Aspen (Group) Holdings’s subsidiary Aspen Glove has received approval from Malaysia’s finance minister for an income tax exemption for its business activity of designing, developing, and manufacturing of examination and surgical nitrile gloves.

The approval, granted under the Investment Tax Allowance (ITA) incentive scheme, entitles Aspen Glove to an allowance of 100% of its capital expenditure (excluding land cost) for a period of 10 years.

Aspen Glove shall be entitled to offset the allowance against 100% of its statutory income for each year of assessment. Any unutilised allowance can be carried forward to subsequent years until fully utilised. 

SEE:Aspen reports 3.8 times growth in FY2020 earnings of RM71.4 mil; aims to accelerate rubber gloves manufacturing

The ITA is granted to Aspen Glove as part of incentives for priority sectors with a unique value proposition in the Northern Corridor Economic Region, where Aspen Glove’s facility is located.

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Aspen says Aspen Glove is expected to fulfil all conditions imposed for the approval of the ITA including compliance with environmental, social and governance factors such as 80% local hires and15% science and technology graduate hires, vendor development programmes; corporate social responsibility, joint ventures with public universities and investment into research and development, among others.

Shares in Aspen closed 0.5 cents or 2.17% higher at 23.5 cents on April 1.