KUALA LUMPUR: The government will consider giving tax exemptions to start-up companies in the digital economy sector, the Dewan Rakyat heard today.
Prime Minister Datuk Seri Najib Razak said this was to encourage more entrepreneurs to kick off their businesses and subsequently aim for global export.
He said the government planned to exempt tax over a “five plus five years” for the start-ups.
"This incentive is to enable new entrepreneurs to start their businesses," he said during the Minister's Question Time.
He was responding to a follow-up question from Datuk Dr Shamsul Anuar Nasarah (BN-Lenggong) on incentives from the government for new entrepreneurs in the digital economy.
Najib also said Malaysia Digital Economy Corporation (MDEC) organised the Global Acceleration and Innovation Network to offer guidance, advice and expertise to high-technology companies with potential.
From this programme, he said, 149 companies had already benefitted.
"The digital economy has been identified as a growth engine to strengthen Malaysia's economy, with an expected 20 per cent contribution to the gross domestic product by 2020.
"MDEC has also launched e-Usahawan and e-Rezeki programmes to encourage, train and support local entrepreneurs in their businesses by correct use of social media."
For e-Usahawan, 92,926 young entrepreneurs have benefitted and for e-Rezeki, 101,693 people have been trained in the field of entrepreneurship since both programmes were launched in January last year. — Additional reporting by TEH ATHIRA YUSOF