PHOTO - The Malaysian PM Datuk Seri Najib Tun Razak.
KUALA LUMPUR, 13 APRIL 2011 - The Malaysian PM Datuk Seri Najib Tun Razak has announced new incentives to lure talent back to Malaysia that includes putting the Returning Experts Programme (REP) into the hands of the new agency Talent Corp, which was formed on 6 December 2010.
Effective immediately, Malaysian professionals who return to help the country's economic transformation plans will be eligible for a flat income tax rate of 15 per cent for five years, said Najib. Other financial incentives to qualifying professionals under REP of two cars tax-free would now be restricted to locally-assembled cars.
There would also be incentives managed by Talent Corp to attract and retain foreign professionals, added Najib. "We have been open for applications since the start of April for the Residence Pass, which is an enhancement of the employment pass, providing expatriates with a longer tenure of 10 years, as well as greater flexibility."
"We can deliver policies, we can deliver frameworks, but all our efforts to attract investors will come to nothing unless we can also deliver the highly skilled and expert workforce they need to flourish," he said.
A statement from Talent Corp clarified that the revised incentive package was effective immediately and that diploma holders with at least 10 years of overseas relevant work experience in the key National Economic Areas announced by the prime minister in the Budget 2011 could apply for the REP.
"The incentive [for returning Malaysian professionals under the REP] applies only to employment income and for the first five consecutive years following the return to Malaysia. The new incentive can be claimed, commencing the year of assessment for 2012," said the statement.
In addition, returning Malaysian professionals under the REP would enjoy tax exemption for all personal effects as well as allowing the applicant's [if foreign] spouse and children to receive permanent resident status within six months of application.
Sign up for Computerworld eNewsletters.