G/SCM/N/372/MYS  
 
30 June 2021  
(21-5232) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF  
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
MALAYSIA  
The following notification, dated  and received on 28 June 2021 , is being circulated at the request of 
the delegation of  Malaysia.  
 
_______________  
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 th e period of 1 January 20 20 – 31 December  2021. 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/372/MYS  
 
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 TABLE OF CONTENTS  
1   PIONEER STATUS  ................................ ................................ ................................ ....... 2 
2   INVESTMENT TAX ALLOWANCE  ................................ ................................ ..................  3 
 
1  PIONEER STATUS  
1. Title of the programme  
Pioneer Status.  
2. Period covered by the notification  
1 Januar y 2020 – 31 December 20 21. 
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 authority  
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, 
agricultur e, 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 data permitting an assessment of the trade effects  
Not applicable.  G/SCM/N/372/MYS  
 
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 2  INVESTMENT TAX ALLOWANCE  
1. Title of the programme  
Investment Tax Allowance.  
2. Period covered by the notification  
1 January 20 20 - 31 December 20 21. 
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 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 In vestment 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/activities 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 applicable.  
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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