reply Investment in Malaysia has benefited from favorable policies

Since the beginning of this year, affected by the COVID-19 epidemic, the international investment environment has undergone major changes. Some foreign enterprises have become insolvent, and even many leading foreign enterprises have been forced to apply for bankruptcy protection."The COVID-19 outbreak has had a significant impact on the business environment in Malaysia. To facilitate the local economic recovery, the country has formulated an economic recovery plan aimed at ensuring employment, strengthening smes and attracting foreign direct investment." At the recent seminar on investing in Malaysia under the epidemic, Siji Ling Law firm partner Tan Siwen said.In order to attract foreign companies, Malaysia has implemented policies such as zero tax rate for 10 years, zero tax rate for 15 years and 100% tax rate subsidy for three years. Meanwhile, special reinvestment subsidy will be given to manufacturing activities and designated agricultural activities during the period from 2020 to 2021. The exemption of stamp duty will be granted to small and medium-sized enterprises that complete the merger and acquisition during July 1, 2020 and June 30, 2021. In addition, companies with flexible work arrangements allow employees to buy mobile phones, laptops or tablets for personal tax-free status. The government will extend the period for which taxes and fees are allowed to be paid. Provide relief to contractual obligations and financial difficulties affected by the COVID-19 outbreak. Enact a temporary measure to extend the wage subsidy program. Take employee protection measures and provide recruitment and training assistance to enterprises.Mr Tan said Malaysia's investment legal system is made up of relevant government agencies and entities and legislation according to different industries or sectors. With regard to foreign direct or indirect investment, Malaysia has generally adopted a decentralized legislative model, with no concurred or general laws or codes. The Malaysian Investment Development Board, a branch of the Ministry of Trade and Industry, is the government department responsible for regulating and planning foreign investment in Malaysia. Most of the basic preferential policies and investment guidelines and policies are issued and issued by them.It is understood that the incentive schemes issued by the Malaysian Investment Development Board are as follows: pioneer status tax incentives (tax exemption period up to 10 years); Investment tax exemption (capital investment provides 60%-100% tax allowance); Tax incentives for regional centers (full exemption of value-added income). Other relevant incentives include export tariff reduction or exemption, import tariff reduction or exemption issued by the Customs Bureau. The Malaysian government supports the One Belt And One Road initiative and has set up an official special channel to help Chinese enterprises invest in Malaysia. At present, the Malaysian government focuses on high-tech, high-value and high-impact investment and hopes to attract foreign investment in the following fields: machinery and electronics industry, electronic and electrical industry, intelligent technology industry, consumer technology products, sharing economy industry and e-commerce industry.Can foreign investors invest 100% in Malaysian companies to participate in business activities? As equity policies were liberalised in 2008-09, foreign investors were usually allowed to take 100 per cent stakes in most sectors, except in strategic industries related to national interests such as telecoms, energy and insurance, or those protected by the government, says Denise Lin, a partner at Law firm Syracuse. Chinese companies have focused on manufacturing, construction, energy, logistics and telecommunications. Foreign ownership limits in these sectors range from 50 to 100 per cent.Whether can foreign capital share ratio limit be evaded by the way of equity entrustment? Ms Lin says this arrangement carries risks. Malaysian courts may refuse to implement such arrangements on the grounds that they have an element of fraud or are contrary to public policy. It is suggested that Chinese enterprises must consult law firms about various risks and control methods and structures.Among many industries, the construction industry in Malaysia was greatly affected by the epidemic. During the epidemic, construction projects were banned comprehensively, and large-scale construction projects, small-scale residential projects or private renovation projects were suspended. As the epidemic prevention and control is improving, the Construction Industry Development Board of Malaysia has allocated RM70 million to implement several strategic projects to enhance the capacity and competitiveness of construction enterprises. To provide training to 30,000 builders in building technology, control, and management and encourage the adoption of construction-related technologies.Companies would have to apply to Malaysia's Department of Construction Industry Development (CIDB) to resume work and comply with standard operating procedures set out by the Ministry of Public Works, ms Lim said, adding that construction sites would be inspected by the authorities. At present, many construction projects are gradually starting to resume, but new construction projects are still not approved. Before the construction industry resumes work, employees shall undergo a health examination. Even if full resumption of work is permitted, a safe distance must be maintained between employees. Your body temperature must be below 37.5 degrees Celsius. If an employee living in a CLQ is diagnosed with COVID-19, all employees living in the CLQ must be accommodated elsewhere. Malaysia's Construction industry Development Department will patrol and inspect construction sites almost daily.