MALAYSIA

GENERAL SUBSIDY PROGRAMS
Last Reviewed October 31, 2000


Effective February 15, 2000, Import Administration began publishing "Decision Memos" to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a decision memo was published, you will find a link to the memo listed below.

In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.


COUNTERVAILABLE SUBSIDY PROGRAMS

The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in those cases.

Double Deduction for Export Promotion Expenses [E]

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final)
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final)
Extruded Rubber Thread (1995) 62 FR 26291 (5/13/97-prelim);   62 FR 48986 (9/18/97-final)
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final)
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final)
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final)
Extruded Rubber Thread (1990) 56 FR 67279 (12/30/91-prelim);   57 FR 38475 (8/25/92-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Section 27 of the Investment Incentives Act of 1968 allows companies to deduct expenses related to the promotion of exports twice; once in calculating net income on the financial statement and again in calculating taxable income. This program is limited to exporters and is therefore countervailable.

Double Deduction for Operational Expenses

Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Under this program, manufacturing companies may take a double deduction for income tax purposes for specific training related expenses approved by the government.

Electricity Discount Program for Exporters

Extruded Rubber Thread (1990) 56 FR 67278 (12/30/91-prelim);   57 FR 38474 (8/25/92-final)

The Electricity Discount Program provides a reduction in the electricity rates charged to qualifying companies that produce a manufactured product covered by the Industrial Coordination Act of 1975, and which exports at least 50 percent of their production.

Export Credit Refinancing (ECR) Program [E]

Carbon Steel Wire Rod (1988/89) 56 FR 14928 (4/12/91-prelim);   56 FR 41649 (8/22/91-final)
Carbon Steel Wire Rod (1986) 53 FR 3414 (2/5/88-prelim);   53 13303 (4/22/88-final)
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final)
Extruded Rubber Thread (1995) 62 FR 26290 (5/13/97-prelim);   62 FR 48985 (9/18/97-final)
Extruded Rubber Thread (1994) 61 FR 29535 (6/11/96-prelim);   61 FR 55272 (10/25/96-final)
Extruded Rubber Thread (1993) 60 FR 27080 (5/22/95-prelim);   60 FR 51983 (10/4/95-final)
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final)
Extruded Rubber Thread (1990) 56 FR 67277 (12/30/91-prelim);   57 FR 38473 (8/25/92-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final)
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

The ECR program was established in order to promote 1) exports of manufactured goods and agricultural food products that have significant value-added and high local content, 2) greater domestic linkages in export industries, and 3) easy access to credit facilities. In order to accomplish this, the Bank Negara Malaysia, the central bank of Malaysia, provides order-based, and pre- and post-shipment financing of exports through commercial banks.

Industrial Building Allowance

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final)
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used
Extruded Rubber Thread (1995) 62 FR 26291 (5/13/97-prelim);   62 FR 48985 (9/18/97-final)
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final)
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final)
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final)
Extruded Rubber Thread (1990) 56 FR 67279 (12/30/91-prelim);   57 FR 38475 (8/25/92-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

The Industrial Building Allowance provides an income tax deduction for a percentage of the value of constructed or purchased buildings used in manufacturing. This program includes a 10 percent initial and a 2 percent annual tax allowance and effectively reduces a company's taxable income. The tax allowance can be carried forward to future tax years until fully exhausted. The program is limited to exporters.

Pioneer Status

Carbon Steel Wire Rod (1988/89) 56 FR 14928 (4/12/91-prelim);   56 FR 41649 (8/22/91-final)
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13304 (4/22/88-final)
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used
Extruded Rubber Thread (1995) 62 FR 26291 (5/13/97-prelim);   62 FR 48985 (9/18/97-final)
Extruded Rubber Thread (1994) 61 FR 29536 (6/11/96-prelim);   61 FR 55273 (10/25/96-final)
Extruded Rubber Thread (1993) 60 FR 27081 (5/22/95-prelim);   60 FR 51983 (10/4/95-final)
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final)
Extruded Rubber Thread (1990) 56 FR 67279 (12/30/91-prelim);   57 FR 38475 (8/25/92-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Pioneer status is a tax incentive offered to promote investment in the manufacturing, tourist, and agricultural sectors. Companies petition for pioneer status for products or activities that have already been approved and listed as pioneer products. Once a company receives pioneer status, it profits from the designated product or activity and is exempt from the corporate income tax for a period of five years, with the possibility of an extension for an additional five years. Further, the computation of capital allowances, which are normally deducted against the adjusted taxable income, is postponed to the post-tax holiday period. Under certain conditions, companies must agree to an export commitment to receive pioneer status. Furthermore, an export requirement may sometimes be applied to certain industries after it is determined that the domestic market is saturated and will no longer support additional producers.


SUBSIDY PROGRAMS FOUND TO BE NOT COUNTERVAILABLE

The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed under the subsidy program title for a full explanation of the Department's analysis in each case where the subsidy program has been examined.

Accelerated Depreciation Allowance

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final)
Carbon Steel Wire Rod (1986) 56 FR 14929 (4/12/91-prelim);   53 FR 13306 (4/22/88-final)
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final)
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used

The Income Tax Act of 1967 provides for accelerated depreciation of assets in manufacturing, processing and other industries. Under this program, the Malaysian government set the annual allowances at 40 percent of qualifying plant and machinery expenditures. Taken with 20 percent initial allowance, this rate allows a company to completely depreciate an asset in two years. This program is not limited to a specific industry or group, and is therefore not countervailable.

Agreement with the Islamic Development Bank

Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final)

The Islamic Development Bank (IDB) is a multilateral bank subscribed to by 44 Islamic nations. The Industrial Development Bank of Malaysia (Bank Kemajuan) is a development bank owned by the Government of Malaysia through the Ministry of Finance. Bank Kemajuan offers a foreign trade financing facility enabling importers to get short-term financing from the IDB. We found that one company had a foreign trade financing facility agreement with Bank Kemajuan and the IDB under which the IDB agreed to open letters of credit in favor of the company's foreign component suppliers. This agreement with the IDB is not countervailable.

Duty Drawback and Duty Exemptions

Carbon Steel Wire Rod (1986) 53 FR 3416 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)

The Government of Malaysia allows for duty drawback and duty exemption on imported materials physically incorporated into exported products, and for duty exemption on certain imported machinery. This program is not countervailable because duty drawback and duty exemptions are non-excessive and because the benefits provided by the program are not limited to a specific industry or group.

Free Trade Zones

Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final)

Companies located in Free Trade Zones do not receive any treatment that differs from the treatment received by similar entities not located in the Free Trade Zones. Since 1960, the Government of Malaysia has imposed no import duties on imports of machinery fro new manufacturing enterprises or expansion of existing enterprises regardless of their location. Projects which have received such exemptions have included textiles, chemicals, electronics, food products, metal products and wood-based products. Because companies located in FTZs do not receive preferential treatment vis-a-vis companies located outside the FTZs, we determined that this program does not constitute a bounty or grant.

Guarantee Agreement with Bank Kemajuan

Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final)

Bank Kemajuan is required to guarantee all transactions between the Islamic Development Bank (IDB) and Malaysian enterprises. We determined that guarantees are not provided on terms inconsistent with commercial considerations.

Industrial Estates

Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final)

We found that there is no pre-established conditions for the establishment of or location of an industrial estate. The state governments, not the central government, control and develop the locations, then lease to companies whose operations are compatible with the purpose, size and location of the industrial estates.

Initial and Annual Depreciation Allowance

Carbon Steel Wire Rod (1986) 53 FR 3416 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)

Section Three of the Income Tax Act of 1967 provides for a fixed initial depreciation allowance of 20%. This initial allowance is taken in conjunction with the annual depreciation allowance in the first year for recurring qualifying plant expenditures. Initial and annual depreciation allowance is not countervailable because there is no evidence that allowances are excessive or unrepresentative of the useful life of the assets.

Loans From Malaysian Industrial Finance (MIDF)

Carbon Steel Wire Rod (1986) 53 FR 3414 (2/5/88-prelim);   53 FR 13305 (4/22/88-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used

MIDF was established in 1960 by the Malaysian government and several private investors. The original purpose of MIDF was to provide a source of long-term financing for industrial development in Malaysia. The Government of Malaysia originally provided funding and some direction to MIDF, but it currently has no direct ownership in MIDF nor does it provide any funding for MIDF loans. MDIF is not a bank; rather, it borrows money from other sources and then lends this money at a fixed rate above its own cost of borrowing. Because MIDF loans are available to virtually all Malaysian industries and are not limited to a specific enterprise or industry, the program is not countervailable.

New Investment Fund

Carbon Steel Wire Rod (1986) 53 FR 3416 (2/5/88-prelim);   53 FR 13305 (4/22/88-final)

The Bank Negara Malaysia administers the New Investment Fund (NIF), providing long-term loans to promote further investment in, and development of, new productive capacity in manufacturing, agriculture, tourism and mining sectors. NIF loans are available to a wide range of industries in the manufacturing, agriculture, tourism and mining sectors. Therefore, this program is not countervailable.


SUBSIDY PROGRAMS DETERMINED NOT TO EXIST

The following subsidy programs were alleged by the petitioning industries and were investigated by the Department. However, during the investigation we found no evidence that such programs actually existed. If you click on the cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced. It is possible that, while the program named did not exist, a similar program having a different name actually was investigated. If this is the case, you will find that program listed elsewhere in this library.

Abatement of Taxable Income Based on a Percentage of the Value-Added of Exported Products

Carbon Steel Wire Rod (1986) 53 FR 3416 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)

As originally enacted, section 36 of the Promotion of Investments Act of 1986 allowed an abatement based on a percentage of the value-added on exported products. This program was repealed in 1986 and was never reinstated under new tax laws.

Abatement of Taxable Income of Five Percent Based of the Value of Malaysian Made Inputs Incorporated Into Exports

Carbon Steel Wire Rod (1986) 53 FR 3416 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)

As originally enacted, section 36 of the Promotion of Investments Act of 1986 allowed an abatement equal to a percentage of the value of the Malaysian inputs incorporated into the exported product. This program was never implemented and was subsequently eliminated under section 19 of the Promotion of Investments Act of 1986.

Five To Ten Year Tax Holidays

Extruded Rubber Thread (1990) 56 FR 67280 (12/30/91-prelim);   57 FR 38476 (8/25/92-final)

No program description available.

Preferential Land Pricing

Extruded Rubber Thread (1990) 56 FR 67280 (12/30/91-prelim);   57 FR 38476 (8/25/92-final)

No program description available.


SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED

The subsidy programs listed below have been investigated by the Department and have been found to have been terminated based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in each of these cases.

Abatement of Five Percent of the Value of Indigenous Malaysian Materials Used in Export [E]

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final)
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final)
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final)
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final)
Extruded Rubber Thread (1990) 56 FR 67279 (12/30/91-prelim);   57 FR 38475 (8/25/92-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

This program allowed an abatement of taxable income equal to five percent of the value of Malaysian materials incorporated into exported products. The program was terminated effective January 1, 1993. We found that it provided no residual benefits to manufacturers and exporters of Extruded Rubber Thread.


SUBSIDY PROGRAMS THAT HAVE NOT BEEN USED

When potential subsidy programs are investigated and found not to be used by the companies being investigated, the Department makes no determination as to their countervailability. If you click on the cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced.

Abatement of Five Percent of Taxable Income Due to Location in a Promoted Industrial Area

Extruded Rubber Thread (1995) 62 FR 26292 (5/13/97-prelim);   62 FR 48986 (9/18/97-final) not used
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used
Extruded Rubber Thread (1990) 56 FR 67279 (12/30/91-prelim);   57 FR 38476 (8/25/92-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Through this program producers and exporters benefited from a five percent tax reduction program on income earned by manufacturers located in designated "promoted industrial areas."

Abatement of Income Tax Based on the Ratio of Export Sales to Total Sales [E]

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used
Extruded Rubber Thread (1990) 56 FR 67278 (12/30/91-prelim);   57 FR 38474 (8/25/92-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);  
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used

This program allows for an abatement from taxable income of adjusted income equal to 50 percent of the ratio of export sales to total sales.

Abatement of Net Taxable Income Under Section 29 of the Investment Incentives Act of 1968

Carbon Steel Wire Rod (1988/89) 56 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final)

Section 29 of the Investment Incentives Act of 1968 provided for an export allowance of eight percent of the increase in the gross income derived from the export of products incorporating more than 50 percent of local content, or an allowance of five percent if local content was less than 50 percent. Section 29 was amended in 1980 by the Investment Incentives Act. Section 29, as amended by this Act, allowed for the deduction of a certain percentage of the ex-factory value of exports from taxable income and a deduction of a certain percentage of the increase in export value from the preceding year.

Abatement of a Percentage of Net Taxable Income Based on the F.O.B. Value of Export Sales [E]

Extruded Rubber Thread (1995) 62 FR 26292 (5/13/97-prelim);   62 FR 48986 (9/18/97-final) not used
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used
Extruded Rubber Thread (1990) 56 FR 67280(12/30/91-prelim);   57 FR 38476 (8/25/92-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final)
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Producers and exporters benefited from an additional allowance from taxable income in the amount of five percent of the FOB value of their export sales.

Abatement of Taxable Income of Five Percent of Adjusted Income of Companies due to Capital Participation and Employment Policy Adherence

Extruded Rubber Thread (1995) 62 FR 26292 (5/13/97-prelim);   62 FR 48986 (9/18/97-final) not used
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used

Through this program producers and exporters could receive a five percent tax reduction for complying with the government's capital participation and employment policies.

Abatement of Taxable Income of Five Percent for Trading Companies Exporting Malaysian-Made Products

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Effective in 1984, the Government of Malaysia again amended section 29 of the Investment Incentives Act of 1968 to provide a flat deduction of five percent of the f.o.b. value of export revenues from taxable income to most manufacturing companies. This amendment applied to tax returns filed in assessment years 1985 and 1986. The Promotion of Investments Act of 1968 repealed the Investment Incentives Act of 1968, effective January 1, 1986.

Development Bank of Malaysia (DBM)

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used

The Development Bank of Malaysia's purpose is to meet the financing needs of the Bumiputra entrepreneurs and to promote Bumiputra equity participation in commerce and industry

Double Deduction of Export Credit Insurance Payments [E]

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Extruded Rubber Thread (1995) 62 FR 26292 (5/13/97-prelim);   62 FR 48986 (9/18/97-final) not used
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used
Extruded Rubber Thread (1990) 56 FR 67280 (12/30/91-prelim);   57 FR 38476 (8/25/92-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

The Income Tax Rules allow for an additional tax deduction of the loss of premiums for export credit insurance in addition to the deduction allowed from the company income statement, i.e. the starting point for determining taxable income.

Export Insurance Program

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

The Malaysian Export Credit Insurance Bhd. provides export insurance to cover commercial and political risks at premium rates allegedly inadequate to cover the long-term operating costs and losses of the insurance program.

Investment Tax Allowance

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/91-final not used
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used
Extruded Rubber Thread (1995) 62 FR 26292 (5/13/97-prelim);   62 FR 48986 (9/18/97-final) not used
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used
Extruded Rubber Thread (1990) 56 FR 67280 (12/30/91-prelim);   57 FR 38476 (8/25/92-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

This program provides for tax benefits, ranging from 25 to 100 percent, for qualifying capital expenditures.

Labor Utilization Relief Program

Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used

Under the Labor Utilization Relief Program, companies in labor-intensive industries may receive tax relief.

Locational Incentives Program

Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used

The Locational Incentives Program provides up to 10 years of tax relief to companies which are located away from congested areas, and which have been deemed by the government to be a priority industry or whose products contain a certain percentage of Malaysian content.

Long-Term Loans from the Industrial Development Bank of Malaysia (IDBM)

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

The Industrial Development Bank of Malaysia provides long-term financing to all sectors of the Malaysian economy, particularly for the expansion of the productive capacity of capital-intensive and high technology industries.

Preferential Financing for Bumiputras

Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final) not used
Extruded Rubber Thread (1995) 62 FR 26292 (5/13/97-prelim);   62 FR 48986 (9/18/97-final) not used
Extruded Rubber Thread (1994) 61 FR 29537 (6/11/96-prelim);   61 FR 55273 (10/25/96-final) not used
Extruded Rubber Thread (1993) 60 FR 27082 (5/22/95-prelim);   60 FR 51983 (10/4/95-final) not used
Extruded Rubber Thread (1992) 59 FR 46392 (9/8/94-prelim);   60 FR 17516 (4/6/95-final) not used
Extruded Rubber Thread (1990) 56 FR 67280 (12/30/91-prelim);   57 FR 38476 (8/25/92-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used

The Malaysian Development Bank provided long-term loans on preferential terms to Bumiputras (people of native Malaysian descent).

Reduction in the Cost of State Land for New Industry and Agriculture

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   56 FR 41649 (8/22/91-final) not used
Carbon Steel Wire Rod (1986) 53 FR 3415 (2/5/88-prelim);   53 FR 13306 (4/22/88-final) not used
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used

Individual state government authorities in Malaysia have control over prices charged on purchases of land in their respective states.

Reinvestment Allowances

Carbon Steel Wire Rod (1988/89) 56 FR 14929 (4/12/91-prelim);   53 FR 13306 (4/22/88-final) not used
Certain Apparel (1983) 49 FR 49651 (12/21/84-prelim);   50 FR 9852 (3/12/85-final)
Pipe and Tube (1987) 53 FR 34801 (9/8/88-prelim);   53 FR 46904 (11/21/88-final) not used
Plugs and Thermostats (1987) 53 FR 27740 (7/22/88-prelim);   53 FR 50059 (12/13/88-final) not used
Steel Wire Nails (1988) 54 FR 26229 (6/22/89-prelim);   54 FR 36840 (9/5/89-final) not used

Section 133A of the Income Tax Act of 1967 provides for a reinvestment allowance of a certain percentage for capital expenditures on factory, plant or machinery for any approved project.