Incentive In Malaysia, tax incentives are provided for in the Promotion of Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act 1972, Excise Act 1976 and Free Zones Act. As Malaysia’s investment promotion agency, Malaysia Investment Development Authority (MIDA) has introduced the Investment Incentives Portal (I-Incentives) as a platform providing investment information on tax exemptions, grants, soft loans, equity funding, regional establishment status, training and other facilitation programmes. The year 2018 indicated a positive year, with high technology sectors contributing 24% (RM28.97 billion) to the total approved investments valued at RM87.4 billion in the manufacturing sector. The Foreign Direct Investment (FDI) of approved manufacturing increased to RM58.0 billion from RM21.6 billion in 2017, an increment of 37%. These investments originate from 721 approved projects and are expected to generate more than 59,294 job opportunities for Malaysia. Malaysia’s cumulative FDI has reached RM126.9 billion and largely contributed by the Electronics and Electrical Products value at RM10.7 billion. Malaysia’s high technology domestic direct investment (DDI), yet, has shown a downward trend where the investment amount was declined to RM4.8 billion in year 2018 compared with RM6.3 billion in year 2017. The main contributor of DDI was the Rubber Products, of which amounted RM1.5 billion.
on their skills, interests, and ambitions, so they can earn wages equivalent to the value they contribute to production. However, innovative job-matching platforms, especially those integrated with training programs, can also strengthen workers’ human capital, as well as their bargaining power in the labour market. Companies like CodeSignal (formerly CodeFights Inc.), for example, are creating online platforms that allow job seekers to practice their skills and earn credentials, which they can use to be matched with employers and job opportunities. If programs including those offered by CodeSignal are successful in helping applicants develop the skills required for job opportunities, then the credentials they provide could become strong signals giving credentialed job applicants increased leverage in the recruitment process. These technologies could help create digital apprenticeships of the future, which combine training programs with pathways to gainful employment. The health, financial services and automotive sectors stand out when it comes to using artificial intelligence for decision-making in business. In financial services, from the study done by PwC - a multinational professional service - has put together massive amounts of data from the US Census Bureau, US financial data, and other public licensed sources to create $ecure, a large-scale model of 320 million US consumers’ financial decisions. The model is designed to help financial services companies map buyer personas, simulate “future selves” and anticipate customer behaviour. It has enabled these financial services companies in validating real-time business decisions within seconds. In business, artificial intelligence systems can perform more than 200,000 GTM (go-to-market) scenarios, instead of just a typical handful. What you get is optimising scenarios that maximise revenues (Sincavage).
THE SURVEY
70% economic growth
About 70% of respondents highlighted that the key driving factor for local high technology industry growth is economic growth and followed by consumer demand on local products or services. To ensure success, the public need to be educated on the availability of locally developed products and services offered. For that, a proper promotion and marketing plan will encourage the local high technology companies to invest more.
13
Malaysian Technology Strategic Outlook 2019/2020 Intergration of High Technology
Made with FlippingBook. PDF to flipbook with ease