G/SCM/N/343/MYS  
 
3 July 2020  
(20-4623) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE  
GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON 
SUBSIDIES AND COUNTE RVAILING MEASURES  
MALAYSIA  
The following notification, dated 2 July 2020 , is being circulated at the request of the delegation 
of Malaysia . 
 
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Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the SCM Agreement, Malaysia submits 
herewith our new and full notification for the period of 1 January 201 8 – 31 December  2019. In 
accordance with Article 25.7 of the SCM Agreement, the notification of the measures concerned does 
not prejudge either their legal status, effects or nature under GATT  1994 and the SCM Agreement.  G/SCM/N/343/MYS  
 
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  TABLE OF CONTENTS  
1   PIONEER STATUS  ................................ ................................ ...........................  2 
2   INVESTMENT TAX A LLOWANCE  ................................ ................................ ...... 3 
1  PIONEER STATUS  
1. Title of the programme  
Pioneer Status.  
2. Period covered by the notification  
1 January 201 8 – 31 December 201 9. 
3. Policy objective and/or purpose  
To encourage investments in promoted products/activities in the manufacturing, agriculture, tourism 
(including hotel) and approved services sectors that can contribute to the future growth and 
development of the economy.  
4. Background and au thority  
The Pioneer Status incentive is provided for under the Promotion of Investment Act, 1986. Minister 
of Finance and Minister of International Trade and Industry are the authorities under this Act.  
5. Legislation under which it is granted  
Promotion of  Investment Act, 1986.  
6. Form of the subsidy  
Income tax exemption.  
7. To whom and how the assistance is provided  
To both local and foreign investors for approved promoted products/activities in the manufacturing, 
agriculture, tourism (including hotel) and approved services sectors. A company granted Pioneer 
Status will enjoy a partial/full tax exemption from corporate income tax.  
8. Amount of the subsidy  
Not applicable.  
9. Duration of the subsidy  
This is an on -going programme.  
10. Statistical dat a permitting an assessment of the trade effects  
Not applicable.  G/SCM/N/343/MYS  
 
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  2  INVESTMENT TAX ALLOW ANCE  
1. Title of the programme  
Investment Tax Allowance.  
2. Period covered by the notification  
1 January 201 8 - 31 December 201 9. 
3. Policy objective and/or purpose  
To enco urage investments in promoted products/activities in the manufacturing, agriculture, tourism 
(including hotel) and approved services sectors that can contribute to the future growth and 
development of the economy.  
4. Background and authority  
The Investment Tax Allowance incentive is provided for under the Promotion of Investment 
Act, 1986. Minister of Finance and Minister of International Trade and Industry are the authorities 
under this Act.  
5. Legislation under which it is granted  
Promotion of I nvestment Act, 1986.  
6. Form of the subsidy  
Investment Tax Allowance is based on the amount of qualifying capital expenditure incurred.  
7. To whom and how the assistance is provided  
To both local and foreign investors for approved promoted products/activit ies in the manufacturing, 
agriculture, tourism (including hotel) and approved services sectors. A company granted Investment 
Tax Allowance can offset this allowance against the statutory income for each year of assessment.  
8. Amount of the subsidy  
Not appl icable.  
9. Duration of the subsidy  
This is an on -going programme.  
10. Statistical data permitting an assessment of the trade effects  
Not applicable.  
 
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