G/SCM/N/315/MYS  
 
9 October 2017 
(17-5423) 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 5 October 2017, 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 the period of 1 January 2016 – 
31 December  2017. 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/315/MYS  
 
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  TABLE OF CONTENTS  
1   PIONEER STA TUS ................................ ................................ ................................ ........  2 
2   INVESTMENT TAX ALLOW ANCE  ................................ ................................ ...................  3 
 
1  PIONEER STATUS  
1. Title of the programme  
Pioneer Status.  
2. Period covered by the notification  
1 January 2016 – 31 Decembe r 2017 . 
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 e conomy.  
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 whic h 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, t ourism (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/315/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 2016 - 31 December 2017.  
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 author ity 
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  
Promot ion of Investment 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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