How to the Government can aid company trades that will benefit the country’s economic growth?

By Geevan Raj

Student id : 2013-121782

Ministry Of International Trade And Industry.

How can the Government help to aid company trades that will benefit the country’s economic growth?

The main objective in which this ministry was established in April of 1956 was so that the government would be able to legislate and implement international trade and industrial policies that will ensure Malaysia’s rapid development towards achieving The National Economic Policy and also to be able to achieve our Vision 2020.

The ministry has since then been promoting the country’s industry sector specifically in the Machinery and Equipment Industry and also the packaging industry in hopes of a higher demand for export which has been successful.The government has provided subsidies for oil(cooking oil,palm oil) for people that wish to be involved in packaging and selling of these oils.The purpose of this special subsidy to the public is for exporting it domestically and internationally for economic growth.

 

Oil Packaging Machine

The agency that is best recognize for these trades are the national trade promotion agency of Malaysia (MATRADE) is responsible for the promoting and the exporting of these products.

Furthermore,the Government should identify the Machinery and Equipment industry to be one of the key areas for growth and development.This growth will focus primarily on the manufacture of the high value added and advanced technology of Machinery and Equipment.

In order for the Machinery and Equipment industry to aid in the economic growth of Malaysia is to give out special incentives to the companies who are in the industry such as a tax exemption of 100% of statutory income for a period of 10-15 years.Also an Investment Tax Allowance of 100% on qualifying capital expenditure incurred within a period of 5-10 years with the allowance being deducted for each year of assessment to be offset against 100% of their statutory income with the condition that the companies have a value added criteria of at least 40% to 60%.

References
1)http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.Section_aadfbbb8-c0a81573-5bbe5bbe-7cec752f
2)http://www.matrade.gov.my/en/about-matrade
3)http://www.matrade.gov.my/en/about-matrade/corporate-info/about-us
4)http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.Section_44b61991-c0a8156f-628f628f-841b8080