COST OF DOING BUSINESS IN MALAYSIA / PENANG

COST OF DOING BUSINESS IN MALAYSIA / PENANG Table of Contents 1. Starting a Business 2. Taxation 3. Human Resources 4. Utilities 5. Transportation Costs Page No. 2-9 9 10-15 15-22 23-27 Invest-in-Penang Berhad PSDC Building, 1, Jalan Sultan Azlan Shah, Bayan Lepas, 11900 Penang, Malaysia Tel: +604 646 8833 Fax: +604 646 8811 www.investpenang.gov.my 1 P a g e

Comparative cost of doing business Location Water Electricity Office Rents (USD/cu. m 3 ) (USD/kwH) (price/ sq. m /year, in USD) Legal minimum wage (monthly, in USD) Cost of Doing Business January 2015 Regular gasoline price (1 liter, in USD) Industrial estate (land) purchase rate (Cost /sq m, in USD) Malaysia 0.43 0.11 288 296 0.63 30-67 Thailand 0.37 0.11 252 197 1.44 144 Vietnam 0.43 0.09 420 113 1.11 - Philippines 0.91 0.27 240 220 1.27 98-112 Indonesia 1.01 0.09 276 226 0.71 180-297 Singapore 1.80 0.23 960-1.71 209-1,180 China 0.64 0.13 540 231 1.23 143-167 India 0.30 0.12 528 128 1.35 55-91 Source: The 23rd Survey of Investment Related Costs in Asia and Oceania, Japan External Trade Organization (JETRO), FY 2012 Survey Salary Comparison Location Managers (department chief level) Engineers (midlevel engineers) Staffs (Nonmanufacturing, general level) Workers (general workers) monthly (in USD) Malaysia 1,966 944 858 344 Thailand 1,574 698 664 345 Vietnam 787 342 418 145 Philippines 1,070 452 493 301 Indonesia 1057 433 423 239 Singapore 4,268 2,325 2,330 1,230 China 1,456 835 824 449 India 1,395 641 562 276 Source: The 23rd Survey of Investment Related Costs in Asia and Oceania, Japan External Trade Organization (JETRO), FY 2012 Survey 2 P a g e

Cost of Doing Business in Malaysia/ Penang 1. Starting a Business Main fees to be paid to the Companies Commission of Malaysia (SSM) Cost of Doing Business January 2015 Reservation of a name 30 9 For registration of a company, fees range according to nominal share capital, e.g.: Not exceeding RM100,000 (US$31,250) 1,000 303 RM100,001-500,000 (US$31,250-156,250) 3,000 909 RM500,001 - RM1 million (US$156,250 - US$312,500) 5,000 1,515 RM1,000,001 - RM5 million (US$312,500 - US$1.6 million) 8,000 2,424 RM5,000,001 - RM10 million (US$1.6 million - US$3.13 million) 10, 000 3030 RM10,000,001 - RM25 million (US$3.13 million - US$7.81 million) 20,000 6,061 RM25,000,001 - RM50 million (US$7.81 million - US$15.63 million) 40,000 12,121 RM50,000,001 - RM100 million (US$15.63 million - US$31.25 million) 50,000 15,152 Exceeding RM100 million (US$15.63 million) 70,000 21,212 USD 1 = RM3.3 For the full range of fees, please go to CCM's website at www.ssm.com.my Recommended Fees for Company Secretarial Services RM US$ Incorporation of a Sdn. Bhd. (private limited company) 2,000 606 Incorporation of a Bhd. (public limited company) 3,500 1,061 Monthly Fees Professional Fees Retainer Fees RM US$ RM US$ Private Company: - Dormant 50 15 100 30 - Semi-active 100 30 150 45 - Active 150 45 300 91 Public Company: - Non-Listed 200 61 750 227 - Listed 300 91 2,000 606 Consultancy and advisory fee (minimum, per hour) Minimum RM300(USD 91) per hour or part thereof (subject to negotiation ) USD 1 = RM3.3 RM US$ 3 P a g e

Rental Rates for Prime Office Space Location RM US$ Alor Setar, Kedah 21.50-27.00 6.52-8.18 Georgetown, Penang 27.00-30.00 8.18-9.09 Ipoh, Perak 10.70-20.40 3.24-6.18 Kuala Lumpur* 64.60-102.25 19.58-30.98 Petaling Jaya, Selangor 37.70-53.80 11.42-16.30 Seremban, Negeri Sembilan 19.40-25.80 5.88 7.82 Melaka 10.70-27.00 3.24-8.18 Johor Bahru, Johor 27.00-32.30 8.18 9.79 Kuantan, Pahang 13.00-27.00 3.94-8.18 Kuala Terengganu, Terengganu 21.50-27.00 6.52-8.18 Kota Bharu, Kelantan 16.00-27.00 4.85-8.18 Kota Kinabalu, Sabah 27.00-32.30 8.18 9.79 Kuching, Sarawak 15.00-27.00 4.55 8.18 Cost of Doing Business January 2015 USD 1 = RM3.3 The above rates are approximate rentals (gross) per sq. metre per month inclusive of service charge. Note: 1 sq. metre = 10.76 sq.ft. *Rental excludes Petronas Twin Towers Cost of Prime Office Space in Penang Penang Island Mainland, Penang Georgetown Bayan Lepas/ Bayan (RM psf) (RM psf) Baru (RM psf) Rent 1.20-3.50 1.50-2.00 Sale Depends on the owner & agreement * The above rates are approximate rentals (gross) per sq. metre per month and is subject to change Source: Different consultants in Penang 4 P a g e

Cost of Industrial Land & Factory Ready Built Factory Unit Location Unit Type Built- Up (sq.ft) Bukit Minyak Industrial Park Bayan Lepas Industrial Park (Phase IV) Land Area (sq.ft) Purchase Price Semi-Detached 5,834 15,518-22,848 RM630,000 USD 190,909 Terrace - Standard 2,304 2,594 RM243,000 USD 73,636 Unit Corner Unit 2,334 3,417-6,148 From RM253,000 From USD 76,667 Semi-Detached 5,834 16,221-16,533 RM1,100,000 USD 333,333 Terrace - Standard 2,303 2,594 RM 420,000 USD 127,273 Unit Corner Unit 2,334 4,079-4,585 From RM 460,000 From USD 139,394 USD 1 = RM3.3 * The information contained herein is subject to change and cannot form part of an offer or contract. Source: PDC Rental RM5,251 7,000 USD 1,591-2121 RM2,074 USD 628 RM2,101 USD 637 RM7,614 USD 2,307 RM2,994 USD 907 RM3,035.00 USD 920 SME Units at Bukit Minyak Industrial Park The project, consisting of 27 Units of ready-built factory buildings is currently under construction. Details Cluster Terrace Semi- Detached Land Area (sq. ft) From 4,634 From 3,149 Bungalow From 11,732 Built-up Area (sq. ft) 2,599 3,087 SOLD OUT 4,482 Price per unit (RM) FromRM 845,000 From 973,000 From 2.05 mil USD 256,061 USD 294,849 Leasehold tenure: 60 years USD 0.62mil USD 1 = RM3.3 * The information contained herein is subject to change and cannot form part of an offer or contract. Source: PDC 5 P a g e

SME Village Batu Kawan The project will be developed in phases and is currently under construction. Details Terrace Semi- Detached Land Area (sq. ft) 3,600 12,000 Built-up Area (sq. ft) 2,575, 7,270 Rental per unit per month RM 3,860 @ 1.50 p.s.f USD 1170 RM 13,000 @ 1.80 p.s.f USD 3939 Price per unit RM 880,000 USD 266,667 RM 2,750,000 USD 833,333 USD 1 = RM3.3 * The information contained herein is subject to change and cannot form part of an offer or contract. Source: PDC Cost of Ready-built Factory in Penang Type Location RM USD Selling price per ft² of floor area Penang RM168.00-400.00 *Depends on the owner & US$50.90-121.21 *Depends on the Rental per ft² per month USD 1 = RM3.3 agreement Mainland RM 141.00-330.00 *Depends on the owner & agreement owner & agreement US$42.72 100.00 *Depends on the owner & agreement Bayan Lepas/ Bayan RM1.50-3.53 US$0.45-1.07 Baru Mainland RM0.70-2.50 US$0.21-0.52 Cost of Industrial Land Location Selling Price (per sq. ft.) (Subject to change) RM USD Penang Science Park 40.00 12.12 Bukit Minyak Industrial Park 40.00 12.12 Batu Kawan Industrial Park 40.00 12.12 USD 1 = RM3.3 Source: PDC 6 P a g e

Property Assessment Property assessment, also known as assessment rates is a form of taxation imposed by the local municipal council on all properties based on the 'Annual Value' and the Annual 'Percentage Rate'. The percentage rate is fixed annually by the Council according to its annual budgetary needs. The assessment rate payable for rateable properties is calculated with the following formula: Assessment rate = Annual Value x Rate % Property Assessment Rate (Penang Island) Type of Property Assessment Rate Landed (Residential) 9.30% Low Cost (Residential) 7.50% Apartment /Condominium (Residential) 8.50% Commercial 11.55% Industrial 14.75% Hotel 14.75% Associations / Kongsi 7.00% Land for Development (Urban Areas) 5.50% Land for Development (Rural Areas) 2.70% Agricultural (Rural Areas) 1.00% Golf Club/ Turf Club 14.75% Source: Majlis Perbandaran Pulau Pinang, MPPP Property Assessment Rate (Mainland) Type of Property Assessment Rate Residential Scheme: -Landed Residential (inclusive of landed low cost) 8.00% -Strata Except Low Cost 7.00% -Low Cost Strata 5.00% Village Residential 0.40% Commercial -Urban 10.75% -Rural 8.25% Industrial 11.25% Light Industry 10.75% Agricultural SME 8.05% Agricultural Land 0.00% Development Land 3.10% Association/Organization -Urban 9.50% -Rural 7.00% Golf Course 11.25% Source:Majlis Perbandaran Seberang Perai, MPSP 7 P a g e

Quit Rent (a) Town Land (b) Country Land Location Industrial Purpose Location Industrial Purpose Georgetown RM1.29 m2 minimum RM300 per lot Prai RM 1.08 m2 minimum RM150 per lot Jelutong -same- Valdor -same- Air Itam -same- Bukit Minyak -same- Gelugor -same- Bukit Panchor -same- Bukit Bendera -same- Tasek -same- Butterworth -same- Seberang Jaya -same- Prai -same- Bayan Baru -same- Tanjong Bungah -same- Batu Maung RM0.65m2 minimum RM100 per lot Batu Ferringhi -same- Sungai Ara -same- Bukit Mertajam -same- Batu Kawan -same- Bayan Lepas -same- Sungai Rambai -same- Balik Pulau RM1.08 m2 minimum RM200 per lot Bertam -same- Nibong Tebal -same- Simpang Empat -same- Kapala Batas -same- Areas other than the above Sungai Bakap -same- Source: Penang Lands and Mines Office RM0.65 m2 minimum RM80 per lot Construction labor rates in Penang Residential & Commercial Projects Types of Labor Unit Rate (RM) Rate (USD) 1 Concretor per 8 hour day 98.00 29.70 2 Bricklayer per 8 hour day 90.00 27.27 3 Tler per 8 hour day 107.00 32.42 4 Carpenter per 8 hour day 100.50 30.45 5 Barbender per 8 hour day 97.20 29.45 6 Welder per 8 hour day 85.00 25.76 7 Plasterer per 8 hour day 98.50 29.85 8 Plumber per 8 hour day 97.50 29.55 9 Painter per 8 hour day 98.50 29.85 USD 1 = RM3.3 Source: CIDB 8 P a g e

Average Construction Costs of Factory Building (per sq. ft.) Penang Island Cost of Doing Business January 2015 Mainland RM US$ RM US$ Factory with reinforced concrete structure 200-270 60.61-81.82 190-265 57.58-80.30 Steel portal frame on reinforced concrete 220-300 66.67-90.91 200-295 60.61-89.39 Factory with clean room facilities 270-350 84.38-109.38 260-360 78.79-109.09 USD 1 = RM3.3 Source from different consultants Additional Information: Unit Cost also very much depending on cleanroom class, floor loading, column spacing and building height which already include the MEP(Mechanical, Electrical, and Plumbing) rates as follow: Mechanical estimate. No or negligible cost variance between Penang island and mainland. Types RM per sq. ft USD per sq. ft 1 Clean room and ACMV(Air Conditioning and Mechanical 137.00 41.52 Ventilation) Assumptions: Chilled water system (CH s, CT s, piping 45.00 13.64 and fittings within chiller plant room) Clean room floor, ceiling, plenum, wall 32.00 9.70 Clean room electrical outgoing cable, clean 12.00 3.64 room lighting, clean room DB s Clean room AHU, control, ducting, piping 48.00 14.55 2 Non-clean room ACMV (water-cooled packaged units) 25.00 7.58 3 Fire protection (sprinklers, hydrants, hose reel, conventional 12.00 3.64 FA, etc.) USD 1 = RM3.3 Source from different consultants 2. Taxation Tax Rate Company Tax 20% 25% Personal Income Tax 0% - 26% Withholding Tax 3% 15% Sales Tax 5% 10% Capital Allowance Rate Initial Allowances 10 % 40% Annual Allowances 3% - 40% Note: Effective the year of assessment 2004, SMEs with a paid-up capital of RM2.5 million and below are eligible for a reduced corporate tax rate of 20% on the chargeable income of up to RM500,000 and 25% on subsequent chargeable income. Note: As announced in budget 2015,corporate tax rate be reduced by 1 percentage point from 25% to 24% and corporate tax rate for SMEs will be reduced by 1 percentage point from 20% to 19%, from the year of assessment 2016. 9 P a g e

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 25% 26% 20% 17% 37% 30% 30% 32% 45% 35% 33.99% 30.90% 25% 25% Corporate Tax Personal Income Tax 3. Human Resources Minimum Conditions of Employment Source: TaxRates.cc; http://www.taxrates.cc/ The Employment Act, 1955 is the main legislation on labor matters in Malaysia. Paid maternity leave Normal work hours Paid holiday 60 days Not exceeding eight hours in one day or 48 hours in one week At least 11 gazetted public holidays (inclusive of five compulsory public holidays; National Day, Birthday of the Yang Dipertuan Agong, Birthday of Ruler/Federal Territory Day, Labour day and Malaysia Day) in one calendar year and on any day declared as a public holiday under section 8 of the Holiday Act 1951 Paid annual leave for employees: Less than two years of service 8 days Two or more but less than 5 years of service 12 days Over five years of service 16 days * Minimum paid annual leave to be provided for employees Paid sick leave per calendar year: Less than two years of service 14 days Two or more but less than five years of 18 days service Over five years of service 22 days Where hospitalisation is necessary up to 60 days (inclusive of the paid sick leave entitlement stated above) * Minimum paid annual leave to be provided for employees 10 P a g e

Payment for overtime work: Normal working days one-and-a-half times the hourly rate of pay Rest days two times the hourly rate of pay Public holidays three times the hourly rate of pay Shift Work: An employee who is engaged under his contract of service in shift work may be required by his employer to work more than eight hours in any one day or more than forty-eight hours in any one week but the average number of hours worked over any period of three weeks, or over any period exceeding three weeks as may be approved by the Director General, shall not exceed forty-eight per week. Souce: International Labour Organization http://www.ilo.org/dyn/natlex/docs/webtext/48055/66265/e55mys01.htm#c60c Statutory Contributions Employees Provident Fund The compulsory contributions under the Employees Provident Fund (EPF) Act 1991: Age Group Employers Employees 60 years and below Minimum of 12% of the employees' monthly wages Minimum of 11% of the employees' monthly wages 60-75 years Minimum of 6% of the employees' monthly wages Minimum of 5.5% of the employees' monthly wages All foreign workers and expatriates and their employers are exempted from compulsory contributions. They can, however choose to contribute and the applicable rates are as follows: Age Group Employers Employees 60 years and below RM5.00 (US$1.52) per employee per month 11% of the employees' monthly wages 60-75 years RM5.00 (US$1.52) per employees per month 5.5% of the employees' monthly wages USD 1 = RM3.30 Note: Employers statutory contribution rate is 13% for employees earning less than RM5,000 (Effective from 1 January 2012) Social Security Organisation (SOCSO) SOCSO administers two social security schemes for workers earning wages not exceeding RM3,000 (US$938) per month. Once covered, workers remain covered irrespective of their wages. However, the maximum contribution is based on wages of RM3,000 (US$938) per month. 11 P a g e

All Malaysian employees and permanent residents who have been employed by an employer under a contract of service or apprenticeship are liable under SOCSO's act. Categories of employees exempted from SOCSO's coverage are: Government employees Domestic servants Self-employed persons Foreign workers Business owner and spouses of sole-proprietorship or partnership Contribution under Employment Injury Insurance Scheme: Employers - 1.25% of the employee's wages Employees - Nil Contribution under the Invalidity Pension Scheme: 1% of the employee's wages shared equally by the employer and employee. Human Resources Development Fund (HRDF) HRDF operates on the basis of a levy/grant system. Employers who have paid the Human Resources Development levy will qualify for training grants from the HRDF to defray or subsidise training costs for their Malaysian employees. Manufacturing companies cover under the Human Resources Development Berhad Act, 2001 are as follows: Categories of Employers Rate of Levy Contributions Employers with 50 employees and above 1% of employees' monthly wages Employers with 10 to 49 employees and a paid-up capital of RM2.5 million (US$757,576) and above Employers with 10 to 49 bemployees and a paid-up capital of less than RM2.5 million (US$757,576), are given the option to register with HRDF USD 1 = RM3.30 1% of employees' monthly wages 0.5% of employees' monthly wages 12 P a g e

Employment of Expatriates An employment pass is issued to expatriate to enable him to stay and work legally in the country. There are two types of passes issued by the Immigration Department subject to the period of employment s contract and the monthly salary received by the expatriates. Type of Passes A Employment Pass (PG) This pass is issued for key-post and term-post position subject to the following conditions: minimum period of employment s contract is (2) years and stamping; and salary not less than RM3,000 (US$938) Payment of Fees i. Employment Pass: Key Post RM300 (USD91) Term Post RM 200 (USD61) ii. Processing Fees RM50 (USD152) iii. Journey Perform Visa RM500 (USD152) Per post/application (subject to visa entry requirement according to each country of origin) B Visit Pass Visit Pass (Temporary Employment) is issued only for domestic helpers. iv. No levy i. PLKS/VP (TE) Pass: RM60 (USD19) per year ii. Levy: RM 410 (USD125) iii. Processing Fees: RM50 (USD16) iv. Journey Perform Visa (if applicable) RM500(USD152) USD 1 = RM3.30 Wage Rates (Monthly) Position Qualification(s) Experience Minimum Maximum RM USD RM USD Finance Financial Analyst Degree 2-3 years 6000 1,818 8000 2,424 Accountant Degree/ Professional Cert 4-5 years 5,000 1,515 7,000 2,121 Office support Front Desk Assistant High School 1-2 years 1,800 545 2,500 758 Data Entry Assistant High School 1-2 years 1,500 455 1,600 485 Despatch High School 1-2 years 1,200 364 1,500 455 Administrator Diploma/Degree 3-5 years 3,000 909 5,000 1,515 Sales, Marketing & Advertising Customer Service Executive Diploma/Degree 2-3 years 2,300 697 3,000 909 Sales Executive High School/ Diploma/Degree 1-2 years 2,200 667 3,000 909 Marketing Executive Diploma/Degree 2-4 years 3,000 909 4,500 1,364 Marketing Manager Higher Diploma/Degree 4-5 years 5,000 1,515 8,500 2,576 13 P a g e

Human Resources HR Manager Diploma/Degree 6-8 years 8,000 2,424 11,000 3,333 HR Officer / Executive Diploma/Degree 2-3 years 3,000 909 4,500 1,364 HR Assistant High School/Diploma 1-2 years 2,000 606 3,000 909 Information Technology IT Executive Degree 2 years 3,500 1,061 4,500 1,364 Programmer Degree 1-2 years 3,800 1,152 5,500 1,667 Help Desk Analyst Degree 2-3 years 4,500 1,364 5,500 1,667 Web Designer Degree 2 years 4,500 1,364 5,000 1,515 Software Engineer Degree 2-3 years 4,500 1,364 6,000 1,818 Systems Analyst Degree 3-5 years 6,000 1,818 8,500 2,576 Business Development Manager Degree 3-5 years 5,500 1,667 8,000 2,424 Project Manager Degree 6-10 years 9,500 2,879 13,000 3,939 Helpdesk Tech Support Degree (Foreign Languages) 2-3 years 5,000 1,515 8,000 2,424 Logistic & Warehousing Shipping Supervisor Diploma/Degree 3-5 years 2,500 758 4,000 1,212 Warehouse Executive Diploma 2-3 years 2,200 667 4,000 1,212 Buyer Diploma/Degree 2-3 years 3,500 1,061 5,000 1,515 Logistic Coordinator Diploma/Degree 3-5 years 3,000 909 5,000 1,515 Warehouse Manager Diploma/Degree 4-5 years 6,000 1,818 8,000 2,424 Engineering & Technical QA Inspector Degree 2-4 years 3,500 1,061 5,500 1,667 Electrical Technician Technical Diploma 2-3 years 2,000 606 2,800 848 Sales Engineer Technical/ Diploma/ Degree 2 years 3,500 1,061 5,500 1,667 Mechanical Engineer Engineering Degree 2-3 years 4,500 1,364 6,500 1,970 Product Engineer Engineering Degree 3-5 years 4,000 1,212 7,500 2,273 Service Engineer Degree 3-4 years 3,800 1,152 6,000 1,818 Technical Manager Technical/ Diploma/ Degree 3-6 years 6,500 1,970 8,500 2,576 Assembly Engineer Degree 2-3 years 2,500 758 5,500 1,667 R&D Engineer Diploma/Degree 2-3 years 3,500 1,061 5,500 1,667 USD 1 = RM3.30 Note: Salary figures are industry average. Figures may vary according to depth of expertise and experience. Source: Malaysia Employment Outlook & Salary Guide 2014/15 by Kelly Services 14 P a g e

Salary Comparison in Engineering Field (USD) 4000 3000 2000 1000 0 Malaysia Singapore India Philippines Manager Senior executive fresh graduate USD1= MYR3.2 USD1= SGD1.25 USD1= INR62.45 USD1= PHP43.25 Source: Jobstreet Salary Report 2013/2014 Source: Jobstreet Salary Report 2013/2014 15 P a g e

4. Utilities Electricity Rates This tariff is effective from 1 st January 2014 and supersedes the previous tariff schedule which was effective on 12 th August 2011. Tariff Category Unit RM USD Tariff A - Domestic Tariff sen/kwh For the first 200 kwh (1-200 kwh) per month sen/kwh 21.80 sen/kwh 6.61 For the next 100 kwh (201-300 kwh) per sen/kwh 33.40 sen/kwh 10.12 month For the next 100 kwh (301-400 kwh) per sen/kwh 51.60 sen/kwh 15.64 month For the first 100kWh (401-500 kwh) per sen/kwh 51.60 sen/kwh 15.64 month For the next 100 kwh (501-600 kwh) per sen/kwh 51.60 sen/kwh 15.64 month For the next 100 kwh (601-700 kwh) per sen/kwh 54.60 sen/kwh 16.55 month For the next 100 kwh (701-800 kwh) per sen/kwh 54.60 sen/kwh 16.55 1 month For the next 100 kwh (801-900 kwh) per sen/kwh 54.60 sen/kwh 16.55 month For the next kwh (901 kwh onwards) per sen/kwh 57.10 sen/kwh 17.30 month The minimum monthly charge is RM3.00 2 3 16 P a g e Tariff B - Low Voltage Commercial Tariff For Overall Monthly Consumption Between 0-200 kwh/month For all kwh sen/kwh 43.5 13.18 The minimum monthly charge is RM7.20 (USD 2.37) For Overall Monthly Consumption More Than 200 kwh/month For all kwh (From 1kWh onwards) sen/kwh 50.9 15.42 The minimum monthly charge is RM7.20 (USD 2.3) Tariff C1 - Medium Voltage General Commercial Tariff For each kilowatt of maximum demand per RM/kW 30.3 9.18 month For all kwh sen/kwh 36.5 11.06 The minimum monthly charge is RM600.00 (USD 197.2) Tariff C2 - Medium Voltage Peak/Off-Peak Commercial Tariff For each kilowatt of maximum demand per RM/kW 45.1 13.67 month during the peak period For all kwh during the peak period sen/kwh 36.5 11.06 For all kwh during the off-peak period sen/kwh 22.4 10.12 The minimum monthly charge is RM600.00 (USD197.2)

Industrial Tariff Category Unit RM USD Tariff D - Low Voltage Industrial Tariff For Overall Monthly Consumption Between 0-200 kwh/month For all kwh sen/kwh 38.0 11.52 The minimum monthly charge is RM7.20 (USD 2.18) 1 For Overall Monthly Consumption More Than 200 kwh/month For all kwh (From 1kWh onwards) sen/kwh 44.1 13.36 The minimum monthly charge is RM7.20 (USD 2.18) Tariff Ds Special Industrial Tariff (for consumers who qualify only) For all kwh sen/kwh 42.7 12.94 The minimum monthly charge is RM7.20 (USD 2.18) Tariff E1 - Medium Voltage General Industrial Tariff For each kilowatt of maximum demand per 8.97 RM/kW 29.6 month For all kwh sen/kwh 33.7 10.21 2 The minimum monthly charge is RM600.00 (USD 181.82) Tariff E1s Special Industrial Tariff (for consumers who qualify only) For each kilowatt of maximum demand per 7.18 RM/kW 23.7 month For all kwh sen/kwh 33.6 10.18 The minimum monthly charge is RM600.00 (USD 181.82) 3 Tariff E2 - Medium Voltage Peak/Off-Peak Industrial Tariff For each kilowatt of maximum demand per 11.21 RM/kW 37.0 month during the peak period For all kwh during the peak period sen/kwh 35.5 10.76 For all kwh during the off-peak period sen/kwh 21.9 6.64 The minimum monthly charge is RM600.00 (USD 181.82) Tariff E2s Special Industrial Tariff (for consumers who qualify only) For each kilowatt of maximum demand per 9.97 RM/kW 32.9 month during the peak period For all kwh during the peak period sen/kwh 33.6 10.18 For all kwh during the off-peak period sen/kwh 19.1 5.79 4 The minimum monthly charge is RM600.00 (USD 181.82) Tariff E3 - High Voltage Peak/Off-Peak Industrial Tariff For each kilowatt of maximum demand per 10.76 RM/kW 35.5 month during the peak period For all kwh during the peak period sen/kwh 33.7 10.21 For all kwh during the off-peak period sen/kwh 20.2 6.12 The minimum monthly charge is RM600.00 (USD 181.82) Tariff E3s Special Industrial Tariff (for consumers who qualify only) For each kilowatt of maximum demand per 8.79 RM/kW 29.0 month during the peak period For all kwh during the peak period sen/kwh 31.7 9.61 For all kwh during the off-peak period sen/kwh 17.5 5.30 The minimum monthly charge is RM600.00 (USD 181.82) 17 P a g e

Note: SIT has a 2% higher increase than normal Industrial tariff in line with the Government's effort to gradually phase out the SIT subsidy Note: The revision of the surcharge on electricity bill for the RE Fund from 1.0 per cent to 1.6 per cent is to facilitate the implementation of Feed-in Tariff (FiT) mechanism USD1 = RM3.30 (Source: Tenaga National Berhad) Water Rate (Penang) Category RM per 1,000 litres USD per 1,000 litres Tariff 1: Domestic (Individual) Minimum charge: 2.50 per month 0.76 WATER CONSERVATION SURCHARGE (WCS) Consumption above 35,000 liters per month 0.48 0.15 First 20,000 litres 0.22 (no WCS) 0.07 20,001-35,000 litres 0.42 (no WCS) 0.13 35,000-40,000 litres 0.90 (0.42+ 0.48 WCS) 0.28 40,000-60,000 litres 1.00 (0.52+0.48 WCS) 0.30 60,000 200,000 litres 1.38 (0.90+0.48 WCS) 0.42 More than 200,000 litres 1.48 (1.00+0.48 WCS) 0.45 Tariff 2: Trade (Ordinary) Minimum charge: 10.00 per month 3.13 per month First 20,000 litres 0.66 0.21 20,001-40,000 litres 0.89 0.28 40,001-200,000 litres 1.15 0.35 More than 200,000 litres 1.27 0.38 Tariff 3: Trade (Special) Minimum charge: 10.00 per month 3.13 per month Flat rate 1.52 0.46 Tariff 4: Trade (Shipping) Minimum charge: 10.00 per month 3.13 per month Flat rate 2.54 0.77 Tariff 5: Domestic (Bulk) Minimum charge: 26.00 per month 7.88 Flat rate 0.35 0.11 USD 1= RM3.30 (Source: Perbadanan Bekalan Air Pulau Pinang Sdn Bhd, as on 2 July 2012) (Penang water conservation surcharge increased from RM0.24 to RM0.48 effectively from 1 st September 2013) 18 P a g e

Comparison of Water Rate by State State Usage Price per m³ (RM) Penang Industrial/Commercial 0-20,000m 3 21-40m 3 41-200 m 3 Above 200m 3 Selangor Industrial/Commercial 0-35m 3 35 m 3 and above Johor Industrial/Commercial 0-35 m³ 35m³ and above Kedah Commercial 0-50 m³ 51-200 m³ 201-350 m³ More than 350 m³ Industrial 0 1,000m³ 1,001 10,000 m³ 10,0001-50,000 m³ More than 50,001 m³ Source:MIDA 0.66 0.89 1.15 1.27 2.07 2.28 2.60 2.96 1.40 1.50 1.60 1.80 1.40 1.60 1.80 2.10 Min. Payment/month (RM) 10.00 36.00 25.00 15.00 15.00 Sewerage Rates Sewerage services in Malaysia were privatised in 1994 and are managed by Indah Water Konsortium Sdn. Bhd., a company wholly owned by Minister of Finance Incorporated. It operates in 86 Local Authorities areas except those in Johor Bahru, Kelantan, Sabah and Sarawak. Domestic Customers Houses receiving connected sewerage services Houses with individual septic tanks Village/Estate dwelling houses with individual septic tanks or receiving connected sewerage services Low cost dwelling houses and houses with annual value of less than RM600 (US$188) with individual septic tanks or receiving connected sewerage services RM8 (US$2.42) per month RM6 (US$1.82) per month RM3 (US$0.91) per month RM2 (US$0.61) per month Industrial Customers Premises receiving connected sewerage services Premises with individual septic tanks RM2.50 (US$0.76) per head per month RM2 (US$0.61) per head per month 19 P a g e

Commercial Customer Cost of Doing Business January 2015 Monthly sewerage services charges for commercial premises is the sum of the Basic Charge based on the premises Annual Value and the Excess Charge based on average water consumption in excess of 100 meter cube (m³). Annual Value of Property Monthly charge for premises receiving connected sewerage services Monthly charge for premises with individual septic tanks RM US$ RM US$ RM US$ 2,000 or less 606 or less 8 2 7 2 2,001-5,000 606-1,515 14 4 8 2 5,001-10,000 1,515-3,030 20 6 14 4 10,001-20,000 3,030-6,060 26 8 19 6 20,001-30,000 6,060-9,090 29 9 21 6 30,001-40,000 9,091-12,121 32 10 23 7 40,001-50,000 12,121-15,151 35 11 25 8 50,001-60,000 15,151-18,181 38 12 27 8 60,001-70,000 18,182-21,212 41 12 29 9 70,001-80,000 21,212-24,242 44 13 31 9 80,001-90,000 24,242-27,272 47 14 33 10 90,001-100,000 27,273-30,303 50 15 35 11 100,001-200,000 30,303-60,606 180 55 120 36 200,001-400,000 60,606-121,212 495 150 330 100 400,001-600,000 121,212-181,818 522 158 348 105 600,001-800,000 181,818-242,424 1,980 600 1,320 400 800,001-1,000,000 242,424-303,030 2,160 655 1,440 436 1,000,001-3,000,000 303,030-909,090 4,320 1,309 2,880 873 3,000,001-5,000,000 909,091-1,515,151 8,800 2,667 5,400 1,636 5,000,001-7,000,000 1,515,151-2,121,212 9,200 2,788 6,000 1,818 More than 7,000,001 More than 2,121,212 9,600 2,909 6,600 2,000 Monthly Excess Charge Water Usage Excess Charge Up to 100 m³ No charge More than 100 m³ 30 sen (9 US cents) per m³ More than 200 m³ 45 sen (14 US cents) per m³ *The excess charges are subject to an annual revision based on the water consumption data for the previous year obtained from the Water Authority. USD 1= RM3.30 () 20 P a g e

Scheduled Waste Treatment Rates Cost of Doing Business January 2015 Kualiti Alam Sdn. Bhd. is a designated company providing off-site scheduled waste treatment disposal services in Peninsular Malaysia. Its waste management centre is located at Bukit Nanas in Negeri Sembilan. Scheduled wastes must be disposed through department of enviroment licensed scheduled waste with recovery contractors. For non-scheduled wastes, collection and disposal rates vary according to location and contractor. Waste Group Waste Type A Mineral Oil Wastes Wastes containing lubricating oil, hydraulic oil, etc. B Organic Chemical Wastes Containing Halogens and/or Sulphur > 1% Freon, PVC wastes, chloroform, solvents, capacitors and transformers containing PCB, etc. C Waste Solvents Containing Halogens and/or Sulphur < 1% Acetone, alcohols (eg. ethanol, methanol), benzene, turpentine, xylene, etc. Waste should be pumpable, containing < 50% water and 18MJ/kg calorofic value H Organic Chemical Wastes Containing Halogens and/or Sulphur < 1% Glue, latex, paint, phenol, printing ink, synthetic oils, soap, epoxy, etc. K T X Z Wastes Containing Mercury Mercury, vapour lamps, COD-fluids, mercury batteries, etc. Pesticide Wastes Insecticides, fungus and weed killers, rat poison, etc Inorganic Wastes Acids, alkaline, sodium hypochlorite, inorganic salts, metal hydroxide sludge, chromate and cyanide waste, etc. Miscellaneous Medicine wastes, lab-packs, asbestos wastes, mineral sludges, isocyanates (MDI,TDI), batteries, etc. Organic Wastes for Incineration Waste Packaged Wastes* Group Pumpable liquid Solid Bulk Wastes Pumpable liquid Solid (per tonne) (per tonne) (per tonne) (per tonne) RM US$ RM US$ RM US$ RM US$ A 810 245 - - 630 191 - - B 3,150 955 3,600 1090 - - - - C 1,350 409 - - - - - - H/Z 1,890 573 2,790 845 1,800 545 2,700 818 T 3,150 955 3,600 1,091 - - - - *Note: Packaged wastes refers to wastes packed in standard 200-litre drums or 1m3 PP Bags. USD 1= RM3.30 () 21 P a g e

Liquid Inorganic Wastes for Physical/Chemical Treatment Waste Group 800-litre Pallet Tank (per tonne) 200-litre Drum (per tonne) RM US$ RM US$ Acid Wastes Without Chromate (X) 1,440 436 1,620 491 Alkaline Wastes Without Cyanide (X) 1,440 436 1,620 491 Chromate Wastes (X) 1,800 545 1,980 600 Cyanide Wastes (X) 1,800 545 1,980 600 Mercury Wastes (K) 3,600 1,091 3,780 1,145 Inorganic Wastes for Solidification Waste Group Packaged Wastes* per tonne Waste in Bulk per tonne RM US$ RM US$ X / Z 810 246 765 232 Inorganic Waste for Direct Landfill Waste Group Packaged Wastes* per tonne Waste in Bulk per tonne RM US$ RM US$ X / Z 495 150 450 136 Encapsulation Waste Group (Z) Packaged Wastes* per tonne Contaminated Crushed Drum and Other Contaminated Waste 1,500 455 Cementation Waste Group (Z) RM US$ Packaged Wastes* per tonne Dry Cell Batteries and Other Miscellaneous Wastes 900 273 RM US$ 22 P a g e

Transportation Rates KM State 1st Tier min. 18 pallet Per Pallet 2nd Tier Above 18 pallet Per Metric Tonne RM US$ RM US$ RM US$ 114 Negeri Sembilan 52.88 16.02 26.44 8.01 66.1 20.03 248 Kuala Lumpur (Wilayah Persekutuan) 59.73 18.10 29.87 9.05 74.66 22.62 274 Melaka 60.71 18.40 30.36 9.20 75.89 23.00 374 Selangor 65.61 19.88 32.8 9.94 82.01 24.85 652 Perak 79.32 24.04 39.66 12.02 99.14 30.04 722 Johor 82.25 24.92 41.13 12.46 102.82 31.16 760 Pahang 84.21 25.52 42.11 12.76 105.26 31.90 1050 Penang 113.59 34.42 56.79 17.21 141.98 43.02 1152 Terengganu 180.17 54.60 90.09 27.30 225.22 68.25 1166 Kedah 181.15 54.89 90.58 27.45 226.44 68.62 1190 Kelantan 183.11 55.49 91.56 27.75 228.89 69.36 1240 Perlis 184.09 55.78 92.04 27.89 230.11 69.73 *Packaged wastes refers to wastes packed in standard 200-litre drums or 1m3 PP Bags. Note: For palletises pickup, the rates are in tier's, the 1st tier for minimum pickup of 18 pallets and the 2nd tier is for any subsequent pallet pickup. from a single consignment CTI request. Source: Kualiti Alam Shd. Bhd. - www.kualitialam.com.my Natural Gas Tariff Tariff Category 1 Tariff B Commercial Unit Charge 2 Tariff C Commercial & Industrial Unit Charge 3 Tariff D Commercial & Industrial Unit Charge 4 Tariff E Commercial & Industrial Unit Charge 5 Tariff F Commercial & Industrial Unit Charge 6 Tariff L Commercial & Industrial Unit Charge Source: Gas Malaysia Berhad 23 P a g e Price (RM/MMBTU) Applicable Range MMBTU/MONTH (MMBTU/YEAR) 20.61 0 50 mmbtu (0 600 mmbtu) 17.64 51 416 mmbtu (601 5,000 mmbtu) 18.14 417 4,166 mmbtu (5,001 50,000 mmbtu) 19.00 4,167 16,666 mmbtu (50,001 200,000 mmbtu) 19.18 16,667 62,500 mmbtu (200,001 750,000mmBtu) 19.65 >62,500 mmbtu (>750,000mmBtu)

5. Transportation Costs Container Haulage Rates Haulage base: Port Klang (North Port) Cost of Doing Business January 2015 Haulage Rates Road Tolls FAF Total Effective from 12.47% Area 20' & 40' 1st Jan. 2007 Period 20' & 40' (RM) (Actual at cost) from 1st May RM US$ (RM) 2006 PORT KLANG - Shah Alam 444.00 19.80 55.37 519.17 157.32 PETALING JAYA - Sungai Way 504.00 23.20 62.85 590.05 178.80 SELANGOR - Banting 564.00 0.00 70.33 634.33 192.22 PERAK - Tanjung Malim 1,262.00 59.80 157.37 1,479.17 448.23 PENANG - Butterworth/ Seberang Prai 2,402.00 194.80 299.53 2,896.33 877.68 KEDAH - Kulim 2,372.00 240 295.79 2,907.79 881.15 PERLIS - Kangar 2,906.00 240 362.38 3,508.38 1,063.15 NEGERI SEMBILAN - Nilai 968.00 56.40 120.71 1,145.11 347.00 MELAKA - Air Keroh Industrial Area 1,468.00 103.40 183.06 1,754.46 531.65 KELANTAN - Kota Bharu 3,302.00 197.80 411.76 3,911.56 1,185.32 PAHANG - Kuantan 1,940.00 197.80 241.92 2,379.72 721.13 TERENGGANU - Kerteh 2,318.00 197.80 289.05 2,804.85 849.95 JOHOR - Pasir Gudang 2,348.00 211 292.80 2,851.60 864.12 USD 1= RM3.30 24 P a g e

Ocean Freight Rates Rates quoted are subject to: 1. THL/THD/DOC and EDI 2. BAF/ CAF/WAR RISK/ PEAK SEASON surcharges as per Conference announcement. From Port Klang to : AUSTRALIA Main ports CHINA Shanghai EUROPE Main ports INDIA Navasheva JAPAN Main ports KOREA Pusan WEST MEDITERRANEAN Main ports 20-ft container 40-ft container US$ US$ 950 1,900 100 200 900 1,800 600 1,800 400 800 400 800 900 1,800 NEW ZEALAND 950 1,900 SOUTH AFRICA 1,300 2,600 USA West Coast Los Angeles 1,725 2,300 USA East Coast New York 2,625 3,500 Courier Service Rates Various Malaysian and international companies provide courier services in Malaysia. Destination Country 25 P a g e Documents Merchandise Max. Weight Limit (kg) First 500 gm Next 500 gm First 500 gm Next 500 gm RM US$ RM US$ RM US$ RM US$ Australia 60 18.18 15 4.55 75 22.73 14 4.24 20 Germany 70 21.21 20 6.06 100 30.30 19 5.76 23 Japan 47 14.24 12 3.64 64 19.39 15 4.55 30 UK 70 21.21 20 6.06 100 30.30 15 4.55 20 USA 65 19.70 20 6.06 100 30.30 20 6.06 No Limit USD 1= RM3.30

Penang Bridge Source: Penang Bridge Sdn Bhd, www.penangbridge.com.my Penang Second Bridge Toll Rate for Sultan Abdul Halim Mu adzam Shah Bridge Users from the Mainland (Batu Kawan) going to the Penang Island (Batu Maung) via the Sultan Abdul Halim Mu adzam Shah Bridge, the toll will be collected at Sultan Abdul Halim Mu adzam Shah Toll Plaza and Bandar Cassia Toll Plaza (one way). VEHICLES CLASSIFICATION Class 0 Vehicles: Vehicles with two axels and two wheels Class 1 Vehicles: Vehicles with two axels and three or four wheels (excluding taxi and bus) Class 2 Vehicles: Vehicles with two axels and six wheels (excluding bus) Class 3 Vehicles: Vehicles with three or more axels (excluding bus) Class 4 Vehicles: Taxis Class 5 Vehicles: Busses USD 1= RM3.30 26 P a g e TOLL RATES (RM) TOLL RATES (USD) 1.70 0.52 8.50 2.58 30.50 9.24 70.10 21.24 8.50 2.58 26.20 7.94

Toll Rate for the Link Road Toll for the Link Road will be collected from users exiting from PLUS Expressway at Bandar Cassia Toll Plaza going to Penang Island via the Sultan Abdul Halim Mu adzam Shah Bridge or to Bandar Cassia and users entering the PLUS Expressway at Bandar Cassia Toll Plaza. The rates are as follows: VEHICLES CLASSIFICATION Class 1 Vehicles: Vehicles with two axels and three or four wheels (excluding taxi and bus) Class 2 Vehicles: Vehicles with two axels and six wheels (excluding bus) Class 3 Vehicles: Vehicles with three or more axels (excluding bus) Class 4 Vehicles: Taxis Class 5 Vehicles: Busses USD 1= RM3.30 Source: Jambatan Kedua Sdn Bhd www.jambatankedua.com.my Penang Port Ferry Tariff TOLL RATES (RM) TOLL RATES (USD) 0.60 0.18 0.90 0.27 1.20 0.36 0.30 0.09 0.50 0.15 Price structure for the latest tariff of ferry services are as follows :- RM USD I. Passenger a. Children age 5 and below 12 years of age 0.60 0.19 b. Adult 1.20 0.38 Monthly ticket (not valid for travel with bicycle) a. Student (not exceeding 21 years of age) 6.00 1.88 b. Adult 30.00 9.38 II. Bicycle 1.40 0.44 III. Motorcycle 2.00 0.63 IV. Trishaw and Tricycle 3.30 1.03 V. Motorcar including Station Wagon, Four Wheel Drive, Three Wheel Drive, Three Wheel Commercial Vehicle and Motorcycle with Side Car. 7.70 2.41 Vl. Lorry, Van and Bus a. Vehicle with 2 axles and 4 wheels 13.20 4.13 b. Vehicle with 2 axles and 6 wheels 27.50 8.59 USD 1= RM3.30 Source : Penang Port Commission 27 P a g e