Malaysia's 2020 Budget Courts Investment From MNCs, China

• Malaysia's 2020 budget provides incentives to attract multinational companies.
• The country will establish a special channel to specifically cater to Chinese investors.
• There are also incentives to digitize more local businesses and develop the digital economy.

On October 11, 2019, Malaysia unveiled its 2020 budget, which focused on providing tax incentives and grants to woo more foreign investments, in particular from China, develop the digital economy, and improve infrastructure.

The government announced a budget for 2020 of 297 billion Ringgits (US$70 billion) – smaller compared to the 314 billion Ringgits (US$74 billion) allocated in 2019 – as it predicts a budget deficit of 3.2 percent for 2020, wider than the initial target of 3 percent.