The 2014 Budget outlined by the Prime Minister Datuk Seri Najib Tun Razak continues to introduce new measures to ensure Malaysia remain attractive to investors.

In quoting the budget, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said the provisions in the budget under his Ministry are targeted on two focus areas: intensifying economic activities and human capital excellence.

A total of RM264.2 billion has been allocated to implement the development plans under this Budget.

From this, RM217.7 billion are for operating expenditure and RM46.5 billion for development expenditure.
Private and public investments are expected to increase 7.3% and 7.4% respectively.

Incentives are provided for the hotel, logistics, aviation and tourism industries to promote private investments.

"The establishment of more luxury hotels will further promote tourism, raise the standard of hospitality in Malaysia to attract high yield tourists especially during the Visit Malaysia Year 2014," he said on the 70% exemption on statutory income for the period of 5 years and 60% investment tax allowance for the hotel industry.

On the Maritime Development Fund, he said that maritime transport (particularly shipping and port) plays an important role in international freight, particularly to transport bulky items such as crude oil and grains.

Mustapa also said the aviation industry is expected to grow with the Visit Malaysia Year 2014.

"The aviation industry is vital in the rapid expansion of trade and thriving tourism industry for Malaysia and will help place Malaysia as a leading regional air transport hub," he added.

He also noted that Budget 2014 is a windfall for Small and Media Enterprises (SMEs) in terms of access to financing. He noted about 13 programmes with a combined allocation of about RM2.6 billion.

"Intensive support in terms of financing with funds amounting to RM1.18 billion in total (from AIM, TEKUN, BSN and SME Bank) for the microenterprises is also seen as Government’s effort to accelerate the growth of the microenterprises.

"This is in line with the objective of SME Masterplan 2012-2020 to increase business formation which is targeted to growth at 6% by 2020," he added.