Malaysia
Financing a Business in Malaysia
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Financing a Business in Malaysia
Government Incentives
For UK businesses looking to expand to Malaysia there are a number of financial incentives to encourage investment:
- Pioneer Status
This is available in several industry sectors, including agriculture and media. It exempts the business from income tax for a period of 5 years.
The government also offers industry specific tax breaks, financial support for development in areas such as R&D and the removal or reductions of tariffs on imports. Further information can be obtained at the Malaysian Industrial Development Board website. www.mida.gov.my
Private Finance
Credit from financial institutions is available from a variety of private financial institutions such as HSBC and Royal Bank of Scotland, who have branches in the Malaysia. As with all commercial loans, a strong business plan and an understanding of the local business conventions and etiquette are important if pursuing this form of finance. It is advisable to consult an accountant and utilize the knowledge of a local agent. Malaysia has a liberal and open banking system, with its government recently pursuing a program of liberalization in the sector to encourage foreign financial investment.
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