Tax measures to enhance Malaysia’s service sector

MALAYSIA has come a long way in terms of development and economic growth. From being the world’s largest producer of rubber, palm oil and tin in the 60s-70s to a major manufacturing hub in South-East Asia in the 80s-90s, and to where we are now, a diversified economy with 54% of our GDP contributed by service sector.

We no longer hold strong competitive edge in labour intensive manufacturing activities, losing out to countries like Vietnam, Indonesia, and Cambodia, which have ubiquitous supply of cheap labour. Indeed, we have been seeing several foreign manufacturing giants moving their operations out of Malaysia in recent times.