Malaysia To Provide RM2 Bln Fund To Attract Strategic Foreign Investments Under Budget 2022

KUALA LUMPUR, Oct 29 (Bernama) -- The Malaysian government will provide a special fund of up to RM2 billion (US$1 = RM4.14) under Budget 2022 to attract strategic foreign investments from multinational companies (MNCs). Finance Minister Tengku Zafrul Abdul Aziz said this is especially for MNCs that can complete the industry value chain and drive knowledge-based job creation and development opportunities for local small and medium enterprises (SMEs). “To empower the country’s economic recovery, this budget is allocating RM25 million for exploring high-impact investments and new export markets through trade and investment missions,” he said when tabling Budget 2022 in the Parliament on Friday. Tengku Zafrul said in an effort to further stimulate the participation of local industry players in drone technology services, a RM100 million matching grant scheme is being provided for Bumiputera SME companies to explore business opportunities in the aerospace field. To boost productivity through automation, the minister said, the government is also providing RM100 million in smart automation grants for 200 manufacturing and service companies to automate their business processes. “The government will also extend the additional reinvestment allowance (RA) for two years for existing companies in Malaysia which have exhausted their RA period and special RA. This will bring the total additional RA period to five years. “This move is among the recommendations made by the Special Task Force to Facilitate Business (PEMUDAH) that have been considered for Budget 2022,” he said. Tengku Zafrul also gave assurance that the government will continue to study similar recommendations towards smoothening business affairs. -- BERNAMA