Malaysia unveils pump-priming budget
Tuesday, 11 September 2007
John Burton, FT Syndication Service
SINGAPORE: Malaysia said it would cut corporate taxes and a property stamp duty to attract foreign investment as it unveiled a pump-priming budget ahead of an expected general election.
Government spending will rise 2.5 per cent to M$169bn ($48.6bn) as Malaysia reaches the mid-way point in its current five-year economic plan, which ends in 2010 and includes the building of new economic zones for foreign investors near Singapore and in several other parts of the country.
Abdullah Badawi, the prime minister and finance minister, said the budget deficit in 2008 would amount to 3.1 per cent of gross domestic product, down from 3.2 per cent this year, because of increased revenues from the nation's oil and gas sector due to higher energy prices.
The cut in corporate tax to 25 per cent in 2009 from 27 per cent is meant to improve Malaysia's competitiveness against neighbouring Singapore, which has a corporate tax rate of 18 per cent.
SINGAPORE: Malaysia said it would cut corporate taxes and a property stamp duty to attract foreign investment as it unveiled a pump-priming budget ahead of an expected general election.
Government spending will rise 2.5 per cent to M$169bn ($48.6bn) as Malaysia reaches the mid-way point in its current five-year economic plan, which ends in 2010 and includes the building of new economic zones for foreign investors near Singapore and in several other parts of the country.
Abdullah Badawi, the prime minister and finance minister, said the budget deficit in 2008 would amount to 3.1 per cent of gross domestic product, down from 3.2 per cent this year, because of increased revenues from the nation's oil and gas sector due to higher energy prices.
The cut in corporate tax to 25 per cent in 2009 from 27 per cent is meant to improve Malaysia's competitiveness against neighbouring Singapore, which has a corporate tax rate of 18 per cent.