JPDC: Tax incentive packages can attract local, international companies to PIPC
14 Oct 2023
The provision of tax incentive packages can serve as an attraction and boost the competitiveness of the Pengerang Integrated Petroleum Complex (PIPC) as an investment destination, especially for petrochemical and chemical companies from both within and outside the country.
Johor Petroleum Development Corporation Bhd (JPDC) said this initiative aimed to encourage companies to establish their operations in the complex, aligning with the government’s goal of creating a high-value economic activity ecosystem.
“Among the pioneering investors currently operating there are Petroliam Nasional Bhd (Petronas), who developed the Pengerang Integrated Complex (PIC) with partners such as Saudi Aramco and LG Chemical; Dialog Group Bhd, which developed the Pengerang Deepwater Terminals with partners like Royal Vopak, Petronas and the Johor State Government; and Johor Corporation, which developed the Pengerang Industrial Park.
“For the upcoming phases of PIPC development, JPDC welcomes the participation of companies involved in the production of specialty chemical products and petrochemical-based products,” it said in a statement on Friday.
JPDC said it also appreciated and is grateful for Prime Minister Datuk Seri Anwar Ibrahim’s announcement regarding the designation of PIPC as a development hub for the chemical and petrochemical sector.
It said this designation came with a package of tax incentives in the form of special tax rates or investment tax allowances as announced by Anwar in the Budget 2024 yesterday.
PIPC is a downstream oil and gas and petrochemical industrial area spanning 9,269 hectares in Pengerang, Kota Tinggi.
Since its development, the industrial area has accommodated facilities such as oil refining plants, petrochemical production plants, liquid product transportation terminals, crude oil and liquid petroleum product storage tanks, regasification facilities and other supporting infrastructure and facilities.
The planned 25-year development of PIPC has received committed investments of nearly RM140 billion as of the middle of the second development phase (2020-2025).