Wish list for Budget 2020

The Edge Malaysia, September 30, 2019

Jagdev Singh 

PwC Malaysia Tax Leader

DIGITALISATION

• Incentivise businesses to undertake digital transformation to move away from traditional processes, both in the manufacturing and services sectors.
• Investments in automation technology or processes and retraining of the workforce.
• It is equally important for the government to progress its own digitalisation plans at a faster pace, which in turn will spur the private sector to do so.

REINVESTMENT

• For the government to consider a reinvestment-based incentive similar to the previous reinvestment allowance, but on a more targeted basis.
• The introduction of the patent box and R&D incentives that are aligned to the OECD's BEPS Action Plan would also encourage businesses to locate their research and development activities within Malaysia.

SUSTAINABILITY

• For the government to extend the existing tax incentives for investments in green technology and assets which expire by Dec 31, 2020, in order to increase Malaysia's renewable energy capacity.
• Further deduction for businesses that implement measures or undertake campaigns to reduce the use of single-use plastics would be an innovative way for the government to support such initiatives.
• For individuals, a personal tax rebate or relief for recycling activities would incentivise the separation of waste at source by households.