State to benefit from various high-value projects
25 Oct 2023
INVESTING in high-growth, high-value projects is the key to strengthening Johor’s economy, which in turn will transform Malaysia into an investment powerhouse, says an exco member.
Johor investment, trade, and consumer affairs committee chairman Lee Ting Han said the Federal Government’s decision to turn the Pengerang Integrated Petroleum Complex (PIPC) into a development hub for the chemical and petrochemical sector was a positive step.
“The trade war between the US and China has transformed and restructured our supply chain in the region. We can benefit from this.
“Budget 2024, combined with the New Industrial Master Plan 2030, will pave the way for more investment in the country, especially now that the government has introduced results-based incentives to encourage high-value investors to stay and make Malaysia their operation hub.
“The tax incentive package for PIPC in the form of a special tax rate or investment tax allowance will also help attract the related industries to Johor,” he said when contacted.
“The introduction of the Investment and Coordination Action Committee under the National Investment Council will also be helpful in cutting red tape.
“We hope that the state government will be involved in this, as the Federal Government and the state have different jurisdictions that can play a role in helping to realise future projects.”
He added that Johor would also benefit directly from the National Energy Transition Roadmap (NETR) which involved sustainable development, electric vehicles and carbon capture, utilisation and storage (CCUS).
“Johor has the advantage in terms of complete infrastructure to support a sustainable agenda and energy transition.
“This is why Tesla has chosen the state to become its second hub to build its supercharger facility after the Klang Valley,” said Lee.
He said the state could also generate low-carbon economies through solar and renewable energy development.
Another possible area of growth he highlighted was new technology using artificial intelligence, cloud computing, the Internet of Things and big data.
“We can conduct transactions and projects from afar due to digitalisation,” he added.
Budget 2024 also proposed a special income tax rate of between zero and 10% on film production companies, foreign film actors and movie crews working in Malaysia.
“This will help Iskandar Malaysia Studio, which has produced films such as Marco Polo, attract more international film projects,” said Lee.
Source: The Star