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2 YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 4 YBM MITI - PowerPoint PPT Presentation

YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 2 YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 4 YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 5 Income Tax Exemption: Stamp duty exemption on 100% up to 15 years of Transfer or lease of


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  4. Income Tax Exemption: Stamp duty exemption on � 100% up to 15 years of � Transfer or lease of land or assessment (5+5+5) OR building used for development in relation to Investment Tax Allowance (ITA) manufacturing and services � 100% of qualifying capital activities expenditure incurred within 10 years Import duty exemption on: Withholding tax exemption on � Raw materials and components � Fees for technical advice, assistance or services or used directly in the manufacture royalty in relation to of finished products manufacturing or services � Machinery and equipment used activities in the activity for selected services sector YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 6

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  7. � ISSUES: � � � 595 IEs IN MALAYSIA Source: IE Development Study by EPU YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 10

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  19. MARKET CENTRALIZED PROCUREMENT/ LOGISTICS NEW BUSINESS RESEARCH FUNCTION DISTRIBUTION SERVICES MODEL • Operational • Regional • Integrated • Regional Office Global Headquarters Distribution Logistics (RO) Operations Hub (OHQ) Centre (RDC) • Representative Services • Treasury • International • International Office (RE) Integrated Management Procurement Logistics Centre (TMC) Centre (IPC) Services YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 24

  20. Company Activities Sandisk Storage Global Supply Chain Management Centre Malaysia Sdn. Bhd. serving its related companies in USA, Ireland and other countries Intel Microelectronics Global Service Centre that provide services Malaysia Sdn. Bhd. including R & D, logistics, warehousing and sales marketing services ExxonMobil Business Provides high-value information technology Support Centre services to ExxonMobil affiliates around the Malaysia Sdn. Bhd. world YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 25

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  22. 3-tier Incentive Tier 3 Tier 2 Tier 1 Blocks 5 + 5 5 +5 5 +5 (years) Tax rate 10% 5% 0% � � � YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 27

  23. 3-tier Incentive Tier 3 Tier 2 Tier 1 Blocks 5 + 5 5 +5 5 +5 Tax rate 10% 5% 0% • High Value jobs Jobs: Jobs: Jobs: 15 30 50 base base base by end of year 3 commitment commitment commitment with minimum +20% +20% +20% monthly salary of RM5,000.00 • At least 50% must be Malaysians by end of year 3 • Including key positions 3 4 5 - Minimum monthly salary of RM25,000.00 YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 28

  24. 3-tier Incentive Tier-3 Tier-2 Tier-1 Blocks 5 + 5 5 +5 5 +5 Business Business Business Annual Business RM3M RM5M RM10M Spending: Spending: Spending: Spending Base Base Base Commitment Commitment Commitment +30% +30% +30% Qualifying Strategic + 2 Regional P&L + 2 Regional P&L + 2 Services Minimum Serving 3 4 5 / Business Control of no. of countries Use of local Local Financial Institution Services (including finance and treasury), Ancillary Services logistics, legal and arbitration services, finance and treasury services Trading of Goods RM300 M Annual Sales Turnover YBM MITI ANNOUNCEMENT ON NEW INCENTIVES 29

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  28. THANK YOU

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