ASEAN Industrial Cooperation Scheme (AICO)

ASEAN Industrial Cooperation (AICO) Scheme continues to be one of the initiatives to promote resource sharing among ASEAN-based companies, through industrial cooperation. Companies exporting under the AICO Scheme are exempted from import duty and able to enjoy full liberalisation of tariff rate earlier.

A total of [145] AICO applications have been approved within ASEAN amounting to [US$1,802 million] in 2007. Of these, [128 approvals were related to the automotive sector, namely exchange of 180 automotive completely knocked-down (CKD) packs, with 108 approvals, automotive components (18) and automotive CBU with two approvals.]

For Malaysia, a total of [71] projects, valued at [US$781.2] million have been approved in 2007 in various sectors including [automotive, agriculture, food processing and E&E sectors.] To date, Malaysia has a total of [34] AICO arrangements with Thailand, followed by Indonesia [20], the Philippines [16] and Viet Nam [1].