KUALA LUMPUR, July 16 (Bernama) – The Malaysian Investment Development Authority (MIDA) has identified 433 new projects which have the potential to bring in RM97.4 billion worth of new investment to the country, said International Trade and Industry Minister Mohamed Azmin Ali Thursday.
He said these high-impact projects are expected to have a direct impact on the country’s economic growth.
“Despite the country being hit by the COVID-19 epidemic, various initiatives have been introduced, especially in granting of tax exemptions under the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) initiative,” he said when replying to a question posed by Jerlun MP, Mukhriz Mahathir, during Dewan Rakyat (Malaysia’s lower house of Parliament) sitting Thursday.
Among the initiatives introduced under PRIHATIN includes the introduction of tax exemption for 10 to 15 years for new foreign direct investment in the manufacturing sector involving capital investment of RM300 million or more.
Under the stimulus package, the government also provides a 100 per cent investment tax allowance for five years for existing companies that transfer their facilities to Malaysia.
Mohamed Azmin also said the 6.3 per cent to 7.5 per cent Gross Domestic Product (GDP) growth next year projected by international agencies was also proof of foreign investors’ confidence in Malaysia’s economy.
It was reported previously that the World Bank had projected Malaysia’s GDP growth to resume at 6.9 per cent next year as COVID-19 outbreak eases.
This is after the world body had revised the country’s GDP to a contraction of 3.8 per cent due to the negative global impact in the first half of this year.
However, the World Bank together with Bank Negara Malaysia (Central Bank of Malaysia) is optimistic the local economy will rebound strongly in the second half of the year as economic activities resume.
“With the confidence of outsiders in the Malaysian economy, this also reflects the confidence of foreign investors and maintains Malaysia as a world investment destination,” he said.
— BERNAMA