Malaysia: Tax-Efficient Sectors
Special Economic Zones
In August 2009, Prime Minister, Najib Razak, opened Malaysia’s first Special Economic Zone (SEZ) in the East Coast Economic Region (ECER). Through the SEZ’s special incentives, it is hoped to attract MYR90bn (USD26bn) in domestic and international investments by 2020, and to create more than 220,000 new job opportunities.
The Prime Minister said that, although the SEZ covers only 6% of the total ECER area, its economic impact would be very large, with a capacity to contribute 50% of the employment opportunities and 80% of the production for the whole of the ECER.
Four zones are be established within the SEZ to promote and focus on groupings of industries:
- Agro industry
The Prime Minister made it clear that the administration would be flexible and responsive to the particular needs of individual companies, and tailor incentives whenever such was possible.