Once upon a time at the Malaysian-German Chamber of Commerce and Industry

Selangor's Direct Investment,1st H. 2012

Recently, I visited the Malaysian-German Chamber for Commerce and Industry (MGCC) to further our collaboration and discuss possible projects or new initiatives. It was a good opportunity to learn more about the commitment and strong investment position of German corporations in Malaysia. According to the German embassy and MGCC, there are more than 300 German corporations in Malaysia and many of them here in Selangor. Please also have a look at the MGCC Blog for their post on my visit. First of all, i had a little office tour, which included the German Business Centre and the meeting area of the chamber. Thomas Brandt, the general manager of MGCC, was so kind to explain all services and facilities to me. We finally sat down and discussed the current business and investment environment as well as the potential to work together. Certainly, it was my pleasure to mention that Selangor in the first 5 month of 2012 became the preferred investment destination in Malaysia and thereby leads the overall investment statistics of the country. German companies have been an important contributor in this context. Please refer to the table for more information.

As a matter of fact, besides one large-scale project from Switzerland, it is Germany with four projects leading the top-list of foreign investors. Even the crisis did not stop German corporations to come to Selangor and so the business community is growing every year. Basically, we are glad to welcome large international players as well as expanding SMEs with high-tech profiles. Selangor is meant to become a hub for R&D, innovation and design, which will only be realized through the combined effort of politicians, research institutions, domestic and international corporations. Companies can expect spill-over effects for their product and technology development as well as a strong network and governmental support.

Teresa Kok, Selangor State Senior Ex. Councillor

Coming back to MGCC and the German business community, I went to the plant opening ceremony of SGL Carbon in Banting, which is owned by Susanne Klatten, the daughter of the late Herbert Quandt of BMW. This facility is probably one of the most modern factories globally in its field. It was a great ceremony attended by the German ambassador, Dr. Guenther Gruber, the Malaysian Deputy Minister of International Trade and Industry Dato' Mukhriz bin Tun Dr. Mahathir, Selangor State Senior Ex. Councillor Teresa Kok and several management board members of the SGL Group, including Robert Koehler, Chairman and CEO. However, it was not only the obvious number of honorable guests, but also the number of SGL clients, business associates and the local business community which was impressive. Large corporations such as the Lion Group and other steel manufacturers from Malaysia were attending and proving that German business, know-how and technology is very welcome in Selangor.

Th. Brandt and myself (from left)

At MGCC, we were discussing some of the problems, which German corporations still face at the moment. Some of these issues are caused by federal policies and therefore cannot be addressed through the state government. Nevertheless, Selangor is ambitiously  aiming at new incentives and strategies to create an even better investment environment. Due to the excellent infrastructure in the state as well as the close proximity to Kuala Lumpur, the commercial capital of Malaysia and Putrajaya, the administrative capital, we certainly face high property prices around here. Also German companies have mentioned this point, as Thomas Brandt explained to me. At this point of time, I can only say that we are working on several options to decrease investment costs and make Selangor the best and most feasible option for any investment. During the next months, some of our ideas will be presented to the state government and so far, I am quite confident that many of the ideas will be implemented. Although I expect changes, we still will be able to offer some relief to our investors and that certainly includes Malaysian companies as well.

Stay tuned for more information on Selangor, Malaysia and the investment environment.

Selangor - Investment Opportunities in Malaysia

First of all, let me apologise for this long period of silence, in which I was not updating my blog at all. As it is happening in life, I changed my job and needed a little time to adjust to this new challenge. I believe it was worth it and for the future, I might be able to share even more interesting stories, research as well as insights.

Selangor in red on the Peninsular of Malaysia

As of now, I am working with the Selangor State Investment Centre, which is providing support, information and facilitation to international and domestic investors during the market-entry in Selangor. Probably not everybody knows much about the geography of Malaysia, so let me add a map to help you locating Selangor and myself.

Port Klang in Selangor

The state is located right in the centre of Malaysia and strategically at the famous Straits of Malacca. Consequently, Selangor also is home to the largest and best developed seaport as well as to the largest international airport, Kuala Lumpur International Airport and another smaller international airport at Subang. Besides, there are also freight related airfields in the state. In 2005 the capacity of the seaport surpassed already 109,700,000 and by 2010/11, more than 50 vessels are serviced at Port Klang every day in the year. Selangor is not only a strong manufacturing but also logistics hub.

With approx. 5.4m people living in Selangor, this region is the most populous state in Malaysia and the most developed in regard to infrastructure. Contributing about 22% of the Malaysian gross domestic product, Selangor is the industrial and services powerhouse of the country. Certainly, more than 130 universities and colleges ensure the rapid and knowledge-oriented development of high-tech industries and sophisticated services.

Over the last few years, Selangor was always one of the top destinations for foreign and domestic direct investments and received in the first half of 2012 already more than RM 4 billion in new investment projects. Some of the major projects include companies from Switzerland, Germany, France, the UK and US, while local players have been growing in many of the following industries:

• Aerospace
• Electrical & Electronics
• Life Sciences
• Green Tech (Solar and other renewable energies)
• Machinery and Equipment
• Marine-based industrial & port related activities and services
• Packaging, Storage, Distribution
• Petrochemical and Polymer Industry
• Pharmaceuticals & Cosmetics
• Transport Equipment Industry
• SERVICES INDUSTR: 
• Regional Establishment
• Support Services
• Real Estate (Housing)
• Transport
• Financial Services
• Distributive Trade
• Hotels & Tourism
• Education Service
• Health Services
• Halal Industry

Sepang Gold Coast Resort in Selangor

Overall, the state has the best educated workforce and infrastructure, stable national and international corporations and a strong service sector to support different industries as well as a great standard of living. Selangor offers not only the most shopping malls in Malaysia, but also has some of the most attractive resorts, golf courses and entertainment parks. Without telling too much, there is more to come during the next years and some of these attractions most likely will be unique to the ASEAN region, partly to the whole of Southeast Asia and the Pacific.

Finally some words from my heart, Selangor has been my new home for the last two years and I feel honoured to support the state in developing an attractive investment environment as well as a higher living standard through economic advancement.

So stay tuned for my future posts on different industries, the development of Selangor’s investment environment and investment opportunities.