KUALA LUMPUR: Tax exemptions for investors are only granted after a strict vetting process and are meant to keep Malaysia competitive in attracting new investments, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the government does offer tax breaks for certain periods as part of its investment promotion strategy, but stressed that they are never automatic and are not always given in full.
"To bring investments into the country, we allow tax exemptions for specific periods.
"Sometimes these are not given in full – only a portion. This is important because we are competing with many other countries for the same investors.
"From the ministry’s perspective, approvals are never done arbitrarily. They must go through a proper process," he told the Dewan Rakyat on Tuesday (Nov 25).
Amir Hamzah said any major investment proposal that seeks tax incentives must first be evaluated by the National Investment Committee.
"When an investor wants to come in and requests incentives, the application has to go through the National Investment Committee.
"We look at whether the investment is strategic, we review existing tax policies and assess whether incentives are needed to bring the investment in," he said.
He said this structured approach guides the government’s incentive framework, which is reviewed regularly to ensure it remains relevant.
"This is the principle we follow. Studies are carried out every year, and for the sake of improvement, we will continue reviewing the policies.
"If there are better ways or enhancements that can be introduced, I am open to considering them," he told Syed Saddiq Syed Abdul Rahman (Muda-Muar).
Syed Saddiq had suggested that foreign tech giants could escape paying taxes in Malaysia by making large political donations, as the Finance Ministry held broad powers that enabled it to grant tax exemptions.
He also pressed the government to disclose which companies and individuals had received major tax waivers over the years, the total value of tax liabilities written off, and to commit to annual public reporting of such exemptions in the name of transparency.
