The Malaysian Government has agreed to grant certain relaxation of conditions imposed on manufacturing and services companies that have been approved with incentives by the Malaysian Investment Development Authority (‘MIDA
In a media release issued on 6 April 2021
, MIDA announced that companies with projects approved by it with incentives may be considered for certain relaxations on achieving the approved thresholds or meeting the implementation timeline set out in the approval letters issued by MIDA for their approved projects. The relaxations however will be subject to compliance with identified criteria set by the Government. The relaxation of compliance will be in respect of the period between 2020 and 2021.
The media release further states that companies seeking relaxations should submit their requests to MIDA as soon as possible, with relevant supporting documentation based on the prevailing policy decisions set by the Ministry of International Trade and Industry and the Ministry of Finance.
Although MIDA’s media release does not provide details of the conditions or criteria set by the Malaysian Government for such relaxations, the Government is nevertheless to be commended for introducing this initiative as it will assist in supporting and stimulating the growth of the manufacturing and services sectors in Malaysia which has undoubtedly been adversely affected by the onset of the COVID-19 pandemic and the imposition of the movement control order in the country.
Alert prepared by Phua Pao Yii (Partner) and Sheba Gumis (Partner) of the Corporate Division of Skrine.