Foreign investments

Government to provide RM2bil fund to attract strategic foreign investment

KUALA LUMPUR: The government will provide a special fund of up to Ringgit 2 billion under the 2022 budget to attract strategic foreign investment from multinational corporations (MNCs).

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said this is particularly aimed at multinationals who can complement the industry value chain and generate knowledge-based job creation and development opportunities for women. local small and medium-sized enterprises (SMEs).

“To enable the economic recovery of the country, this budget allocates 25 million ringgit to explore high impact investments and new export markets through trade and investment missions,” he said at the meeting. tabling of the 2022 budget in the Dewan Rakyat today.

He said that to meet the skill requirements of particularly high value-added industries, RM80 million will be provided through the Ministry of International Trade and Industry to train 20,000 employees who support industrial clusters such as maintenance, repair and operation (MRO) in Subang. , Selangor; electrical and electronic in Kulim, Kedah; and chemicals in Gambang, Pahang.

“In addition, RM 50 million is provided through state skills development centers such as Sarawak, Johor and Penang to increase skill levels in technical and vocational education and training. (TVET) of 5,000 workers in the fields of oil and gas welding, industrial automation and mechatronics, ”he said.

Tengku Zafrul said that in order to further stimulate the participation of local industry players in drone technology services, a RM 100 million matching grant program is provided to Bumiputera SMEs to explore business opportunities in the aerospace field.

To increase productivity through automation, the minister said, the government is also providing RM100 million in smart automation grants to 200 manufacturing and service companies to automate their business processes.

“The government will also extend the two-year Supplementary Reinvestment Allowance (RA) for existing businesses in Malaysia that have exhausted their RA period and special RA. This will bring the total additional RA period to five years.

“This decision is part of the recommendations made by the Special Working Group to Facilitate Business (PEMUDAH) which have been taken into account for the 2022 budget,” he said.

Tengku Zafrul also assured that the government will continue to study similar recommendations with a view to smoothing trade affairs. -Bernama

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