PUTRAJAYA: The government is looking at targeted tax incentives in the upcoming 2018 Budget.
Second Finance Minister Datuk Johari Abdul Ghani said this today after chairing the 2018 Budget focus group meeting on means to boost private investment.
"Whatever incentives that the government will give, they will be given to industries that we want to promote.
"It can no longer be incentives for all, but it depends on the flavour of the year and the flavour of the future.
"For instance, if we want to promote robotics, the (tax) incentive (will) focus on how we want to encourage people to come and invest in robotics," he told reporters.
Johari added those present in today's meeting, representing various industries, also wanted more incentives relating to automation.
"As we know, our economy is driven by the small- and medium-sized enterprises (SMEs).
"They are now facing problems in getting workers. In this respect, they are encouraged to go into automation.
"With more incentives on automation for the SMEs, they can use these incentives to move forward," he said.
He added that it is only viable for the incentives to be granted to those moving into Industry 4.0 as it is in line with the government's effort to promote high-tech industries.
On views that Malaysia should not be overly excited by China's huge market, Johari said this was inevitable as the country cannot run away from doing business with big economies.
"We are strategically located, allowing us to leverage and capitalise on China's economic development."