G/SCM/N/401/MYS  
 
21 September  2023 
(23-6301) Page: 1/7 
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 communication , dated  and received  on 18 September 2 023, is being circulated at the 
request of the delegation of  Malaysia . 
 
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Pursuant to Article XVI:1 of the G ATT 1994  and Article 25 of the SCM Agreement, Malaysia submits 
herewith our new and full notification for the period of 1 January 2 022 - 31 December  2023. 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/401/MYS  
 
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  Table Of Contents  
1  PIONEER STATUS  ................................ ................................ ................................ .........  3 
2  INVESTME NT TAX ALLOWANCE  ................................ ................................ ....................  4 
3  INDUSTRY4WRD INTERVENTION FUND  ................................ ................................ ....... 5 
4  FISHERMEN'S LIVING ALLOWANCES  ................................ ................................ ............  6 
5  FISHERMAN'S INSURANCE SCHEME  ................................ ................................ .............  7 
 G/SCM/N/401/MYS  
 
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  1  PIONEER STATUS  
1. Title of the subsidy program me 
Pioneer Status.  
2. Period covered by the notification  
1 January 2 022 - 31 December  2023. 
3. Policy objective an d/or purpose of the subsidy  
To encourage investments in promoted products/activities in the manufacturing, manufacturing 
related services and tourism (including hotel) sectors that can contribute to the future growth and 
development of the economy.  
4. Background and authority  for the subsidy  
The Pioneer Status incentive is provided under the Promotion of Investment Act, 1986 . Minister of 
Investment, Trade and Industry is the authority under this Act . 
5. Legislation under which it is granted  
Promotion of In vestment Act, 1986.  
6. Form of the subsidy  
Income tax exemption.  
7. To whom and how the subsidy is provided  
To both local and foreign investors for approved promoted products/activities in the manufacturing, 
manufacturing related services  and tourism (including hotel) sectors . A company granted Pioneer 
Status will enjoy a partial/full tax exemption from corporate income tax . 
8. Amount of the subsidy  
Not available.  
9. Duration of the subsidy  
This is an on -going programme.  
10. Statistical data permitting an assessment of the  trade effects  of the subsidy  
Not applicable.  G/SCM/N/401/MYS  
 
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  2  INVESTMENT TAX ALLOWANCE  
1. Title of the subsidy program me 
Investment Tax Allowance.  
2. Period covered by the notification  
1 January 2 022 - 31 December  2023. 
3. Policy objective and/or purpose of the subsidy  
To encourage investments in promoted products/activities in the manufacturing, manufacturing 
related services  and tourism (including hotel) sectors that can contribute to the future growth and 
development of the economy . 
4. Background and authority  for the subsi dy 
The Investment Tax Allowance incentive is provided under the Promotion of Investment Act, 1986 . 
Minister of Investment, Trade and Industry is the authority under this Act . 
5. Legislation under which it is granted  
Promotion of Investment Act, 1986.  
6. Form of the subsidy  
Income t ax allowance.  
7. To whom and how the subsidy is provided  
To both local and foreign investors for approved promoted products/activities in the manufacturing, 
manufacturing related services  and tourism (including hotel) sectors.  
A company gr anted Investment Tax Allowance will enjoy a partial/full tax allowance on qualifying 
capital expenditure . 
8. Amount of the subsidy  
Not available.  
9. Duration of the subsidy  
This is an on -going programme.  
10. Statistical data permitting an assessment of the trade effects  of the subsidy  
Not applicable.  G/SCM/N/401/MYS  
 
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  3   INDUSTRY4WRD INTERVENTION FUND  
1. Title of the subsidy program me 
Industry4WRD Intervention Fund . 
2. Period covered by the notification  
1 January 2 022 - 31 December  2023.  
3. Policy objective and/or purpose of the subsidy  
To improve productivity of Malaysian Small and Medium Enterprises (SMEs) and accelerate their 
business growth through adoption of Industry 4.0 technologies with particular focus on the areas of 
technology application, process improvement and skills  training . 
4. Background and authority  for the subsidy  
The Industry4WRD Intervention Fund was introduced under the National Policy on Industry 4.0 
known as the 'Industry4WRD ' policy . Malaysian Investment Development Authority (MIDA) is the 
Implementing Agency  for the Industry4WRD Intervention Fund.  
5. Legislation under which it is granted  
Malaysia 's National Policy on Industry 4.0 known as the 'Industry4WRD ' policy . 
6. Form of the subsidy  
Matching grant . 
7. To whom and how the subsidy is provided  
Qualified SMEs that ha ve been approved with the 70:30 matching grant will be disbursed with 
maximum 30 % of the matching amount (70 % of total grant) will be provided as upfront grant, 
subject to the approval by the Intervention Fund Approval Committee, while the balance of the 
remaining grant will be on reimbursable basis subject to the approval by the Grant Coordination and 
Disbursement Committee . 
8. Amount of the subsidy  
Capped at a maximum amount of RM500,000 of matching grant per SME . 
9. Duration of the subsidy  
2019-2025. 
10. Statistic al data permitting an assessment of the trade effects  of the subsidy  
Not applicable.  G/SCM/N/401/MYS  
 
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  4  FISHERMEN'S LIVING ALLOWANCES  
1. Title of the subsidy program me 
Fishermen's Living Allowances.  
2. Period covered by the notification  
1 January 2 022 - 31 December  2023.  
3. Policy objective and/or purpose of the subsidy  
The Fishers' Living Allowance is aimed at holding up the income of fishermen and improving their 
living standards by cushioning the impact of the rising cost of living.  
4. Background and authority  for the subsidy  
The Government of Malaysia.  
5. Legislation under which it is granted  
No specific legislation but through budget announcement.  
6. Form of the subsidy  
Financial assistance.  
7. To whom and how the subsidy is provided  
All fishers who fulfil the eligibility criteria can benefit from this programme . Payment is credited 
directly to the fisher's individual bank account monthly.  
8. Amount of the subsidy  
Not available.  
9. Duration of the subsidy  
This is an on -going programme.  
10. Statistical data permitting an assessment of  the trade effects  of the subsidy  
Not applicable.  G/SCM/N/401/MYS  
 
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  5  FISHERMAN'S INSURANCE SCHEME  
1. Title of the subsidy program me 
Fishermen's Insurance Scheme . 
2. Period covered by the notification  
1 January 2 022 - 31 December  2023.  
3. Policy objective and/or purpose of the subsid y 
To insure fishers in the event of an accident that could affect their source of income and to prevent 
the disruption of their livelihoods.  
4. Background and authority  for the subsidy  
The Government of Malaysia . 
5. Legislation under which it is granted  
No speci fic legislation but included in national budget announcement.  
6. Form of the subsidy  
Insurance.  
7. To whom and how the subsidy is provided  
All fishers who receive the Fishermen's Living Allowance can benefit from this insurance scheme . An 
annual deduction of RM1 00 is made directly from the Fishermen's Living Allowance.  
8. Amount of the subsidy  
No additional expenses provided by the Government of Malaysia as the payment for the premium is 
made through direct deduction from the allowance received under the Fishermen's Living Allowance 
programme.  
9. Duration of the subsidy  
This is an on -going programme.  
10. Statistical data permitting an assessment of the trade effects  of the subsidy  
Not applicable.  
 
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