The prime minister said the incentives would include 10-year income tax exemption and eight years’ of exemption from stamp duty, as well as real property gains tax and withholding tax.
Najib Razak said that IWH CREC and its wholly owned subsidiaries would also be given exemptions from import duty on selected construction materials which were not manufactured in Malaysia.
“In addition, the government has also agreed to consider granting tax incentives to top high-ranked global companies and financial institutions (taking part in the project).
“We are also considering other measures such as industrial building allowance, accelerated capital allowance, deduction of rental payments, stamp duty exemptions for service agreement or pre-package incentive, to other investors and tourism operators,” he said at the signing ceremony of the IWH CREC Sdn Bhd shareholders agreement here, today.
Najib said the government would tailor incentives for the project to bring in global-stature companies and individuals from around the world to Bandar Malaysia.
“I sincerely hope multinational corporations will seize the moment and come to Malaysia and to Bandar Malaysia, in particular. I can assure you that Bandar Malaysia will become the place to do business in the region,” he added.
The prime minister also witnessed the signing of three landmark agreements which would set the pace for the Bandar Malaysia development.
The signing includes a shareholders agreement for Bandar Malaysia Sdn Bhd between TRX City Sdn Bhd, IWH CREC and the Minister of Finance Inc; a memorandum of understanding (MoU) for the Bandar Malaysia Fund by a consortium of banks; and an MoU for the Bandar Malaysia Integrated Transportation Terminal.
Najib highlighted the participation of MRCB Bhd as a joint venture partner under the Bandar Malaysia Integrated Transportation Terminal, attesting that qualified local companies would also benefit from the development.
“The MoF Inc, as a major shareholder in Bandar Malaysia, will ensure tenders and contracts are awarded in an open and transparent manner so that Malaysian companies can also participate and contribute significantly to the development of Bandar Malaysia,” he added.
Najib said about 5,000 units of affordable houses would be built in the first phase of the Bandar Malaysia development.
He said the construction of these houses would be fast-tracked as a matter of priority.
IWH CREC Sdn Bhd and the Ministry of Finance Incorporated (MoF Inc) hold 60:40 equity respectively in Bandar Malaysia Sdn Bhd – a joint venture company that will spearhead the development.
Najib said the building of these affordable houses showed the government’s commitment to meeting the needs of all levels of the population, especially the low- and medium-income groups.
The first phase of the Bandar Malaysia development, which has a gross development value (GDV) of RM50 billion to RM60 billion and will be developed over five years, is set to kick off next year.
Executive Vice Chairman of Iskandar Waterfront Holdings Sdn Bhd (IWH) Lim Kang Hoo said the first phase will include the development of 5,000 units of affordable homes and the mass rapid transit and light rail transit development, among others.
“The total project, which consists of three to four phases, will take up to 25 years and will have a total GDV of around RM200 billion,” he said.
– BERNAMA