ID :
36557
Fri, 12/19/2008 - 20:30
Auther :
Shortlink :
https://oananews.org//node/36557
The shortlink copeid
AMCHAM URGES MALAYSIA TO REDUCE POWER COSTS, LOWER COPORATE TAX
KUALA LUMPUR, Dec 19 (Bernama) -- Malaysia is still an attractive destination for foreign investments in spite of the current uncertainty in global economy.
American Malaysian Chamber of Commerce (Amcham) president, Karen Albertson,
said reducing electricity costs and lowering corporate tax rate would enhance it
further.
Albertson said this was because foreign firms would be "sharpening their
saw" of evaluation of the potential countries to invest in.
"It is important to remember that 'cash is king'. What these firms will be
doing is to continue to evaluate business," she told a media briefing here
Friday.
She said a corporate tax in the high teens or low twenties would be better,
to compare it with Singapore's 18 percent rate.
Albertson said the current economic uncertainty was certainly tough on the
various industries with lower demand for goods.
She expected the electronics sector to slip further before it improved
somewhere in the middle of next year.
However, she was optimistic of Malaysia's growth and said it would be
supported by growth industries such as services and back-office.
"It has been a good work by the Malaysian government to focus on specific
sectors such as the solar energy.
"Many sectors are still going strong here," she said.
US investments here had accumulated to US$15.7 billion (US$1=RM3.44) at
end-2007 and it was Malaysia's second largest foreign investor for the first 10
months of this year.
During this period, Albertson said, the US was also the country's second
largest trading partner, with approved foreign direct investment projects
totalling to US$1.8 billion.
Meanwhile, Amcham executive director, Dom LaVigne, said the chamber was not
aware of any other American firms that were closing down their entire operations
in Malaysia due to the current economic crisis.
It was earlier reported that Western Digital Corp, the world's
second-largest maker of hard-disk drives, would close or sell a local
manufacturing plant as part of a series of global cutbacks.
He added that US firms in Malaysia would go for retrenchment only as a last
resort.
-- BERNAMA
American Malaysian Chamber of Commerce (Amcham) president, Karen Albertson,
said reducing electricity costs and lowering corporate tax rate would enhance it
further.
Albertson said this was because foreign firms would be "sharpening their
saw" of evaluation of the potential countries to invest in.
"It is important to remember that 'cash is king'. What these firms will be
doing is to continue to evaluate business," she told a media briefing here
Friday.
She said a corporate tax in the high teens or low twenties would be better,
to compare it with Singapore's 18 percent rate.
Albertson said the current economic uncertainty was certainly tough on the
various industries with lower demand for goods.
She expected the electronics sector to slip further before it improved
somewhere in the middle of next year.
However, she was optimistic of Malaysia's growth and said it would be
supported by growth industries such as services and back-office.
"It has been a good work by the Malaysian government to focus on specific
sectors such as the solar energy.
"Many sectors are still going strong here," she said.
US investments here had accumulated to US$15.7 billion (US$1=RM3.44) at
end-2007 and it was Malaysia's second largest foreign investor for the first 10
months of this year.
During this period, Albertson said, the US was also the country's second
largest trading partner, with approved foreign direct investment projects
totalling to US$1.8 billion.
Meanwhile, Amcham executive director, Dom LaVigne, said the chamber was not
aware of any other American firms that were closing down their entire operations
in Malaysia due to the current economic crisis.
It was earlier reported that Western Digital Corp, the world's
second-largest maker of hard-disk drives, would close or sell a local
manufacturing plant as part of a series of global cutbacks.
He added that US firms in Malaysia would go for retrenchment only as a last
resort.
-- BERNAMA
