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Minimum effective tax, RM1 bln fund will increase investments into Iskandar Malaysia: IRDA

Minimum effective tax, RM1 bln fund will increase investments into Iskandar Malaysia: IRDA

08 Oct 2022

The introduction of the minimum effective tax at the global level and creation of investment fund of over RM1 billion announced in Budget 2023 will increase investments into Iskandar Malaysia.

Iskandar Regional Development Authority (IRDA) chief executive Datuk Dr Badrul Hisham Kassim said the initiatives were seen as part of intensive measures to face the uncertain economy next year.

“We are happy with the announcement of the new incentives and extension of existing incentives in attracting investments into Iskandar Malaysia, such as the introduction of the minimum effective tax at the global level, and creation of an investment fund of more than RM1 billion.

“So are the incentives involving income tax and related investment and commitment by Government-Linked Companies and Government-linked Investment Companies to make domestic direct investment of up to RM45 billion which we believe will increase investments into Iskandar Malaysia,” he said in a statement here, today.

Badrul Hisham also expressed his appreciation to the government for the RM80 million allocation for Iskandar Rapid Transit (IRT) project which will become the public transportation platform connecting 90 per cent of populated areas, besides contributing to the reduction in greenhouse gas emissions.

Besides IRT, he said Iskandar Malaysia will also benefit from the allocation for the implementation of infrastructure projects, namely Gemas-Johor Bahru double-tracking, RTS Link, upgrading of the North-South Expressway at North Senai-Pandan, and the construction of an overtaking lane at Senai Desaru Expressway.

Additionally, the allocation of RM550 million for the food security agenda including incentives such as BNM Agrofood Financing Scheme at 3.5 per cent, Keluarga Malaysia (Malaysian Family) Hardcore Poverty Eradication Programme, as well as extension of related tax incentives should be lauded, he said.

“This coincides with the latest economic sectors in Iskandar Malaysia, namely modern agriculture…at this time, one area in the northern part of the region has been dedicated for the development of this sector,” he added.

“In Iskandar Malaysia, economic developments that have been implemented are planned to have spillover effects on areas and residents who live in and around areas in the vicinity of the corridor.”

Badrul Hisham said other allocations for industries such as electrical and electronics, aerospace, science, technology and innovation, and creative will also give positive impacts on the developments in Iskandar Malaysia.

Meanwhile, he said Budget 2023 is expected to increase job opportunities and income of the people, hence assist in achieving the government’s target to strengthen the recovery and wellbeing of the Malaysian Family.

“In Iskandar Malaysia, the programmes and initiatives that have been implemented related to jobs and income using government funds have successfully benefitted over 6,000 people, thereby enhancing the development in the region,” he added.

Source: Bernama