Foreign investments

Budget 2021: Government sets out measures to attract foreign investment to Malaysia

KUALA LUMPUR (November 6): As part of its efforts to attract foreign investment to Malaysia, the government announced that one billion ringgit will be provided as a special incentive for high value-added technology investments in Malaysia.

Finance Minister Tengku Datuk Seri Zafrul Aziz announced that the fund aims to support investments in research and development (R&D) in the aerospace sector as well as in electronics clusters such as the industrial parks of Batu Kawan, Penang and Kulim , Kedah.

In addition, a high-tech fund worth RM 500 million will also be provided by Bank Negara Malaysia to support high-tech and innovative companies.

“The fund will allow Malaysia to remain competitive in the global supply chain, maintain the supply chain ecosystem and protect highly skilled jobs,” Zafrul said.

Under the previously announced Pelan Jana Semula Ekonomi Negara (PENJANA) incentive program, the government has offered special tax rates to some manufacturing companies that have relocated their operations to Malaysia and made new investments.

In this regard, Zafrul announced that the request for the incentive will be extended for one year until December 31, 2022 and that the scope of tax incentives will also be extended to certain companies in the service sector, which would have a significant multiplier effect. by providing an income tax rate of 0% to 10% for a period of 10 years.

To support the implementation and development of the national supply chain and increase the production of local products, Zafrul announced the national development program valued at RM 1.4 billion.

In addition, the maritime development and logistics program, the sustainable development finance program, the tourism infrastructure program and the public transport fund will be extended until December 31, 2023 with a fund size of 3.7 billion. by RM.

For more articles on the 2021 budget, click here.

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