The Perak state government is providing a series of lucrative incentives in creating a business-friendly environment to lure domestic as well as foreign investors in a bid to stimulate and propel the economic development of the state.
Perak has a total of 70 industrial estates covering a total land area of 12,679 acres, 40% yet to be developed. The state executive council adopted a series of incentives in 2015 for developers keen to invest in new industrial estates as well as improving the existing industrial estates in Perak. Those investing in state or national strategic projects will also be entitled to such incentives. Meanwhile, the state government has also set up a one-stop investment center to handle issues encountered by investors.
7 major industrial incentives:
- Providing “fast lane” for specific new industrial park development projects.
- Allowing domestic and international developers to possess up to 100% stake while allowing them to manage the industrial parks in their capacities as industrial park managers or operators.
- Local and foreign investors will only need to pay a nominal or minimal land cost.
- Developers will be allowed to defer payment of land taxes and assessment fees until the industrial land is sold to the buyers.
- Industrial park developers and tenants with private industrial park management system or industrial park managers will only need to pay very low assessment fees at a proposed rate of 10%. On top of that, industrial park managers will also be responsible for the collection of maintenance fees from tenants.
- Land lots proposed to be developed into new industrial parks are entitled to 10% to 30% discounts for conversion of land use from agriculture land to industrial land.
- Allowing industrial park managers to collect assessment fees and land taxes from tenants.
To qualify for the incentive packages, the new industrial estates must be at least 20 hectares in size and be managed by professional estate managers with sophisticated infrastructure equipment and fencing system, based on the proposal by the Perak Investment Management Center.
The state government will provide the investors with the following industrial land preferential policies:
- Up to 50% discount on industrial land premiums
- Land premiums can be disbursed by installments.
- Up to 99 years lease for industrial lands.
- No restrictions for land mortgage.
High-tech industries encouraged
The Perak state government is aspiring to advance towards the goal of a “knowledge state” and has introduced the Multimedia Super Corridor at Meru Raya that encompasses four major realms, namely knowledge infrastructure, knowledge government, knowledge economy and knowledge society. The state government is well aware of the importance of knowledge and technology, and that it will be very difficult to develop other projects in the absence of a strong IT infrastructure. In view of this, the state government will be providing attractive incentives for high-tech entrepreneurs and those supporting the state’s ICT development.
4 major IT incentives:
Financial incentives: Including government and venture capital funds working together to povide financial assistance to value-added service providers.
Technological incentives: Including the provision of sophisticated web technology to allow high-tech investors to gain access to updated IT information.
Business and marketing incentives: The state government will help local SMEs build up their business connections, including marketing support and organizing talks and business dialogues.
Land incentives: The state government will provide reasonably priced land for investors. Priority will be given to investors keen to invest in innovative multimedia, outsourcing services and educational sectors.
The Perak state government’s information agency will host regular investment promotion events such as Invest Perak for potential investors to gain a better insight into the various business-friendly incentives offered by the state.