TABLE OF CONTENTS

PROFILE OF PERLIS 1

INVESTMENT OPPORTUNITIES 2

INDUSTRIAL ESTATE IN PERLIS 5

COST OF DOING BUSINESS IN PERLIS 6

EQUITY POLICY 7

EXCELLENT INFRASTRUCTURE 9

HUMAN RESOURCE AVAILABILITY 10

ADVANTAGE FOR LOCATING IN PERLIS 11

TRAVEL AND TOURISM 12

CONTACT DETAILS 14
 PROFILE OF PERLIS

PERLIS

A UNIQUE STRATEGIC LOCATION

Perlis is located on the north of Malaysia, approximately 500 km

from Kuala Lumpur and 800km from Singapore. Bordered by the
Thailand province of Satun in the north, Kedah in the east and
south and lapped by the gentle waters of the Straits of Malacca
on its western coastline, Perlis exudes a quaint unspoilt beauty
and old rustic charm. Its land area of 810km2 and population
of 227,500 make Perlis the smallest state in Malaysia.
The state capital of Perlis is Kangar while the royal town of Arau,
only 10km away, is the disembarkation point of visitors traveling
by rail to Perlis. Perlis lies on both the road and rail routes linking
Singapore and Kuala Lumpur in the south and Bangkok in the North.

Perlis is strategically situated in Indonesia – Malaysia – Thailand

Growth Triangle (IMT-GT). The IMT-GT was set up to accelerate
economic growth in the 3 countries and covers an area of
569, 652 sq km with population of approximately 67.7 million.

Perlis is also under the Northern Corridor Economic Region (NCER)

initiative. The NCER development programme is the
Federal Government initiative with private sector to accelerate
economic growth and elevate income levels in the state of Perlis,
Kedah, Pulau Pinang and northern Perak through development of
the agriculture, manufacturing, tourism and logistics sectors.

INVESTMENT OPPOTUNITIES IN PERLIS 1

Climate
From January to April, the weather is usually warm and dry with
September to December being the wetter months. The annual
temperatures range from 21OC to 32OC while average rainfall is
between 2000mm to 2500mm.

Historical Background
Perlis was originally a part of the older Kingdom of Kedah which was
conquered by Thailand in 1821. The Anglo-Siamese Treaty of 1909
transferred suzerainty of Perlis from Thailand to Britain. A formal treaty
between Britain and Perlis was only signed in 1930.

In World War II, the Japanese occupation forces handed Perlis back
to Thailand. After the war, Perlis again came under British protection
and it continued until Perlis gained independence with the formation
of the Federation of Malaya in 1957.

Economy
During 51 years after independence in 1957, the Perlis State
Government embarked on numerous ambitious and imaginative
development programmes in order to hasten the development of
the state. The largest sector of the economy is agriculture (58.9%),
followed by services (26.2%), manufacturing (12.2%), construction
(1.8%) and mining/quarrying (0.9%). Majority of Perlis are involved in
agriculture sector. Thus, one of the strategies the State Government
will undertake is strengthening the agriculture sector for income
generation and employment as well as poverty eradication and
supply of food productivity. At the same time, the State Government
will look for new practices in the agriculture and aquaculture sectors
to maximize production at low cost so as to be competitive in
market.

Although predominantly an agriculture based state, the State

Government will focus more on high-technology industries in future.
Industrial estates have developed in Pauh, Kuala Perlis, Padang Besar,
Jejawi and Chuping. Industrial activitiy covering plastics products,
scientific equipment, textiles and fabricated metal products. State
Government also has started developing and promoting tourist
facilities and products as a new economic growth sector.

2 INVESTMENT OPPOTUNITIES IN PERLIS

In the year 2007, The Perlis Gross Domestic Product (GDP) was RM 2.8
billion compared with RM 2.6 billion in 2006. The services sector is the
main contributor to the state GDP at 53.8% followed by agriculture
sector at 9.5%.

PERLIS LOCATION

INVESTMENT OPPORTUNITIES

All areas are open to foreign participation with special focus on the
following sectors:

i. Agriculture / Agro-processing;
ii. Manufacturing;
iii. Property development;
iv. Seafood processing;
v. Engineering and High Technology Industry;
vi. Biotechnology industries; and
vii. Tourism sector / agro tourism.

INVESTMENT OPPOTUNITIES IN PERLIS 3

 WHY PERLIS?

• A stable political environment

• High degree of personal safety

• High quality skilled graduates in engineering

management, technical and ICT.

• Low cost of doing business.

• Low cost of employment.

• Strong economic environment.

• Pioneer status – Income tax exemption of 100% on

statutory income for 5 years (industrial activity).

• Wide use of English

• Within the Indonesia-Malaysia-Thailand Growth Triangle

• 100% foreign ownership permitted in corporate sector

• Warm and friendly people

4 INVESTMENT OPPOTUNITIES IN PERLIS

INDUSTRIAL ESTATE IN PERLIS

INVESTMENT OPPOTUNITIES IN PERLIS 5

 COST OF DOING BUSINESS IN PERLIS

Registration of Foreign Companies

Companies doing business in Malaysia must register with the

Companies Commission of Malaysia (CCM) under the Companies
Act, 1965. The same registration procedure applies whereby an
application must be submitted on Form 13A to the CCM with a
payment of RM30. If the intended name of the foreign company is
available, the application will be approved and the name reserved
for three months. For further information, please visit CCM website at
www.ssm.com.my.

Main fees to be paid to the Companies Commission of Malaysia

6 INVESTMENT OPPOTUNITIES IN PERLIS

 EQUITY POLICY

Equity Policy in Manufacturing Sector

Perlis State Government has always welcomed investments in

manufacturing sector. Desirous of increasing local participation in
this activity, the Government encourages joint-venture between
local and foreign investors.

Equity Policy for New, Expansion or Diversification Projects

Foreign investors can hold 100% of the equity in all investment in new
projects, as well as investments in expansion/diversification projects
by existing companies, irrespective of the level of exports and without
any product / activity being excluded.

Equity Ownership

A company whose equity participation has been approved will not be

required to restructure its equity at any time as long as the company
continues to comply with the original conditions of approval and
retain the original features of the project.

Investment Guarantee Agreements

Malaysia’s readiness to conclude Investment Guarantee Agreements

(IGAs) is a testimony of the Governments desire to increase foreign
investor confidence in Malaysia. IGAs has concluded Association
of South-East Asian Nations (ASEAN) and Organisation of Islamic
Countries (OIC).

INVESTMENT OPPOTUNITIES IN PERLIS 7

Costs of Industrial Land & Factory Building

Wage Rates

8 INVESTMENT OPPOTUNITIES IN PERLIS

EXCELENT INFRASTRUCTURE

INVESTMENT OPPOTUNITIES IN PERLIS 9

 HUMAN RESOURCE AVAILABILITY

➢ University of Malaysia Perlis (UniMAP)

➢ University of Technology MARA (UiTM)

➢ Tuanku Syed Sirajuddin Polytechnic

➢ MARA Skill Institute

➢ Matriculation Centre

➢ Kangar Teaching Institute, Behor Pulai

➢ Industrial Training Institute (ILP)

➢ Technical School

10 INVESTMENT OPPOTUNITIES IN PERLIS

 ADVANTAGE FOR LOCATING IN PERLIS
Perlis is offering special industrial incentive package for
investors as follows:

i. The industrial land price is at a very attractive price

between RM4.00 (0.92 USD) to RM 7.00 (1.80 USD)
per square foot;

ii. A leasehold period of more than 60 years;

iii. Reduction on land premium for industrial / agriculture use;

iv. Payment of land premium by installment in five years

(in selected places and industries);

v. The purchased land is allowed to be mortgage to financial

institutions to secure loan for project implementation;

vi. Approval on the acquisition of the industrial land is within

24 hours of official applications; and

vii. ‘One stop centre’ service to facilitate the approval from

the relevant authorities within 2 weeks of the application.

INVESTMENT OPPOTUNITIES IN PERLIS 11

 TRAVEL AND TOURISM

Perlis tourism sector is expected to grow thoroughly driven largely

by the unique historical, cultural and natural attraction. Currently,
the most frequently visited destinations in Perlis are State Park, Gua
Kelam Recreational Park, Royal Museum, Lake Timah Tasoh, Chuping
Sugar Cane Plantation, Wang Kelian Border Market, Herb Gardens,
Wang Burma Cave and Snake & Reptile Farm. For those who love
cities and towns with a relaxed pace of life and a little history on
the side, Kangar and Arau, the State Capital and Royal Town, has
historic buildings such as the Syed Alwi Mosque, Dato’ Wan Ahmad
House and Arau Royal Palace.

In addition to being home to many historical landmarks and natural

attractions, Perlis enjoys the unique status of most frequent initial
point of entry for tourist visiting Malaysia for the first time.

Getting to Perlis

By Air
There are no direct flights to Perlis. Visitors have to fly into Alor Setar
from Kuala Lumpur International Airport and then take a 45 minutes
taxi ride to Kangar.

By Rail
Catch a train from Kuala Lumpur or Singapore to Arau, Perlis.

By Road (Taxi or Express Bus)

Travellers can take a taxi or bus from Kuala Lumpur, Malacca, Penang,
Kedah Kelantan, Terengganu, Perak and Johor.

12 INVESTMENT OPPOTUNITIES IN PERLIS

PERLIS - TOURISM GATEWAYS

INVESTMENT OPPOTUNITIES IN PERLIS 13

 CONTACT DETAILS
For more information on the Perlis advantage,
contact us via the details below.

Address 1
General Manager
Perlis State Economic Development Corporation
No. 172-191, Taman Kemajuan
Jalan Raja Syed Alwi
01000 Kangar
Perlis, Malaysia

Telephone / Fax
Tel : 604-9761088
Fax : 604-9762181

Address 2
Director
Perlis State Economic Planning Unit
Level 3, Dato’ Mahmud Mat Building
01000 Kangar
Perlis, Malaysia

Telephone / Fax
Tel : 604 - 9702167
Fax : 604 - 9762951

Address 3
Director
Malaysian Industrial Development Authority
4th Floor, East Wing
No. 88, Menara Bina Darulaman Berhad
05100 Alor Setar
Kedah, Malaysia

Telephone / Fax
Tel : 604 - 7313978
Fax : 604 - 7312439

14 INVESTMENT OPPOTUNITIES IN PERLIS