IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2011 | Removal date: open ended
Still in force

Production subsidy

On 15 October 2010, the Malaysian Prime Minister held his Budget speech for 2011. Its implications for foreign commercial interests can be summarized under the following categories.
 
Industrial policy

  • Agriculture. RM 3.8 billion shall be used to facilitate productivity increases and higher returns in the agricultural sector. On top of this, RM 974 million shall be spent in form of a price subsidy for paddy, fertilisers and paddy seeds. A further RM 230 million shall raise incentives to increase paddy yield.
  • Creative industry. A sum of RM 200 million shall be used topurchase "high quality locally-produced films, dramas anddocumentaries".
  • Electrical and electronics industry. RM 857 million shall be "allocated for local companies to invest in high value-added actitivities".
  • Palm oil and related industries. RM 297 million shall be allocated to support the replanting of trees with high quaility new clones; RM 150 million shall be allocated to help "domestic oleo derivatives companies" as well as downstream palm oil industries.
  • Oil, gas and energy. RM 146 million are to be allocated in support of the oil, gas and energy industry.

 
Investment policy

  • Broking licences. The Securities Commission will introduce three new stock broking licences for which local, foreign or joint venture companies may apply.
  • Bursa Malaysia. An international board shall be developed to enable the listing of foreign securities.
  • Research, development and commercialisation (R&D&C). RM 411 million shall be used to suppord R&D&C activities.
  • Venture capital. RM 100 millin shall be made available through a fund to provide soft loans for start up companies.

 
Tariffs

  • Consumption goods. The import duty on 300 unspecified goods shall be abolished. The goods shall come from the categories "apparel,handbags, shoes, shampoo, suits, children's apparel, wallets, haircolourants, golf balls, imitation jewellery, talcum powder, curtains,table cloth, blankets, bed sheets, shirt, undergarments, lingerie,nightwear, perfumes and mosquito netting".
  • Renewable energy generation. The import duty and sales tax exemption on equipment for the generation of energy from renewable sources and enegery efficiency shall be extended until 31 December 2012.
  • Hybrid vehicles. The full import duty as well as the full excise duty on hybrid cars as well as hybrid and electronic motorcycles shall be suspeneded until 31 December 2011.
  • Broadband equipment. The import duty and sales tax exemption on broadband equipment shall be extended "two years until 2012".

 
Export incentives

  • Export credits. In the coming year, takaful contributions for export credit shall be given double tax deduction.

 
Migration

  • Foreign workers. The number of foreign workers in Malaysia shall be reduced further in the future. As instruments, the Prime Minister proposes increasing levies on foreign workers according to the sector they work in, and a requirement to procure health insurance for foreign workers.
  • Permanent residence. The government plans the introduction of a point system for applications for permanent resident status. Under the new system, applications may besubmitted after 5 years compared with 10 years previously.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

271 Made-up textile articles
6302 Bed linen, table linen, toilet linen and kitchen linen.
630221 Of cotton
630229 Of other textile materials
630231 Of cotton
630239 Of other textile materials
630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics, of cotton
630291 Of cotton
282 Wearing apparel, except fur apparel
6104 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.
610419 Of other textile materials
610444 Of artificial fibres
6105 Men's or boys' shirts, knitted or crocheted.
610510 Of cotton
610590 Of other textile materials
6106 Women's or girls' blouses, shirts and shirtblouses, knitted or crocheted.
610610 Of cotton
610690 Of other textile materials
6107 Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted.
610712 Of manmade fibres
6108 Women's or girls' slips, petticoats, briefs, panties, nightdresses, pyjamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted.
610821 Of cotton
6109 Tshirts, singlets and other vests, knitted or crocheted.
610910 Of cotton
610990 Of other textile materials
6110 Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted.
611020 Of cotton
611030 Of manmade fibres
6111 Babies' garments and clothing accessories, knitted or crocheted.
611120 Of cotton
6115 Panty hose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted.
611599 Of other textile materials
6116 Gloves, mittens and mitts, knitted or crocheted.
611610 Impregnated, coated or covered with plastics or rubber
611692 Of cotton
6117 Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories.
611710 Shawls, scarves, mufflers, mantillas, veils and the like
611790 Parts
292 Luggage & handbags; saddlery & harness; other leather articles
4202 Trunks, suitcases, vanitycases, executivecases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travellingbags, insulated food or beverages bags, toile
420211 With outer surface of leather or of composition leather
420212 With outer surface of plastics or of textile materials
420219 Other
420221 With outer surface of leather or of composition leather
420222 With outer surface of plastic sheeting or of textile materials
420229 Other
420231 With outer surface of leather or of composition leather
420232 With outer surface of plastic sheeting or of textile materials
420291 With outer surface of leather or of composition leather
420292 With outer surface of plastic sheeting or of textile materials
420299 Other
293 Footwear other than sports footwear
6401 Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes.
640199 Other
6402 Other footwear with outer soles and uppers of rubber or plastics.
640220 Footwear with upper straps or thongs assembled to the sole by means of plugs
640299 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640359 Other
640399 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640419 Other
6405 Other footwear.
640510 With uppers of leather or composition leather
294 Sports footwear, except skating boots
6402 Other footwear with outer soles and uppers of rubber or plastics.
640219 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640319 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640411 Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like
295 Other footwear
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640320 Footwear with outer soles of leather, and uppers which consist of leather straps across the instep and around the big toe
640340 Other footwear, incorporating a protective metal toecap
6405 Other footwear.
640590 Other
296 Parts of footwear
6406 Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable insoles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof.
640610 Uppers and parts thereof, other than stiffeners
353 Soap, cleaning preparations, perfumes & toilet preparations
3303 Perfumes and toilet waters.
330300 Perfumes and toilet waters.
3305 Preparations for use on the hair.
330510 Shampoos
330520 Preparations for permanent waving or straightening
330590 Other
384 Sports goods
9506 Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including tabletennis) or outdoor games, not specified or included elsewhere in this Chapter; swimming pools and paddling pools.
950629 Other
950631 Clubs, complete
950632 Balls
950651 Lawntennis rackets, whether or not strung
950659 Other
950662 Inflatable
950669 Other
950691 Articles and equipment for general physical exercise, gymnastics or athletics
950699 Other
389 Other manufactured articles n.e.c.
7117 Imitation jewellery.
711719 Other
711790 Other
423 Steam generators, (except central heating boilers) & parts
8402 Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); superheated water boilers.
840211 Watertube boilers with a steam production exceeding 45 t per hour
840212 Watertube boilers with a steam production not exceeding 45 t per hour
840219 Other vapour generating boilers, including hybrid boilers
840290 Parts
431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840610 Turbines for marine propulsion
840681 Of an output exceeding 40 MW
840682 Of an output not exceeding 40 MW
840690 Parts
8410 Hydraulic turbines, water wheels, and regulators therefor.
841013 Of a power exceeding 10,000 kW
841090 Parts, including regulators
452 Computing machinery & parts
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851769 Other
461 Electric motors, generators & transformers; parts
8501 Electric motors and generators (excluding generating sets).
850110 Motors of an output not exceeding 37.5 W
850120 Universal AC/DC motors of an output exceeding 37.5 W
850131 Of an output not exceeding 750 W
850132 Of an output exceeding 750 W but not exceeding 75 kW
850133 Of an output exceeding 75 kW but not exceeding 375 kW
850134 Of an output exceeding 375 kW
850140 Other AC motors, singlephase
850151 Of an output not exceeding 750 W
850152 Of an output exceeding 750 W but not exceeding 75 kW
850153 Of an output exceeding 75 kW
850161 Of an output not exceeding 75 kVA
850162 Of an output exceeding 75 kVA but not exceeding 375 kVA
850163 Of an output exceeding 375 kVA but not exceeding 750 kVA
850164 Of an output exceeding 750 kVA
8502 Electric generating sets and rotary converters.
850211 Of an output not exceeding 75 kVA
850212 Of an output exceeding 75 kVA but not exceeding 375 kVA
850213 Of an output exceeding 375 kVA
850220 Generating sets with sparkignition internal combustion piston engines
850239 Other
850240 Electric rotary converters
8503 Parts suitable for use solely or principally with the machines of heading 85.01 or 85.02.
850300 Parts suitable for use solely or principally with the machines of heading 85.01 or 85.02.
8504 Electrical transformers, static converters (for example, rectifiers) and inductors.
850410 Ballasts for discharge lamps or tubes
850421 Having a power handling capacity not exceeding 650 kVA
850422 Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA
850423 Having a power handling capacity exceeding 10,000 kVA
850431 Having a power handling capacity not exceeding 1 kVA
850433 Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA
850434 Having a power handling capacity exceeding 500 kVA
850440 Static converters
850450 Other inductors
850490 Parts
464 Accumulators, primary cells & primary batteries; parts
8506 Primary cells and primary batteries.
850610 Manganese dioxide
850650 Lithium
850660 Airzinc
850680 Other primary cells and primary batteries
850690 Parts
8507 Electric accumulators, including separators therefor, whether or not rectangular (including square).
850710 Leadacid, of a kind used for starting piston engines
850720 Other leadacid accumulators
850730 Nickelcadmium
850740 Nickeliron
850750 Nickelmetal hydride
850760 Lithiumion
850780 Other accumulators
850790 Parts
469 Other electrical equipment & parts
8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetisation; electro magnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic l
850511 Of metal
850519 Other
850520 Electromagnetic couplings, clutches and brakes
850590 Other, including parts
8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter.
854310 Particle accelerators
854320 Signal generators
854330 Machines and apparatus for electroplating, electrolysis or electrophoresis
854370 Other machines and apparatus
854390 Parts
472 Television & radio transmitters; cameras; telephone sets
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851711 Line telephone sets with cordless handsets
851712 Telephones for cellular networks or for other wireless networks
851718 Other
851761 Base stations
851762 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus
474 Parts for the goods of classes 4721 to 4733 & 4822
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851770 Parts
491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
499 Other transport equipment & parts
8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without sidecars; sidecars.
871110 With reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cc
871120 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50 cc but not exceeding 250 cc
871140 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 500 cc but not exceeding 800 cc
871150 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800 cc
871190 Other

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