KUALA LUMPUR, Oct 20 — Incentives to attract foreign direct investment (FDI) into Malaysia is expected to be among the highlights of the upcoming Budget 2010.
"It has always been our role to provide whatever necessary incentives to encourage the entry of FDI into the country," Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir said today.
"We are after all competing with other countries, particularly in the region, for investments. I cannot disclose though what the specific incentives are in the new Budget.
"But be assured, we will ensure continuity in being competitive as an investment destination," he added.
Mukhriz said the government was committed to encouraging more FDI by providing tax exemptions and the latest was the liberalisation of 27 sub-sectors in the services industry.
"As to what specific new incentives the new Budget has, it depends very much on the Prime Minister, Datuk Seri Najib Razak," he added.
Commenting on the new National Automotive Policy (NAP), he said the Ministry of International Trade and Industry was expected to announce details of the review soon.
"We are seeking a balance between imports and locally-produced cars and, of course, Proton is our main concern. Whatever it is, we will take into consideration the interest of all parties," he said.
He also said this in response to a question as to whether Proton would be the only one to have the national car status under the NAP review.
As the country's economy is directly linked to trading globally, Mukhriz said there was a need to uplift the local automotive industry so that it provides a balance.
"When there is a downturn, we will be impacted directly. Therefore, by uplifting the automotive industry, we can balance off our trading activities," he said. — Bernama
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