The 2007 Malaysian Budget announced on 1 September 2006, provides substantial tax incentives to boost the Islamic Finance sector.
IN LINE WITH THE MALAYSIAN GOVERNMENT’S EFFORTS TO PROMOTE MALAYSIA AS AN ISLAMIC FINANCIAL CENTRE (“MIFC”), THE 2007 BUDGET ANNOUNCEMENTS ON 1 SEPTEMBER 2006 PROVIDED SUBSTANTIAL TAX INCENTIVES IN THE AREA OF ISLAMIC FINANCE. The new incentives are opportune to capitalise on an influx of liquidity, particularly from the Middle East. Middle Eastern investors are looking into modes of financing and investments that not only provide similar returns compared to conventional financing and investments but are also in compliance with Islamic religious principles.
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