He said as an open market economy, the attractiveness of the investment ecosystem was not only determined by tax incentives, but it also depended on the comprehensiveness of the country’s tax system in accordance with international tax standards.

The finance minister said this would ensure that the right parties were taxed, as well as the fair distribution of funds.

He added this would also put a stop to tax evasion and avoidance.

“We are sending out the message that we do not condone such practices,” he said at the virtual Invest Malaysia 2021 Series 2 today.

Tengku Zafrul pointed out that other countries such as Hong Kong and Singapore had either removed or amended their laws in order to meet international standards.

Under Budget 2022, the government proposed to impose tax on income derived from foreign sources and received in Malaysia beginning from Jan 1 next year.