Govt allocates RM50 mln matching grants to support aerospace components development - MoF

He said the area surrounding KLIA Sepang would be developed as an aerospace industry cluster, especially for maintenance, repair and overhaul (MRO)

"The government will continue to support investments in high-impact and strategic sectors that are capable to drive the nation's development," he said at the tabling of Budget 2023 at the parliament today.

He said to attract new aerospace companies and encourage existing companies' expansion, the income tax incentive and investment tax allowance would be extended until Dec 31, 2025.

Meanwhile, he said RM20 million would also be allocated for matching grants to support product development and produce local medical device industry talents next year.

Tengku Zafrul said the government would also prioritise pharmaceutical products and medical devices procurement from local manufacturers.

He added that the income tax incentive for local pharmaceutical product manufacturers is extended to the end of 2025 to encourage pharmaceutical development.