Key Digital Economy related Budget 2020 announcements

Key Digital Economy related Budget 2020 announcements
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•Enforcement of the Mandatory Standards for Access Pricing (MSAP) to reduce broadband prices by 49% •

•Implementing the National Fiberisation & Connectivity Plan (NFCP) over the next five years. US$5.15 billion  (RM21.6 billion) in total investment has been committed with the Government (through MCMC) financing at least half the amount via a matching grant mechanism •

•US$60 million (RM250 million) to leverage various technologies, including satellite broadband, to improve connectivity in remote areas of Malaysia, including Sabah and Sarawak •

•US$50 million (RM210 million) to accelerate the deployment of new digital infrastructure for public buildings, particularly schools and industrial parks • •Introduction of 5G Ecosystem Development Grant of US$12 million (RM50 million) •

•US$6 million (RM25 million) matching grant to spur pilot projects around applications such as drones, autonomous driving, blockchain and based on fibre and 5G.•  

•Introduction of Digital Social Responsibility (DSR) to improve digital skills of the future workforce through initiatives such as technology scholarships, training and upskilling for digital skills •

•One-time RM30 digital stimulus for qualified Malaysians aged 18 and above and with annual income less than RM100,000, for the usage of e-wallets. The RM30 credit must be used within a two-month period. •

•Tax incentives up to 10 years for E&E companies transitioning into the 5G digital economy and Industry 4.0 •

•US$131 million (RM550 million) for Smart Automation matching grants to 1,000 manufacturing and 1,000 services companies, to automate business processes •

•Extension of assessment for the Accelerated Capital Allowance and automation equipment capital allowance in the manufacturing sector on the first US$478,000 (RM2 million) and US$955,000 (RM4 million) incurred on qualifying capital expenditure to 2023 •

•Customised incentive of US$239 million (RM1 billion) to attract Fortune 500 companies and global unicorns to invest US$1.19 billion (RM5 billion) and create 150,000 high quality jobs in Malaysia •

•Customised incentive for Malaysian businesses that export products and services globally that would commit to the creation of 100,000 high-quality jobs in Malaysia; and •

•10-year income tax exemption for IP-generated income from patents and copyright software based on the Modified Nexus Approach, which requires substantial research and development activities to be undertaken in Malaysia •

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