THE Malaysian Investment Development Authority (MIDA) will set up a new unit called the Project Acceleration and Coordination Unit (PACU) to facilitate the approval process and speed up implementation of approved manufacturing projects.

Senior Minister Mohamed Azmin Ali said in a statement today that under the unit, the manufacturing licence approval process for non-sensitive industries will be shortened to just two business days.

Besides that, Azmin said the International Trade and Industry Ministry is confident that the tax and investment incentives outlined in the National Economic Recovery Plan (Penjana) will boost domestic and foreign investment, as well as attract multinational companies to relocate their operations to Malaysia.

He said the tax exemption incentives were expected to attract more investment and create new high-tech job opportunities.

The government yesterday announced a full 10-year exemption for new capital investments ranging from RM300 million to RM500 million, while investments in properties exceeding RM500 million will enjoy full tax exemption for 15 years.

A Special Reinvestment Allowance Incentive will be provided for the years of assessment 2020 and 2021.

Azmin said the ministry welcomed Penjana’s 40 initiatives announced by Prime Minister Muhyiddin Yassin yesterday.

“(The ministry) is confident that the new recovery plan, along with the easing of the movement control order (MCO), will provide a shift to drive and revitalise the country’s economy while ensuring a complete economic recovery,” Azmin said.

On the the extension of the RM5 billion Wage Subsidy Programme with an allocation of RM600 per worker, he said: “The wage subsidies introduced under the previous economic stimulus package has been well received by workers and employers and has saved more than 2.2 million jobs.”

“With the reopening of almost all industries and more than 12 million workers resuming work, the extension of the programme will continue to help workers.”

On the introduction of incentives ranging from RM600 to RM1,000 to employers offering jobs to the unemployed and trainees, he said this will ensure that the benefits provided will be enjoyed by various sectors of society.

Azmin said tax exemption for the purchase of information and communication technology (ICT) hardware will encourage the private sector to remain productive and resilient, even while working from home.

“This will further enhance the use of technology in the work process, and further the government’s desire to inculcate digitisation in the business community and economy,” he said.

He said Penjana also offers a number of advantages as the country’s key economic catalysts, including SMEs, mid-tier companies (MTCs), social enterprises and start-ups.

As for an allocation of RM100 million for the National Technology and Innovation Sandbox, he said this will be a catalyst for rapid start-up growth in the country, he added.

“A special financial assistance of RM500 million for Perbadanan Usahawan Nasional Bhd and Mara is in line with efforts to strengthen the Bumiputera’s involvement and sustainability in business and entrepreneurship.” – Bernama, June 6, 2020.