KUALA LUMPUR – The government will ensure that Malaysia continues to be a choice destination for foreign direct investment (FDI) and domestic direct investment.
“Investment is important for Malaysia. With that, the government will ensure that it remains attractive for both foreign and domestic investors," said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz in Bernama TV's Ruang Bicara programme.
He said the government allocated RM1 billion to provide a special incentive package for high-value-added technology under Budget 2021.
“This fund aims to support research and development investment in aerospace, as well as electronic clusters such as in the Batu Kawan, Penang, and Kulim, Kedah, industrial parks.”
Tengku Zafrul emphasised the need for automation and digitalisation to push Malaysia's economy forward.
The RM500 million High Technology Fund provided by Bank Negara Malaysia is to support high technology and innovative companies, he said.
The fund will enable Malaysia to remain competitive and maintain its position in the global supply chain, as well as protect high-skilled jobs.
When tabling Budget 2021, Tengku Zafrul said the government is committed to making Malaysia a destination for high-value services.
The initiatives in this regard include the extension of the principal hub tax incentive to December 31, 2022, and a new tax incentive for the establishment of a global trading centre at a concessionary rate of 10% for five years, and renewable for a period of another five years.
Additionally, the government allocated RM500 million for the implementation of the National Digital Network initiative to provide connectivity to 430 schools nationwide.
The Malaysian Communications and Multimedia Commission will allocate RM7.4 billion for 2021 and 2022 to build and upgrade broadband services.
FDI inflow is projected at RM16 billion to RM17 billion this year, down from RM37.5 billion in 2019. – Bernama, November 28, 2020
