The Construction Industry Development Board (CIDB) is negotiating with the Treasury on possible tax cuts for heavy machinery used in the construction industry, a move which will further boost efficiency in the sector.
Its chief executive Datuk Seri Dr Judin Abdul Karim said the move would also help the industry in lessening its dependency on foreign workers who number two million to date.
"We are discussing with the Finance Ministry on how we can reduce the tax for heavy equipment. Under the Economic Transformation Programme (ETP), one area of transformation we are looking at is the (construction) industry to move towards more mechanisation," he told reporters after an MoU signing.
Currently, the tax on heavy equipment is considered high in the region, with more than 20 per cent as opposed to other Asean countries. Singapore imposes only five per cent tax.
"We hope to get results by February, so we can announce it at the International Construction Week (ICW) 2012," he said.
On the industry outlook for next year, Dr Judin said the outlook would be bullish for the industry, driven by the steady momentum from implementation of entry point projects (EPPs) under the ETP.
He said the growth would also be driven from Sabah's oil and gas projects and Sarawak's energy projects.
"We are looking at about RM92 billion worth of projects next year as compared with RM85 billion expected this year," he said.
Earlier, Dr Judin signed a memorandum of understanding with AMB Exhibitions, a smart partnership which will see AMB as CIDB's official international construction exhibition co-organiser for ICW 2012.
ICW 2012, to be held at Kuala Lumpur Convention Centre, is expected to gather some 250 local and foreign exhibitors from 23 countries.
The event, which will provide latest outlook and potential projects locally and abroad for industry players, will be held from February 13 to 17 next year. -- Bernama
Its chief executive Datuk Seri Dr Judin Abdul Karim said the move would also help the industry in lessening its dependency on foreign workers who number two million to date.
"We are discussing with the Finance Ministry on how we can reduce the tax for heavy equipment. Under the Economic Transformation Programme (ETP), one area of transformation we are looking at is the (construction) industry to move towards more mechanisation," he told reporters after an MoU signing.
Currently, the tax on heavy equipment is considered high in the region, with more than 20 per cent as opposed to other Asean countries. Singapore imposes only five per cent tax.
"We hope to get results by February, so we can announce it at the International Construction Week (ICW) 2012," he said.
On the industry outlook for next year, Dr Judin said the outlook would be bullish for the industry, driven by the steady momentum from implementation of entry point projects (EPPs) under the ETP.
He said the growth would also be driven from Sabah's oil and gas projects and Sarawak's energy projects.
"We are looking at about RM92 billion worth of projects next year as compared with RM85 billion expected this year," he said.
Earlier, Dr Judin signed a memorandum of understanding with AMB Exhibitions, a smart partnership which will see AMB as CIDB's official international construction exhibition co-organiser for ICW 2012.
ICW 2012, to be held at Kuala Lumpur Convention Centre, is expected to gather some 250 local and foreign exhibitors from 23 countries.
The event, which will provide latest outlook and potential projects locally and abroad for industry players, will be held from February 13 to 17 next year. -- Bernama
