Growth in FDI has been inconsistent over the last decade despite the many promotional activities and incentives given to attract foreign investors. FDI has remained lumpy over the years, and there have been some years when no growth was seen. FDI is important to a developing country like Malaysia as it has a positive impact across many facets of the economy.
KPMG in Malaysia, Head of Tax, Tai Lai Kok says that since tax incentives are generally available to both local and foreign companies, investors' consideration would not wholly depend on tax incentives.
"Other non-tax factors such as costs of doing business, consistency in tax policies and stability of the political environment, among others, may also influence their decision to invest in Malaysia," he says.
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