Freight Management gets special tax incentive package

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KUALA LUMPUR (Jan 19): Freight Management Holdings Bhd (FMH) said its wholly-owned subsidiary FM Global Logistics (M) Sdn Bhd has been granted a special incentive package from the Malaysian Investment Development Authority (Mida) for development of an e-Commerce fulfilment hub in Shah Alam, Selangor.

In a filing with Bursa Malaysia, FMH said the special incentive will enable it to qualify for income tax exemption via Investment Tax Allowance (ITA) of 60% of qualifying capital expenditure within a five-year period.

The ITA can be utilised to deduct up to 70% of the statutory income for each year of assessment, FMH added.

FMH said it will proceed to finalise the plans for the development of the e-Commerce fulfilment hub, in accordance with conditions as per the letter of approval, The special incentive package is expected to contribute positively to its future earnings, the filing added.

FMH shares fell one sen or 0.78% to close at RM1.27 today, giving it a market capitalisation of RM238.27 million.