Uzbekistan's Fergana Courts Malaysian Investors With Up To 10-year Tax Incentives

KUALA LUMPUR, June 14 (Bernama) -- Uzbekistan's Fergana Region is offering tax and customs incentives of up to 10 years to attract Malaysian investment in manufacturing, pharmaceuticals, tourism and food processing, as it seeks to position itself as a gateway to the Central Asian market.

Fergana Region Governor Khayrullo Bozorov said the eastern Uzbek region, home to more than four million people, has established modern industrial infrastructure and a favourable business environment for investors, including ready-made production sites in the Kokand Free Economic Zone, Fergana Chemical Technopark, Kokand Technopark, Eltexsanoat Industrial Zones and several small industrial zones.

He said investors are provided with incentives on land tax, property tax, profit tax and payments for the use of water resources, while mechanisms are also in place for state financing of external engineering and utility infrastructure for investment projects.

“Depending on the size of the project, tax and customs incentives are granted for periods ranging from three to 10 years,” he told Bernama when met recently.

Bozorov said the region sees strong potential for cooperation with Malaysian companies in sectors including textiles, electrical engineering, construction materials, machinery manufacturing, chemical and petrochemical products, agricultural processing and tourism.

He said Fergana's strengths include abundant raw materials, a skilled workforce, a strategic geographical location and a large consumer market.

“We are ready to carefully consider every initiative, treat every investor as a partner, and provide the necessary support for the successful implementation of every project,” he said.

On bilateral ties, Bozorov said Uzbekistan and Malaysia elevated relations to a Strategic Partnership during Uzbek President Shavkat Mirziyoyev's visit to Malaysia on February last year, during which more than 40 joint projects worth over US$5 billion were agreed.

He said 42 enterprises with Malaysian capital are currently operating in Uzbekistan in sectors such as textiles, energy, petrochemicals, food processing, healthcare, hospitality and construction materials.

“This clearly demonstrates the growing mutual trust and interest between the business communities of our countries,” he said.

-- BERNAMA