G/SCM/N/253/MYS  
 
28 November 2014  
(14-6931)  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 26 November 2014, 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 2011 – 
31 December 2013. 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/253/MYS 
 
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  TABLE OF CONTENTS 
1   PIONEER STATUS ........................................................................................................ 2  
2   INVESTMENT TAX ALLOWANCE ................................................................................... 2 
 
1  PIONEER STATUS 
1. Title of the programme 
 
Pioneer Status.  
2. Period covered by the notification 
 
1 January 2011 - 31 December 2013. 
 
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 an d 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 
 N/A.  
9. Duration of the subsidy 
 
This is an on-going programme.  
10. Statistical data permitting an assessment of the trade effects 
 
N/A. 
 
2  INVESTMENT TAX ALLOWANCE 
1. Title of the programme 
 
Investment Tax Allowance.  G/SCM/N/253/MYS 
 
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  2. Period covered by the notification 
 
1 January 2011 - 31 December 2013.  
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 In ternational 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 
 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 
 
N/A. 
 
9. Duration of the subsidy 
 
This is an on-going programme. 
 10. Statistical data permitting an assessment of the trade effects 
 
N/A. 
 
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