This year, the novel coronavirus pneumonia affected the international investment environment. The foreign investment enterprises have been insolvent. Even many foreign leading enterprises have been forced to file for bankruptcy protection.
"The novel coronavirus pneumonia has a great impact on the business environment in Malaysia. In order to promote local economic recovery, the government has formulated an economic recovery plan aimed at ensuring employment, strengthening SMEs and attracting foreign direct investment." Chen Siwen, partner of sijiling law firm, said at a recent lecture on investment in Malaysia under the epidemic situation.
It is understood that in order to attract foreign companies, Malaysia has implemented policies of zero tax rate for 10 years, zero tax rate for 15 years, and 100% tax rate allowance within three years. Meanwhile, manufacturing activities and designated agricultural activities from 2020 to 2021 will enjoy special reinvestment allowance. Small and medium-sized enterprises that have completed the merger and acquisition between July 1, 2020 and June 30, 2021 can enjoy stamp duty exemption. In addition, employees who purchase mobile phones, laptops or tablets can enjoy personal tax-free treatment in enterprises with flexible work arrangements. The government will extend the time limit to allow tax payment. Remedies for novel coronavirus pneumonia affected by contractual obligations and financial difficulties. Temporary measures were issued to extend the wage subsidy scheme. Take employee protection measures and provide recruitment and training assistance for enterprises.
Chen Siwen said that Malaysia's investment legal system is composed of relevant government agencies and units and legislation according to different industries or fields. In terms of foreign direct or indirect investment, Malaysia basically adopts a decentralized legislative model, and there is no agreed or general statute or code. The Malaysian investment and Development Bureau of the Ministry of trade and industry is the main government department that regulates and plans foreign investment in Malaysia. Most of the basic preferential policies and investment policies are issued and issued by them.
It is understood that the incentive plans promulgated by the Malaysian investment development agency are as follows: tax incentives for industry pioneer status (up to 10 years of tax exemption); tax incentives for investment (60% - 100% tax exemption for capital investment); and tax incentives for regional centers (full tax exemption for value-added income). Other related incentives include export tariff reduction and import tariff reduction and exemption issued by the Customs Bureau. The Malaysia government supports one belt, one road initiative and has established an official special channel to help Chinese enterprises invest in land. At present, the Malaysian government pays attention to high-tech, high-value and high impact investment, and hopes to attract foreign investment in the following fields: machinery and electronics industry, electronic and electrical industry, intelligent technology industry, consumer science and technology products, sharing economy industry and e-commerce industry.
Can foreign investors invest 100% in Malaysian companies to participate in business activities? Lin Yunshi, a partner of sijiling law firm, said that with the liberalization of equity policy between 2008 and 2009, foreign investors can usually hold 100% shares in most industries, except for strategic industries related to national interests such as telecommunications, energy and insurance, or industries protected by the government. Chinese enterprises focus on manufacturing, construction, energy, logistics and telecommunications. The foreign equity ratio of these industries is limited between 50% and 100%.
Can the restriction of foreign share ratio be avoided by the way of holding shares instead of shares? Lin says this arrangement is risky. Malaysian courts may refuse to enforce such arrangements on the grounds of fraud or public policy violations. It is suggested that Chinese enterprises should consult with law firms on various risks, control methods and structures.
In many industries, the construction industry in Malaysia was greatly affected by the epidemic. During the epidemic period, construction projects were completely banned, and large-scale construction projects, small-scale residential projects or private decoration projects were in a state of suspension. With the improvement of epidemic prevention and control, Malaysia Construction Industry Development Bureau has allocated rm70 million to implement several strategic projects to strengthen the capacity and competitiveness of construction enterprises. Training on construction technology, management and management was provided to 30000 construction companies and encouraged to adopt construction related technologies.
Companies are required to apply to the Malaysian Construction Industry Development Authority (CIDB) for resumption of work in accordance with the standard operating procedures established by the Ministry of public works of Malaysia, and the relevant authorities will inspect the construction sites, Lin said. At present, many construction projects begin to resume work, but new construction projects have not been approved. Before returning to work in the construction industry, health examination should be carried out for employees. Even if full return to work is allowed, there must be a safe distance between employees. The body temperature must be below 37.5 degrees centigrade. If novel coronavirus pneumonia is diagnosed in employees living in CLQ, all employees living in the dormitory must be assigned to other places. The Construction Industry Development Department of Malaysia will inspect and inspect the construction site almost every day.