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Re-igniting Export Incentives in Malaysia: Lessons from the Past

International trade theory suggests that exports are the quickest and most successful route to economic growth. As Malaysia struggles to maintain its economic growth and export levels, it is important that the country do all that is necessary to provide the right environment in order to encourage export oriented industries. Because competition to attract investment in industries is intense, tax incentives can be seen as an effective and deciding factor in achieving that aim. This article appraises the incentives offered in Malaysia to encourage export promotion. Separate sections are devoted to reviewing past and present incentives offered by the Government, and recommendations are offered to further improve incentive design.