On 5 June 2020, the Government of Malaysia announced a RM35 billion stimulus package titled “Pelan Jana Semula Ekonomi Negara” or “PENJANA” which is aimed at helping businesses recover from the impact of the COVID-19 pandemic and the resulting lockdown under the Movement Control Order (MCO). PENJANA marks the 4th phase of the government’s six-phased “6R” approach, i.e. Resolve, Resilience, Restart, Recover, Revitalise and Reform, in tackling the challenges arising from the COVID-19 pandemic.

The measures introduced include various tax incentives for foreign companies in the manufacturing sector to relocate their businesses into Malaysia, the setting up of the Dana Penjana Nasional to accelerate digitalisation efforts by Malaysian businesses, and the Technology Innovation Sandbox to encourage innovation and creativity.

Click here for the infographic on the PENJANA Tax Incentives introduced by the Government.
Click here for the full text of the announcement by the Prime Minister on 5 June 2020.

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For more insight into this area of law, please contact our Partner in the Tax Practice Group:
Feruz Anwar Seth