GEORGE TOWN: The government should revise the current practice of giving tax incentives for research and development (R&D) based on capital investments.
Instead, tax deductions should be given for those investing in intellectual property and talent development.
Association of Malaysian Medical Industries (AMMI) secretary Hitendra Joshi said the incentives given now were outdated.
"We need to enhance more R&D work carried out by companies and the best way to encourage them is provide better tax incentives. Incentives should also not necessarily be in the form of grants. Look at medical industries which have been here for more than 20 years, none have closed down.
"They have faith in what they see here, but we need to relook at the incentives to keep them here," he said.
He also pointed out that the medical and healthcare industry also withstood the recession and downturn recently and would be another engine of growth for Malaysia.
Joshi said after an MoU signing between AMMI and the Penang Skills Development Centre (PSDC) to carry out the competency development programme in medical TECHNOLOGY [].
The programme would train existing employees in the medical industry, while new graduates would also be trained on fast track basis to meet the needs of the industry.
Also present was AMMI chairman Lim Bee Leong and PSDC CEO Datuk Boonler Somchit.
The programme supported by the Northern Corridor Implementation Agency (NCIA), and Khazanah Nasional Bhd is catered to expand the pool of skilled workforce in the medical industry.
Through the programme, it is aimed to create a larger pool of employable talent for the medical industries.
AMMI's 30 members employ more than 13,000 employees, out of which 70% are from Penang, who will benefit from the programme.
AMMI members contributed RM4.3 billion of the total RM8 billion from the medical devices sector in 2008.
Joshi said this ready pool of qualified staff for the industry would also serve as an impetus for medical industry investors to come here.
Lim, meanwhile, stressed on the need for Malaysia to have a roadmap to lead to where it wants to be in the medical devices industry.
Instead, tax deductions should be given for those investing in intellectual property and talent development.
Association of Malaysian Medical Industries (AMMI) secretary Hitendra Joshi said the incentives given now were outdated.
"We need to enhance more R&D work carried out by companies and the best way to encourage them is provide better tax incentives. Incentives should also not necessarily be in the form of grants. Look at medical industries which have been here for more than 20 years, none have closed down.
"They have faith in what they see here, but we need to relook at the incentives to keep them here," he said.
He also pointed out that the medical and healthcare industry also withstood the recession and downturn recently and would be another engine of growth for Malaysia.
Joshi said after an MoU signing between AMMI and the Penang Skills Development Centre (PSDC) to carry out the competency development programme in medical TECHNOLOGY [].
The programme would train existing employees in the medical industry, while new graduates would also be trained on fast track basis to meet the needs of the industry.
Also present was AMMI chairman Lim Bee Leong and PSDC CEO Datuk Boonler Somchit.
The programme supported by the Northern Corridor Implementation Agency (NCIA), and Khazanah Nasional Bhd is catered to expand the pool of skilled workforce in the medical industry.
Through the programme, it is aimed to create a larger pool of employable talent for the medical industries.
AMMI's 30 members employ more than 13,000 employees, out of which 70% are from Penang, who will benefit from the programme.
AMMI members contributed RM4.3 billion of the total RM8 billion from the medical devices sector in 2008.
Joshi said this ready pool of qualified staff for the industry would also serve as an impetus for medical industry investors to come here.
Lim, meanwhile, stressed on the need for Malaysia to have a roadmap to lead to where it wants to be in the medical devices industry.
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