Malaysia

Budget 2001- A New Direction for Malaysia

Brian Chia, Wong & Partners, Kuala Lumpur. brian.chia@wongpartners.com

The Malaysian Budget for 2001 has been passed by Parliament. Aimed at stimulating continued economic growth, it offered, among others, incentives for reinvestment and promoted areas, the bond market, conservation of energy and waste recycling, utilisation of biomass as a new source of energy and food production. While the focus was on developing an IT-driven “Knowledge” economy, it also took into account the concerns of foreign investors and included incentives for the venture capital industry and partially lifted a controversial exit levy on portfolio profits.