BUDGET 2019: MALAYSIA REMAINS COMMITTED TO ENSURE A CONDUCIVE BUSINESS ENVIRONMENT
The new and extended incentives announced under Budget 2019 reflect Malaysia's commitment in ensuring a conducive business environment for domestic and foreign investors against the backdrop of global challenges. As the principal investment promotion agency for the country, MIDA looks forward to the holistic study to review the 130 existing investment incentives under the purview of 32 Investment Promotion Agencies.
MALAYSIAN TEXTILE AND FASHION ENTREPRENEURS TO LEAP TO THE NEXT LEVEL
Malaysia has emerged as one of the global trendsetters in textile and apparel wear. From the streets of Paris to the catwalks of New York, Malaysian designers have had the honour of creating clothing that have been worn by celebrities, members of royalty as well as heads of states. Going forward, we want to see more entrepreneurs adopting higher value-added processes and technologies. The nation wants to build a stronger and more comprehensive ecosystem, one that focuses on talent, skills and innovation.
TRADE WAR: A BOON OR A BANE?
It was only recently that the dwindling global economy gained traction, before the notion of protectionism crept through the cracks of globalisation. Alluding to unfair trade practices and intellectual property violation by China paired with a bloated trade deficit in the US, the wake of the 2018 witnessed US imposing tariffs on Chinese washing machines and solar panel which then extended to worldwide steel and aluminium products.
DEEPENING THE LOGISTICS SUPPLY CHAIN
Malaysia is one of the most diversified economies in the world with the services, manufacturing, agriculture and mining sectors providing the right balance to the economy. Being the world's 24th largest trading nation, Malaysia's logistics industry plays an integral role in enabling the growth of the country's supply chain.
TAKE ADVANTAGE OF THE AUTOMATION CA TODAY & INCREASE YOUR PRODUCTIVITY!
For a future that works, automation will be high on the list of any manufacturing company that is seeking to maintain their competitiveness. As companies around the world are increasingly utilising technological advances, smarter and more flexible machines will continue to be necessary on a larger scale. MIDA continues to stress on the importance of reaping the economic gains of automation and promote its adoption through the Automation Capital Allowance (Automation CA) incentive.
MALAYSIA: EMBRACING CHANGE There are three constants in life… change, choice and principles - Stephen Covey
Change is inevitable and it was a leaping change for Malaysia, when a new government was elected replacing a 60 year old ruling party. While the world lauded Malaysia for her democracy and the peaceful transition of power, many, particularly investors were skeptical with the new government's policy directions. However, the newly elected Honourable Prime Minister Tun Mahathir Bin Mohamad has given his assurance that Malaysia continues to adopt business friendly policies and will not curtail freedom of businesses. It was emphasised that the Government is keen to have a seamless businesses environment where both domestic and foreign investors are welcomed to invest in Malaysia.
IMMIGRATION UNIT AT MIDA, FACILITATING BUSINESSES SINCE 2007
Many may not be aware that an on-site Immigration Unit has been established in MIDA HQ since 3 December 2007. The unit, with a staff strength of 10 officers, aims to improve the Government delivery system relating to the issuance of work permits and visas of related applications approved by MIDA. The Unit also assists and advises MIDA in terms of immigration matters.
REQUIREMENTS FOR MANUFACTURING LICENCE
The Economic Census 2016 on Establishment Statistics by the Department of Statistics revealed that the number of business establishments in Malaysia increased from 662,939 in 2010 to 903,818 in 2015 with an average annual growth rate of 6.4 per cent. The number of establishments in the manufacturing sector totaled 48,806 or 5.4 per cent of the total establishment in 2015.
APPROVED INVESTMENTS IN 2017 RECORDED RM197.1 BILLION
Last year, the global economy proved fairly resilient in the face of challenges. Despite being affected by inward looking policies by major economies, the year turned out to be better than expected with these economies growing in sync for the first time since the global financial crisis in 2010. According to a new finding by Grant Thornton's quarterly business survey, global business confidence improved at its highest ever level of 58% in Q4 2017. This was also the case for Malaysia as its economy exceeded all expectations and recorded a strong growth of 5.9% as at the end of 2017. This performance is above the GDP registered in the preceding years of 4.2% and 5.0% in 2016 and 2015, respectively.
LEVERAGE ON ACA TO INCREASE COMPETITIVENESS
The Automation Capital Allowance incentive which has been introduced by the Government in 2015 is divided into two categories. The first category is for high labour intensive industries namely rubber products, plastics, wood, furniture and textiles. The automation capital allowance of 200% is provided on the first RM4 million expenditure incurred within three years of assessment from 2015 to 2017. Under the 2018 Budget, the incentive for the first category was extended until YA 2020.