FDI incentives a highlight in 2010 Budget

Published: 2009/10/20

INCENTIVES to attract foreign direct investment (FDI) into Malaysia is expected to be among the highlights of the upcoming Budget 2010.

"It has always been our role to provide whatever necessary incentives to encourage the entry of FDI into the country," Deputy International Trade and Industry Minister, Datuk Mukhriz Mahathir said here today.

"We are after all competing with other countries particularly in the region, for investments. I cannot disclose though what the specific incentives are in the new budget.

"But, be assured,we will ensure continuity in being competitive as an investment destination," he added.



Mukhriz said the government is committed to encouraging more FDI providing tax exemptions and the latest is, the liberalisation of 27 sub-sectors of the services industry.

"As to what specific new incentives the new budget has, it depends very much on the Prime Minister, Datuk Seri Najib Tun Razak," he added.

Commenting on the new National Automotive Policy (NAP), he said the Ministry of International Trade and Industry is expected to announce details of the review soon.

"We are seeking a balance between imports and locally produced cars and of course, Proton is our main concern. Whatever it is, we will take into consideration, the interest of all parties," he said.

He also said this in response to a question as to whether Proton would be the only one to have the national car status under the NAP review.

As the country's economy is directly linked to trading globally, Mukhriz said there was a need to uplift the local automotive industry, so that it provides a balance.

"When there is a downturn, we will be impacted directly. Therefore, by uplifting the automotive industry, we can balance off our trading activities," he said. - Bernama