KUALA LUMPUR, Sept 20 — The creation of special financial zones in all five regional economic corridors in the country will lift the regional economies, the Dewan Negara heard today.

The five corridor zones are the East Coast Economic Region (ECER); Northern Corridor Economic Region (NCER); Iskandar Malaysia (IM); Sabah Development Corridor (SDC); and the Sarawak Corridor of Renewable Energy (SCORE).

Senator Lingeshwaran Arunasalam noted that in the final period of the 12th Malaysia Plan (12MP), the government has expressed its intention to focus on increasing the economic potential of the regions.

"Two strategies have been outlined under this focus, which is to intensify the development of the regions in the potential confluence areas and establish the cooperation of federal and state agencies to attract investment into the areas.

"Recently, the Prime Minister announced that a special financial zone will be created in Iskandar Malaysia to attract foreign investors and skilled workers to settle in Malaysia,” he said when debating the 12MP Midterm Review (MTR) motion in Parliament today.

He also expressed his support for a proposal from Bagan MP Lim Guan Eng during his debate in the Dewan Rakyat on September 13 to create a special financial zone in Penang.

"This is because Penang has a mature manufacturing industry base and is one of the highest contributors to the country’s gross domestic product. Priority should also be given to the setting up of a special financial zone there as the one in Johor.

"With a special tax rate of 15 per cent for knowledge workers and multiple entry visas, we can attract more talent from abroad to Malaysia and also reduce the brain drain of our skilled workers,” he added. — Bernama