Latest news with #NewInvestmentIncentiveFramework
Barnama
6 days ago
- Business
- Barnama
Budget 2026 Aims To Lift Ceiling Of National Growth, Achieve High-income Status
BUSINESS KUALA LUMPUR, Aug 8 (Bernama) – Raising the ceiling of national growth is one of the three central pillars of the MADANI Economy to propel Malaysia towards a high-income, competitive and sustainable economy grounded in humanistic values and social justice, according to the Finance Ministry (MOF). In a 2026 pre-budget statement today, the ministry said the pillar focuses on breaking through long-standing structural constraints, particularly the nation's over-reliance on low- and medium-cost economic models. 'With the MADANI Economy setting the ambition for Malaysia to become one of the world's top 12 most competitive economies, a fundamental transformation of our industrial base is indispensable. 'This includes elevating Malaysia's position in global value chains and shifting towards higher productivity and innovation-driven growth,' it said. MOF noted that the government is prioritising investment in high-growth high-value (HGHV) areas, covering new opportunities in frontier technologies and pathways anchored in sustainability. Framework to Attract Quality Investments To complement the nation's industrial transformation, the government will continue refining its suite of strategic investment incentives, with the New Investment Incentive Framework slated for launch in the third quarter of 2025 to lead the way, MOF said.
New Straits Times
6 days ago
- Business
- New Straits Times
Budget 2026 to raise growth potential, advance high income goal
KUALA LUMPUR: Raising the ceiling of national growth is one of the three central pillars of the Madani Economy to propel Malaysia towards a high-income, competitive and sustainable economy grounded in humanistic values and social justice, according to the Finance Ministry (MOF). In a 2026 pre-budget statement today, the ministry said the pillar focuses on breaking through long-standing structural constraints, particularly the nation's over-reliance on low- and medium-cost economic models. "With the Madani Economy setting the ambition for Malaysia to become one of the world's top 12 most competitive economies, a fundamental transformation of our industrial base is indispensable. "This includes elevating Malaysia's position in global value chains and shifting towards higher productivity and innovation-driven growth," it said. MOF noted that the government is prioritising investment in high-growth high-value (HGHV) areas, covering new opportunities in frontier technologies and pathways anchored in sustainability. Framework to Attract Quality Investments To complement the nation's industrial transformation, the government will continue refining its suite of strategic investment incentives, with the New Investment Incentive Framework slated for launch in the third quarter of 2025 to lead the way, MOF said. "The goal is to tailor incentives to the economic returns of each sector, fostering a mutually beneficial dynamic that attracts quality investments while ensuring meaningful national gains. "Budget 2026 will sharpen this approach by further streamlining approval processes, dismantling bureaucratic hurdles and realigning incentives to better reflect the complexity, value-add and technological intensity of targeted industries," it said. The ministry noted that these reforms aim to transform Malaysia into a facilitative, competitive investment destination that rewards innovation, prioritises long-term sustainability and positions the country at the forefront of economic value creation. Unlocking Cascading Effects The ministry also said the strategic policy levers outlined under the Madani Economy are designed to unlock cascading economic effects across the wider economy by building ecosystems that support HGHV sectors. Budget 2026 will continue cultivating downstream ecosystems and accelerating regional development through several key focus areas. Among the focus areas highlighted are supporting small businesses by easing access to export markets and financing their digital transition to improve productivity and competitiveness. Tourism and services will also be a priority, leveraging Visit Malaysia 2026 to revitalise tourism and adjacent service sectors, it said. "The government will also emphasise Islamic finance and economy, strengthen premium halal supply chains and cement Malaysia's global leadership by leveraging Islamic finance as a key enabler," it said. MOF added that regional development will remain a key focus, aimed at diversifying economic growth beyond established urban centres by developing catalytic nodes across states, replicating models such as the Johor-Singapore Special Economic Zone, Kulim Hi-Tech Park and Penang Silicon Island.
The Star
07-08-2025
- Business
- The Star
Govt mulls foreign investor rule shift to boost MSMEs
THE government is mulling the possibility of enhancing localisation requirements for foreign investors for the benefit of micro, small and medium enterprises (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.
The Sun
06-08-2025
- Business
- The Sun
Govt to introduce New Investment Incentive Framework in third quarter to woo high-value investors
PETALING JAYA: The government will introduce a New Investment Incentive Framework (NIIF) in the third quarter of 2025 to promote high-value investments and activities. Deputy Investment, Trade and Industry Minister Liew Chin Tong said the NIIF is a major strategic step in response to the United States' decision to impose a 19% countervailing tariff on Malaysian goods under an executive order announced on Aug 1. 'This is to ensure that all investments deliver benefits such as quality employment for Malaysians and the development of local company ecosystems and technologies,' he said in a written reply to Tanjung Piai MP Datuk Seri Dr Wee Jeck Seng in the Dewan Rakyat. The framework, to be developed by Miti in collaboration with the Ministry of Finance, will set Malaysia in a new direction, aligning investment inflows with national development goals and long-term economic resilience. Liew said the recent US tariff revision was a complex and time-sensitive issue that the government had successfully negotiated down to 19%. 'The government is confident that the early measures implemented, along with well-structured mitigation planning, will reduce the negative impact of the United States' imposition of countervailing tariffs specifically on Malaysia,' the deputy minister noted. Liew said Malaysia's exports to the US made up 13.2% of the country's total exports in 2024, valued at RM1.508 trillion. To mitigate the tariff's impact, Miti and its agency, Malaysia External Trade Development Corporation, have been actively exploring non-traditional export markets and strengthening networks in emerging regions such as Central Asia, South Asia, the Middle East, Africa, and Asean. 'To position Malaysia as an indispensable middle player in the supply chain, the government is committed to enhancing the nation's resilience by advancing the growth of advanced local technology companies in strategic sectors such as semiconductors,' said Liew. He called for a shift in mindset as local small and medium enterprises and micro-enterprises must be seen as potential global players, not just support units for foreign multinationals. 'The government is committed to leading the transformation of local companies from being mere outsourcing producers labelled 'Made in Malaysia' to reaching the level of 'Made by Malaysia' with Malaysian technology,' he said. Liew pointed to the RM25 billion GEAR-uP programme under the Ministry of Finance as another key initiative to drive high-growth, high-value sectors, particularly semiconductors and the energy transition, while also empowering marginalised communities and nurturing local talent. To support this transformation, the government will study the possibility of strengthening localisation requirements for foreign investors to ensure that MSMEs benefit from the spillover effects of both domestic and international investments. The government believes these measures, especially the NIIF, will buffer Malaysia from future global trade shocks and elevate its status in global supply chains. On Aug 1, the US enacted a revised reciprocal countervailing tariff of 19% on imports from Malaysia, under an executive order by President Donald Trump. The rate was negotiated down from an initially proposed 25% and superseded the 24% tariff announced earlier in April. The negotiations began in early May and concluded on July 31, allowing Malaysia to preserve key policy prerogatives without compromising its sovereign 'red‑line' commitments. Malaysia now shares the 19% tariff rate with several major Asean economies, including Thailand, Indonesia, the Philippines, and Cambodia, placing it firmly in the mid-tier bracket within the region. Vietnam faces a slightly higher rate of 20%, while Brunei is subject to 25%, and Laos and Myanmar face steep duties of 40% each. Singapore, by contrast, remains on a base rate of 10%. Items currently excluded from the tariffs, such as semiconductors and pharmaceutical products, are also expected to face tariffs 'in the next week or so', according to Trump.
New Straits Times
06-08-2025
- Business
- New Straits Times
New investment plan to drive 'Made by Malaysia' push
KUALA LUMPUR: The government will introduce a New Investment Incentive Framework (NIIF) in the third quarter of this year to attract high-value investments and develop homegrown technology. Deputy Investment, Trade and Industry Minister Liew Chin Tong said the government is committed to transforming "Made in Malaysia" producers into "Made by Malaysia" innovators. Speaking in the Dewan Rakyat today, Liew said the new strategy aims to transform Malaysian micro, small and medium enterprises (MSMEs) from being support players for foreign multinational corporations (MNCs) into home-grown, technology-driven companies capable of competing globally. "A shift in mindset is necessary, as small companies and MSMEs have long been viewed merely as supporting players for foreign MNCs," Liew said. "The new thinking focuses on the capabilities of Malaysian companies and their potential to become home-grown, technology-based MNCs that can play a major role on the global stage." Liew was responding to a question from Datuk Seri Dr Wee Jeck Seng (BN–Tanjung Piai) on the government's plan to ensure trade, supply chains, and the SME sector are not adversely affected by US retaliatory tariffs. The ministry, together with the Finance Ministry, will launch the NIIF to attract high-value investments and ensure they deliver tangible benefits, such as quality job creation and the development of local ecosystems and technologies. To ensure MSMEs benefit from these investments, Liew said the government will also consider strengthening localisation requirements for foreign investors to build a resilient ecosystem that allows local companies to benefit from spillover effects. Following the 19 per cent tariff rate imposed on Malaysia, Liew said the ministry and its agency, the Malaysia External Trade Development Corporation (MATRADE), have taken mitigation measures by diversifying the country's export markets. This includes exploring new destinations and strengthening Malaysia's export network in emerging markets across Central Asia, South Asia, the Middle East, the African continent, and Asean. Liew said the government is committed to enhancing national resilience by fostering the growth of advanced local technology companies in strategic sectors like semiconductors, to position Malaysia as an "indispensable middle power" within global supply chains. The US reduced its tariff on imports from Malaysia to 19 per cent on Aug 1, down from the originally planned 25 per cent.
