ECA obtains MITI approval to extend pioneer status - MIDA | Malaysian Investment Development Authority
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ECA obtains MITI approval to extend pioneer status

ECA obtains MITI approval to extend pioneer status

20 Feb 2023

Automated manufacturing solutions provider ECA Integrated Solution Bhd has obtained approval from the Ministry of International Trade and Industry (MITI) to extend its pioneer status for another five years from 27 November 2022 to 26 November 2027.

The company, through its subsidiary ECA Advanced Solutions Sdn Bhd, was granted the pioneer status back in October 2017 for a period of 10 years, whereupon the expiry of the initial five years, it would be extended for another five years subject to fulfilment of relevant conditions.

The initial five years of pioneer status for ECA was till November 2022.

The status allows for a full exemption on statutory income derived from pioneer and promoted activities.ECA executive director and chief operating officer Chua Lye Hock said as a player in the fast-evolving automation technology industry, the company continuously invest in new capabilities to stay ahead of the competition.

“The tax incentives enable us to allocate more funding for investment and motivate us to pursue ground-breaking solutions that will benefit not just our customers and also put our country on the map,” said Chua, who is also ECA’s major shareholder.

On the business front, ECA continues to experience strong demand for its products and services, with a number of jobs as well as enquiries coming from the automotive and electric vehicle sectors.

Overall, beyond the shift towards digitalisation and automation, the prevailing geopolitical tensions are also prompting many companies to re-evaluate the strategic positioning of their manufacturing facilities.

In addition, rising operating costs and a shortage of skilled workers are pushing many companies to consider relocating their plants to Eastern Europe and Southeast Asia, including Malaysia.

“Looking ahead, the outlook of the automated manufacturing solutions industry remains bright, underpinned by the industrial revolution of manufacturing technologies.

“We are optimistic about the future and are fully committed to staying at the forefront of technological innovation in order to meet the evolving needs of our customers.

“We believe that our strong industry expertise, established track record along with the added boost in the form of pioneer status will position us well to capitalize on the growing opportunities for automated manufacturing solutions and to drive continued growth for our business,” Chua said.

Source: NST