The Hindu Business Line : Malaysia invites investments in pharma, chemicals

Investment sops
Major tax incentives for companies investing in the manufacturing sector are "Pioneer Status or Investment Tax Allowance."
A Pioneer Status company will get a five-year partial income tax exemption, and applications will have to be submitted to the Malaysian Industrial Development Authority.

Kolkata , Sept. 18

Describing Malaysia as a cost-competitive business location, the Deputy Minister of International Trade and Industry, Government of Malaysia, Mr Ahmad Husni Mohamad Hanadzlah, on Monday invited more Indian investments into Malaysia in chemicals, pharmaceuticals and biotechnology areas.

Mr Hanadzlah, heading a large Trade and Investment Mission to India, said here at a CII-organised meet on Malaysia-India Business Opportunities that investments were particularly sought in the high technology areas of manufacturing, which also attract many incentives to strengthen industrial linkages.

Major tax incentives for companies investing in the manufacturing sector are "Pioneer Status or Investment Tax Allowance", based on priorities such as technology used, levels of value-added and industrial linkages.

A Pioneer Status company will get a five-year partial income tax exemption, and applications will have to be submitted to the Malaysian Industrial Development Authority (MIDA). New and existing companies that undertake design, R&D and production of qualifying automotive component modules or systems are eligible for Pioneer Status with a tax exemption of 100 per cent of the statutory income for a period of five years.

Pointing out that a Malaysia-India joint study has been initiated for a Comprehensive Economic Cooperation Agreement between the two nations, the senior trade official said plenty of opportunities existed for Indian companies in Malaysia, especially in the services sector. He also expressed the hope that the Asean-India FTA would be concluded soon, as it would open up a 560-million strong Asean (10-member) market to Indian business.

`Look East' policy

Calling for stronger India-Malaysia business ties, especially in the wake of Government of India's strong `Look East" policy, Dr Sabyasachi Sen, State Principal Secretary for Commerce and Industry, said Bengal needs to go forward in manufacturing, once the infrastructural issues are sorted. He said the State was looking for FDI in manufacturing in a strong way, and sought stronger Malaysian presence in West Bengal.

Earlier, in his welcome address, Mr Sanjay Budhia, Honorary Consul General, Consulate General of Malaysia, Kolkata and Chairman, CII Regional Committee on Trade Policy, said bilateral economic relations between the two countries have been on an upswing, with trade touching nearly $5 billion during 2005-06, up from $4.3 billion in the previous year, recording a growth of 17 per cent.

He said though the trade surplus was tilted in favour of Malaysia (has been so for the last nine years), there was big potential for Indian companies in sectors such as palm oil refining, drugs and pharmaceuticals, textiles, power, railways, civil construction, training and IT.

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