Malaysia courting more overseas investments

Malaysia is providing tax incentives and grants to woo more foreign investments to develop the digital economy and improve infrastructure.

Malaysia unveiled its 2020 budget in early October, which focused on providing tax incentives and grants to woo more foreign investments, in particular from China, to develop the digital economy, and improve infrastructure.

Accelerated capital allowance and automation capital allowance on the first RM2 million and RM4 million on qualifying capital expenditure will be extended to the year 2023, for companies in the manufacturing sector; and

The government will also allocate RM550 million as grants to help companies in the manufacturing and services sector embrace automation.

Courting major multinationals

The government will make available up to RM1 billion worth of incentives over five years for multinational companies.

These incentives are primarily aimed at attracting Fortune 500 companies and global companies engaging in high-end technology, manufacturing, or value-added industries.

To qualify, companies will need to invest at least RM5 billion into the country. The government hopes this investment will create 150,000 jobs over the next five years.

Domestic businesses seeking to become export-orientated are eligible for up to RM1 billion worth of incentives over five years. An RM500 million in loans has also been given to women entrepreneurs.