2015 Budget: Incentives for the industrial sector

Prime Minister Datuk Seri Najib Tun Razak has announced several incentives for the industrial sector under the 2015 Budget proposals on Friday.

The Prime Minister said a 100% tax exemption for a period of five years would be in place to encourage the private sector to undertake the management, maintenance and upgrading of industrial estates in less developed areas, while a 70% tax exemption for the same period will be granted for similar activities in other areas. The move is expected to see a more systematic management of industrial estates particularly in the less developed areas, which is expected to attract more investors.

To encourage companies in labour-intensive industries to adopt automation in their manufacturing process, a 200% capital allowance on automation expenditure will be granted to high labour- intensive industries (such as rubber products, plastics, wood, furniture and textiles), for the first RM4million expenditure incurred from 2015 to 2017.

For other industries, an automation capital allowance of 200% will be granted on the first RM2million expenditure incurred from 2015 to 2020.

To enhance efforts in attracting high quality investments into the country, the Government will offer a more specialised incentive package for investment projects based on technology, innovation and knowledge, involving highly qualified and knowledgeable employees with high salaries.

A customized package of incentives for Principal Hubs will also be introduced early next year to encourage multinational companies to set up global operational centres in Malaysia.

Source: Prime Minister’s 2015 Budget speech

Posted on : 11 October 2014
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Last Updated : Tuesday 7th April 2020