CHIEF Minister Chow Kon Yeow is overall happy with Budget 2020, beginning with the incentives that are bound to draw more investments to the state.
“This budget has incentives that will encourage both foreign and domestic investments, and that means Penang will have more projects that create more jobs, ” he said.
Among the incentives he was referring to was the income tax exemption up to 10 years for electrical and electronics companies investing in selected knowledge -based services.
Fortune 500 companies in high technology, manufacturing, creative and new economic sectors would also receive RM1bil in customised investment incentives annually over five years.
There was also an allocation of RM25mil in a contestable matching grant fund to spur more pilot projects on digital applications such as drone delivery, autonomous vehicle, blockchain technology and other products and services that leverage on fibre optics and 5G infrastructure.
Chow said in a statement that Penang would gain from the Federal Government’s efforts to set up 5G infrastructure, while levelling the technical and vocational training efforts which was vital to addressing the skilled workforce that the state needed.
He also looked forward to spurring Penang’s tourism industry to greater heights with the Federal Government’s commitment to passing 50% of the tourism levy collected in Penang to the state government, while the RM100mil allocation to build the Penang Hill cable car was ‘most welcome.’
Chow said he expected the toll reduction of the second Penang bridge from RM8.50 to RM7 would encourage more people to use it and reduce the jam on the first bridge.
“The state government will study Budget 2020 and take positive action to ensure that Penang derives benefits from the good points of the budget, ” he said.
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