MALAYSIA is giving tax incentives to strategic and high impact projects to attract overseas investments and be globally competitive.
Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said in light of various attractive perks offered by other countries, the government will consider other incentives in addition to those provided under Section 127 of the Income Tax Act 1967.
He said this in response to a debate in Parliament on the incentives given to Lynas Advanced Material Plants in Pahang.
Mustapa clarified that Lynas was given tax breaks because it is a strategic sector that will help build an ecosystem for downstream high technology and green technology industries. It will also generate economic spin-offs.
Siemens of Germany has also shown interest to invest in such green technology here, he added.
"The Lynas project is categorised as strategic and has the potential to attract new investments, especially in downstream high-technology, energy-saving and environment-friendly sectors," Mustapa said in a statement yesterday.
"Lynas is expected to contribute to the economy, among others by rai-sing foreign exchange earnings with a RM2.5 billion capital injection, generating RM65.8 million in economic service activities and spending RM52.8 million on utilities.
"It will also help create jobs and provide economic spin-offs for downstream industries," Mustapa said.
Read more: Mustapa explains Lynas tax perk - http://www.btimes.com.my/Current_News/BTIMES/articles/jrlyni/Article/#ixzz1zIhkscsZ
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