“Giving tax break is very common to entice people to set up business. If you are a Indian or Chinese your forebear coming from India or China know that very well. They were entice to come to Malaysia to open up the country and land were practically given free. Old people told me their land rental is a single pepper corn. Those who don’t know about tax break know zero about businesses. Having said that, I think the maximum is 10 yrs so Lynas is unusual to be given 12 years.
A classic example: Business has to give Bumi 30% share but when Intel came to Penang, they were allowed SPECIAL treatment and don’t have to give a single share to Bumi (may be this explain the extra 2 yrs tax break?). Why? This is because the government badly wanted Intel because when they come, they will bring along an entire electronic industry to Malaysia. So while government do not directly benefited from Intel, the follow on industry created by Intel greatly benefited Malaysia. And for this reason, all responsible Malaysian should go read this document.
And also for this reason, those who think Lynas is a only about 300 jobs and no tax revenue for Malaysia are just being short sighted. They don’t know that because of Lynas, a Green Technology industry could be born and Siemens is the 1st to annouce coming precisely because of Lynas. But because of Anti-Lynas, Siemens may pull out so there go more jobs and tax revenue for Malaysia.
In other words, the plant WILL boost local and country's economy. The Lynas plant WILL provide substantial economic benefits during the decades of operation. The jobs, employee's taxes, and direct and secondary spending WILL strengthen the economy
SO DO NOT ASK THE NON-PHYSICAL and RATHER CHILDISH QUESTION OF WHAT BENEFIT DO MALAYSIA GET FROM THE LYNAS PLANT!
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