More MNCs set up regional/ global hubs in Malaysia

Malaysia’s business-friendly policies, strategic and cost-competitive location, sound financial system, developed infrastructure and multi-lingual workforce have attracted many multinational companies (MNCs) to set up their regional or global operations in the country.

In 2013, Malaysia attracted 178 regional establishments, of which seven were Operational Headquarters (OHQs) with investments of RM567 million, five were International Procurement Centres (IPCs) with investments of RM1.36 billion, two Regional Distribution Centres (RDCs), 68 Regional Offices (ROs) and 96 Representative Offices (REs).

The approved ROs and REs had an estimated total spending of RM2.1billion.

Among the notable OHQs approved last year were from Astrazeneca, a global pharmaceutical leader; Sweden’s Husqvarna, the world’s biggest producer of power products and two Australian companies- the Jord Group and Stellar International.

Switzerland-based Cohu’s wholly-owned subsidiary, Ismeca Malaysia was approved to set up a new IPC while another major IPC approved was for Japan’s Minebea Co.

Meanwhile, Epson Toyocom Malaysia, a subsidiary of Japan’s Seiko Epson Corporation was approved to set up a RDC.

Malaysia also continues to attract MNCs to set up their Global Operation Hubs in the country. Last year, nine projects were approved with total investments of RM7.9billion and creating close to 16,000 jobs.

Intel Microelectronics was approved to set up a Global Services Centre in Penang with investment of RM4.4billion over 10 years. The centre will employ some 3,000 knowledge workers including 1,600 engineers and technical staff.

Other notable Global Operation Hubs approved last year include Knowles Electronics’ expansion of its existing operations as Malaysia is the company’s principal and global distribution centre; BMW Asia Technology Centre‘s expansion of its existing operations in Malaysia and a Global Support Office in Kuala Lumpur for Exxon Mobil Business Support Centre Sdn Bhd.

Source: Malaysia Investment Performance Report 2013 and MIDA Media Statement 28 Feb 2014