The Ministry of Investment, Trade and Industry (MITI) is finalising a New Investment Incentive Framework, targeted for announcement as early as the first quarter of 2025 (1Q25). The framework was announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2025 last Friday.
MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the ministry is working on the details and the process has already begun, with specifics for it to be presented at the upcoming National Investment Council meeting in December.
The New Investment Incentive Framework will include a RM1 billion strategic investment fund, aimed at enhancing local talent capacity and promoting high-value activities in the country.
The initiative is also to prepare Malaysia for the introduction of the Global Minimum Tax next year.
“This tax is around 15%, so we can no longer attract investments by offering tax exemptions down to zero per cent.
“Therefore, we need to offer other incentives focusing on talent and green initiatives. It’s basically a new way of looking at incentives that will no longer be given broadly, but more targeted at industries that can genuinely help enhance the nation’s economic value,” he told reporters after presenting MITI’s 3Q24 Report today.
