Investor Presentaiton

Penang's government formed collaboration between government, industry & academic stakeholders to boost local agriculture processing industry | || ||| | Context Developed international halaal hub Positioned as location of choice for halaal based food processing Government worked with stakeholders to provide complete ecosystem Land, infrastructure, services & incentives to investors What did Penang State do? PIHH² is the central point in sourcing ingredients for processing • . Strong linkages with local suppliers and other halaal parks in the region Local suppliers easily available-located near Juru agri. area Dedicated agency¹ to spearhead promotion & development of hub Works in tandem with the States investment Promotion Agency Penang State helped to build up industry ecosystem with stakeholders Dedicated 130 acres of prime land for the park • . Road, sea & air connections; positioned close to terminals . Partnership with local universities for R&D Attracted investors by offering • Income tax, import duty & sales tax exemptions Policies that are conducive to FDI e.g.: 100% foreign ownership Key successes Attracted large investments Both from local and global investors In diverse food processing sectors e.g.: cereals & meat Total investments in excess of USD 120MN More than 500 companies located in the hub³ Established international partnerships e.g: Malaysia • With DAFZA4 to support co's with access to fast growing markets Set up entire halaal hub ecosystem thus establishing itself as a global halaal hub Learnings for Plateau State Locate food processing plants close to key agriculture sourcing areas & ensure good power, water and transport infrastructure in the area • Close proximity and market linkages encourages use of local inputs • Makes transporting raw materials easier, ease of exports as well Have a dedicated agency to promote food processing industry Works with investment promotion agency to help secure & market industry Government support to build up industry Investing in enabling infrastructure & forming partnerships Offer attractive investment incentives e.g. fiscal incentives 1. Called Halaal Penang, 2. Penang International Halaal Hub, 3. As at 2013, 4. Dubai Airport Freezone Authority Source: BCG Analysis 71 Copyright 2019 by Boston Consulting Group. All rights reserved. ש

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