ECER Incentives Package

With so many different regional corridors and Special Economic Zones being developed all over the world, it is imperative for ECERDC to distinguish ECER from the rest.  In this regard, investors would be pleased to know that ECER is offering an integrated package to them, comprising both fiscal and non-fiscal incentives.  These incentives are specially tailored to investors who are venturing into the key ECER clusters namely tourism, oil, gas & petrochemical, manufacturing, agriculture and education.

Among others, ECER fiscal incentives include:

• Income tax exemption of up to 10 years.
• Investment Tax Allowance (ITA) of 100 percent on qualifying expenditure
• Sales tax exemption
• Customised incentives are also given to companies based on the merit of each case

However, investors must act fast as they need to commence operations before 31 December 2015 to enjoy these incentives.

Non-fiscal incentives are also granted by the respective State Governments to approved companies.  They include discount rate for land premium, quit rent and land assessment, guaranteed land lease periods for a specific time period and flexibility in the employment of expatriates.  Investors can also benefit from the special flexibility in foreign exchange administration under Bank Negara Malaysia, exclusively granted for companies accorded the ECER status with fiscal incentives.

To become an ECER Status Company, the firm needs to be a registered business entity which is either supported or approved by ECERDC to undertake approved projects and activities within ECER Malaysia.