Malaysia for foreign investors

The main task of the state, the declared local political elite is to achieve sustainable development, which, among other measures, includes pryamyhbudda attract foreign investment, especially in the sectors of the economy associated with high technology. To this end, the Malaysian government has created a favorable atmosphere in the country for business, providing foreign companies many opportunities for growth and profit.

Malaysia has the energy resources - oil. And four times as large gas reserves.

Most of the urban population speaks English, which is the language of business. The local currency (Malaysian Ringgit) for many years supported remained unchanged against the dollar, which ensures stability of the foreign capital invested.

Thus, the current macroeconomic situation in Malaysia is very strong, characterized by balanced growth, a positive trade balance, small external debt and high levels of international reserves.

From a sectoral point of view and in accordance with the intended objectives of industrial development of the country, the most promising spheres of investment - it's electronics and power generation, as well as the processing of raw materials. Development projects of infrastructure, petrochemicals, pharmaceuticals, logistics and services also promise good dividends.

 In order to streamline the industrial development, the special law (the Law of the industrial coordination) was adopted. In accordance with this regulatory document all the companies who intend to carry out productive activities, obtain a license, which is issued, if they satisfy the following conditions:. Their own assets in excess of 3.5 million ringgit (. About 752 thousand euros), or the number of employees of the company or is exceed seventy-five people. The issue of such licenses is in the competence of the Ministry of International Trade and Industry.

With regard to the repatriation of capital and investment income (regardless of the type of investment), they are exempt from taxation.
Restrictions on foreign participation in the capital of companies established in Malaysia, relate only to those kualakotorye implement projects that require a special permit in the management of the Malaysian Industrial Development (MIDA). These restrictions are due primarily to the Malaysian authorities' desire to "reduce" foreign and local partners so as to increase the positive impact of joint activities.

MIDA is subordinate to the Ministry of International Trade and Industry. The facility is primarily responsible for the coordination and promotion of local and foreign investments. Among the main functions - providing production licenses, development of investment incentives and the issuance of work permits to foreigners.

 Currently MIDA focuses on two factors: technology transfer and integration into national industrial system. In addition, the body stimulates the location of enterprises in priority areas, for example, where is realized the most intensive investment in new technology.

In Malaysia, there is a wide range of various incentives aimed at attracting foreign investment. Obtaining these benefits negotiated simultaneously with the filing of an application for a license.

Mainly it is about the benefits of providing substantial tax cuts. In most cases, these benefits are granted to companies operating in the priority sectors of the Malaysian economy, opening favorable prospects for the future of the country.

The most radical benefit - the so-called "fiscal holidays" (periodically used a tax incentive, comprising 95 per cent exemption from all kinds of taxation for companies registered in a certain period). But perhaps the significant tax cuts in other cases, depending on the location of the company, its size or readiness to cooperate with small and medium local enterprises.

Finally, each of the 13 Malaysian states have special organs designed to attract foreign investment through incentive programs for enterprises in the fields of competence established by this or that state.