The Impact of Government Incentives onTrigona’s Project Assessment in Peninsular Malaysia
- Ilmas Abdurofi, Mohd Mansor Ismail
- Corresponding Author
- Ilmas Abdurofi
Available Online August 2017.
- https://doi.org/10.2991/icosat-17.2018.1How to use a DOI?
- Trigona farming, Capital budgeting techniques, Government tax incentives
- Trigona honey is very essential to provide alternative daily supplement for health purpose. However, recent development indicates the need for demand increase but the supply of the product is still limited. The Government has introduced certain policies to develop agricultural performance in the country to assist either farmers or companies to obtain highly profitable business. Normally the incentives offer to the tax exemption. However, lack of effectiveness of the program is still as a source of concern to the agricultural sector in view of potential of Trigona industry in Malaysia. Thus, the objective of this study is to assess the financial projection and identify the role Government tax incentives in boosting investment projects of Trigona farming in peninsular Malaysia. The instruments of financial appraisal are used in this study namely Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period and Profitability Index (PI). Along with the scenarios of tax incentive are introduced as Pioneer Status (PS), Investment Tax Allowance (ITA), and Accelerated Capital Allowance (ACA). The results indicate that the financial assessment of Trigona farming is financially viable, highly profitable and able to recover its initial investment in the short term. Moreover, with a Government tax incentives, farms are more efficient and massively lucrative.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Ilmas Abdurofi AU - Mohd Mansor Ismail PY - 2017/08 DA - 2017/08 TI - The Impact of Government Incentives onTrigona’s Project Assessment in Peninsular Malaysia BT - International Conference on Science and Technology (ICOSAT 2017) - Promoting Sustainable Agriculture, Food Security, Energy, and Environment Through Science and Technology for Development PB - Atlantis Press UR - https://doi.org/10.2991/icosat-17.2018.1 DO - https://doi.org/10.2991/icosat-17.2018.1 ID - Abdurofi2017/08 ER -