Govt mulls foreign investor rule shift to boost MSMEs
Deputy Investment, Trade and Industry Minister Liew Chin Tong said this is part of efforts to create a resilient ecosystem that allows local companies to reap spillover benefits and develop into technology-based multinational corporations (MNCs).
'To ensure investments lead to meaningful gains such as quality jobs for Malaysians and the development of local technology ecosystems, Miti and the Finance Ministry will introduce the New Investment Incentive Framework (NIIF) in the third quarter of this year,' he said.
Liew said the government is committed to transforming Malaysia's role in global supply chains by strengthening national resilience and nurturing homegrown tech firms in strategic sectors such as semiconductors.
'There must be a mindset shift. For too long, MSMEs have been seen only as support players for foreign MNCs.
'The new thinking emphasises the potential of Malaysian firms to become global technology-based MNCs,' he said.
Liew added that the government is determined to lead the shift from being a hub for 'Made in Malaysia' outsourced production to 'Made by Malaysia' technological innovation.
He pointed to the RM25bil GEAR-uP programme under the Finance Ministry, which aims to catalyse high-growth, high-value sectors such as semiconductors and energy transition, while also empowering marginalised communities and nurturing local talent.
On the US trade policy, Liew described the reduced 19% retaliatory tariff rate on Malaysia as a success, saying Malaysia had engaged in 'complex and time-sensitive' negotiations to secure the agreed rate.
Malaysia's exports to the United States accounted for 13.2% of the country's total exports in 2024, which amounted to RM1.508 trillion, he added.
To mitigate the effects of the US tariffs, he said Miti and its agency Matrade are working to diversify Malaysia's export markets.
This includes exploring non-traditional destinations and strengthening the export network to fast-growing emerging markets such as Central Asia, South Asia, the Middle East, Africa and Asean.
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