Projects Worth US$642 Million Involving Chinese Companies Approved In Malaysia Since 2008

KOTA KINABALU (Sabah,Malaysia), June 4 (Bernama) -- Seventy-four projects worth US$642 million and involving the participation of companies from China have been approved in Malaysia since 2008, said Deputy Minister in the Prime Minister's Department, VK Liew. He also said the projects provided 7,528 jobs. "Malaysia's investment policies, particularly on manufacturing under the Industrial Coordination Act 1975, requires companies with a shareholders' fund of RM2.5 million (US$781,220.75) and above or engaging 75 or more full-time employees, to apply for a licence. "However, automatic approval, is given for non-sensitive industries where a 100 per cent foreign equity ownership is allowed. "There is no restriction imposed on foreign companies investing in Malaysia on the repatriation of profits," he added. He said this in his talk on "Malaysia Economic Outlook" at the economic forum in conjunction with the 3rd World Youth Congress of Jiangmen, China, here on Sunday. Liew said incentives were given in the form of pioneer status with an income tax exemption ranging from 70 per cent to 100 per cent and between five-10 years. "There is also an investment tax allowance of between 60-100 per cent in qualifying expenditure for five to 10 years, a reinvestment allowance of 60 per cent on qualifying capital expenditure and an import duty and sales tax exemption for raw materials, machinery and equipment," he added. He said Malaysia's economic recovery was on track this year with the Gross Domestic Product (GDP) increasing by 5.1 per cent in 2011 compared to a negative growth in 2009. "We have also reduced unemployment by 0.6 per cent to 3.1 per cent. Our trade surplus in 2011 stood at US$39.3 billion with international reserves at US$134.4 billion as at Feb 15, this year," he added. -- BERNAMA