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Country risk, from the local press

Malaysia · Country watch

Paddy Farmers Decline; Semiconductor Industry Seeks Tax Incentives

Malaysia faces a sharp decline in paddy farmers, while the semiconductor industry seeks increased automation incentives.

· · 3 sources

The picture Deteriorating

Business conditions in Malaysia are deteriorating due to a significant decline in paddy farmers, impacting agriculture. Meanwhile, the semiconductor industry seeks tax incentives to boost automation and R&D, highlighting sectoral challenges.

In this briefing Malaysian Semiconductor Industry Association · Malaysia · rice farmers · Saifuddin Abdullah · Parliament of Malaysia

Regulation

  • technology
  • manufacturing

MSIA proposes higher automation incentives for 2027

a person working in a factory
Job Savelsberg / Unsplash

The Malaysian Semiconductor Industry Association (MSIA) has proposed increasing the eligible expenditure cap for the Automation Capital Allowance to RM100 million. Additionally, they suggest a 200% tax deduction for qualifying research and development (R&D) expenses in the upcoming 2027 budget. These proposals aim to boost the semiconductor sector's competitiveness and encourage further investment in automation and R&D. The MSIA's recommendations come as Malaysia seeks to strengthen its position in the global semiconductor market, according to BH Berita Harian.

Impact Semiconductor manufacturers in Malaysia may benefit from increased automation and R&D incentives, enhancing competitiveness.

Sources: BH Berita Harian ↗

Disruption

  • agriculture

Number of rice farmers in Malaysia drops by 33.9%

The number of rice farmers in Malaysia has decreased by 33.9% from 348,266 in 2018 to 230,119 in 2023, according to Utusan Online. High operational costs and a lack of interest among younger generations are cited as key factors for the decline. This reduction in the farming workforce raises concerns about the country's self-sufficiency in rice production. The report highlights the need for strategic measures to address these challenges and ensure the sustainability of the rice farming sector.

Impact Rice importers and local distributors may face supply challenges due to the declining number of rice farmers.

Sources: utusen Online ↗

Internal tension

Nothing significant reported today.

Safety & health

  • public-sector

Saifuddin calls for student safety briefing in Parliament

Minister Saifuddin Abdullah has called for a student safety briefing in Parliament following the arrest of three teenagers linked to a schoolgirl's death, Malaysiakini reports. The incident has raised concerns about student safety and the need for comprehensive measures to protect students in educational institutions. Saifuddin's call for a briefing aims to address these issues and implement necessary safety protocols.

Impact Educational institutions may need to review and enhance safety measures for students.

Sources: Malaysiakini ↗

Companies

Nothing significant reported today.

Markets

Nothing significant reported today.

Trade

Nothing significant reported today.

Politics

Nothing significant reported today.

Also today in Malaysia

Sources in this briefing

Sources: each headline links to the original article on the publisher's site.

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