Pedestrians and motorists pass along a street decorated for Lunar New Year to mark the upcoming Year of the Ox in Singapore on January 19, 2021. / AFP / Roslan RAHMANwould disagree that most multinational corporations invariably favour Singapore over Malaysia when it comes to setting up their regional base or corporate headquarters.
Over the years, Malaysia has managed to attract a group of MNCs, including Honeywell International, B. Braun, Kaspersky and Petersime, but there is no denying that we lag far behind our neighbour down south. In contrast, Hyundai Motor Corp has reportedly closed its Asia-Pacific regional headquarters in Malaysia and moved to Indonesia, owing to President Joko Widodo’s strong commitment to promoting electric vehicles.
“Despite the relatively higher cost of establishing the HQ in Singapore compared with Malaysia, it is perceived that the international linkages as a financial and business centre, coupled with the much-lower tax regime and first-class infrastructure offered by Singapore to such MNCs, outweigh this higher cost,” he tellsA comparison of tax incentives between the two countries, he says, suggests that these incentives are not necessarily the main factor in the decision on where to locate.
“Many MNCs chose Malaysia as a manufacturing base because we could offer them facilities and infrastructure such as airports, ports, plenty of land and cheap electricity. But today, we are losing out to the countries in the Mekong region such as Vietnam, Laos, Cambodia and Myanmar,” he says. He points out that it is important to enhance the ease of doing business by providing MNCs with a true one-stop centre, freeing them from having to go through too many approval applications and processes.
“I often hear that some manufacturers prefer to ship their products out of Singapore rather than Malaysia due to the cost efficiency. Through agglomeration effects, the country’s airline, seaport and telecommunications connectivity, which is global in reach, attracts more international players and investors in a virtuous circle. The world’s top talents and businesses gravitate towards the hub that
Governance based on Racism has its Consequences
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.