ECA Integrated’s unit gets pioneer status renewal from Miti

KUALA LUMPUR (Feb 20): ECA Integrated Solution Bhd’s unit's pioneer status (PS) has been renewed by the Ministry of International Trade and Investment (Miti) and is valid until 2027.

In a filing with Bursa Malaysia on Monday (Feb 20), the ACE Market-listed company said the PS entitles its subsidiary ECA Advanced Solutions Sdn Bhd a 100% tax exemption on its statutory income derived from pioneer activities during the validity period.

ECA Integrated said the ministry resolved to approve the renewal of PS held by its unit for the remaining validity period of five years effective from Nov 27, 2022 to Nov 26, 2027.

A company granted PS enjoys a five-year partial exemption from the payment of income tax, according to Malaysian Investment Development Authority, which is the primary contact for investor facilitation in Malaysia.

Unabsorbed capital allowances incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company. Accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company for a period of seven consecutive years.

Shares of ECA Integrated closed unchanged at 98 sen apiece, giving the company a market capitalisation of RM566 million.