9 malaysiaasaworld classdatacentrehub

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: er marketing 5 EPPs, including campaigns • Business Services: Hold roadshows to position 34.9 Malaysia as a world-class data centre hub • E&E: Promote Sarawak as a site for silicon producers; promote Northern Corridor and Klang Valley as sites for wafer and cell producers • Healthcare: Fund pharmaceutical trade shows to promote made-in-Malaysia generics exports Total 55.2 96 Chapter 3 Enabling the Success of the ETP Fiscal Incentives Many of the EPPs require government financial support for either capital expenditure or operating expenditure. Broadly, this Government support can come in the form of general tax credits and holidays, tax incentives that are directly aimed at increasing specific investment and other forms of non-tax fiscal support such as grants or soft loans. Table 3-2 describes the types of fiscal incentives that have been requested. These incentives will only be disbursed upon demonstration of commitment from the private sector. The Agriculture NKEA requests tax concessions to help attract foreign partners to invest in an integrated food park. Investment tax allowances have also been requested to encourage greater levels of private investment in a range of sectors, such as advanced packaging plants in the E&E sector. The non-tax incentives requested by the EPPs, consists mainly of grants and loans from various government agencies. Although these incentives have been identified by 22 EPPs, the amounts requested are relatively small (e.g. RM19 million grant to build early childcare and education training centres). Many of the loans or grants requested are from funds that have already been set up by the Government for these specific purposes, such as the Green Technology Fund and working capital loans from SME Corporation. Many of the incentives are specific to sectors. Rather than a blanket change to the tax code, the Government will empower MIDA and other agencies as appropriate, to negotiate requested incentives with investors on a case-by-case basis. However, the Ministry of Finance will establish a common approach and framework to provide the basis for conducting these negotiations. This will mean that the provisions for these incentives do not have to be designed from scratch each time. The Government will also review these requests to ensure that only those requests with the highest potential GNI impact receive financial support from the public sector. Economic Transformation Programme 97 A Roadmap For Malaysia Table 3-2 Description Enablers required from EPPs Lead agency Tax credits and holidays 7 EPPs, including • E&E: Exempt pioneering silicon producers and wafer and cell producers from tax • Healthcare: Provide tax breaks to companies qualifying for Health Metropolis status • Agriculture: Give tax concession to foreign partners that set up in an integrated food park GNI impact (RM billion) Ministry of Finance Investment tax allowance Non-tax incentives (e.g. grants and loans) 4 EPPs, including • Palm Oil: Provide tax incentive for acquisition of foreign oleo derivatives and food companies • Tourism: Provide investment tax allowance (ITA) for 4-star and 5-star hotel construction, upgrades and refurbishments • E&E: Provide incentive to scale up advanced packaging plants 22 EPPs, including • Education: Fund the building of new early childcare and education (E...
View Full Document

This note was uploaded on 02/24/2014 for the course ACCOUNTING financial taught by Professor Alan during the Spring '14 term at Howard.

Ask a homework question - tutors are online