Business

US companies seek red tape removal for reinvestment

Members of American Malaysian Chamber of Commerce convey request to US ambassador Brian McFeeters

Updated 4 years ago · Published on 09 Nov 2021 9:30PM

US companies seek red tape removal for reinvestment
United States ambassador Brian McFeeters (left) says there is much enthusiasm among US companies as they continued to hire workers during the lockdown and organised corporate social responsibility projects, donations and activities in Penang. – United States Embassy Kuala Lumpur pic, November 9, 2021

by Rachel Yeoh

GEORGE TOWN – Consistency, transparency, and predictability were some of the issues highlighted by members of the American Malaysian Chamber of Commerce to United States ambassador Brian McFeeters.

McFeeters is on his first working visit to Penang after helming the post eight months ago.

From the 20 to 30 American companies met, one of the most prominent requests by long-time investors included the removal of red tape when it comes to reinvestment.

“These companies have plans to reinvest, but it has proved to be complicated when it comes to getting tax breaks and lengthening the stay of skilled Americans in the country to train workers and get the system going.

“It is relatively easier for new investors to get investment incentives, but reinvestments are more complicated.

“It looks the same on paper, but in practice, it is more difficult,” he said during a presser at E&O Hotel at the end of his two-day visit to the state.

He said that many of these companies are looking to expand with multimillion-dollar investments.

He discussed the challenges and opportunities for US businesses in Penang with the member companies, the importance of supply chain resiliency, and the enormous potential for closer economic ties between the US and Penang.

Nevertheless, McFeeters said that there is much enthusiasm among the companies as they continued to hire workers during the lockdown and organised corporate social responsibility projects, donations and activities in Penang.

Malaysia continues to be attractive to these companies because of the strong talent base and ease in doing business.

New companies like Lam Research and Boston Scientific found it easy and quick to get their company up and running just over a year upon investment approval in Penang.

However this is still slower than neighbouring Kedah, where all approvals can be done in just ten months under the state’s “E10″ programme.

McFeeters said that this corporation is a valuable asset to both countries, not just in trade numbers but also in skill transfer.

“These companies take Malaysian employees, send 200 to 300 of them to the US for a few months for upskilling, before they come back and take on more senior roles.

“Penang is the centre of the global supply chain in many key industries and is a key partner in supporting US investments. 

“The US government is committed to supporting supply chain resiliency in Penang, building stronger business ties with the state, and strengthening the US.”

McFeeters also toured Boston Scientific and Lam Research’s new Batu Kawan manufacturing plant. He discussed opportunities for the semiconductor and medical devices industries as Penang continues to recover from the pandemic.

He also visited Soon Soon Group, an importer of US agricultural products and a close partner of the US Soybean Export Council, a trade association that promotes exports of American soy products. 

McFeeters spoke to its managing director Soon Bin Neoh about the contribution of US soy imports to sustainable food products and Malaysia’s economic growth. – The Vibes, November 9, 2021

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