Malaysia Bares Investment Incentives For Iskandar Development Region Investors
Taken from AHN
23 Oct 07
Vittorio Hernandez - AHN News Writer
Putrajaya, Malaysia (AHN) - Four major fiscal and non-fiscal incentives await local and foreign investors pouring money in Malaysia's Iskandar Development Region. Formerly known as South Johor, the IDR seeks to attract 40 billion ringgit ($11.8 billion) in investments over the next five years.
Malaysia Prime Minister Abdullah Ahmad Badawi, after chairing on Tuesday the IRD Authority board meeting and advisory council meeting in Malaysia's administrative capital, bared the four-point incentive, emphasizing local investors are welcome.
"It is not true we are not keen on local investors. The corridor is not only for foreign investors....we hope they (local investors) will participate in the development plan of the IDR," The Star quoted the prime minister.
Among the incentives for IDR investors are income tax exemption until 2015, tax exemption until 2020 on earnings from rental or sale of buildings, tax exemption on payments to non-residents for services, interest and royalties until 2015 and tax exemption for management, supervisory and marketing services until 2020.
The IDR - projected to become the new growth engine for Malaysia - so far has attracted only a tenth of the needed money to fully develop the 2,217 square kilometer area. Iskandar Development Region, officially launched in November 4, 2006, covers a triangular area bound by the Senai Airport on the north, the Port of Tanjung Pelepas on the southwest and the Johor Port in Pasir Gudang on the southeast.