KUALA LUMPUR: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said Malaysia's investment climate lags behind those of its neighbours.
"Even though our economic fundamentals are strong, the investment climate indicates otherwise (not strong). Because of this, more tax holidays and new credit incentives should be provided.
"The tax regime must be reformed to be on par with tax systems around the world in order to attract foreign direct investment."
Zahid, who is Umno president, said a comprehensive and updated tax system would ease worries about foreign investment.
"We must restore the country's competitiveness so that it does not fall behind the robust economies of our neighbours," he said at the start of the Umno general assembly here today.
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