KUALA LUMPUR (Oct 21): The Ministry of Investment, Trade and Industry (Miti) said on Monday it aims to announce the details of the new investment incentive framework as early as the first quarter of 2025 (1Q2025).
The ministry initially targeted to announce details of the framework in June next year, but is bringing the target forward to ensure investors are informed of the new set of incentives as soon as possible, said Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“A lot of work on the framework has been done this year, and we want to present it to the National Investment Committee at the next meeting in December,” Zafrul told reporters following the release of the ministry’s report card for 3Q2024.
During the Budget 2025 presentation last Friday, Prime Minister Datuk Seri Anwar Ibrahim said that a new investment incentive framework will be implemented in 3Q2025.
The incentives will be backed by a RM1 billion strategic fund, designed to cultivate local talent and promote high-value activities in the electrical and electronics and artificial intelligence sectors.
WATCH:‘Govt needs to rethink FDI incentives’
Zafrul also said the government needs to rethink the incentives it can use to attract foreign investment into the country, with the 15% global minimum tax (GMT) on multinational enterprises coming into effect next year.
With the GMT in place, the government would no longer be able to offer zero tax rates, and “we have to offer other incentives such as talent, green energy and others”, he said.
“Incentives also can’t be given out randomly. It has to be more targeted towards industries that can really add value to the country’s economy,” he added.
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