Government Investment Incentives

Following are the list of investment incentives provided by MIDA, MATRADE and SME Corp which may apply or be directly related to the palm oil and oil palm industry in Malaysia.


MIDA (Malaysian Industrial Development Authority)
  A: Main Incentives for the Manufacturing Sector

    New Companies

  • Pioneer Status - 100% tax exemption on statutory income during 5 years exemption period; or
  • Investment Tax Allowances - allowance of 100% on the qualifying capital expenditure incurred within a period of 5 years.
  • Enhanced Incentives for the Utilization of Oil Palm Biomass - biomass companies that utilize oil palm biomass to produce value-added products such as particle board, MDF, plywood, pulp and paper are eligible.
  • Renewable Energy - pioneer status with a tax exemption of 100% of the statutory income for a period of 10 years; or
  • Investment Tax Allowances - 100% on qualifying capital expenditure within 5 years. Allowance can be use to set off against 100% of the statutory income in each year of assessment.
  B: Incentives for the Agricultural Sector
  • Pioneer Status
  • Investment Tax Allowance
  • Incentives for Food Production
  • Incentives for Reinvestment in Food Processing Activities
  • Reinvestment Allowance
  • Reinvestment Incentives for Resource Based Industries
  • Agricultural Allowance
  C: Incentives for the Environmental Protection
  • Incentives for the Storage, Treatment and Disposal of Toxic and Hazardous Wastes
  • Incentives for Energy Conservation
  • Incentives for Waste Recycling Activities
  • Incentives for the Use of Renewable Energy Resources
  • Accelerate Capital Allowance
  D: Incentives for Research and Development
  • Contract R&D Company
  • R&D Company
  • In-house Research
  • Double Reduction for R&D
  • Incentives for Researchers to Commercialize Research Findings
  E: Incentives for Training
  • Incentives Tax Allowance
  • Special Industrial Building Allowance
  • Tax Exemption on Education Equipment
  • Tax Exemption on Royalty Payments
  F: Incentives for the Shipping and the Transportation Industry
  • Tax exemption for shipping operators
  • Exemption from import duty and sales tax on prime movers and trailers
  G: Other General Incentives
  • Industrial Building Allowance
  • Infrastructure Allowance
  • Tariff Related Incentives
  • Incentives for Export
  • Training Incentives
  • Incentives for Acquiring Proprietary Rights
  • Incentives for use of Information Technology
  • Incentives for the use of Environmental Protection Equipment
  • Donations for Environmental Protection
  • Incentives Employees' Accomodation
  • Incentives for Employees' Child Care Facilities

For more information, go to www.mida.gov.my

MATRADE (Malaysia External Trade Development Corporation)
  Export Promotion Activities

Grants to assist Small and Medium Enterprises (SMEs) undertake activities for the development of export markets.
Eligible activities are:

  • Participation in Trade Missions, Specialized Selling Missions and International Trade Fairs
  • Participation in Malaysia Trade Centre Overseas
  • Preparation of Promotional Items
  • Promotion of Brands Overseas
  • Designong and Improving Packaging of Products
  • Participation in Overseas International Tenders

For more information, go to www.matrade.gov.my

SME Corp (Small & MediumEnterprises Corporation Malaysia)
  Type of Grants
  • Business Planning and Development
  • Product and Process Improvement
  • Productivity and Quality Improvement and Certification
  • RosettaNet Standard Implementation
  • Enhancing Product Packaging Design and Labeling Capabilities SMEs
  • Development and Promotion of Halal Products
  • Skills Upgrading

For more information, go to www.smecorp.gov.my

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