HDC Incentives

Halal Park Operator

In an effort to promote the attractiveness of the Halal Parks, the following incentives are recommended:

i.    Full income tax exemption for a period of 10 years ;  OR

100% income tax exemption on qualifying capital expenditure within a period of 5 years;

and

ii.    Exemption on import duty import duty and sales tax on equipment, components and machinery used directly in the Cold Room Operations subject to the current policies.

Having met the eligibility criteria, all the application must comply with HDC Designated Halal Parks Development Guidelines.  Any new Halal Parks established by the State Government / any other parties, seeking to be endorsed HALMAS Status must obtain consent from HDC  by complying to the set of checklist on requirement of infrastructure, standards and guidelines.

Download HDC Incentives for Halal Park Operator Application Form
Download HDC Incentives Checklist Form

Incentives for Halal Industry Players

In an effort to increase Malaysia’s competitiveness in the Global Halal Market particularly for inward and outward investment into the country, it is proposed that incentives be granted to companies operating in the designated Halal Park.

1. 100% income tax exemption on qualifying capital expenditure for a period of 10 years; OR

Income tax exemption on export sales for a period of 5 years. 

2. Exemption from import duty and sales tax on raw materials used for the development and production of halal promoted products.

3. Double deduction on expenses incurred in obtaining international quality standards such as HACCP, GMP, Codex Alimentarius (food std guidelines of FAO & WHO), Sanitation Std Operating Procedures and regulations for compliance for export markets such as Food and Traceability from farm to fork.

Qualifying criteria for halal industry players are : 

1. The activities must be in the following four (4) industry sectors :-

a.    Specialty Processed Food
b.    Pharmaceuticals, Cosmetics and Personal Care Products
c.    Livestock and Meat Products
d.    Halal Ingredients

2. The employment of high valued knowledge workers with a minimum of 15% of the total workforce including at least three (3) Halal Compliance Officers;
3. Located in HDC Designated Halal Parks and Logistic Cold Hubs approved by HDC;
4. Must not be involved in any distribution and consultancy activities;
5. Must always comply with prescribed quality, hygiene and environmental guidelines;
6. Must always comply with all laws, regulations and licensing requirements where applicable;
7. Must comply with HDC’s halal integrity criteria with tests from accredited laboratories in determining the credibility of the promoted halal products;
8. Must be involved in new business activities related to Halal and must incorporate a new legal entity in Malaysia.
    

Download HDC Incentives for Halal Industry Players  Application Form
Download HDC Incentives Checklist Form

Incentives for Halal Logistics Operators

In an effort to promote Halal Industry and Halal supply chain in Malaysia, the incentives are broaden up to the logistics operators. The recommended incentives are:

i.    Full income tax exemption for a period of 5 years ;  OR

100% income tax exemption on qualifying capital expenditure for a period of 5 years;

and

ii.    Exemption on import duty import duty and sales tax on equipment, components and machinery used directly in the Cold Room Operations subject to the current policies.

Services provided by Halal Logistic Operators must be integrated which comprises of the three (3) principal activities: 

• Forwarding
• Warehousing
• Transportation

And at least one of the following activities:

• Distribution
• Other related and value-added services/activities (e.g. palletising, product assembly/installation, bulk breaking, consolidation, packaging/re-packaging, procurement, quality control, labeling/re-labeling, testing, etc.)
• Supply chain management

The Halal Logistic Operator must own minimum infrastructure as follows :

• Commercial Vehicles – 20 units
• Warehousing facilities – 5,000 sq. metres

Download HDC Incentives for Halal Logistics Operators Application Form
Download HDC Incentives Checklist Form

** HDC shall not be responsible or liable for any claims and / or damages for any loss suffered by the applicant arising from the reliance of information in this guidelines and HDC reserve the right the amend, vary or revise in part or all the terms in this guidelines without prior notice.