 Print Article
|
Prime Minister Abdullah Badawi announced that existing incentives will be extended to developers, companies undertaking management and marketing for the developers, and expatriates in the Iskandar Development Region (IDR).
The incentives include tax exemptions on income from the sale of land and rental and sale of buildings, as well as exemption on withholding taxes.
They are also exempted from bumiputera quotas in corporate equity ownership and property sales, and are free to source for capital globally and to employ foreign workers.
'Since private investments will be the main catalyst of growth, there is a need to offer investors attractive fiscal and non-fiscal incentives,' Datuk Seri Abdullah said after chairing a meeting of the Iskandar Development Region Authority yesterday.
The incentives were initially confined to companies involved in the creative, education, finance, health, logistics and tourism sectors.
Officials said only developers investing in an area called Node 1 located within Nusajaya will qualify for the perks. The area is about 30km west of Johor Baru and just after the Second Link at Tuas.
Node 1 is about 9 million sq m in size, and is a development comprising leisure, residential, financial and high-end industrial components.
A group of Middle Eastern investors recently signed deals to commit US$1.2 billion (S$1.8 billion) to the area.
Together, the deals make up the single biggest foreign real estate investment in Malaysia.
Recently, Dubai World and Malaysian group MMC also proposed to build a US$4.7 billion maritime park in the IDR.
Asked about fears that local investors were being left out, Datuk Seri Abdullah said the government wanted Malaysians to participate as well.
'This corridor is (also) for local investors. They should also participate. We also accept proposals from local investors,' he said.
The IDR aims to leverage on its proximity to Singapore. It has an area 21/2 times the size of the Republic and Malaysia has it targeted as its next fast-growth area by attracting foreign investors.
