KSL City Malaysia IT Fair 17-19 Feb 2012 @ KSL City Ground Floor

The government reduces the income tax of Malaysians and foreign knowledge workers residing and working in the economic corridor from 26% to 15 per cent.

Datuk Seri Najib proposed the innovative and radical tax incentive to attract local and foreign talents as well as intensify the development of Iskandar Malaysia. It is part of a move in Budget 2010 to attract local and foreign talent besides intensifying development of the growth corridor.

The incentive is for those who apply and begin work in Iskandar before the end of 2015 and they would enjoy it indefinitely. Those eligible for the tax treatment must be engaged in qualifying activities such as green technology, biotechnology, education services, healthcare, creative industry, financial advisory and consultancy services as well as logistic services and tourism.

Johor Menteri Besar Datuk Abdul Ghani Othman, in welcoming the proposal. He said the move would almost immediately spur the rapid development of Iskandar Malaysia. “This will make Iskandar Malaysia the focal point of knowledge and creative workers to work and reside in Iskandar Malaysia, and contribute to the rapid development of the corridor,” he said here Friday.

Abdul Ghani also described next year’s budget as holistic, comprehensive, people friendly and moving the nation towards a high-income economy.

Iskandar Regional Development Authority chief executive officer Harun Johari welcomed tax incentives announced in Budget 2010 for the growth corridor, saying they would attract more talent to the area.

Johor MSC Cyberport chief executive officer Ganesh Kumar Bangah said any form of incentive would be good to promote Iskandar but it needed to be transparent and it should be easily accessible.

“We will need more clarification on this incentive as ICT borders financial advisory and consulting services,” he said, adding that a lot of programmes were also needed to help build talent for the creative industry.

Johor Baru Chinese Chamber of Commerce and Industry president Loh Liam Hiang described the announcement as timely as such a move would lure more investment into Iskandar.

However, not everyone agrees with our Prime Minister or Budget 2010.

Penang chief minister Lim Guan Eng blasted the prime minister for what he described as a lopsided tax scheme. Lim, who is DAP secretary-general, said although he welcomes the reduction, it was unfair that only those working at the Iskandar Malaysia enjoy such tax incentives.

Via Bernama

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