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The proposal announced under the
2003 budget offering fiscal
incentives for the development of
Regional Distribution Centre (RDC)
could provide the critical linkage
needed for ports to deepen the
development of transshipment
traffic.
Ports like Pelabuhan Tanjung Pelepas
and Port Klang which have become
reliant on transshipment traffic to
foster there growths could do well
by promoting the development of RDC
to retain the otherwise "footloose "
transshipment traffic.
The incentives for the RDC, which is
seen as further development of the
incentives offered to International
Procurement Centre (IPC) four years
ago, could provide an impetus for
international trading and
procurement companies to set up
distribution centres at the
designated free zones in the ports.
The government proposes to offer 10
year full tax exemption on statutory
income for RDCs located within
designated areas subject to specific
conditions, including control on
sale of products within the country
and have an annual turnover of not
less than RM100 million.
The move to encourage the
development of the RDCs is
consistent with the government's
strategy of identifying new growth
areas, of which distribution and
entreport trade offer as bright
prospect.
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