Top Glove calls for corp tax cut
KUALA LUMPUR: Rubber glove manufacturer Top Glove Corp Bhd has urged the government to reduce corporate tax by two per cent annually to to 20 per cent to attract more investors to the country.
Its chairman Tan Sri Lim Wee Chai said by reducing the corporate tax to 20 per cent from the current 25 per cent, the figure would be attractive for investors.
He said by bringing down the corporate tax, it would automatically reduce operational costs.
"It is therefore crucial to lower the corporate tax. Malaysia is among the countries that imposes a higher tax as compared to others like Thailand, Singapore and Hong Kong," he said on the sidelines of the Federation of Malaysian Manufacturers (FMM) Innovation Conference 2013 today.
Taking Thailand as an example, Lim said the country was capable of reducing its tax rate from 30 per cent to 20 per cent, and by doing so, the relationship with foreign investors was improved.
He also called on the government to be wiser in making investments as it may drive the national income and reduce expenditure.
"An efficient investment practice should be maintained and improved from time to time, for more positive transactions to come in, he said.
Meanwhile, Top Glove plans to take a global market share of 30 per cent from the current 25 per cent.
"We are aiming to expand our production of nitrile and natural rubber gloves to achieve this target," he added.
Top Glove expects to achieve sales of RM3 billion by year-end. It has registered RM2.3 billion in sales revenue to date. -- Bernama