Budget 2020: More Support For Companies in Malaysia
Companies in Malaysia are getting a major boost from Budget 2020. The government is set to allocate funds upwards of RM1billion for customized packaged investment incentives. This will be yearly for five years to attract foreign companies to the country, a move that will help companies and create more jobs in Malaysia.
The Finance Minister explained that the essence of the programme is to attract Fortune 500 companies. The companies must be heavyweights in the area of technology, manufacturing creativity, and new economic sectors. The companies must invest a minimum of RM5billion each in Malaysia.
This will help to generate income through economic activities to support small, medium enterprises (SMEs). It also aims to create high-end jobs not less than 150,000 while boosting the manufacturing and services ecosystems, all within five years.
What the Government Will Do for Companies in Malaysia
Also, the government would put RM1billion into customized packaged investment incentives yearly for 5 years. The aim here is to transform businesses or companies in Malaysia into competitive enterprises on the global stage. To access these incentives, companies must that they can grow and export their services and commodities internationally.
How Will the Do Measure strengthen Companies in Malaysia?
This measure will significantly strengthen the local supply chain ecosystem and create an additional 100,000 high-quality jobs for Malaysians over the next five years.
Further, a thorough review of the current incentive framework is underway. The existing framework comprises the Promotion of Investments Act 1986, Special Incentive Package, and Incentives under the income Tax Act 1967, with a new framework expected to be ready by 2021.
Special tax incentives geared towards promoting activities in the electrical and electronics (E&E) industry will be provided to charge up the 5G digital economy and industry. This will include ten years’ tax income exemption for E&E companies in Malaysia who invest in knowledge-centric services.
The objective of Budget 2020 is to make doing business in Malaysia very easy and straightforward, by reducing the threshold and procedures involved to achieve this.