The new fund is part of a five-point measure taken to nudge local investors to support government initiatives.
The money will be channeled towards accelerating participation of Malaysian-owned companies in strategic industries, Najib told participants at the opening of the Malaysian Investment Development Authority’s (MIDA) headquarters and the launch of its new logo here.
The move is part of a five-point measure taken to nudge local investors into supporting government initiatives, a key aspect under the Economic Transformation Programme (ETP) that aims to make private money as the key thrust for the programme’s success.
Recent MIDA data however showed local businesses remain wary of pouring cash although the agency claimed there is progress and described it as “encouraging”.
Other measures are the reintroduction of incentives to acquire foreign companies in order to enable them to acquire state-of-the-art technologies and tax incentives for Malaysian-owned manufacturing companies operating for about a year.
Malaysian-owned companies are also eligible to apply for tax incentives by increasing the eligibility shareholders’ funds threshold from RM500,000 to less than RM2.5 million.
A special tax rate will also be accorded to encourage small Malaysian service providers to merge into larger entities.
These measures will take place immediately, said Najib.