KUALA LUMPUR, Jan 13 ― The country’s tax regime needs to be revamped and be in line with the world tax system in order to attract foreign direct investment (FDI), Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said.

Zahid, who is also Umno president, said although the fundamentals of the Malaysian economy are strong, the sentiment toward the country’s investment climate showed otherwise.

Therefore, he suggested implementing new credit incentives such as a tax holiday.

"Measures to provide sustainable and up-to-date tax incentives will certainly ease concerns among foreign investors.

"We need to restore the country’s competitiveness so that we are not left behind by neighbouring economies’ pace of progress and rapid development,” he said when delivering the president’s policy speech at the Umno General Assembly 2022 here today.

He said among the immediate priorities are the creation of job and business opportunities, reskilling and upskilling programmes as well as job matchings according to qualifications.

Ahmad Zahid said he has urged Minister of Foreign Affairs Datuk Seri Zambry Abd Kadir to continue efforts to restore Malaysia’s image in the world and immediately implement drastic measures to capture the hearts of foreign investors.

Minister of International Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz has also been urged to work on immediate measures to promote Malaysia as an investor-friendly country that offers a conducive investment climate, he added.

"The spillover of foreign investments will increase the country’s economic growth, in addition to generating new job opportunities for our children,” he said. ― Bernama