Malaysia budget: not the right kind of incentives for investment?
For a budget aimed at boosting investment, Malaysia’s 2011 Budget doesn’t contain many such incentives, some industry figures are saying. B.I.G. Industries director Dr. Lau Ban Tin has claimed the government could have done more with its limited funds. Instead of delivering a budget full of highly visible mega projects and construction, Malaysian industry’s needs are more subtle: tax exemptions, special industrial zones, special harbors and government guarantees on land purchases.
These are the incentives to attract foreign and local private investment. Lau said that Infrastructure projects, including the proposed 100 floor Warisan Merdeka tower, could be left until after Malaysia reaches its 2020 economic goals.
Others, particularly those in the ‘green’ technology industry, have praised the Budget’s incentives, saying government programs would help sustain the sustainable technology sector and create jobs through programs like the Feed in Tariff (FiT) mechanism and the Investment Tax Allowance (ITA) for renewable energy producers.
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