone, kaolin, talc, silica and green chert. Most of the minerals have not been exhaustively extracted, which means there is tremendous development potential in the mining industry.

There are also many favourable factors to further develop the tourism potential here. This sector has been earmarked by the government of Swaziland as a future major contributor to the country’s economic growth. The Swaziland Tourism Authority (STA) is responsible for stimulating and expanding the tourism industry through intense marketing drives and development of tourism infrastructure.

Investment opportunities are available in the following areas and sectors:
  • Agriculture & Agro-processing
  • Manufacturing, Assembly & Processing
  • International Services
  • Mining & Power Generation
  • Tourism & Tourism Infrastructure

About SIPA
The Swaziland Investment Promotion Authority (SIPA) was set up in 1998 to promote and facilitate foreign direct and local investment in Swaziland. Its other objectives are to initiate, co-ordinate and facilitate the implementation of government policies and strategies on investment; and also to provide a one-stop support centre for local and foreign investors. SIPA also advises the Government on investment policies, strategies and suitable incentives for investors. For further details:

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Why Swaziland?
Based on the many investment benefits available in Swaziland, Malaysians can look forward to a tremendous potential for capital gain should they invest here. The government has put in place a range of highly competitive incentives for investors. These benefits include the opportunity to invest in a country that represents great value for money, has political stability and where one’s investment has an excellent potential for capital gain.

Other investment incentives are:
  • Attractive taxation benefits
  • Duty free access on capital goods
  • Duty free access on r aw materials
  • Export Credit Guarantee Scheme
  • Extended work and residence permits for expatriate directors, senior management and key technical personnel of new enterprises
  • Easy repatriation of profits
  • Legal protection of investments

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Malaysian National Budget 2008 – A Commitment To Prudence

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The recent Budget 2008 announcement shows that the government is committed to consolidating its financial status. While giving due consideration to the country’s longer-term development needs, the government is targeting to reduce its budget deficit to 3.1 per cent of GDP in 2008, from 3.2 per cent in 2007. After announcing measures to boost the property sector in April 2007, and again raising the salaries of public servants in July, it is fair to expect the budget to have fewer things to offer. Nonetheless, the budget is not short of benefits to the poor and the less fortunate, and some business sectors are given more incentives. The Budget also considers the uncertainty in the global economy owing to the US sub-prime turmoil.

The anticipated personal income tax reduction did not happen, even for the purpose of aligning personal tax rate with the corporate rate. To promote investment and ensure that Malaysia remains attractive to foreign investors, the corporate tax will be reduced by 1.0 percentage point per year from 27 per cent in 2007 to 25 per cent in 2009. However, this is still high when compared with 18 per cent in Singapore and 17.5 per cent in Hong Kong. The gradual reduction in corporate taxes would mean a potential loss in government revenue. To top up revenue and reduce the deficit, the goods and services tax (GST) becomes more relevant in future years. The foundations for the GST have to be laid down first to ensure proper functioning. At present, the high oil price has been a gain to government revenue, making up about one-third of total revenue.

There is also good news for businesses. To transform Malaysia to become a global Islamic financial centre, foreigners are allowed to wholly own Islamic fund management companies. Tax exemptions are given up to year 2016 and EPF is to mobilise RM7.0 billion into these companies. In the property market, to make house buying more affordable, a 50 per cent stamp duty exemption is given for the purchase of houses below RM250,000.

Housing for the people is given high priority. A RM50 million fund will be set up to provide guarantees to banks so that farmers and small traders who do not have regular income can purchase houses, backed with proper safeguards to prevent a sub-prime crisis. To partly offset the rise in the cost of living and boost consumption , EPF contributors can withdraw their savings to pay-off their housing loans, releasing RM9.6 billion into the economy. Fears have been raised that this move could reduce savings intended for old age, but then again, re-investing part of EPF money on a house is not totally a bad idea. There is a need to ensure there is sufficient EPF savings for old age especially when living costs are rising, and that the money is to be spent wisely. Insufficient attention to the welfare of the elderly could lead to serious social problems.

a10_img1Steps to raise the quality of human capital continue to be one of the highlights of the Budget. Investment in human capital may not be as noticeable as building a bridge but its longer-term impact on the economy is extensive. The number of scholarships to university students has been doubled to 10,000, from 5,000 previously. Free textbook to all school children will reduce some financial burden of parents. Tax relief of RM5,000 on fees has been given to all post-graduate students.

On the whole, Budget 2008 is a realistic and practical budget, though it may not please everyone. The government has to make hard choices of balancing between funding for growth and development, while at the same time reducing the deficit gradually. In light of the recent Auditor General’s Report, it is important that money be spent efficiently, avoiding wastage at all cost and that projects should benefit a large segment of society. A prudent budget would leave some room for the nation to fall back on in the event the external environment is not condusive to Malaysia.

Encik Azidin W.A.Kadir
Senior Research Fellow
Malaysian Institute of Economic Research
25 September 2007

Northern Corridor Economic Region (NCER) – Unveiling The Potential Of The Northern Region

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From The MATRADE Desk: – Golden Investment Opportunity in China – Malaysia Companies Currently Doing Business In China

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a8_img1China’s sterling and high economic growth and its growing influence to the world economy have increasingly attracted great attention. In 2006, China’s GDP amounted to 20.94 trillion Yuan (USD2.7 trillion), up by 10.7% from the previous year, making China the world’s 4th largest economy. Foreign trade increased by 23.8% to reach USD1.76 trillion and yielded a record trade surplus of USD177.5 billion, up from the surplus of USD102.00 billion in 2005.

Hence, China’s dominance in world trade has now given rise to global fascination with Chinese business opportunities with each passing day. The reverberations of the country’s development are being felt everywhere, from European consumers wearing clothes made in China to US factories moving here. And of course the Chinese themselves want foreign goods, services and know-how. There can be few industries or businesses worldwide without a China angle.

China is modernising – above all, China is urbanising. This creates a need for more jobs, often new and different kinds of jobs, and infrastructure, housing, roads, power plants, offices and all the rest. This investment is one of the major drivers for growth. The other driver is consumption – people are becoming richer and more sophisticated, and buying more and different products and services. In addition , China is very open to FDI.

Trade and investment relations between Malaysia and China have come a long way since the establishment of diplomatic relations 33 years ago. Malaysia is currently China’s 6th largest import source and the 16th largest export destination in the world. It is also China’s second largest trading partner among the ASEAN member economies , registering more than USD37 billion trading volume in 2006. At the same time, Malaysia’s investments in China are also on the rise, with many more Malaysian companies now venturing into China to invest. As at the end of 2005, Malaysia’s investments have surpassed the USD3 billion mark.

The booming economy of China amounts to loads of business opportunities for Malaysian manufacturers and exporters. In view of the dynamic economic performance of China, there are excellent export opportunities for potential Malaysian products penetrating into the lucrative Chinese market.

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Some of the investment options Malaysian businessmen can look at include the setting up of representative offices, JVs, and wholly-owned foreign enterprises (WOFEs) as well as mergers and acquisitions which are becoming increasingly popular. People are not getting involved in China simply because it is fashionable – there must be a real business case and the venture must make money. But it is not just about setting up a company. There are subtleties and complexities that do not exist elsewhere. China’s regulatory system is developing as she fulfills her WTO commitments, and people need to keep on top of these.

There are risks and challenges. China is still a developing country and its level of development should not be overestimated. Things do not always work the way you expect them to, like in Malaysia. There are still significant weaknesses in infrastructure – power outages still exist , and moving goods around can be , to say the least, challenging. In this regard, China still provides great business opportunities for Malaysian entrepreneurs due to its market size and development potentials. It is therefore important that we continue to foster and strengthen trade and investment relations with China as part of our efforts to diversify abroad. MASSA can certainly complement the efforts undertaken by the Malaysian Government in these areas, and serve as a platform for successful Malaysian businessmen in China to network among themselves.

 

Country Statistics : China

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Here are a couple of success stories from the many Malaysian companies who have made it big in China.

matrade2Shanghai Winner Electrical Co. Ltd.
Since its inception on 8 August 1994 in China, Shanghai Winner Electrical has grown from a small engineering outfit into one of the key players in the industrial automation industry in China. It provides automation and drive solutions for a wide range of process and non-process industries such as machinery, metals, power, mining, cement, petrochemicals, pulp & paper, rubber, textile, shipbuilding and waste & waste treatment.

The company specialises in the R&D of Intelligent Industrial Control Management System (IICMS) which includes the design of electrical drives and automated systems. It is also involved in intelligent field instrumentation, industrial engineering design, customised software programming, engineering and production, installation and commissioning as well as comprehensive maintenance, support and training.

a8_img4Shanghai Winner Electrical has received prestigious ISO 9001, CE and CCC approvals, in addition to the highly regarded Siemens Core Partner award in China. Apart from its headquarters in Shanghai, the company has 2 branches, one each in Beijing and Nanjing, and 4 representative offices in Ningbo, Wuxi, WuHu and Wuhan respectively.

matrade3Willsonn Partners (WSP)
Willsonn Partners (WSP) is a CPA-based multi-disciplinary consulting firm in Shanghai & Beijing with liaison offices in Guangzhou, Hong Kong, Malaysia and Singapore. Founded in March 2003 by Mr. William Leong and Mr. Sonny Khong, the company provides a wide range of services such as corporate advisory, accounting BPO & audit services, HR BPO & instant office services , transaction advisory & risk assurance services and tax advisory services. Additionally, the company also conducts professional qualification courses such as ACCA, CIMA, AAT (Association of Accounting Technicians) and CAT (Certified Accounting Technician).

WSP is a member of the JHI International CPA network which has 160 members worldwide in 55 countries. The company currently employs 8 foreign managers and a total of 40 staff, of which 15 are qualified CPAs, registered tax agents, lawyers and HR consultants , serving over 400 clients.

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Global SMEs – Business Opportunities Abound At Global SMEs 2007

a7_img2The recent Global SMEs 2007 (The 8th International Strategic Partnership and Business Networking Trade Fair for SMEs) captured the attention of Malaysian and international Small and Medium Enterprises (SMEs) with ma ny exciting business opportunities from the region and beyond.

The event, held in Kuala Lumpur from 6 to 8 September 2007, was jointly organised by the Small & Medium Enterprise International Co-operation Association of Malaysia, Kuala Lumpur Malay Chamber of Commerce , Malaysia South-South Association and Expomal International Sdn Bhd and co-organised by Mutiara Sigma.

A highly successful annual trade fair for Small and Medium Enterprises (SMEs), Global SMEs enables regional networking among industries and individual businesses. It has also opened the door for businesses to strengthen their competitiveness and resilience in the global arena.

At Global SMEs 2007, 6 Memorandums Of Understanding (MOUs) were signed between Malaysian businessmen and their counterparts from Vietnam, Taiwan and Sri Lanka to cross-promote SMEs and foster economic co-operation. Every year, the event draws thousands of visitors and exhibitors from around the world. This year was no different. Visitors, comprising SMEs and decision-makers from over 15 countries , flocked to the event.

The trade fair also provided a comprehensive line-up of exhibitors ranging from banking and finance to ICT solutions and the most up-to-date product know-how. It also showcased award-winning SMEs who received the Golden Bull Award 2007. In addition to the trade exhibition , visitors also benefited from a wide range of informative seminars, forums, business matching meetings , workshops and other networking activities. Participants gained invaluable information and were enlightened by the presentations from prominent industry experts throughout the 3-d ay event.

Global SMEs 2007 was driven by a holistic and comprehensive approach to help SMEs harness the most innovative business solutions. The event revolved around 7 well-defined thematic centres designed to facilitate full capacity and capability building. They include:

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The anchor events held during Global SMEs 2007 included:

  • The 2nd East Asia Small & Medium Enterprise Business Forum 2007
  • SME ICT Week 2007 – MIRC Global SME ICT 2007
  • Golden Bull Award 2007: Malaysia Outstanding SME Showcase & Award Presentation Dinner
  • Japan Innovation & Technology Showcase

Besides these events, other Global SMEs 2007 seminars and conferences popular with visitors were the Invest Vietnam: A Rising Star of Manufacturing Base Conference which highlighted business and investment opportunities in Vietnam and its 9 industrial parks; Taiwan Innovation Pavilion Ð featuring the latest technologies, innovations, medical equipment, turnkey projects and patents from Taiwan; Sri Lanka: A New Trade Destination; and Poland: Opportunities from Europe. All in all , Global SMEs 2007 was a tremendous success for both organisers and visitors alike.

Expertise Resource Association (ERA) Can Help SMEs Turn Their Operational ‘Problems’ Into Gold

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World trade is very different today compared with what it was many decades ago due to globalisation and liberation of trade. The number of countries involved in global trade has expanded, production methods have changed and the cost of trade has been significantly reduced. A key feature of globalisation is the internationalisation of economies through trade which saw world trade increase 30 times in volume terms since 1950.

In order to take advantage of this development, many countries, especially those newly emerging and developing economies, have been actively promoting trade and investment. In the process, various trade and investment policies and incentives schemes have been formulated to attract investors. This by itself is competition.

The small and medium enterprises (SMEs) in any economy assume an important role in economic development especially in terms of creating jobs for the populace. With globalisation , SMEs are facing increasingly more and varied challenges. This simply means that SMEs have to be more competitive in the world trade arena because they do not only compete domestically but regionally and globally as well.

While we acknowledge the benefits and importance of trade and investment policies at the macro-level, we feel that enhancing competitiveness at the operational level is just as important if not more important. SMEs are in many ways the building blocks of an economy. Thus in addition to acquiring relevant modern technologies for economic development, a parallel approach should be taken to help enterprises enhance their competitiveness by making better use of their available resources to help them enhance productivity.

Better productivity increases competitiveness and it is the ability and capability to provide services and produce goods wanted by customers at lower cost, of better quality and with faster delivery. Making better use of resources already available to enterprises is cost-effective, quicker and more affordable to enterprises. It is the knowledge and skill to identify and remove ‘wastes’ in resources such as time, human capital and machine utilisation. It is just a matter of right attitude to do the right thing right at all levels. It is the first step and it is also the step-by-step approach towards productivity enhancement. It is true that tremendous break-though benefits can be obtained by acquiring relevant modern technologies. However, technologies always come with a very costly bill which might be unaffordable to many SMEs.

The Expertise Resource Association (ERA) assembles a group of experienced senior executives from various industrial sectors. They are willing to offer their expertise and experience in helping SMEs enhance their productivity and competitiveness.

With the large pool of expertise and experience, ERA can help SMEs identify operational ‘problems’ and help turn them into gold. ERA members are committed to assist SMEs to value-add their processes, products, services and human capital at affordable cost in the following fields , amongst others:

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a6_img1ERA operates on the principle of cost plus. For trade associations, chambers of commerce and industry, government agencies and non-profit oriented organisations, the clients need only to pay out-of-pocket expenses that cover flight and travel, hotel accommodation, and per diem (at USD130.00 per day) to cover meals and allowances.

However, consultancy projects for profit-making private organisations, the fee will be as negotiated between the client and expert concerned.

More detailed information and the type of expertise offered by ERA can be obtained from the ERA website (era.my.diip.net) and the publication of ERA Registry of Expertise or contact the secretariat ata6_img3

Feature On SSIC: Selangor – The Investors’ Choice

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Selangor is the first and only state in Malaysia to have been accorded developed status. Primarily dependent on trade and industry, Selangor’s economy has enjoyed tremendous growth in the areas of manufacturing, property an infrastructure development, commerce, higher education services as well as in the tourism and recreation sector. And it’s all simply because the state offers investors the best investment climate, and one that is strongly supported by world class physical infrastructure.

By having their operations in Selangor, investors have easy access to Malaysia’s main international point of entry, the Kuala Lumpur International Airport (KLIA) as well as to Port Klang, one of the most important gateways into the country by sea.

With regards to KLIA, the Selangor State Government is currently developing a new industrial park – the Selangor Science Park 2, located in Bukit Baja , Sepang and close to KLIA – which will cater to investors of high-tech industries.

Port Klang is also being transformed into a Regional Transhipment and Distribution Hub; with a one thousand acre free zone for running both commercial and industrial activities at Pulau Indah which is located besides Westport, a major component of Port Klang. The State Government is committed to providing more efficient and effective services to investors. In fact, a number of policies and administrative initiative s have been undertaken by the State Government to facilitate the flow of investments including the setting up of a one-stop agency, SSIC Berhad (Selangor State Investment Centre).

The State Government has also in place a two-week processing policy that compels every application, inquiry or complaint to be settled within a 2- week time frame, if not earlier, in its efforts to cut red tape and reduce inefficiency.

Here is another indication of the tremendous investment potential of Selangor. For the year 2006 alone, investments in the manufacturing sector in Selangor increased to RM9.618 billion (USD2.8 billion) compared to the year 2005 which amounted to RM8.5 billion (USD2.5 billion).

Investors are invited to take advantage of all the facilities and opportunities available in Selangor. This golden state has all you need to make it your ideal profit centre and your springboard to success.

The Selangor State Government welcomes all investments with open arms. Investment opportunities are abundant in areas such as high-technology, ICT, tourism , education , halal products , manufacturing and agro-based industry.

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The Selangor State Investment Centre (SSIC Berhad)
Selangor State Investment Centre (SSIC Berhad) is the Selangor State Government’s investment arm that handles all the State’s investment-related matters. It is a one-stop agency that provides information and advisory services to potential and existing investors, as well as assistance in setting up operations in Selangor.

Since it was incorporated in April 1999, SSIC Berhad has achieved much recognition from the Federal Government, and is used as a role model for other states which have formed similar agencies.

SSIC achieved ISO9002 quality certification from SIRIM within a year of its incorporation. The centre has also acted as the co-ordinator and secretariat for various State and international events such as the Selangor Industrial Award (AIS), East Asian Entrepreneurs’ Summits (EAES) , seminars, workshops and dialogues.

The role of SSIC becomes increasingly more prominent as Selangor fully embraces its status as a developed and industrialised state. At an international level, SSIC has formed strategic collaborations with foreign embassies and business chambers in Malaysia and throughout the world to facilitate set ups and joint ventures within the state for new businesses.

SSIC’s Objectives
To generate investment and encourage industrialisation in Selangor by facilitating the process of investments within the state.

Our Vision
To foster a conducive investment environment in the dynamic State of Selangor Darul Ehsan.

Our Mission
To position Selangor as a preferred Global Investment Centre and strengthen the industrial sectors to become key economic drivers in line with sustaining the State’s Developed Status.

SSIC’s Functions & Services
The main function of SSIC is to provide information and advisory services to potential and existing investors as well as assist them in setting up operations in Selangor. Among the services we provide include:

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Development of a Sustainable Microfinance Industry In Malaysia

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banknegaraThe Census of Establishment and Enterprise 2005 (Census) highlighted that 80% of the SMEs in Malaysia are micro enterprises (defined as business concerns with less than five full-time employees, and an annual sales turnover of less than RM250,000 in the manufacturing sector and RM200,000 in the agricultural and services sectors). Given this, it is important that a sustainable microfinance industry is developed to ensure that micro enterprise s have access to financing from the formal financial system.

Microfinance Institutional Framework
Towards this end, Bank Negara Malaysia has developed a comprehensive microfinance institutional framework, where banking institutions, development financial institutions and credit co-operative s have been identified to provide microfinance to viable micro enterprises. Within the framework, Bank Simpanan Nasional has been mandated to provide microfinance. Bank Rakyat would provide microfinance to members of co-operatives while Bank Pertanian would continue to provide microfinance to micro enterprises in the agriculture and agro-based sector. Participation of the banking institutions is important, in view of their large funding and network of branches, which is critical to ensure the wide outreach of microfinance.

Benefits of Microfinance

To date, six commercial banks and three development financial institutions have introduced microfinance products. Micro enterprises and self-employed individuals can now benefit from easy, fast and convenient access to micro financing for their business activities. Microfinance products offered by the financial institutions typically have the following key features:

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Promoting Awareness Among Microfinance Borrowers
To create awareness on the availability of microfinance, the national microfinance logo was launched by the Prime Minister on 13 September 2007. Financial institutions that offer microfinance will display this logo at their branches, while borrowers who have obtained microfinance are encouraged to display the logo at their business premises. Micro enterprises who wish to borrow microfinance should visit the branches of financial institutions that display the logo. With the implementation of these initiatives, it is expected that more micro enterprises will benefit from microfinance to expand their businesses.

Further information and microfinance success stories can be obtained from the SME Annual Report 2006 published by the National SME Development Council , or from the SMEinfo portal:

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Editorial

MASSA Secretariat has put together a varied set of articles from many quarters for this edition of our MASSA newsletter. The Selangor State Investment Centre (SSIC ) has contributed an article featuring the highlights of Selangor State’s potential for business and tourism. In line with our continuing theme on “SMEs”, read about Bank Negara Malaysia’s strategy to develop a Sustainable Microfinance institutional framework to enable banking institutions in Malaysia to provide microfinance to viable micro enterprises.

Matrade’s Trade Commissioner in Shanghai, China has provided readers with a snippet of the abundant opportunities for business, from his desk in Shanghai. Owing to limited space, we are not able to feature many of the Malaysian companies operating in this vibrant Southern city in the People’s Republic of China . Readers should contact our Malaysian Trade Commissioner’s office to seek their counsel and advice. We are also grateful to Expertise Resource Association (ERA) for their article highlighting the range of human resources that are available in a wide range of sectors and services that can be readily tapped to support cross border linkages.

Also, read about MIER’s views on the recently announced Malaysian National Budget for 2008. On the activity front , MASSA received business delegations from developing countries that included Swaziland and South Africa . His Majesty King Mswati III led the Swazilan d delegation and our members were privileged to meet His Majesty and the high-level officials of his Government. MASSA also visited the NCI Cancer Hospital in Nilai and the Nilai Inland Port in September. These two visits gave us interesting insights into the operations of the inland port and the hospital including its leading edge cancer treatment options. The Global SMEs 2007 event, of which MASSA was a co-organiser, was convened successfully with a good turnout of participants and visitors.

We thank all our contributors who have made this edition an interesting one for readers. To our members, we count on your continuing support and participation in all our events.

 


Hamidah Tun Ghafar

Editor