The call came in with no greeting.
Just one sentence straight into my ear:
“Mr Koh, you got lubang with MIDA right?”
A tax prospect wanted to apply Pioneer Status tax incentive from MIDA after THREE years in operation.

Then he asked the famous Malaysian question:
“You can kautim everything?”
I laughed.
Not because he was funny.
But because after more than 30 years in tax, this same question still comes back again and again.
So I told him the truth, the boring truth:
Today, MIDA is fully digital.
Applications are submitted online through MIDA’s e-Incentive portal or InvestMalaysia.
And the timing rule is the one that kills most cases:
In the past, you must apply before you start commercial production or operation of the promoted product or activity.
If you apply after you start, the system and the guideline can reject you.
Yes, recently there is a concession for Malaysian-owned companies with more than 60% equity control recently.
But only if the company is already in production not more than one year from the date MIDA receives the application.
I told him I have seen real companies get rejected because of timing based on my experience.
Factory running, workers inside, sales already started but the application came too late.
The answer was still : Rejected.
And even if timing is okay, MIDA still looks at substance. Not your confidence.
They will ask for real proof of things like :
Are you creating real value-added activity?
Are you building skilled jobs (managerial, technical, supervisory)?
Do you have genuine R&D and technology upgrade, or just normal operating cost?
Then the prospect replied with the most Malaysian line:
“But my friend said can one!”
So I said, “Boss, if you want, we arrange meeting with MIDA officer. You ask directly. But I cannot promise kautim.”
The tax prospect decline my offer and expect me to kautim everything.
But there is nothing to kautim.
Everything is black and white.
Everything is submitted online.
Every click has a timestamp.
He went quiet for a while, then joked:
“So you mean you are not cable guy?”
I smiled.
“Yes. I am not cable guy.”
“Yes. I can not kautim MIDA.”
“Yes. I don’t have lubang with MIDA.”



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