MITI formulates strategies to speed up recovery of trade, economic activities
15 Sep 2020
The Ministry of International Trade and Industry (MITI) has introduced several measures and strategies, including tax exemption and investment tax allowance, to speed up the recovery of trade and economic activities from the Covid-19 pandemic, the Dewan Negara was told.
Deputy International Trade and Industry Minister Senator Datuk Lim Ban Hong said under the National Economic Recovery Plan (PENJANA), the Malaysian Investment Development Authority (MIDA) is providing a 100% tax exemption for 10 years for new investments in the manufacturing sector with fixed-income investments of between RM300 million-RM500 million.
He said MITI is also providing a 100% tax exemption for 15 years for new investments in the manufacturing sector with fixed assets exceeding RM500 million and a 100% investment tax incentive for a period of five years for existing Malaysian companies (that wish to) relocate their overseas manufacturing facilities to Malaysia with investment in fixed assets exceeding RM300 million.
“MITI also provides the Reinvestment Allowance for the assessment years 2020 to 2022 for existing companies in selected manufacturing and agricultural activities that implement reinvestment and grants manufacturing licence approval (Manufacturing Licence – ML) on a fast track basis through the e-ML digital platform for non-sensitive industries within two working days,” he said during a question and answer session in the Dewan Negara here today.
Lim was responding to a question from Senator Sabani Mat who wanted to know the strategies and immediate steps taken by MITI to restore trade and economic activities that were severely affected by the pandemic.
On the country’s exports, he said MITI has introduced initiatives and strategies through the Malaysia External Trade Development Corporation (MATRADE), including eTRADE to help export-related companies promote their products and services to the global market on the top 20 global e-Commerce platforms.
MITI has also introduced the Market Development Grant initiative to help ease the financial burden faced by small and medium enterprise (SME) export-related companies.