Incentives & Schemes

Sarawak: Key Incentives For Foreign Investors

Supported by pro-business government policies, Sarawak is a prime investment destination with its competitive tax rates, energy costs & infrastructure.

Sustainability

Green Status

Electricity Tariffs

We have the most competitive electricity tariffs in ASEAN, these are estimated to be up to 73% below those of neighbouring countries

Taxes & Immigration

Generous Rebates

30% rebate on industrial land premium within 5 years of completion, with flexible land ownership terms.

Visa & Residency Permit

Malaysia: Key Incentives For Foreign Investors

National tax incentives, both direct and indirect, cover new investments in the manufacturing, agriculture, tourism and approved services sectors as well as Research and Development (R&D), training and environmental protection activities.

Pioneer Status (PS)

Income tax exemption of 70% or 100% for 5 to 10 years

Investment Tax Allowance (ITA)

60% or 100% of qualifying capital expenditure offset against 100% or 70% statutory income

Reinvestment Allowance (RA)

60% of qualifying capital expenditure for 15 consecutive years, offset against 100% or 70% statutory income

Global Services Hub

Incentives for trading / services companies
Tiered income tax (5% or 10%) up to 10 years

Tax Exemption

100% tax exemption for high-tech industries for up to 5 years

Malaysia Digital (MD) Status

Incentives for Malaysia Digital activities
- Income tax exemption or ITA
- Import duty/sales tax exemption

Green Incentives

Strong Trade, Investment and Economic Cooperation through ASEAN FTAs

Sarawak, being part of Malaysia, benefits from Free Trade Agreements (FTAs) that promote trade and boost economic cooperation among ASEAN member states and key trading partners around the world.

Benefits of FTAs in Sarawak

Faster entry into international markets

Increase import and export activities

Lower transaction costs

Improved investment protections

Less or no custom tax

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Bilateral

Australia

Chile

India

Japan

New Zealand

Pakistan

Turkiye

Japan

New Zealand

Pakistan

Turkiye

0

Multilateral

Regional Comprehensive Economic Partnership (RCEP)​

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

ASEAN Free Trade Area (AFTA)​

ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP)

ASEAN-Korea Free Trade Agreement (AKFTA)

ASEAN-China Free Trade Agreement (ACFTA)​

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)​

ASEAN-India Free Trade Agreement (AIFTA)​

ASEAN-Hong Kong Free Trade Agreement (AHKFTA)

0

Bilateral

Australia

Chile

India

Japan

New Zealand

Pakistan

Turkiye

0

Multilateral

RCEP

Regional Comprehensive Economic Partnership (RCEP)

CPTPP

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

ASEAN Free Trade Area (AFTA)

ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP)

ASEAN Korea Free Trade Agreement (AKFTA)

ASEAN-China Free Trade Agreement (ACFTA)

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

ASEAN-India Free Trade Agreement (AIFTA)

SEAN-Hong Kong Free Trade Agreement (AHKFTA)