TRANSFORMATION IN MOTION ANNUAL REPORT 2012 Annual Report 2012 “Any good investor will tell you to invest for the long-term, and that is precisely why here in Malaysia, we are investing into the long-term future of our country. MIDA is playing a pivotal role in this as we continue towards our goal of becoming a developed nation by 2020.” - Dato’ Seri Najib Tun Razak, at the opening ceremony of MIDA’s new headquarters, 3 July 2012. CONTENTS MIDA REBORN READ ME A RECORD- The new MIDA will capitalise on the opportunities FIRST BREAKING presented by a constantly The year 2012 through changing global economy. the eyes of MIDA’s top YEAR brass. In a year that challenged 08 Reborn and revitalised investment promotion MIDA has been 22 This beautiful home agencies the world over, arensdt reumctpuorewde red to ABzyi zTa, Cn hSariir Ammanir sohf am MIDA fared better than most. execute Malaysia’s MIDA. investment agenda. 30 Hold on to your seats 10 Wisdom and foresight 24 Cproomgmraimttemde to the 33 New marks of quality A visionary Board of By Datuk Noharuddin 36 Changes in the Directors charts the Nordin, Chief manufacturing sector agency’s direction. Executive Officer of MIDA. 36 The rise of domestic 12 People power investors The management team 37 Sustainable FDI against behind the record weak externalities investments. 38 Approved investments 14 No red tape actualised MIDA’s new organisation structure makes faster 38 Larger slices of the decisions. pie for everyone 18 MIDA’s mandate 40 Services drive The Authority and its investments functions. 42 Creating value with support services 06 22 28 MIDA IN THE FINANCIAL APPENDICES FIELD HIGHLIGHTS MIDA officers travelled far The audited financial 80 Exhibitions and wide to present statements of the 83 VIP visitations Malaysia’s “ecosystem” Malaysian Investment 84 International value proposition to the Development Authority for investment promotion world. the year ended 31 activities December 2012 along with 86 Domestic investment 48 The ecosystem punch the Auditor General’s promotion activities 49 Winning foreign certificate as transmitted to investors the Ministry of International 50 The spirit of ASEAN Trade and Industry (MITI) in compliance with Sections 7 53 Enhancing and 8 of the Statutory international trade Bodies (Accounts and 54 Nurturing domestic Annual Reports) Act, 1980. investors 56 Media coverage and 60 Certification of Audit expos 63 Balance sheet 57 Human resource 64 Statement of income development 64 Statement of changes in equity 65 Cash flow statement 67 Notes to the accounts 46 58 78 MIDA REBORN The new MIDA will capitalise on the opportunities presented by a constantly changing global economy. 08 Reborn and revitalised MIDA has been restructured and empowered to execute Malaysia’s investment agenda. 10 Wisdom and foresight A visionary Board of Directors charts the agency’s direction. 12 People power The management team behind the records investments. 14 No red tape MIDA’s new organisation structure makes faster decisions. 18 MIDA’s mandate The Authority and its functions. 06 6 MIDA Annual Report 2012 A NEW ERA: MIDA officially moved into its new headquarters on 27 July 2012. With a built-up area of approximately 300,000 sq. ft., MIDA Sentral allows the agency to serve investors more effectively and professionally than ever before. MIDA Annual Report 2012 7 MIDA reborn Reborn and revitalised Empowered to execute Malaysia’s investment agenda. he world is changing, and with it, the world’s promoting and coordinating the country’s industrial global investment environment. But in a development, MIDA was prepared to embrace this Tglobalised economic environment, change is change with a passion. truly the only constant. Malaysia recognised that the winds of investment Not your average investment promotion were going to shift some years ago and responded agency by setting in motion a comprehensive, long-term economic plan that will transform the country into Since 2011, Malaysia’s investment environment a high-income nation by the year 2020. Since its has been reshaped to attract the right types of launch, however, the Economic Transformation investments, while MIDA has been restructured and Programme (ETP) has become more than a national empowered to execute the government’s plans. “Malaysia was also ranked as the 25th most competitive nation in the world by the World Economic Forum in its Global Competitiveness Report 2012-2013.” economic blueprint. Instead, it has turned into a On the outside, MIDA’s renaissance is heralded by call-to-arms that asks the country’s private and its new corporate identity and headquarters at public sectors to change or be changed. Malaysian MIDA Sentral. On the inside, a new organisation enterprises have risen to the occasion. structure streamlined to the National Key Economic Areas (NKEAs) identifed under the ETP refects the Most of the strategies within the ETP will be driven agency’s commitment to the blueprint’s goals. by private sector investments. This means that above all else, Malaysia must be business-friendly and The new MIDA does not merely promote industrial responsive to the constantly evolving needs of the development. Instead, it focuses on driving high global business community. In 2011, the Malaysian quality domestic and foreign investments in new Industrial Development Authority was renamed the and emerging industries that will cement Malaysia’s Malaysian Investment Development Authority and reputation as a centre for high technology and given the responsibility of spearheading the national creative products and services. MIDA’s headquarters investment agenda of the ETP and New Economic houses senior representatives from key agencies Model. After spending more than four decades such as the Department of Labour, the Immigration 8 MIDA Annual Report 2012