Cut corporate taxes, please: Scientex MD

PETALING JAYA: Scientex Bhd managing director Lim Peng Jin is hoping the government will cut corporate taxes in a bid to promote more competition and stronger growth in Malaysia’s business landscape.
He said while the existing corporate income tax rate had been reduced to 24% from 25% previously, it is still a major contrast to regional peers such as Singapore, Thailand and Hong Kong, which range between 16.5-20%.
“A reduction in corporate taxes across the board would nurture more investment flow domestically, in turn supporting the flourishing of homegrown corporations both large and small,” he said in a statement.
Lim pointed out that as there is growing competition among Asean countries to attract foreign direct investments, a more favorable tax environment would strengthen Malaysia’s investor attractiveness on the global map.
Secondly, he is looking forward to more grants for research and development activity for local corporations, as this would allow them to bring more innovative products to the market that are internationally regarded.
Lim said more trade support and market intelligence should be offered to local companies to assist in the expansion of new export markets, and to tailor their growth strategies in line with the requirements of foreign markets.
“These efforts would help the country’s manufacturing sector develop a stronger competitive edge, positioning them to compete effectively on a global scale,” he added.
On the property front, Lim said there should be speedier approvals for affordable home buyers.
“A more efficient approval process would contribute significantly towards smoother project management and construction planning, at the same time minimising project cost escalations,” he said.
Lim is also hoping for more tax incentives from the government when undertaking affordable housing developments.
“This would encourage more developers to participate in the affordable housing segment, leading to healthier competition and increased supply for new home buyers,” he explained.