Budget 2012 reactions: 1MDB says incentives reflect govt’s commitment

Budget 2012 reactions: 1MDB says incentives reflect govt’s commitment

KUALA LUMPUR: The incentives for the Kuala Lumpur International Financial District (KLIFD), the KLIFD Marquee status and the KLIFD status, underscore the government’s commitment in making Kuala Lumpur a global financial centre, said 1Malaysia Development Board (1MDB) chief executive officer Shahrol Halmi.

Prime Minister and Finance Minister Datuk Seri Najib Tun Razak when tabling Budget 2012 on Friday, Oct 7 had proposed a 100% income tax exemption for a period of 10 years and stamp duty exemption on loan and service agreements for KLIFD status companies.

He also proposed an industrial building allowance and accelerated capital allowance for KLIFD Marquee Status Companies; and income tax exemption of 70% for a period of 5 years for property developers in KLIFD.

Shahrol said that both incentives would cater for two different groups with different strategic intent.

Shahrol said these incentives were necessary sweeteners, and a first step towards bringing the best talent and infrastructure to the financial district.

He said KLIFD’s aim to enable Malaysia to capitalise on the momentum of its international Islamic financial innovation and Shariah-based competitive advantage was further strengthened with measures in the budget to stimulate the sukuk market and provide the seed money for Shariah-compliant Exchange Traded Funds (ETF)

“Bank Negara is already spearheading the Islamic Finance initiative through Malaysia International Islamic Financial Centre (MIFC) and Islamic Financial Services Board (IFSB).

“KLIFD will complement these efforts by attracting additional strong players in financial services and its supporting industries by enabling them,”he said.

1MDB and strategic partner Mubadala Development Company will lead the development of 34.4-hectare KLIFD.