WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/MYS 
14 October 2011 
 (11-5096) 
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 12 October 201 1, 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 2010 – 
31 December 2010.  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/220/MYS 
Page 2  
 
  TABLE OF CONTENT 
  Page 
I.  PIONEER STATUS ................................................................................................................ .. 2 
II.  INVESTMENT TAX ALLOWANCE ..................................................................................... 3  
 
I. PIONEER STATUS 
1. Title of the programme 
 
 Pioneer Status.    
2. Period covered by the notification 
 
 1 January 2010 - 31 December 2010.    3. Policy objective and/or purpose 
  To encourage investments in promoted produc ts/activities in the manufacturing, agriculture, 
tourism (including hotel) and approved services sector s 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 Internati onal 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 hot el) 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.    G/SCM/N/220/MYS 
 Page 3 
 
 
  II. INVESTMENT TAX ALLOWANCE 
1. Title of the programme 
 
 Investment Tax Allowance.    
2. Period covered by the notification 
 
 1 January 2010 - 31 December 2010.    3. Policy objective and/or purpose 
  To encourage investments in promoted produc ts/activities in the manufacturing, agriculture, 
tourism (including hotel) and approved services sector s that can contribute to the future growth and 
development of the economy.    
4. Background and authority 
 
 The Investment Tax Allowance incentive is pr ovided 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 
  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 hot el) 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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