KUALA LUMPUR, Oct 23 — Despite prevailing economic challenges, Malaysia will be able to attract much needed direct investments intot he country given its strong economic fundamentals.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Malaysia continued to receive new investments while existing investors undertook expansion of their existing projects and even diversified their operations in the country.
“This is evident from the manufacturing sector’s performance in the first seven months of this year.
“A total of 453 manufacturing projects were approved with investments worth RM53.5 billion against investments of RM51.8 billion approved in the same period last year,” he told reporters after the tabling of the 2016 Budget by Prime Minister Datuk Seri Najib Razak in Parliament today.
He said the government had agreed to provide a special reinvestment allowace (RA) for three years to companies in selected manufacturing and agricultural sector.
The special RA is equivalent to 60 per cent of capital expenditure incurred and could be offset against 70 per cent of the statutory income. The incentive will be made effective for year of assessment of 2016-2018.
Mustapa also welcomed the RM500 million allocation to micro Bumiputera entrepreneurs channeled through the National Entrepreneurial Group Economic Fund as it would further assist them in terms of liquidity and enhance their business.
The government also announced an allocation of RM150 million through the Malaysian Government Bumiputera Agenda Steering Unit to implement various programme. “This would ensure smooth implementation of the Bumiputera development agenda.
“MITI will collaborate with the Bumiputra Agenda Steering Unit to utilise the allocation to develop entrepreneurs under its agencies (MITI),” he added. — Bernama
