BUDGET 2021: TAX INCENTIVES FOR DIGITALISATION, AUTOMATION & GREEN INVESTMENT PROPOSED

KUALA LUMPUR, Oct 26  -- Companies from logistics to the oil and gas sector are hoping that tax incentives to encourage digitalisation, automation and green investment will be included in government’s Budget 2021.

 Advancecon Holdings Bhd group chief executive officer (CEO) Datuk Phum Ang Kia said the company wished the government would introduce new forms of tax incentives to companies involved in solar photovoltaic investment to accelerate return on investment.

He said the additional investment generated can be redeployed towards more solar photovoltaic projects around the country in realising the nation’s target of deriving 20 per cent of power generation via renewable energy sources by 2025.

The earthworks and civil engineering services provider also hopes the government will continue spending on existing and new infrastructure projects to boost connectivity, as well as the trading of goods and services to accelerate the economy once the pandemic is well under control.

“Infrastructure projects that have high multiplier effects include the East Coast Rail Link and Pan Borneo Highway,” Phum said in a statement.

Advancecon also wants the government to continue to promote housing affordability and continue to maintain a low interest rate environment to enhance domestic purchasing power.

Meanwhile, Tiong Nam Logistics Holdings Bhd hopes the government will provide more tax incentives to spur the expansion and modernisation of the logistics sector.

“We continuously invest in expanding and upgrading our logistic fleet and warehousing facilities to ensure we deliver excellent services, hence capital or tax incentives would help accelerate progress,” its executive director, Victor Ong, said.

Ong said the company also looked forward to more incentives for the implementation of automation and digital technologies in the logistics sector, including data management and analytics solutions to enhance the efficiency and reliability of the sector.

Additionally, Tiong Nam hopes for more green incentives for the logistics sector, such as for transitioning to greener logistic fleet and facilities to support the country’s efforts to transition to a low carbon economy.

Hengyuan Refining Company Bhd CEO Erkki Ranta said the company hoped to see more initiatives towards accelerating the digitalisation of the oil and gas industry, for instance, incentives and capital tax allowances for new machinery upgrades.

“We also hope for more subsidies and funds channelled towards the education and upskilling of the oil and gas workforce.

“Apart from enhancing technical know-how, other important focus areas include health, safety, and the environment, all of which are important to forming a reliable talent pool of highly competent skilled labour that can drive the industry forward,” he added.

-- BERNAMA