‘DUTCH FIRMS CAN GROW IN MALAYSIA’
Concessionary tax rate, incentives to attract investors, says ambassador
MALAYSIA’S current economic and investment climate is suitable for Dutch companies looking to expand their businesses in the country.
The Netherlands Ambassador to Malaysia Aart Jacobi said this was the best time for Dutch companies to do so, especially in the manufacturing sector.
He said the government would provide a concessionary tax rate of zero to 10 per cent for 10 years for selected businesses that could provide multiplier effects to the economy.
“In addition to the proposed extension of the Principal Hub incentive with relaxed conditions and the introduction of a new global trading centre incentive, the Penjana (Economic Recovery Plan) proposal of a preferential tax rate for selected manufacturers has been extended to 2022 and the scope has been extended to cover selected services including high technology, research and development and medical-related services.
“These proposals, combined with the relaxation to the l icensed manufacturing warehouse and free-zone regimes, aim to enhance Malaysia’s attractiveness, particularly as a supply chain hub,” he told the New Straits Times.
He said with next year’s budget in place, Dutch companies operating in Malaysia would need to remain steadfast and pull through as the government appeared to have resisted making amendments to the tax law.
“This is considerably fair as it may not be the best time to change too many things during such great uncertainty.”
Jacobi als o said there were now close to 50 Malaysian businesses operating in the Netherlands, ranging from agri-food and technology to energy, aviation and services.
“The Dutch government, from its engagement with some of these investors, noted that not only are these businesses here to stay, but they will also expand their operations due to rising demand from the global market,” he said.
As the Malaysian government was optimistic about growth next year, investments flowing into the Netherlands and other global markets would likely diversify and maximise their revenues, he said.
“In short, we do not foresee the recently-tabled 2021 Budget to have much impact on or hinder investments from Malaysia,” Jacobi added.