Tiong Nam: Corporate Income Tax Rate Reduction Would Enhance Malaysia’s Competitiveness

Tiong Nam Logistics Holdings Berhad (Tiong Nam) is a leading integrated logistics and warehousing services provider hopes that the government would revise and improve the nations taxation framework to be competitive and hasten recovery efforts.

Reduction In Corporate Income Tax Rate For Enhanced Regional Competitiveness

The company hopes for a reduced corporate income tax rate below the current 24% tax rate. This would enhance Malaysia’s competitiveness as an investment destination.

Currently, our regional peers such as Singapore, Thailand, and Indonesia have more attractive rates of between 17% to 22%.

A reduction in corporate income tax will allow businesses to retain more profits for reinvestment into operations and innovation, while the increased foreign investments will also benefit the economy.

Expedited Tax Refunds For Improved Cashflow And Capital Allocation

Tiong Nam hopesthat tax returns on overpaid corporate taxes can be expedited. An improvement in the duration involved for processing tax refunds will enhance businesses’ ability to manage their cash flow and allocate capital more efficiently.

Clearer Sales and Services Tax (SST) guidelines

The company hopes for clearer guidelines on the applicable treatment for taxable goods and services, and in particular the logistics and deliveries sector. This will help prevent potential issues of accounting complications and over/under provisions of taxes, and make the whole process more efficient overall.

Increased grants and tax incentives for businesses and logistic players

Additionally, we urge for more tax incentives for business expansions and investments, which would help spur more economic activity and technology advancement. This includes additional incentives for investments into sustainable and green assets.

For instance, Tiong Nam is currently building a new RM200 million mega-warehouse for Mercedes-Benz’s Regional After Sales Logistics Centre, slated to be operational in 2024, which will be rated under the Green Building Index and eligible for green tax incentives.

Increasing the availability and scope of similar green incentives will draw more interest of domestic and multinational investors, hastening the growth of sustainable investments in the country.

Tiong Nam Logistics Holdings Berhad (Tiong Nam) is a leading integrated logistics and warehousing services provider with presence in six countries across Asia, namely Malaysia, Singapore, Thailand, Laos, Vietnam, and China. The Group’s regional network is supported by a fleet of more than 3,000 vehicles and 6.8 million square feet of warehousing facilities.

Tiong Nam is expanding its warehousing facilities, which would see its total warehousing capacity rise from 6.8 million square feet (sq. ft.) in 2022 to 9.1 million sq. ft. in 2025. Among the notable expansions include a new dedicated mega-warehouse in Senai Airport City with 1.1 million sq. ft. built-up area, for lease to Mercedes Benz Parts Logistics Asia Pacific (Malaysia) Sdn Bhd.

Tiong Nam is also a premier warehouse and industrial park developer since 1996, and has developed various industrial and business parks in Klang Valley and Johor Bahru. The Group had recently entered into collaboration with JCorp to develop a 300-acre logistics hub in Sedenak Technology Valley in Johor, to be developed in phases over 5 years with an estimated GDV of RM2.39 billion.

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