Sarawak is located on the island of Borneo, and is one of the two states that make up East Malaysia. Sarawak and Sabah are separated from West Malaysia (Peninsular Malaysia) by the South China Sea. With an area of 124,449.51 square kilometres, Sarawak is the largest state in Malaysia, making up some 37.5% of the country's total area. The State is divided into eleven Administrative Divisions. Each Division (or Administration Region) is headed by a Resident and subdivided into between 2 to 4 districts.

Kuching is the State capital and the administrative centre for the First Division of Sarawak. It is home to some 458,300 people making it the highest populated city in Sarawak and the 7th highest populated city in Malaysia.

Topographically, Sarawak may be broadly classified into three principal terrain groups: the alluvial coastal plain, the mountainous interior and the central belt of generally undulating country between the coastal plain and the interior. Sarawak is a tropical state with an equatorial climate. It is hot and humid throughout the year with average daily temperature ranging from 23°C during the early hours of the morning to 32°c during the day.

Sarawak's forests are the state's most important resource and asset, producing timber and a multitude of forest products. The rainforest is home to an incredible variety of more than 8,000 species of flora and over 20,000 fauna, the majority of which are insects.

As the Sarawak government pursues its economic diversification policy, it has made available attractive incentives to all investors in the State. This range of special incentives is an addition to the ones already made available by the Malaysian Government to foreign investors. To ensure a steady supply of competent, productive and skilled workforce to meet the needs of industries in the State, the Ministry of Industrial Development of Sarawak is working closely with education institutions in the country.

The availability of vast competitively priced land and rich reserves of natural resources has made Sarawak an attractive choice for manufacturing operations among investors.

As the Sarawak government pursues its economic diversification policy, it has made available attractive incentives to all investors in the State. This range of special incentives is in addition to those that have been made available by the Malaysian Government to foreign investors. To ensure supply of competent, productive and skilled workforce to meet the needs of industries in the State, the Ministry of Industrial Development, Sarawak is working closely with education institutions in the country.

As the experience of those who have made a wise choice in locating their operations here in Sarawak have shown, Sarawak's distinct advantages made it an excellent choice for foreign investors who are keen to tap the lucrative investment opportunities in the Asia-Pacific region.

Some factors contributing towards making Sarawak an ideal location for investors include:

Strategic Location in the Asia-Pacific Market
Political Stability
Security of Investment
Good Infrastructure
Good Facilities and Amenities

INVESTMENT INCENTIVES
Malaysia offers one of the most attractive incentives packages in the ASEAN region. Tax incentives and other facilities for the manufacturing sector are provided for in the Promotion of Investment Act 1986, Income Tax Act 1967, Custom Act 1967, Sales Tax Act 1972 and Excise Act 1976.

Aside from the Federal Government's incentives, Sarawak on its own, offers special investment incentives. These include the competitive price of industrial land, generous rebates on the price of industrial land and flexible terms of payment with low initial down payment. Foreign companies may also own industrial land.

• Incentives for Manufacturing
• Incentives for High-Tech Industries
• Incentives for Strategic Industries
• Incentives for Research and Development
• Incentives for Industrial Adjustment
• Incentives for Small Scale Industries
• Other Special Incentives
• Protection of Foreign Investment