KUALA LUMPUR: Lynas Advanced Materials Plant (Lamp) was given tax incentives because as a strategic industry it will help build an ecosystem to promote high and green technology and generate spin-offs for local supporting and existing industries.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said offering tax incentives was one of the ways to attract overseas investments under the Promotion of Investments Act 1986.
"The Lynas project is categorised as strategic and has the potential to attract new investments, especially in downstream hightechnology, energy-saving and environment-friendly sectors.
"Siemens from Germany has shown interest to invest here," he said in a statement here yesterday.
Mustapa said to compete with other countries which also offered attractive incentives, the government would consider offering perks to strategic and highimpact projects under Section 127 of Income Tax Acts 1967.
"Lynas is expected to contribute to the country's economy, among them, increasing the foreign exchange earnings with the RM2.5 billion in capital injection, RM65.8 million in services and utilities expenditure of RM52.8 million a year.
"It will also help create jobs, directly and indirectly, and create economic spin-offs for the downstream industry," he said.
He said the Lynas project has the potential to attract new investments, especially in the downstream industry using the project's output as raw materials.
"The provision of incentives is a common practice in most countries to attract investments," he said. -Bernama
Resource: The Edge Financial Daily, Page: 7
Date: Wednesday, 20 June 2012