Hello Everyone,

Malaysia's Budget for 2009 of RM207.9 billion, unveiled by Prime
Minister Datuk Seri Abdullah Ahmad Badawiin Parliament is centered on
achieving three main goals - to ensure the well-being of all
Malaysians, develop quality human capital and strengthen the nation's
resilience.

Among the initiatives announced to reduce the impact of the
inflationary pressure on Malaysians, the business sector stands to
benefit from a host of new proposals.

Enhanced Incentives

The Group Relief incentive, which currently allows a company to
offset 50% of the current year's unabsorbed losses against the income
from another company within the 70%-owned group, is extended to 70%.

To further encourage companies in particular small and medium scale
enterprises ( SMEs) to invest in the latest information communication
technology (ICT), the Accelerated Capital Allowance on ICT equipment
including computer software, which is currently allowed to be claimed
over two years is accelerated to one year., effective from Year of
Assessment 2009 to Year of Assessment 2013.

Four and five star hotels in Sabah and Sarawak are now eligible for
incentive in the form of Pioneer Status or Investment Tax Allowance
of 100% over five years, which were previously restricted to
investments by hotels of three- star and below. The incentive is
applicable for applications received by the Malaysian Industrial
Development Authority (MIDA) from 30 August 2008 to 31 December 2013.

To encourage more funding for innovative but high risks projects,
venture capital companies that invest at least 30% of their funds in
start-ups, early stage financing or seed capital are eligible for a
five-year tax exemption The incentive is effective for applications
received by the Securities Commission from 30 August 2008 until 31
December 2013.

To encourage SMEs to invest in plant and machinery, the investment on
these assets, acquired in the Year of Assessment 2009 and 2010 be
given Accelerated Capital Allowance to be claimed within 1 year
instead of two years.

SMEs will also be allowed to claim full Capital Allowance (previous
limit RM10,000) for small assets within a year, effective from Year
of Assessment 2009.

Accelerated Capital Allowance currently given to security equipment
installed in factories will be extended to all business premises
effective from the Year of Assessment 2009 until 2012.

One of the main goals of DK Malaysia Development is to promote
investment, business development, manufacturing, trade, and tourism
to Malaysia and DK Malaysia serves as a consultant to Malaysian
government agencies (MITI -Ministry of Trade and Industry Malaysia
and MIDA, Malaysian Industrial Development Authority).

Take care and All the best,

Fred Plimley
President - DK Malaysia Development, LLC
Host/Moderator - Linkedin Malaysia
f.plimley@...
http://www.linkedin.com/in/fredplimley
(951) 243-3602
(909) 214-8783
(206) 338-3191
(+44) 020 7193 7317
Skype ID: fredplimley