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2019 Budget strengthens KL’s position as regional hub for MNCs
November 9, 2018
The Edge Markets

KUALA LUMPUR (Nov 9): The 2019 Budget proposal will reinforce Kuala Lumpur’s position as a business, innovation and talent hub for large multinational corporations (MNCs), said InvestKL Chief Executive Officer (CEO) Datuk Zainal Amanshah.

Some of the proposed measures would help attract foreign direct investments, including the RM210 million allocation to encourage the transition towards Industry 4.0 (IR 4.0) and steps aimed at upskilling local graduates, he said in a statement today.

Zainal said Greater Kuala Lumpur has been an ideal location, housing many MNCs with IR 4.0 technology which would encourage and attract more multinationals to use this region to set up their businesses that would boost the city as a regional digital hub for innovation.

Meanwhile, Hitachi Sunway Information Systems Group CEO Cheah Kok Hoong expected the increased adoption of IR 4.0 to lead to rising demand for product lifecycle management and data centre services and cybersecurity solutions.

“Malaysia is on a path to rebuild itself. We believe digital transformation such as the Internet of Things and Artificial Intelligence will be a driving growth enabler for the nation.

“Hence, with the various tax incentives in place, it will definitely accelerate IR 4.0 adoption,” Cheah said.

For medical services company, International SOS (M) Sdn Bhd, the highlight of the 2019 Budget was the focus given to healthcare and education, with the proposed allocation of RM29 billion and RM60 billion for each sector, respectively, said Managing Director David Ng.

“We are also very pleased with the positive changes in the principal hub incentives. It is proposed that such companies be eligible for a concessionary 10 per cent income tax rate on overall statutory income for a period of five years.

“This proposal will encourage companies like us with principal hub status to increase our investments,” said Ng.