Malaysia is definitely amongst the most attractive locations for foreign investment in the region of Southeast Asia (Also see Why investing in property business is safe in Malaysia). This is mainly thanks to the country’s effort to manage and maintain a stable and attractive economy so that all of the pillars including the legal infrastructure are capable of supporting and driving direct investments.
Malaysia is the 5th largest recipient of investments from foreign entities back in 2014 in the part of Southeast Asia. There are numerous multinational companies with a focus in the insurance, finance, manufacturing as well as mining or distribution which have shown a specific interest towards investing in Malaysia (Also see Corporate Secretarial – Foreigner And Company Law).
The government is trying to seek out every incentive for foreign investments
This is without a doubt amongst the most important factors that have to be taken into through consideration. The Government of Malaysia itself has managed to outline 13 distinctive reasons for which the foreign investors should take Malaysia into consideration for their investments. Amongst the most highlighted ones are the effort of the Government to turn the country into a profitable gateway to the ASEAN region. They also offer a wide range of different incentives such as specialized statuses as well as tax reductions. Furthermore, the majority of the investors have been particularly mesmerized by the highly-skilled workforce and the relatively low costs.
Back in 2003 the Malaysian Government officially launched a specific program which was intended to bolster the overall economy by extending the years of tax exemption with 5 making them 15 instead of 10. This applies to pioneer companies as well as 10 years for priority corporations. The Multimedia Super Corridor, on the other hand, has even more generous taxes as well as regulatory terms which makes a lot of companies to benefit from it.
What is more, the Government of Malaysia is also seeking to draw direct investments in the country through subsidies and other particularly effective incentives and as it turns out – it’s working rather well.
After all, the country has taken a significant leap forward in the last few years, becoming a hub for Islamic investments and amongst the most prosperous countries in the region (Also see Malaysia becoming a hub for Islamic finance in Asia). Furthermore, the tax exemptions provided for specific fields of expertise are focusing highly professional and innovative companies in the segment to drive their investments towards the country, thus making it far more developed than the majority of countries in the same region.
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