Austrade media release

04 Oct 2006

A groundbreaking Australian e-health company has joined an elite list of multi-nationals enjoying an exclusive status granted by the Malaysian Industrial Development Authority (MIDA), which enhances market access and reduces the constraints of doing business in Malaysia.

IBA Health (Asia), a wholly owned subsidiary of Australia’s largest ASX listed health information provider, IBA Health Limited, is one of only eight Australian companies to be awarded the Operational Headquarter (OHQ) Status by MIDA. This follows the recent induction of IBA Health into the Malaysian Multimedia Super Corridor (MSC).

OHQ status companies enjoy access to package of concessions including a 10-year tax-free threshold, the ability to freely operate foreign accounts to allow movement of foreign funds and faster visa approvals for foreign staff.

According to Austrade’s Kuala Lumpur-based Senior Trade Commissioner, Peter Kane, the MIDA OHQ status puts IBA Health in a unique position to take advantage of the Malaysian government’s pro-business strategy.

“IBA Health's Malaysian venture now places corporate Australia into another important segment of the Malaysian economy - the health care system, “ Mr Kane said. “The MIDA status maximises market access and provides an instant competitive advantage, opening up a unique business enabling environment for companies wanting to expand into Malaysia or make their way into the ASEAN markets”.

Malaysia is the second strongest economy and second largest trading partner in South East Asia, and our 11th largest partner overall. In 2005, total merchandise trade between Australia and Malaysia topped $8.5 billion and services trade stood at $1.8 billion. Malaysia’s proximity to Australia, skilled labour force, cost-competitive environment, and the potential of a Malaysia-Australia Free Trade Agreement, also makes it a favourable export destination for Australian companies.

With the recent announcement of contracts for seven additional hospitals as part of an upgrade, IBA Health is now the largest provider of health information technology to the Malaysian Government.

“IBA Health's achievement confirms that Malaysia is a "right size" opportunity for Australian companies, both as a market in its own right and as a regional hub,” Mr Kane said.

MIDA is a single port-of-call for the coordination of export and market access services from Malaysian government departments, tax authorities, agencies and relevant trade and industry organizations.

According to IBA’s Chief Executive, Steve Garrington, “If MIDA simplified the process of doing business in Malaysia, Austrade simplified the process of obtaining the MIDA OHQ status”.

“The MIDA status adds another dimension to the prestigious MSC program. It enables IBA to establish and maintain a regional staging post for our activities in Asia,” Mr Garrington said. “And this would not have been possible without Austrade”.

“From identifying the opportunity to helping us negotiate the complex regulations and procedures, Austrade’s Peter Kane and (Trade Commissioner) Michelle Wade were with us every step of the way, offering practical advice and guidance throughout the process,” Mr Garrington said.

IBA Health Limited is Australia’s largest Australian Stock Exchange listed health information technology company with over 500 hospital and clinic installations covering Australia, New Zealand, South East Asia, India, Middle East and South Africa.

Austrade’s Senior Trade Commissioner, Peter Kane, and IBA Health’s Chief Executive, Steve Garrington are available for interviews.

ENDS

Media contacts

Purnima Ganapathy (Austrade)
Tel: 02 9390 2319
Mob: 0419 127 577
Email: purnima.ganapathy@austrade.gov.au

Greg King (IBA)
Mob: 0413 621 111
Email:greg.king@ibahealth.com.au

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au/mediacentre.