MORE TARGETED TAX BREAKS FOR 2018 BUDGET
Incentives to be given to industries that govt wants to promote, says Johari
THE 2018 budget is likely to see more targeted tax incentives for sectors that the government wants to develop. Second Finance Minister Datuk Seri Johari Abdul Ghani said this yesterday after chairing the 2018 Budget Focus Group Meeting on Boosting Private Investment.
“Whatever incentives that the government will give, they will be given to industries that we want to promote.
“It can no longer be incentives for all, but it depends on the flavour of the year, and flavour of the future.
“For instance, if we want to promote robotics, the (tax) incentive focuses on how we want to encourage people to come and invest in robotics,” he said.
Johari said representatives from industries present during yesterday’s meeting had also wanted more incentives related to automation.
“Our economy is driven by the small- and medium-sized enterprises (SMEs).
“They have problems getting workers. In this respect, they are encouraged to go into automation. With more incentives on automation for SMEs, they can use these incentives to move forward.”
Johari said incentives would be considered for those who were adapting the “Fourth Industrial Revolution” trend, which centres on automation and data exchange in manufacturing technologies.
On views that Malaysia should not be overly excited by China’s huge market, he said Malaysia could not run away from doing business with big economies.
“We are strategically located, allowing us to leverage and capitalise on China’s economic development,” he said, adding that 16 per cent of Malaysia’s total trade was with China, and about nine per cent was with the United States.
To a question, Johari said not many countries were locked in an “investment mode” save for a few, especially China.
“Which other country in the world now is on investment mode? China is in investment mode, seeing how it is investing in other countries, including in Malaysia.
“They come to our country to invest in strategic industries that we need and require a lot of capital.
“This will benefit the country and its people in terms of creating employment and stimulating the economy during difficult times,” said Johari.
CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak was reported calling on the government to scrutinise Chineseled investments in Malaysia.
He had also suggested that the government come up with measures, taking into account the value of the upcoming Chineseled investments in the country.