Tax breaks for NCER investors
PM announces incentives for development of northern states
GEORGE TOWN:
Companies undertaking commercial activities under the Northern Corridor Economic Region (NCER) Blueprint 2.0 will get special incentives for their investments.
Prime Minister Datuk Seri Najib Tun Razak announced the special tax incentive package at the launch of the NCER Development Blueprint 2016-2025 (Blueprint 2.0), held at Setia SPICE Convention Centre in Bayan Baru yesterday.
“Companies investing in manufacturing, agriculture, bio-industry, and services in the northern region will be given priority for the special tax incentives,” Najib said in his speech.
By 2025, Najib said the average household income was expected to increase to RM12,964 with the help of NCER Blueprint 2.0.
“The average household income for a bottom 40 (B40) income group is also expected to rise to RM6,043,” he added.
He said the seven growth nodes of NCER are Kedah Science And Technology Park and Kedah Rubber City in Kedah, Manjung-Aman Jaya Maritime City and Greater Conurbation in Perak, Chuping Valley Industrial Area and Perlis Inland Port in Perlis, and Batu Kawan Development in Penang.
“This package will help elevate the investment in the four states to a higher level,” he added.
Northern Corridor Implementation Authority chief executive Datuk Redza Rafiq said the special incentives which include tax exemption and allowance, would be extended to eligible companies for their capi- tal expenditure for plant and machinery, spare parts, raw materials, components, and research and development activities.
The special tax incentives package is for both foreign and local companies, which also include small and-medium enterprises.
Also present at the ceremony were Penang Chief Minister Lim Guan Eng, Perak Mentri Besar Datuk Seri Dr Zambry Abd Kadir, Perlis Mentri Besar Datuk Seri Azlan Man and special adviser to Najib on the NCER Datuk Seri Zainal Abidin Osman.
The Penang Chinese Chamber of Commerce (PCCC); the Free Industrial Zone, Penang; Companies’ Association (Frepenca); Federation of Malaysian Manufacturers (FMM), and Real Estate & Housing Developers’ Association (Rehda) welcomed the incentive package.
PCCC president Datuk Seri Choot Ewe Seng said it would help to enhance the competitive edge of SMEs in the region and also create new job opportunities.
“As the package is also open to foreign companies, we can also expect more overseas investment to pour into the north,” Choot said.
Frepenca committee member Datuk Heng Huck Lee said the package would drive more SMEs in the electronic and semiconductor industries to invest in more research, design and development activities.
“However, Blueprint 2.0 should also look into how to resolve the problem of skilled labour shortage faced by electronic manufacturers.
“Maybe the Federal Government can introduce tax relief or tax allowance to encourage more graduates to work in the ICT, electronic, and semiconductor industries,” he added.
FMM North vice-chairman Datuk Lee Teong Li said the special tax incentive package would enable SMEs in the manufacturing sector to increase exports.
Rehda immediate past chairman Datuk Jerry Chan said the projects and incentives would definitely provide a further boost to the economies of the four northern states.