The Impact of Government Incentives onTrigona’s Project Assessment in Peninsular Malaysia

DOI

10.2991/icosat-17.2018.1How to use a DOI?

Keywords

Trigona farming, Capital budgeting techniques, Government tax incentives

Abstract

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.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the International Conference on Science and Technology (ICOSAT 2017)
PB  - Atlantis Press
SP  - 1
EP  - 5
SN  - 1951-6851
UR  - https://doi.org/10.2991/icosat-17.2018.1
DO  - 10.2991/icosat-17.2018.1
ID  - Abdurofi2017/08
ER  -