© All Rights Reserved. This material is confidential and proprietary to i2M Ventures. No part of this material should be reproduced or published in any form by any means, nor should the material be disclosed to third parties without the consent of i2M Ventures.

[Insert Cover Picture]

World’s Best NearShore.Iskandar Malaysia: Best NearShore Solution for Singapore.

15 May 2015

2

Contents

• i2M, and how we can help• Iskandar Malaysia & Business Services• Iskandar Malaysia: World’s Best Nearshore• Why Iskandar:• Talent• Proximity• Infrastructure• Lifestyle• Market access

• Support• Iskandar Malaysia pioneers

3

i2M: the Business Services / SSO investment promotion specialists for Iskandar Malaysia.

• Wholly-owned subsidiary of Khazanah Nasional Berhad.• Mandated to attract and facilitate Business Services investments and

activities strategic to the economic development of Iskandar Malaysia.• Manned by experienced Business Services and SSO professionals.

Invest Iskandar Malaysia

Customised SolutionsCustomised Solutions

Expert Facilitation Expert Facilitation

Tools & TemplatesTools & Templates

Single PlatformMultiple Agencies

Single PlatformMultiple Agencies

Pre-Investment Services:• Research & Marketing• Investment Promotion• Project Development• Solutions Development• Partner collaboration

Pre-Investment Services:• Research & Marketing• Investment Promotion• Project Development• Solutions Development• Partner collaboration

Post-Investment Services:• Investor Support Services• Project Monitoring• Solutions Development

Post-Investment Services:• Investor Support Services• Project Monitoring• Solutions Development

4

Khazanah Nasional’s involvement towards a sustainable, holistic approach to the development of Iskandar Malaysia.

‘The special economic zone of Iskandar Malaysia grew out of a 2005 government requested feasibility study by Khazanah Nasional, which found that the development of such a zone would be economically, socially and developmentally beneficial. The National SJER Planning Committee (NSPC), hearing Khazanah's findings, put it in charge of developing a sustainable, holistic approach to development in the region.’

Source: Iskandar Regional Development Authority & Iskandar Malaysia Information Pack

Examples of Khazanah’s investments in Iskandar Malaysia:

PHASE 3PHASE 1

5

Phase 3: sustainable economic development is about job creation.

Planning

Partnerships

Infrastructure

Education

Residential

Lifestyle

‘The next phase is about job creation and variety of jobs, not just the traditional jobs..

It normally takes three to four years to see results, and now the results are clearly visible. There are jobs, new and high-paying ones, and more jobs are expected at Iskandar Malaysia.’

Tan Sri Shahrir Abdul Samad, JB MPApril 2013

PHASE 2

6

Business Services as part of the Iskandar Malaysia plan.

Business Services is a proven and key focus area for the nation

Malaysia has an excellent track record in this sector

It is in line with the nation’s Economic Transformation Plan

Identified as a main pillar for the ‘Iskandar Malaysia Economy’

111 222 333

MARKET ACCESSMARKET ACCESS

• Access to Singapore, Malaysia and Southeast Asia

• 11 countries• 618 million population• USD 2.2 trillion GDP• 7 language groups, >60

languages & dialects

QUALITY LIFESTYLEQUALITY LIFESTYLE

• Wide range of housing available

• Top recreation facilities – Legoland, golf, clubs

• Extensive healthcare and wellness facilities

• Shopping – JPO, Mall of Medini

INFRASTRUCTUREINFRASTRUCTURE

• Extensive highway network

• Dedicated bus routes• Multiple crossings• Ferry services • Extensive air

connectivity• Future rail connectivity.

PROXIMITY TO SGPROXIMITY TO SG

• 40-45 minutes drive to Singapore CBD

• Cultural affinity and similarity

• Strong language capabilities – English, Mandarin, Cantonese, other Chinese dialects

TALENTTALENT

• 17,000 Johor grads• 160,000 Malaysia grads• 50,000 student body in

the vicinity• Major local universities• EduCity – global

education leaders within Iskandar

Iskandar Malaysia: World’s Best Nearshore.

7

Value proposition is built on a strong foundation of experience, forward planning and support.

AREA MAJOR LOCAL UNIVERSITIES

EDUCITY ISKANDAR MALAYSIA

8

Talent availability: Iskandar Malaysia’s substantial talent pool is further augmented by developments such as EduCity.

DISTRIBUTION OF JOHOR GRADUATES

• EduCity™ Iskandar Malaysia is a fully integrated education hub comprising universities and institutes of higher education, academia industry action and R&D centres, student accommodation, as well as recreational and sports facilities

• The total student body of area major local universities exceeds 50,000.

9

Universiti Teknologi Malaysia (UTM)

• Offers Finance & Accounting, Management, Marketing, as well

as other social and science programs

• Currently has 11,392 undergrad and 13,780 grad students

• Produced 4,408 bachelors and 1,788 masters graduates in 2011

Universiti Teknologi Mara (UiTM)

• Opened a new campus in Pasir Gudang, Johor in May 2014

• Offers Finance & Accounting, Business &Management as well

others such as Language Studies

• One of 16 branch campuses of Malaysia’s largest institutions of

higher learning, home to 172,000 students

Talent: finance, accounting, social sciences.

Arts, 11%

F&A/Social

Sciences, 42%

Computer/Science/Maths,

17%

Engineering, 26%

Services, 4%

Johor Distribution of Graduates by Fields of Study

Total universities: 21 public, 57 privateTotal colleges: 37 public, 414 private

Total Polytechnics: 24

Source: Frost & Sullivan, various websites

Johor graduates in F&A/Social Sciences: 6,356 (38%)

Raffles University Iskandar• Currently operating from its temporary premises in JB, while

developing its campus in EduCity• Offers undergraduate/postgraduate programmes incl. business

administration, accountancy, education and psychology.

Sunway College Johor Bahru

• Part of the Sunway Education Group established its presence in

2004, operating from a temporary city campus before moving

to its purpose-built campus at Mount Austin in 2005

• Offers diploma and degrees (Bachelor of Accounting and

Marketing partnering with Victoria University)

Finance graduates in Malaysia (public uni): 14,879 (c.10%)

10

Universiti Teknologi Malaysia (UTM)

• Offers civil, electrical, chemical, mechanical, biomedical, and

petroleum engineering

• Currently has 11,392 undergrad and 13,780 grad students

• Produced 4,408 bachelors and 1,788 masters graduates in 2011

Universiti Tun Hussein Onn (UTHM)

• Offers civil, environmental, electrical & electronic, mechanical,

and manufacturing engineering, computer science and IT, and

diploma programmes

• Currently has 12,800 students

Universiti Teknologi Mara (UiTM)

• Opened a new campus in Pasir Gudang, Johor in May 2014

• Offers Civil, Electrical, Mechanical and Chemical Engineering as

well as Business &Management.

• One of 16 branch campuses of Malaysia’s largest institutions of

higher learning, home to 172,000 students

Talent: engineering, IT, sciences.

Arts, 11%

Business/La

w/Social Science, 42%

Computer/Science/

Maths, 17%

Engineering,

26%

Services, 4%

Johor Distribution of Graduates by Fields of Study

Public, 57%Private, 43%

Malaysia Number of Graduates

158, 688

Total universities: 21 public, 57 privateTotal colleges: 37 public, 414 private

Total Polytechnics: 24

Source: Frost & Sullivan, various websites

Proportion of graduates in Sciences and engineering: 57,020

(36%)

Johor graduates in Sciences and engineering: 6,432 (38%)

University of Southampton

• New campus commenced operations in October 2012, with

first batch graduating in June 2016

• Offers mechanical and electrical & electronic engineering

• Targets to achieve 1,150 students by 2019

11

SingaporeBangaloreIskandar Malaysia

• Annual salary for Bachelor’s degree:

• USD7,490-35,780

Wage competitiveness

Wage competitiveness

Supply of graduatesSupply of graduates

Access to foreign talentAccess to foreign talent

Attrition rateAttrition rate

• Malaysia: 158,688 p.a.• Iskandar: 16,848 (in 2012)

• Ability to employ foreign employees freely within the approved zones

• Malaysia: Voluntary Turnover Rate: 13%

• Annual salary for Bachelor’s degree:

• USD4,361-31,003 (0.5-0.9x that of Iskandar)

• Min salary of US$25k except (a) Ethnic cooks, (b) Language teachers and (c) Staff working for embassies.

• India: Voluntary Turnover Rate: 16%

• Annual salary for Bachelor’s degree:

• USD19,245-93,273 (2.6x that of Iskandar)

• 13,325 (in 2011)

• Levies and quotas imposed on foreign workers, e.g. 40% quota for workers in services sector

• Singapore 2011 Voluntary Turnover Rate: 10%

Talent: Comparison of data points with Bangalore and Singapore.

Multi lingual capabilities

Multi lingual capabilities

Note:Subject to qualifying criteria. Business English Index (BEI) from Global English.com; All other data from Frost & Sullivan

• Primary Languages Spoken: Malay, English, Mandarin, Cantonese, Tamil

• Less spoken but available language capabilities: Japanese, Korean

• Primary Languages Spoken: Hindi and English

• Other available but less spoken languages: Regional dialects and languages (eg Bengali, Tamil, Urdu)

• Primary languages: English, Mandarin

• Other available but less spoken languages: Cantonese, Hokkien, Malay, Tamil

• No data on graduates but student enrollment in Karnakata was 1,260,038 (in ‘09)

Proximity and access: Iskandar Malaysia is ideally located for nearshore Singapore business services.

12

13

AIR TRAVEL

Senai International Airport• 25 min drive from Medini• Services by 7 airlines• Links to 22 destinations

in 6 countriesChangi International Airport• 60 min drive from Medini• Hub for 6 major airlines• >54 m passengers• Links to >60 countries

AIR TRAVEL

Senai International Airport• 25 min drive from Medini• Services by 7 airlines• Links to 22 destinations

in 6 countriesChangi International Airport• 60 min drive from Medini• Hub for 6 major airlines• >54 m passengers• Links to >60 countries

HIGHWAYS

Extensive Highway Connectivity• Shorter commutes vs KV• High quality roadways• JB East Coast Highway• Iskandar Coastal Highway• Skudai Highway• NorthSouth HighwayMultiple Crossings• MY-SG second link• Johor-Singapore Causeway

HIGHWAYS

Extensive Highway Connectivity• Shorter commutes vs KV• High quality roadways• JB East Coast Highway• Iskandar Coastal Highway• Skudai Highway• NorthSouth HighwayMultiple Crossings• MY-SG second link• Johor-Singapore Causeway

BUS SERVICES

Bas Iskandar Malaysia• Scheduled feeder services• 54 buses, 27 routesBas Expres Transit (BeXTRA)• Meets peak hour demand• High quality express service• Links 5 corridors w JBCCPublic Bus Services• 13 providers• Over 130 routes

BUS SERVICES

Bas Iskandar Malaysia• Scheduled feeder services• 54 buses, 27 routesBas Expres Transit (BeXTRA)• Meets peak hour demand• High quality express service• Links 5 corridors w JBCCPublic Bus Services• 13 providers• Over 130 routes

13

Transportation: extensive infrastructure eases travel to, from and within Iskandar Malaysia.

IN THE PIPELINE

Puteri Harbour Ferry Services• Existing services to Batam

and Karimun• Future services to Harbour

Front, SingaporeMass Rapid Transit• Johor RTS – MRT linkHigh-Speed Rail • Linking KL to SG – 90 mins• Station in Medini

IN THE PIPELINE

Puteri Harbour Ferry Services• Existing services to Batam

and Karimun• Future services to Harbour

Front, SingaporeMass Rapid Transit• Johor RTS – MRT linkHigh-Speed Rail • Linking KL to SG – 90 mins• Station in Medini

14

SingaporeBangaloreIskandar Malaysia

ConnectivityConnectivity

Infrastructure: Comparison of data points with Bangalore and Singapore.

• Global Competitiveness Ranking (Internet Bandwidth): 83

• Average Internet Connection Speed Q312: 2.2 Mbps

• 4 fixed line operators; 3 public phone operators; 6 mobile operators

• 5 Expressways; 10 Federal highways

• Airport: • Senai International Airport

Served by 4 airlines to 15 destinations locally. International flight to Surabaya Indonesia

• Changi International Airport is 1 hours’ drive (non-rush hour)

• Global Competitiveness Ranking (Internet Bandwidth): 2

• Average Internet Connection Speed Q312: 4.9 Mbps

• 1 fixed line operators; 3 mobile phone operators; 11 public phone operators; 4 cable broadband providers, 5 ADSL providers

• 9 Highways• Airport: Changi International

Airport As of March 2012, Changi Airport serves more than 100 airlines operating 6,100 weekly flights connecting Singapore to over 220 cities in about 60 countries and territories worldwide

• SAIDI (min/year): 96.25• Price (USD/kW): 0.06 - 0.14• 1Mbs (USD): 27

• SAIDI (min/year): 96.25• Price (USD/kW): 0.06 - 0.14• 1Mbs (USD): 27

UtilityUtility• SAIDI (min/year): 751.25 • Price (USD/kW): 0.67 – 0.93• 1Mbs (USD): 27

• SAIDI (min/year): 751.25 • Price (USD/kW): 0.67 – 0.93• 1Mbs (USD): 27

• SAIDI (min/year): 0.76• Price (USD/kW): 0.22• 1Mbs (USD): 16

• SAIDI (min/year): 0.76• Price (USD/kW): 0.22• 1Mbs (USD): 16

• Global Competitiveness Ranking (Internet Bandwidth): 104

• Average Internet Connection Speed Q312: 1.0 Mbps

• 7 mobile phone operators; 7 internet service providers

• 5 National highways; 5 State highways

• Airport: Bengaluru International Airport Served by more than 18 international airlines to destinations across the globe

Office rental rateOffice rental rate

• Nusajaya (USD/psf): <2.00 • Office Grade A (USD/psf): 8.40• Grade B (USD/psf): 5.77

• Second generation space in the CBD 2010 (USD/psf): 1.34 - 1.39

Source: Frost & Sullivan, various websites

15

Quality lifestyle: work, life and play in a purpose-designed balanced all-round environment.

HEALTHCARE & WELLNESS

• Gleneagles Medini Hospital - 300-bed hospital, rehabilitation centre.

• Columbia Asia Hospital –80-bed hospital.

• Avira - wellness sanctuary • Afiniti - wellness-related

services and living

HEALTHCARE & WELLNESS

• Gleneagles Medini Hospital - 300-bed hospital, rehabilitation centre.

• Columbia Asia Hospital –80-bed hospital.

• Avira - wellness sanctuary • Afiniti - wellness-related

services and living

RECREATION

Theme Parks & Resorts• Legoland Malaysia• Family Indoor Theme Park –

Hello Kitty Town, LAT’s Kampung Boy, Little Big Club

Recreation• Horizon Hills 18-hole par

72 designer golf course• Puteri Harbor Marina

RECREATION

Theme Parks & Resorts• Legoland Malaysia• Family Indoor Theme Park –

Hello Kitty Town, LAT’s Kampung Boy, Little Big Club

Recreation• Horizon Hills 18-hole par

72 designer golf course• Puteri Harbor Marina

HOUSING & HOTELS

Extensive Housing Options• Condos & landed property• Multiple surrounding towns

& communitiesHotels• Traders business class• Legoland family resort• More options in surrounding

areas, including JB

HOUSING & HOTELS

Extensive Housing Options• Condos & landed property• Multiple surrounding towns

& communitiesHotels• Traders business class• Legoland family resort• More options in surrounding

areas, including JB

SHOPPING

Johor Premium Outlets• Over 120 premium brand

storesMall of Medini• Lifestyle mall adjacent to

LegolandArea Shops & Retail• Myriad retail options in

immediate vicinity

SHOPPING

Johor Premium Outlets• Over 120 premium brand

storesMall of Medini• Lifestyle mall adjacent to

LegolandArea Shops & Retail• Myriad retail options in

immediate vicinity

16

SingaporeBangaloreIskandar Malaysia

• Ranked 21st in World Bank Cost of Living index

Cost of livingCost of living

Average cost of accommodation*

Average cost of accommodation*

Expat attractiveness

**

Expat attractiveness

**

Personal inometax ratePersonal inometax rate

GDP per capita***GDP per capita***

• Condo price: c.RM450-1,000/sqft(USD140-313/sqft)

• Condo rent monthly (unfurnished): RM800-3,000 (USD250-1,000)

• Malaysia rank: 2• Value: 0.46

• 25%

• USD17,748

• Ranked 32nd in World Bank Cost of Living index

• Condo price: USD60-150/sqft• Condo rental rate monthly

(unfurnished): USD200-600

• India rank: 4• Value: 0.41

• 30%

• USD4,077

• Ranked 8th in World Bank Cost of Living index

• Condo price: SGD600-1,500/sqft(USD500-1,250/sqft)

• Condo rental rate monthly (unfurnished): USD1,500-5,000

• Singapore rank: 1• Value: 0.51

• 20%

Lifestyle: Comparison of data points with Bangalore and Singapore.

Ease of repatriation of

money

Ease of repatriation of

money

Note:* HSR Realtors report**HSBC survey*** IMF.

• The repatriation of capital, profits, dividends, royalties, rents and commissions is freely permitted

• No restrictions on reinvestment or repatriation of earnings or capital

• All profits, dividends, royalty, knowhow payments that have been approved by the Government/RBI can be repatriated. Some sectors like NRI Investment in real estates may attract a lock-in period.

• USD64,584

17

Market access: leverage Iskandar Malaysia’s unique strategic location in Southeast Asia.

Southeast Asia:Among the world’s most dynamic economies• 11 countries• 618 million population• USD 2.2 trillion GDP• 7 language groups, >60 languages &

dialects

Iskandar MalaysiaIskandar Malaysia

Iskandar Malaysia:Emerging Business Services hub• BPO, KPO, ITO service delivery center• Strengths in English, Mandarin & other

major languages• Proximity to manufacturing, logistics,

transportation & financial centers• Backed by the Government of Malaysia

Some of the business activities supported from Iskandar Malaysia:• ERP software engineering services• Finance & accounting services• Customer support services• Research & consulting• Film and TV production• Cloud computing• Halal food hub-related services• Integrated technology parks

18

SingaporeBangaloreIskandar Malaysia

Ease of doing business

Ease of doing business

Tax & Incentives

Tax & Incentives

Business Environment: Comparison of data points with Bangalore and Singapore.

• Corporate tax: 25%• Special incentives: 10 year tax

exemption for SSO/BPO companies• Other incentives are applicable on

a case to case basis

• Global competitiveness ranking: 25• Ease of doing business ranking: 12• Inflation rate: 2.10%• No of days to set up: 2 – 3 weeks• Ease of getting credit Index: 1 • Ease of repatriation of

Monies/Savings: The repatriation of capital, profits, dividends, royalties, rents and commissions is freely permitted.

• Global competitiveness ranking: 2• Ease of doing business ranking: 1• Inflation rate: 5.20%• No of days to set up: 3 days• Ease of getting credit Index: 12• Ease of repatriation: No

restrictions on reinvestment or repatriation of earnings or capital

• Corporate tax: 17%• Special incentives: Incentives exist

for SSO/BPO related sectors such as reduced tax rates of between 5% - 15% for: Regional Headquarters, International Headquarters, Finance & Treasury Centre, Financial Sector Incentive

• Global competitiveness ranking: 69• Ease of doing business ranking: 132• Inflation rate: 7.45%• No of days to set up: 27 days• Ease of getting credit Index: 23• Ease of repatriation: All profits,

dividends, royalty, knowhow payments that have been approved by the Government/RBI can be repatriated. Some sectors like NRI Investment in real estates may attract a lock-in period.

• Corporate tax: 32.45%• Special incentives: No tax holidays

for BPOs however other incentives exist. Exemption provided for BPO companies from payment of entry tax on certain capital goods for three years. Entry tax ranges between 1% and 13.5% depending on the type of capital goods

Source: Frost & Sullivan, various websites

• The Malaysian government is willing to provide additional support to establish exceptionally high value projects in Iskandar Malaysia.

• Various governmental stakeholders are willing to consider the requirements of selected companies and work together towards finding a mutually beneficial solution.

19

Partner Support: getting the right package to suit each investor’s requirements.

Government

Talent

Infrastructure

20

The growing business community: who's already in Nusajaya, Iskandar Malaysia.

21

Thank You.