Kuala Lumpur: Malaysia today said Indian engineering companies are eligible to apply for investment tax allowance in specialized areas, including advanced electronics, engineering support industries and precision equipment.
Inaugurating the largest ever engineering exhibition by leading Indian companies, International Trade Minister Muhyiddin Yassin said the qualifying companies with pioneer status enjoyed income tax exemption up to 100% of the statutory income for 10 years.
“Engineering companies providing raw materials, components, machineries, equipment, spare parts and consumables for projects are eligible to apply for the incentives,” he told 500 businessmen and specialists here.
As many as 169 Indian engineering companies are taking part in the exhibition aimed at networking with their counterparts from Malaysia.
The minister noted that 13.1% of ICT firms in Malaysia were Indian companies. He pointed out that seven Indian biotechnology companies in the country had been awarded BioNexus status in healthcare biotechnology and agriculture biotechnology. Of the seven three were fully India owned.
Engineering Export Promotion Council (EEPC) chairman Rakesh Shah at the inauguration of the Indian Engineering Exhibition 2008 (INDEE 2008)said, with the rapid expansion of India’s engineering exports, which accounted for more than 21% of the country’s total trade, the Indian engineering companies would be exporting about US$132 billion worth of goods from the present level of 33 billion by 2015.