KUALA LUMPUR: The government is offering a 10-year income tax exemption to encourage major international financial institutions make Kuala Lumpur their preferred investment centre.
Prime Minister Datuk Seri Najib Razak said perks for global firms setting up business in the financial hub Tun Razak Exchange (TRX) include income tax exemption for 10 years, stamp duty exemption, industrial building allowance and accelerated capital allowance for TRX Marquee-status companies, and tax exemption for property developers.
The development of TRX, which is expected to attract 250 international financial institutions, is on schedule with the realignment of existing utilities on the TRX site well underway and is expected to be completed next month, Najib said.
Analysts, however, said more can be done to boost the RM26 billion project.
Interpac Securities head of research Pong Teng Siew said this is part of the government's efforts to develop TRX as a global hub for Islamic banking.
"The idea is that if you can attract the big companies into TRX, the talents will follow suit."
However, an analyst said more measures can be introduced to make the project more sustainable.
"At the end of the day, the key for such a project to be a success and sustainable is the people, the talents, the brains.
More measures can be introduced to encourage these people to work here, relocate their family and live here, he added.
"The key is questioning why some foreigners prefer to work in other countries, such as Hong Kong or Singapore, and what can we do to attract them to come here," said another analyst.
By Business Times