KUALA LUMPUR: Malaysian Investment Development Authority (MIDA) looks forward to the government’s holistic study to review the 130 existing investment incentives under the purview of 32 Investment Promotion Agencies (IPA).
Its chief executive officer Datuk Azman Mahmud said that the review would reflect Budget 2019’s commitment to ensure a conducive business environment, and optimal use of the country’s resources.
“MIDA has established an i-Incentives Portal under its Incentives Coordination and Collaboration Office (ICCO),” he said, adding that the platform would help the review process as it is a one-stop centre with information about all incentives currently available in the country.
“We would be pleased to share the information from ICCO and work with all relevant Government agencies and stakeholders for the review,” Azman said.
For the manufacturing sector, companies should take advantage of the revisions of tax mechanisms and incentives, initiatives to promote the adoption of 4th Industrial Revolution (IR4.0) practices, facilities for the production of environmentally-friendly plastics based on bio-resins and bio-polymers, incentives for small and medium enterprises (SMEs) as well as facilitation for logistics and transportation activities.
“One of the facilities provided by MIDA is the Automation Capital Allowance (ACA) which aims to encourage the quick adoption of automation, particularly in labour intensive industries. With the large focus on IR4.0 in Budget 2019 and the launch of the IR4.0 blueprint known as Industry4WRD, we expect to see more high technology investments being realised in Malaysia,” added Azman.
Grants are available to promote research and development (R&D) activities, international certification and standards as well as modernisation of facilities and equipment through MIDA’s Domestic Investment Strategic Fund (DISF)
“MIDA has so far approved 308 projects with investments of RM14.7 billion, with an approved grant value of RM1.51 billion. We also trust that the double taxation deduction for expenses related to the National Dual Training Scheme for IR4.0 and other related programmes approved by MIDA will spur more companies to train or upscale their workforce in IR4.0 activities,” continued Azman.
On the bold measures in supporting new technology developments, Azman said: “Under the 9th Strategy of Budget 2019, MIDA is excited about the prospects of alternative financing sources including streamlining the many venture capital funds managed by Government agencies and allocation of RM50 million to set up a Co-Investment Fund to invest alongside private investors via equity crowdfunding and peer-to-peer financing.”
He noted as well the years ahead are expected to be positive particularly with the many initiatives in place to create a more dynamic economy for Malaysia.