Tengku Zafrul: Investment implementation rate almost 80% up to June 2023
31 Oct 2023
The investment implementation rate is close to 80 per cent for the period from 2018 to June 2023.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said out of the total investment approvals of RM753.9 billion in the manufacturing and services sector, up to RM593.5 billion or 78.7 per cent had been realised during the period.
“For the period 2018 to June 2023, the total investment approved is worth RM753.9 billion in the manufacturing and services sector under the supervision of the Malaysian Investment Development Authority (MIDA).
“This investment involves 9,201 projects that will generate a total of 455,984 new job opportunities.
“Of the total approvals, up to RM593.5 billion or 78.7 per cent of the total investment approved during the period had been realised. The investment implementation rate for that period is close to 80 per cent,“ he said when winding up the debate on the Supply Bill 2024 for the ministry in the Dewan Rakyat today.
He said the Ministry of Investment, Trade and Industry (MITI) always implements careful planning from time to time, especially to improve aspects related to facilitating the entry and realisation of investments.
Tengku Zafrul said the government has taken an approach in making administrative reforms through the establishment of the Investment and Trade Action Coordination Committee (JTPPP) under MITI.
“The JTPPP which had been convened for the first time on Oct 16, 2023 was chaired by me. The second meeting will be held tomorrow.
“In general, JTPPP acts as a platform that is able to monitor and take action on issues faced by investors, especially for strategic and iconic investment projects.
“The JTPPP monitoring starts as early as when the application is expressed by the company concerned, until the investment projects are realised,“ he said.
He said the establishment of the JTPPP is an administrative reform initiative, expressing the government’s commitment in an effort to ‘translate plans into action’ while also supporting the role of the National Investment Council (MPN), which is an investment-related council at the highest level of the country.
“From January to June 2023, Malaysia has attracted a total of RM132.6 billion in approved investments in the service, manufacturing and primary sectors, which is 60 per cent of the target for 2023.
“Domestic direct investment (DDI) is the main contributor with total approved investments worth RM69.3 billion (52.2 per cent), while foreign direct investment (FDI) amounts to RM63.3 billion (47.8 per cent),“ he said.
He said various incentives have been introduced and implemented by the government which not only aims to attract investment in electric vehicles (EVs) but also to benefit the people.
“The incentives offered include direct and indirect tax exemptions.
“For direct taxes, the government offers income tax exemptions through the Pioneer Status Incentive or Investment Tax Allowance of up to 100 per cent for a period of up to 10 years to encourage investment in the production of EVs and related critical components such as batteries, motors and others.
“Indirect tax incentives include those for import duty, excise duty and sales tax,“ he said.
To encourage the use of EVs in the country, the government is also offering incentives directly to EV owners such as a complete exemption from road tax for EVs whether they are locally assembled or imported for four years until Dec 31, 2025.
He said the government is also offering individual income tax relief of up to RM2,500 for the cost of installation, rental and purchase including hire purchase of equipment or EV charging facility subscription fees for the assessment year 2022-2023.
“Under Budget 2024, this incentive period has been extended for another four years until the assessment year 2027,“ he said.
He said under Budget 2024, the government has introduced the Electric Motorcycle Usage Incentive Scheme with a rebate of up to RM2,400 — this scheme aims to help petrol-type motorcycle users to switch to electric motorcycles.