KUALA LUMPUR, Oct 18 — A new Investment Incentive Framework will be introduced, including a strategic investment fund worth RM1 billion aimed at enhancing the capacity of local talent and encouraging high-value activities to be carried out in the country.
During the presentation of Budget 2025 in the Dewan Rakyat today, Prime Minister Datuk Seri Anwar Ibrahim said the framework, which focuses on high-value activities as opposed to existing incentives based on specific products, is expected to be implemented in the third quarter of next year.
“This new Investment Incentive Framework will continue to be supported through inclusive investment facilitation to stimulate balanced economic growth across the country,” he said.
To enhance the diversification of the electrical and electronics sector through high-value-added activities, such as integrated circuit (IC) design services and advanced materials, the tax incentives for boosting exports will be expanded to include IC design activities.
Additionally, special income tax incentives will be offered for investments in 21 economic sectors in Perlis, Kedah, Kelantan, Terengganu, Sabah, and Sarawak, subject to the success of economic spillovers, Anwar said, in efforts to reduce the economic gap between regions.
Meanwhile, Anwar said that RM200 million has been allocated for the Strategic Collaborative Investment Fund and the New Industrial Master Plan to support small and medium enterprises and mid-sized companies, as well as to promote entrepreneurship.
— Bernama
