Budget 2021: Govt lays out measures to drive foreign investments into Malaysia

Budget 2021: Govt lays out measures to drive foreign investments into Malaysia
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KUALA LUMPUR (Nov 6): As part of its efforts to drive foreign investments into Malaysia, the government has announced that RM1 billion will be provided as a special incentive package for high value-added technology investments in Malaysia.

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

Besides that, a High Technology Fund worth RM500 million will also be provided by Bank Negara Malaysia to support high technology and innovative companies.

"The fund will enable Malaysia to remain competitive in the global supply chain and maintain the supply chain ecosystem and protect high skilled jobs," Zafrul said.

Under the previously announced Pelan Jana Semula Ekonomi Negara (PENJANA) incentive package, the government offered special tax rates to selected manufacturing companies that relocated their businesses to Malaysia and brought in new investments.

On this, Zafrul announced that the application for the incentive will be extended for another one year until Dec 31, 2022 and the scope of tax incentives will also be extended to selected companies in the services sector, which would have 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 domestic supply chain and increase the production of local products, Zafrul announced the National Development Scheme valued at RM1.4 billion.

In addition, the Maritime Development and Logistics Scheme, Sustainable Development Financing Scheme, Tourism Infrastructure Scheme, and Public Transport Fund will be extended until Dec 31, 2023 with a fund size of RM3.7 billion.

For more Budget 2021 stories, click here.

Kathy Fong