INTEL COMMENTS ON BUDGET 2009

Kuala Lumpur, Malaysia, August 29, 2008 – Intel Malaysia congratulates the Malaysian Government on the unveiling of the 2009 Budget, themed “A Caring Government” which is focused on enhancing the well-being of all Malaysians. In particular, Intel welcomes the proposal by the Government to accelerate the claim for Accelerated Capital Allowance on expenses incurred on ICT equipment from 2 years to 1 year.

“Technology must be made affordable and widely available to all sectors of the community to help accelerate the digital inclusion. With the reduced timeframe to claim for the Accelerated Capital Allowance, companies can therefore refresh their IT assets consistently to keep up with technology trends,” said Ryaz Patel, country manager, sales & marketing, Intel Malaysia.

Intel also supports the Government’s decision to allocate RM14.1 billion under the Budget 2009 to improve the quality of education at institutes of higher learning. “Intel believes this move will encourage the development of quality human capital and accelerate the cultivation of 21st century learning skills among students as they prepare themselves for the knowledge economy,” said Atul Bhargava, managing director, Intel Malaysia.

Additionally Intel lauds the government’s increased incentives for CSR activities as corporate responsibility has always been a priority for Intel Malaysia. “Corporate responsibility is part of our DNA because we believe that volunteerism is the right way to demonstrate that we are listening, learning and communicating with our stakeholders,” added Bhargava.

However, Intel had hoped for more emphasis on information communications technology (ICT) in this year’s budget. Intel Malaysia strongly believes that ICT is a key factor to accelerate Malaysia’s competitive edge in the global economy and to spur the growth of a knowledge based economy.

Furthermore Intel had looked forward to more incentives to reduce infrastructure costs including the removal of import duty and sales tax exemptions on broadband equipment and consumer access devices. Such a move would accelerate broadband deployment across the nation. “The deployment of broadband beyond urban areas will help drive greater PC penetration and narrow the digital divide,” concluded Patel.