Wednesday, November 21, 2012

Incentives for O&G hub will reap great returns for Malaysia

Incentives for O&G hub will reap great returns for Malaysia

Posted on October 1, 2012, Monday

JAKARTA: Various tax and non-tax incentives proposed in the 2013 Budget to make Malaysia an oil and gas hub will reap handsome returns for the country, says Syahril Syazli Ghazali, Economic Counsellor at the Malaysian Embassy in Jakarta.
He said for example, in Indonesia, there were many international and local companies which were involved in the oil and gas sector.
“Strategic alliance among companies operating in neighbouring countries and Malaysia can speed up the process to attain the oil and gas status for the country,” he said when commenting about the 2013 Budget proposals presented by the Prime Minister.
Syahril said a gross domestic product growth of between 4.5 per cent and 5.5 per cent forecast for next year would augur well to lure more foreign investors to the Malaysian shores.
“In these global economic uncertainties, a GDP growth of about five per cent, expected for this year and next year, will be proof of Malaysia’s resilience,” he told Bernama.
Syahril also said small-and-medium enterprises would also benefit from the one billion ringgit to be provided under the SME Development Scheme to be managed by the SME Bank. The measure will help small-and-medium enterprises gain access  to further financing to develop their businesses and global supply chain.
“SMEs, especially Bumiputera SMEs, should tap resources from the RM200 million Halal Industry Fund to develop halal products,” he said, adding that they should also collaborate with SMEs in Indonesia and Thailand to tap global markets for such products.
In this light, he praised the Prime Minister for proposing that angel investors, individuals with high net-worth, in Malaysia provide capital for business start-ups.
“This will pave the way for more young entrepreneurs to venture further and upgrade their competitiveness.
“Many young entrepreneurs have creative ides but have limited funds to expand.
“With additional funding they will be bold to enter full-swing into business, especially in information communication and technology and, creative industries.
“My wish is for these young entrepreneurs to forge business ties with their Indonesian counterparts,” he added. — Bernama

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