KUALA LUMPUR – Lynas Malaysia Sdn Bhd (Lynas) has not received any special treatment or benefits since starting its operations in Malaysia.
In a statement today, the company said the benefits offered to Lynas when investing in Malaysia are consistent with those offered to other investors.
“Malaysia awards pioneer tax status to attract foreign investment in projects of national and strategic importance.
“These projects involve heavy capital investment, new and emerging technologies and specialised machinery and equipment.
“Tax incentives of this nature are standard practice in countries around the world. The duration of the tax incentive depends upon the size of the investment.
“Lynas was invited to Malaysia as a foreign direct investor and qualified for pioneer tax status,” the statement said.
The statement was issued in relation to comments made about Lynas’ pioneer tax status in Parliament on February 23.
According to the statement, Lynas, while given a tax exemption on the manufacture of rare earth under the pioneer tax status incentives, had paid tax like any other company on non-rare earth-related matters.
On February 23, the media reported that Science, Technology and Innovation Minister Chang Lih Kang told the Dewan Rakyat that Lynas did not pay a single sen in corporate taxes as it had been given tax-exempt status by the government for 12 years.
Lynas added they had invested RM3 billion in plant and equipment in Malaysia and spent RM730 million annually in Malaysia, while also contributing to the creation of 4,600 direct and indirect local jobs.
“Lynas only seeks to be treated fairly and equitably, in line with other companies in Malaysia,” it said. – Bernama, February 28, 2023
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