Budget 2013: Balanced goodies for all investors

GEORGE TOWN: The Budget 2013, which will be tabled by Prime
Minister Datuk Seri Najib Razak on September 28, is likely to place
equal emphasis on incentives for local and foreign investors.


Deputy Minister of International Trade and Industry Datuk Mukhriz
Mahathir yesterday said his ministry, with input from both local and
foreign firms investing here are trying to find a happy balance in
recommending goodies for these businesses.

"Minister Datuk Seri
Mustapha Mohamed has had meetings last week with representatives of
multinational corporations and local companies and they have given good
recommendations for the Ministry of Finance to consider.

"We are looking at seeking a balance and continue formulating more incentives not only for FDIs we allow here.





"We also want to ensure that local industries via domestic direct
investments will continue to do well, especially when they enter new
markets, especially like those in Asean countries," he told reporters.

Mukhriz was speaking after witnessing a memorandum of understanding
ceremony between Malaysia Productivity Corporation (MPC) and Robert
Bosch (M) Sdn Bhd at the company's premises in the Bayan Lepas Free
Industrial Zone.

The MoU was to formalise an initiative to collaborate in the Business Excellence Programme.

The programme is aimed at strengthening a company's competitiveness and
that of its business partners such as vendors and suppliers.


Mukhriz was asked to comment on any specific recommendations his
ministry is likely to forward to the government for the Budget 2013.

Without delving into specifics, he said the beneficiaries of incentives
proposed are likely to be those from high-growth business sectors.

Asked on whether Malaysia could continue to sustain its momentum on
the flow of FDIs from Europe in the light of the deepening eurozone debt
crisis, Mukhriz said Malaysia should not discount the opportunities
which may result from the current crisis.

"There may be
opportunities for companies in richer countries wanting to establish a
presence in one of the fastest growing regions in the world like Asean
and Malaysia is most receptive to high-technology investments," he
added.

"Behind every challenge there is a silver lining and Malaysia needs to attract and entice more investments from Europe now."

Pointing to the fact that the country had been diversifying its sources
of foreign investment in the past decade, Mukhriz said Japan and South
Korea, are proven to be strong investors here.

"Despite
challenges facing the US, the country remains another strong investor
for us, and we continue to work in getting investments from China," he
added.