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.