Govt to allocate RM1 bln for fund to boost high tech investment

KUALA LUMPUR: The government will allocate RM1 billion for high-tech and high value-added investment incentive packages, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

In his presentation of the Budget 2021 in Parliament today, he said among others, the fund aims to support investments in research and development (RD) in aerospace and electronic clusters in the industrial areas in Batu Kawan, Penang and Kulim, Kedah.

Additionally, the High-Technology Fund worth RM500 million will be provided by Bank Negara Malaysia (BNM) to support high-technology and innovative companies.

“The fund will enable Malaysia to remain competitive in the global supply chain and maintain the supply chain ecosystem and protect high-skilled jobs,” he said.

At the same time, he said several initiatives will be implemented in line with the government’s commitment to transform Malaysia into a destination for high-value services, including easing the tax incentive requirements for the Principal Hub and extending the tax incentive to Dec 31, 2022.

Other initiatives include implementing a tax rate for the establishment of the Global Trading Centre at a concession rate of 10 per cent for five years, which can be renewed for a period of five years.

The government has also raised the sales value limit for value-added and supplementary activities conducted in the Free Industrial Zone, as well as for licensed manufacturing warehouses from 10 per cent to 40 per cent of the annual value.

He added that the government has also extended the special income tax rate treatment at a flat rate of 15 percent for a period of five years for non-citizens holding key positions in companies which are transferring their operations to Malaysia to attract new strategic investments.

--BERNAMA