PM and Finance Minister Datuk Seri Najib Tun Razak had proposed a 100% income tax exemption for a period of 10 years and stamp duty exemption on loan and service agreements for KLIFD status companies when tabling Budget 2012 today.

He also proposed an industrial building allowance and accelerated capital allowance for KLIFD Marquee Status Companies; and income tax exemption of 70% for a period of 5 years for property developers in KLIFD.

These incentives for KLIFD underscore the government’s commitment in making Kuala Lumpur a global financial centre as both incentives cater for two different groups with different strategic intent.

TnT sees these incentives as necessary sweeteners, and a first step towards bringing the best talent and infrastructure to the financial district.

KLIFD’s aim to enable Malaysia to capitalise on the momentum of its international Islamic financial innovation and Shariah-based competitive advantage was further strengthened with measures in the budget to stimulate the sukuk market and provide the seed money for Shariah-compliant Exchange Traded Funds (ETF)

Bank Negara is already spearheading the Islamic Finance initiative through Malaysia International Islamic Financial Centre (MIFC) and Islamic Financial Services Board (IFSB). KLIFD will complement these efforts by attracting additional strong players in financial services and its supporting industries by enabling them.