INCENTIVES FOR KLIFD TO UNDERSCORE GOVERNMENT’S COMMITMENT IN MAKING KL A GLOBAL FINANCIAL CENTRE
The incentives for the Kuala Lumpur International Financial District (KLIFD), the KLIFD Marquee status and the KLIFD status, underscore the government’s commitment in making Kuala Lumpur a global financial centre.
Both incentives will cater for two different groups with different strategic intent. KLIFD Status incentives, offered to new foreign entrants of priority sub-sectors, will get income tax exemption of 100 % for a period of 10 years and stamp duty exemption on loan and service agreements. Both local and foreign Marquee companies with KLIFD Marquee Status, meanwhile, will enjoy Industrial Building and accelerated Capital Allowances.
These incentives, along with the 70% income tax exemption for five years for KLIFD developers, are necessary sweeteners, a first step towards bringing the best talent and infrastructure to the financial district.
KLIFD’s aim to enable Malaysia to capitalise on the momentum of its international Islamic financial innovation and Shariah-based competitive advantage is further strengthened with measures in the budget to stimulate the sukuk market and provide the seed money for Shariah-compliant Exchange Traded Funds (ETF).
Bank Negara is already spearheading the Islamic Finance initiative through Malaysia International Islamic Financial Centre (MIFC) and Islamic Financial Services Board (IFSB). KLIFD will complement these efforts by attracting additional strong players in financial services and its supporting industries by enabling them.
We thank the Prime Minister for his commitment and support to accelerate KLIFD’s efforts to be a fertile ground for businesses, creativity and innovations benefiting both Malaysia and the world.
Ultimately, we want KLIFD to be the place where talent can thrive and where talent attracts talent.
Excerpt from the 2012 BUDGET Speech by Prime Minister, YAB Dato’ Sri Mohd Najib Tun Abdul Razak
FIRST FOCUS: ACCELERATING INVESTMENT
24. To accelerate the development of Kuala Lumpur International Financial District (KLIFD), the Government proposes the following incentive package:
|First:||Income tax exemption of 100% for a period of 10 years and stamp duty exemption on loan and service agreements for KLIFD status companies;|
|Second:||Industrial Building Allowance and Accelerated Capital Allowance for KLIFD Marquee Status Companies; and|
|Third:||Income tax exemption of 70% for a period of 5 years for property developers in KLIFD.|