Malaysian Investment Development Authority (Mida) aims to attract more high-technology investments in the machinery and equipment as well as engineering supporting industry to enhance the country’s competitiveness in the global market.
Senior director, non-resource industry, Wan Hashim Wan Jusoh said Mida was looking at generating quality investments in new and emerging technologies, which were necessary to move the economy up the value chain as well as rebrand Malaysia’s image as a centre for high-technology and global activities.
“Mida is aiming not just at high-value and high-technology investments but also those which will help cement the country’s reputation for churning innovative and creative products and services,” he told a briefing.
Wan Hashim said the move was in line with the Government’s aspiration that emphasised the development of high value-added, technology-intensive and knowledge-based industries in new growth areas to diversify the industrial base.
Director, machinery and engineering supporting industries division, N. Sangaran, said the industry could not rely on low-technology products anymore as it had became less competitive with other countries which were offering cheaper labour cost.
He said industry players needed to shift to a more capital, knowledge and skills-intensive model which was export-oriented and could create high-income jobs with greater gross national income impact.
Sangaran said the objective of developing the industry was not only to make Malaysia an Asean production hub for high-tech machinery and equipment and a regional distribution centre but also the preferred location for total solution provider for machinery and equipment.
He said the Government offered pioneer status of up to 10 years tax-free for targeted high-tech and specialised machinery and equipment or investment tax allowance of up to 100% for qualifying capital expenditure incurred within five years for income tax exemption.
“The targeted machinery and equipment are specialised process machinery or equipment for specific industries, robotic and factory automation equipment, machine tools, material-handling equipment and packaging machinery including their modules and components,” he said.
Last year, Mida approved 74 investment projects worth RM744.2mil from local and foreign investors in the machinery and equipment industry while in the engineering supporting industry, the authority approved 42 projects worth RM570.1mil.
The machinery and equipment industry exported RM23.7bil worth of products
(Source: the star online)