Malaysia Incentive for Foreign Investment

Do you think Malaysia give enough incentive to encourage FDI. I don’t think so why:-
- Malaysia Tax rate is higher then other country in region.

- The incentive department does not overseas the overall incentive. Example yes incentive was given but if the company does not enjoy for the period given it should extend for future.

- All the stimulation package is given to Malaysia holding companies – In current market environment MNC is also struggling to source for fund for future investment and growth.
Other country in region & around the world offer better incentive. For example Rolls Royce was given direct funding for setting up plant in Singapore.

- Malaysia government protect high management to be local staff – I have nothing against local talent. But if we don’t have the right industry expert then we need to make exception to this.

My take – Malaysia government need to understand Malaysia is small country and MNC Company will not think twice to pull out their investment if the government does not help them to fund future investment.

MNC Companies only pays net tax less then 10% of total income, and with Malaysia tax rate of 26% this works disadvantage for them.

Government should reduce tax rate for Technology Company in MNC and with this tax saving MNC companies will investment in future growth.