KUALA LUMPUR, June 5 (NNN-BERNAMA) – The Malaysian government is distributing various tax incentives and reinvestment bonuses to draw in foreign direct investment (FDI) so as to revitalize economic process.
Malaysian Prime Minister Tan Sri Muhyiddin Yassin said the incentives were aimed toward attracting foreign companies to relocate their businesses to Malaysia by addressing the risks of relocation.
Announced a 10-year zero percent tax incentive for brand spanking new investment within the manufacturing sector with a capital investment of between RM300 million and RM500 million from Dominion Day to New Year’s Eve , 2020.
For new investments within the manufacturing sector with a capital investment in more than RM500 million, a zero rate are going to be imposed for 15 years, he said when announcing the National Economic Recovery Plan (PENJANA) broadcast survive radio and tv today.
Muhyiddin said the incentives would tend if the businesses were to relocate and begin operating within a year from the approval date and therefore the amount of investment involved must be made within three years.
“For existing Malaysian companies that are relocating their overseas facilities to Malaysia, with a capital investment of quite RM300 million, they’re entitled to one hundred pc tax relief for five years,” he added.
The government also will provide a further RM50 million allocation to the Malaysian Investment Development Authority (MIDA) to hold out promotional and marketing activities, it added.
The Prime Minister said that the govt will establish the Project Acceleration and Coordination Unit (PACU) to accelerate the implementation and coordination of approved investment projects.
To help companies upgrade their technologies, penetrate the worldwide market through outsourcing and increase their export value, he said the govt agreed that a second round of projects would be awarded to the Strategic Domestic Investment Fund for companies that that they had previously been eligible for installation.
He said the manufacturing license for non-sensitive industries are going to be approved within two business days.