On 5 June 2020, Malaysia's Prime Minister announced a new MYR 35 billion economic recovery plan in response to COVID-19 that contains several tax measures.
One of the main measures is a new tax holiday incentive (0% tax rate) for foreign manufacturers that relocate their operations to Malaysia, which includes:
- a 10-year tax holiday for fixed assets investment of MYR 300 to 500 million; and
- a 15-year tax holiday for fixed assets investment exceeding MYR 500 million.
Manufacturers with an …