KUALA LUMPUR: The Ministry of Finance (MoF) has approved a special tax incentive to drive investment in Tok Bali, Kelantan, as a new growth centre in the state, giving 100% income tax exemption for 25 years and an extension of five years for special income tax at a rate of 17%.
Non-citizens holding senior management positions in companies that are included under this initiative will only be subject to a flat tax rate of 15% as an added incentive to increase Kelantan’s competitiveness as an investment destination.
“The federal government, cognisant of the challenges faced by the state of Kelantan, is confident that the special tax incentives being implemented by the federal government via the East Coast Economic Region Development Council (ECERDC) will spur the economic transformation of Kelantan.
“In addition, ongoing infrastructure and connectivity development in the surrounding areas which includes the Central Spine Road and East Coast Rail Link (ECRL) will also enhance the attractiveness of investing especially into the Tok Bali area,” Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (pix) said in a statement today after his visit to Tok Bali as part of his Jelajah Bajet 2022 tour to Kelantan.
Meanwhile, ECERDC CEO Datuk Baidzawi Che Mat said Tok Bali is envisioned to be the new growth centre for Kelantan.
“With the special tax incentives as well as the high-impact projects in the Tok Bali area, consisting of Tok Bali Industrial Park (TBIP), Tok Bali Integrated Fisheries Park (TBIFP) and external infrastructure for the Tok Bali Port that are being implemented by ECERDC, we are confident this will contribute towards achieving our investment target of RM2.3 billion.
“This investment is expected to generate 4,200 new jobs and 270 entrepreneurial opportunities for the local community,” he said.
The development of the Tok Bali area will focus on five key sectors, namely manufacturing, fisheries, oil and gas, logistics and services as well as ecotourism to diversify the economy in the area and enhance Tok Bali’s competitiveness as an investment destination which, in turn, will create high-income jobs and open up entrepreneurial opportunities. – Bernama