Malaysia Pioneer Status for Research and Developments

Malaysian Pioneer Status-Research and Developments

Under the Promotion of Investments Act 1986, pioneer status can be accorded to industries including those doing Research & Developments.

Definition of Research & Development
"Any systematic or intensive study carried out in the field of science or technology with the objective of using the results of the study for the production or improvement of materials, devices, products, produce or processes but does not include:
* quality control of products or routine testing of materials, devices, products or produce;
* research in the social sciences or humanities;
* routine data collection;
* efficiency surveys or management studies;and
* market research or sales promotion."

Also approved in the category are:-
* Contract R & D Company (contracting R & D services from another whether related or not related company)

* In-House research

* Commercialisation of Public Sector R & D

* Companies undertaking R & D approved by the Minister of Finance (double deduction accorded)
* Commercialised Research Findings approved by the Ministry of Science.

* Both Pioneer Status and Investment Tax Allowance may be granted.