Penjana special tax incentives should be extended to existing investors

For illustration only. Photo: Twitter

KUALA LUMPUR: The Penjana special tax incentives to attract foreign direct investments (FDIs) to relocate their manufacturing facilities to Malaysia from 2021 until 2022 should be extended to existing investors which had received approvals for expansion, diversification or new projects in 2019, as well as to domestic investments.

The Federation of Malaysian Manufacturers (FMM), in a statement, said these groups are “captive” investments which can immediately take advantage of the incentives to deliver the desired results more quickly, especially in terms of multiplier effect on their existing suppliers such as the small and medium enterprises (SMEs), as well as realised project implementation.

“Given that the recent trend is the diversification of Malaysia’s export markets with greater focus on higher value-added manufacturing activities, FMM welcomes the introduction of the Global Trading Centre (GTC).

However, FMM hopes the details, including the conditions and guidelines will be made available soon.

On trade facilitation, FMM thanks the government for initiating the National Authorised Economic Operator (AEO) facility which has been broadened to integrate the Royal Malaysian Customs Department with other government agencies to facilitate trading across borders.

Meanwhile, Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar said the alignment of Budget 2021 with the United Nations’ 17 Sustainable Development Goals 2030 is timely.

“This includes the commitment to create the Sustainable Finance Hub and to put Malaysia as a hub for sustainable living. The issuance of Sustainable Bonds to finance environmental-friendly and social projects in 2021 is keenly awaited,” he said.

Abdul Wahid said an expansionary and holistic budget totalling RM322.5 billion is appropriate with current priorities for the people’s wellbeing, business continuity and economic resilience.

“Apart from increasing the ceiling for the Covid-19 Fund and various measures to protect public health, many benefits are extended to the rakyat  such as the introduction of Bantuan Prihatin Rakyat of up to RM1,800 for households earning less than RM2,500 per month, 1.0 per cent income tax reduction for taxpayers in the RM50,001 to RM70,000 taxable income band and reduction in the Employees Provident Fund contribution from 11 to 9.0 per cent,” he said. – Bernama