Incentives for business and investments

ECER incentive package

ECER INCENTIVE PACKAGE FOR MANUFACTURING CLUSTER

Promoted activity Incentives
  • Selected manufactured and agro-based products
  • Selected manufacturing related services
  • Tax exemption:
    1. Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
    2. Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years
  • Stamp duty exemption on land or building acquired for development
  • Application form
 

ECER INCENTIVE PACKAGE FOR TOURISM CLUSTER

Promoted activity Incentives
Tourism

  1. Culture and Heritage
  2. Island tourism
  3. Mainland coastal tourism
  4. Cross border tourism
  5. Eco-tourism
  6. Health tourism
 

Culture and heritage

  1. Making of batik, songket or royal tenun;
  2. Making of brassware or silverware;
  3. Making of traditional kites;
  4. Woodcarving; and
  5. Selected art and craft projects including print-making or sculpting
  • Tax exemption:
    1. Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
    2. Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years
  • Stamp duty exemption on land or building acquired for development
  • Withholding tax exemption on royalty and technical fees up to 31 December 2020 for tourism sector only.
  • Single deduction up to a maximum of RM1 million for a year of assessment for sponsors of such Hallmark Event approved by ECERDC. The claims to be submitted to Inland Revenue Board.
  • Application form
 

ECER INCENTIVE PACKAGE FOR AGRICULTURE AND AGRICULTURE RELATED SERVICES CLUSTER

Promoted activity Incentives
Agriculture

  • Cultivation of kenaf, vegetable, fruit, herbs, spices or cocoa,
  • Biomass Plantation including cassava, acacia mangium, leucana leucocephala
  • Planting of Hevea brasiliensis
  • Floriculture including ornamental flowers
  • Aquaculture
  • Inland and Deep sea fishing
  • Rearing of cattle, buffalo, goat, sheep, ostrich, turkey and quail
 

Agriculture – related services

  • Collecting, processing and packaging of agricultural produce
  • Collection and marketing of agricultural produce
  • Tax exemption:
    1. Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
    2. Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years
  • Stamp duty exemption on land or building acquired for development
  • Deduction to the amount of investment made in the promoted project or activity.
  • Application form
 

ECER INCENTIVE PACKAGE FOR KNOWLEDGE, EDUCATION AND ICT DEVELOPMENT CLUSTER

Promoted activity Incentives
  1. Education and training
  2. Information, communication and technology
  • Tax exemption:
    1. Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
    2. Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years
  • Stamp duty exemption on land or building acquired for development
  • Withholding tax exemption on royalty and technical fees up to 31 December 2020
  • Application form
 

ECER INCENTIVE PACKAGE FOR OIL, GAS AND PETROCHEMICAL CLUSTER

Promoted activity Incentives
Selected oil, gas and petrochemical products or activities
  • Tax exemption:
    1. Income tax exemption of 100% for 10 years commencing from the year company derives statutory income; or
    2. Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years
  • Stamp duty exemption on land or building acquired for development
  • Application form
 

ECER INCENTIVE PACKAGE FOR INDUSTRIAL PARKS/FREE ZONES DEVELOPMENT

Promoted activity Incentives
  1. Developer
    Development of Industrial Park or Free Zone.
  2. Development Manager
    Appointed by Developer to provide management, supervisory or marketing services of Industrial Park or Free Zone.
  3. Park Manager
    Provide park management services including maintenance, marketing and rental of common facilities and utilities services in Industrial Park or Free Zone
  • Income tax exemption of 100% for 10 years commencing from the year company derives statutory income derived from the following activities:
    1. The disposal or any right over land or disposal of a building or rights over a building or part of a building in an industrial park/free zone; and
    2. The rental of a building or part of a building located in an industrial park/free zone
  • Income tax exemption of 100% for 10 years commencing from the year company derives statutory income

In ECER, tax incentives are provided for in the Income Tax Act 1967. This Act covers investments in the manufacturing, agri business, education, tourism (including hotel) and approved services sectors.

The direct tax incentives grant partial or total relief from income tax payment for a specified period.

ECER Main Eligibility Criteria for all clusters:

  • Incorporated under the Companies Act 1965 [Act 125]
  • Undertaking a qualifying project or activity in ECER.
  • The qualifying activity which has been carried out in ECER is not more than one (1) year period prior to the date of the application.
  • Application to be submitted to ECERDC on or before 31 December 2020.

Documents to be submitted with the application form:

  1. Business Proposal
  2. Company incorporation documents
  3. Form 9 or Form 13
  4. Form 24
  5. Form 44
  6. Form 49
  7. Memorandum of Association
  8. A copy of relevant approval(s) obtained from other ministries or governmental agencies (if any)
  9. Manufacturing license or a copy of license(s) obtained (if any)
  10. Land Status/Approval
  11. Projection Cash flow (10 years)
  12. Cost Benefit Analysis
  13. Environmental Impact Assessment
  14. Industry Status

* All copied documents must be endorsed as certified true copy by company’s secretary

TERAJU@ECER

SuperBLogo

ECERDC has also made the empowerment of the bumiputera economy as one of the objectives of developing the ECER economy. One of the strategies put in place to realise the vision lies in improving the competitiveness of bumiputera companies is via a strategic collaboration with TERAJU in 2012.

  1. Facilitation Fund (Dana Mudahcara) of TERAJU@ECER
    Facilitation Fund TERAJU@ECER was created as a tipping point for private investment initiatives. A 15% grant of the total eligible costs for infrastructure and equipment components act as a catalyst for investment by Bumiputera companies, especially in high-impact NKEA sectors. The cost of projects eligible for the TERAJU@ECER fund ranges from RM2.5 million to RM50 million.
    Application Form
  2. High Performing Bumiputera Companies (Teras) Programme
    The objective of Teras is to identify high-potential Bumiputera companies and help these companies improve their business by providing business opportunities based on merit. Under this programme, Bumiputera companies will be assisted to expand their business to regional levels and also into the global markets. Some large companies in Teras will play the role as a holding company to support business growth of other Teras companies.
    Application Form
  3. DPUB
    No. PROGRAM DETAILS CRITERIA
    1 FINANCIAL DEVELOPMENT SCHEME WITH MAYBANK COOPERATION (ECER-MAYBANK ENTREPRENEUR)

    Micro entrepreneur financing assistance by topping-up method to bank profit rate so that monthly payment rates can be reduced.

    Loan amount:

    • Micro Retail – up to RM10,000
    • Micro SME – up to RM150,000
    • ECER Bumiputera entrepreneurs
    • Registered with SSM
    • Has been in operation for a minimum of 6 months
    • Full-time entrepreneurs
    • Good financial records
    2 PURCHASE OF EQUIPMENT, INFRASTRUCTURE WORK, PACKAGING AND WORKING CAPITAL (PRIORITY FOR EMPOWER PARTICIPANT)

    Purchase of equipment for product processing, packaging and working capital to micro / new entrepreneurs

    Maximum of RM10,000 / entrepreneurs

    • ECER Bumiputera entrepreneurs
    • Registered with SSM
    • Has been in operation for a minimum of 6 months
    • Potential to grow
    3 PURCHASE OF EQUIPMENT, INFRASTRUCTURE, PACKAGING AND WORKING CAPITAL FOR INVESTOR IN ECER INDUSTRIAL PARK

    Reimbursement amounting to 15% of the total investment for special project entrepreneurs / investors in ECER (ECER Industrial Parks)

    • ECER Bumiputera entrepreneurs
    • Registered with SSM
    • Investor in ECER industrial parks
    4 DEVELOPMENT OF ENTREPRENEUR CONTRACTS FOR ENVIRONMENTAL PROJECTS, SATELLITE FARM AND LIVESTOCK

    Reimbursement of 30% from the total investment for farm infrastructure development and equipment & input purchases for agricultural projects.

    • ECER Bumiputera entrepreneurs
    • Registered with SSM
    • Contract farmer appointed under the Agribusiness ECER project
  4. Bumiputera Entrepreneurs Startup Scheme (SUPERB)
    SUPERB provides grants of up to RM500, 000 to support innovative and creative business ideas. The programme is open to Bumiputera who aspires to be entrepreneurs or Bumiputera companies operating for less than three years. Selection of entrepreneurs will be made by the SUPERB Selection Committee comprising a panel of successful entrepreneurs in their respective business.

For further information, please visit www.teraju.gov.my

ECER Talent Enhancement Program

The ECER Talent Enhancement Programme (ETEP) is a human capital development programme that has been designed to a skilled workforce as well as a pool of entrepreneurs and SMEs for the Region’s economic clusters.

ETEP Objectives
  • Ensure an adequate supply of skilled local workforce as required by the industries.
  • Increase job opportunities and quality of life of local graduates, youth and school leavers.
  • Create a competitive ecosystem for investors via direct collaboration.
  • Human capital incentive to companies operating in ECER.
Programme Overview
  • Run by a business entity or investor operating or intending to operate in ECER.
  • Participants are selected by the companies. Participants must be Malaysians.
  • ECERDC will reimburse part of the cost in the form of a training grant.
  • The duration of the programme is up to 12 months.
  • Participants who completed the programme will be employed by the companies.