KUALA LUMPUR: The government is providing 100% tax relief for up to 15 years for companies that undertake manufacturing or services activities in underdeveloped areas in Malaysia.
Tax relief for activities in undeveloped areas was one of the incentives announced last year at Budget 2015.
According to International Trade and Industry Minister (MITI) Datuk Seri Mustapa Mohamed, since 2006 to 2014, 3,498 projects have been cumulatively approved in “undeveloped areas” within the five economic regions in Malaysia.
He said total domestic investment in these projects amounted to RM99.09bil and foreign investment, RM165.65bil, adding that these projects had since created 381,016 new jobs.
“Given the positive impact, the Government under Budget 2015 decided to enhance the special incentives under the economic corridors to include more areas that are less developed,” he said today.
“We want to bring more companies to rural areas.”
Apart from announcing added incentives for development in undeveloped areas, Mustapa also announced added tax relief for three other incentives that were announced at Budget 2015.
These were incentives for industrial area management, capital allowance to increase automation in labour intensive industries and incentives for the establishment of a principal hub in Malaysia.
