Tri-Mode granted tax incentive, licensing approval from MIDA
25 Aug 2021
Tri-Mode System (M) Bhd has obtained the integrated logistic services (ILS) tax incentive and international integrated logistics services (IILS) status from the Malaysian Investment Development Authority (Mida).
Under the incentive, it has been granted a 70% income tax exemption against statutory income for five years via the approved tax incentive-pioneer status under the Promotion of Investments Act, 1986.
As stipulated by the conditions of the incentive, the group has to maintain at least 60% of its equity held by Malaysians, undertake at least one value added activities such as distribution and supply chain management.
In addition, it has to maintain at least 80% full time local employees and incur yearly operating cost of at least RM5.96 million during the incentive period as well as applying for a pioneer status certificate within 24 months of its approval.
With the IILS status, Tri-Mode can be issued a freight forwarding agent/customs agent licence by the Royal Malaysian Customs Department with 100% equity ownership.
Its group managing director Datuk Hew Han Seng said the approval is expected to add value to its services and contribute positively to its future earnings.
“The IILS status will enable Tri-Mode to have 100% operating licence on customs declaration activities which will also benefit Tri-Mode in terms of operation efficiency and improve overall revenue and profitability of the group, as currently the custom declaration activities are operating under an associate company of the group,” he said in a statement today.
On Aug 12, the group unveiled its business expansion plans to purchase 5.38 acres of industrial land near its headquarters and facilities to expand its warehouse services business to cater for positive demand of warehousing and third-party logistics services.
It intends to construct an additional warehouse-cum-distribution hub of 150,000 sq ft on the newly purchased industrial land to cater for business expansion plans in the coming one to two years.
Source: The Sun Daily