KUALA LUMPUR, Oct 23 — The government will implement nine projects and initiatives in 2016 to boost domestic investments which are projected to contribute 26.7 per cent to the Gross Domestic Product (GDP). 

In stating this, Prime Minister Datuk Seri Najib Tun Razak said the government would undertake the Malaysian Vision Valley development, covering  108,000 hectares in Negri Sembilan, with an initial investment forecast of RM5 billion.

“The Cyber City Centre in Cyberjaya with a development cost of about RM11 billion over five years would also be implemented,” he said when tabling the Budget 2016 in the Dewan Rakyat here today.

Najib, who is also the Finance Minister, said a third venture, the development of an airport township or KLIA Aeropolis over 526.09 hectares is expected to attract investments of RM7 billion.

Khazanah Nasional Bhd will also invest RM6.7 billion in nine high impact domestic projects next year and also allocate RM500 million as venture capital and private equity fund, including a tourism capital venture fund of RM50 million.

For the RAPID Complex in Pengerang, Johor, Najib said there would be an estimated investment of about RM18 billion.

In a seventh initiative to attract more private investments, he said that a number of projects would be implemented, including development of the Rubber City in Kedah, the Samalaju Industrial Park in Sarawak and Palm Oil Jetty in Sandakan, Sabah.

According to Najib, the government would also allocate RM730 million to funds under the Malaysia Investment Development Authority (Mida) to enhance development in chemical, electrical and electronics , machinery and equipment, aerospace and medical devices industries and services. 

“To further promote reinvestments among existing companies in the manufacturing and selected agriculture sectors whose Reinvestment Allowance incentive has expired, a new incentive, that is, the Special Reinvestment Allowance, will be provided.

“The rate of claim is at 60 per cent of the qualifying capital expenditure and is allowed to be set off against the 70 per cent of statutory income from the years of assessment 2016 to 2018. — Bernama