Tax Incentives Under Malaysia’s Budget 2023

 1. Malaysia’s 2023 Budget offers enhanced tax incentives to encourage investment in key industries, such as aerospace, shipbuilding, electric vehicles, and electrical and electronics. 

2. The budget also extends tax incentives for foreign workers in C-suite positions and manufacturing companies investing in automation equipment.

3. Malaysia’s Budget for 2023 is the largest in the country’s history, amounting to 388 billion ringgit (US$86.8 billion). Through the incentives in the budget, the government seeks to maintain and enhance Malaysia’s competitiveness as an investment destination.

4. Budget 2023 also made changes to Malaysia’s corporate and individual tax regimes. These are lower individual income tax rates for middle earners and increasing the rate for higher earners. MSMEs can now benefit from a decrease in the corporate income tax rate from 17 to 15 percent.

Tariff and Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st July – 31st December 2023

1. Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st  July – 31st December 2023 are as follows:

2. Domestic customers are not subjected to ICPT implementation.

3. Surcharge of 5.39 sen/kWh for all commercial and industrial customers.

4. The decline of Natural Gas Price has reduced the ICPT surcharge quantum from 8.19 sen/kWh in January 2023 to 5.39 sen/kWh effective 1st July 2023.

GET-ting to Know Malaysia’s Green Electricity Tariff (GET)

1. Businesses and consumers today are living in a time where being part of the clean energy revolution is becoming increasingly easier and more affordable. A few years ago, participating in the movement meant sourcing your own technology, such as solar panels, and installing them in your yard or rooftop.

2. Fast-forward to today, we see a clear diversification – and democratisation – of clean energy vehicles, ranging from government-led initiatives to private sector tools. As the clarion call to join the sustainable energy revolution grows louder, it’s evident that there is a need and demand for greater inclusion and public participation.

3. Enter the Green Electricity Tariff, or GET, is an initiative by the Government of Malaysia, introduced in 2022 to serve as a driver for this purpose. In a nutshell, this innovative tariff allows consumers to purchase green electricity generated from renewable energy, directly from utilities. It’s a great initiative for consumers or businesses interested in being part of the sustainable energy value chain without extensive investment. Here, Energy Watch explores seven interesting facts about the GET that you should know.

Malaysia's National Energy Transition Roadmap (NETR)

 1. Malaysia launched its National Energy Transition Roadmap (NETR) on July 27, 2023 with a strong focus on transforming the economy and creating potential business opportunities in the energy sector. Phase 1 of the NETR unveiled 10 flagship catalyst initiatives that aim to attract investments and generate job opportunities while reducing CO2 emissions by over 10 million tons annually.