ADDITIONAL INCENTIVES FOR THE MANUFACTURING SECTOR OFFERED BY THE FEDERAL GOVERNMENT FOR THE EASTERN CORRIDOR STATES, SABAH AND SARAWAK
The additional incentives provided by the Federal Government for companies engaging in manufacturing projects in the Eastern Corridor States of Peninsular Malaysia, Sabah and Sarawak are:
Pioneer Status (PS) (Application submit to MIDA*)
100% tax exemption on statutory income for 5 years .
Investment Tax Allowance (ITA) (Application submit to MIDA*)
100% allowance on the qualifying capital expenditure incurred within a period of 5 years.
The allowance could be utilized to offset against 100% of statutory income for each year of assessment.
Reinvestment Allowance (RA) (Application submit to Inland Revenue Board)
Free to offset RA against 100% of statutory income.
Other Incentives - infrastructure allowance and double deductions on freight charges (Application submit to MIDA*)
Infrastructure Allowance of 100% of the qualifying expenditure.
Double deduction on freight charges incurred for exporting rattan and wood-based products (excluding sawn timber and veneer).
Double deduction on sea freight charges incurred for shipping goods from Sarawak to Peninsular Malaysia via ports in Peninsular Malaysia.
A second round of pioneer status or investment tax allowance for existing companies that relocate their manufacturing activities to Sarawak.
* MIDA - Malaysian Industrial Development Authority
INCENTIVES FOR THE MANUFACTURING SECTOR OFFERED BY THE STATE GOVERNMENT OF SARAWAK
The incentives provided by the Sarawak State Government for companies in the manufacturing sector are:
30-50% rebate for industrial land if project is satisfactorily completed and started operation within 36 months from date of alienation of land.
Log Export Quota Policy
Of total log harvested from Permanent Forest Estates, 60% for local processing and balance of 40% for export.
10% rebate given by Sarawak Electricity Supply Corporation (SESCO) for industrial consumers on electricity consumption for 5 years from date of supply of connection.