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MITI, MIDA to step up policy reforms to boost investor confidence

The Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) will intensify efforts to introduce policy reforms to boost investor confidence and strengthen Malaysia’s position as a preferred investment destination.

MITI said the ministry is aware that the uncertainty in global trade due to volatile geopolitical conditions requires an effective approach to ensure that Malaysia remains relevant as a preferred investment hub in the region through the implementation of measures and strategies to stimulate private investment.

“Among the approaches and strategies that have been and are currently being implemented through a whole – of – government approach to spur private investment include reforming the mechanism for the provision of tax incentives,” it said in a written reply uploaded on the Parliament website on Monday.

MITI was responding to Datuk Seri Hasni Mohammad (BN – Simpang Renggam), who asked about the ministry’s approach to stimulating private investment, which is expected to decline due to global trade uncertainties.

MITI noted that the New Investment Incentive Framework (NIIF) will be implemented starting from the third quarter of 2025, with the framework focusing on high – value activities and economic spillover effects.

“The NIIF will introduce a new evaluation mechanism for the granting of incentives, ensuring that better incentive rates are given to high – quality investments,” it said.

MITI added that the government prioritizes quality investments that can enhance economic complexity, create high-value job opportunities for the people, and expand domestic supply chains.

Attention is also being given to developing new economic clusters and strengthening existing ones, while also increasing inclusivity and supporting the environmental, social and governance agenda.

Meanwhile, MITI said the Malaysia External Trade Development Corporation (MATRADE) has also taken mitigation steps to address the impact of reciprocal tariffs by diversifying the country’s export markets and exploring new destinations in non-traditional markets.

It noted that Malaysia is currently negotiating several new free trade agreements (FTAs), including the ASEAN – Canada, Malaysia – South Korea, Malaysia – European Union, and Malaysia – Gulf Cooperation Council (GCC).

“At the same time, the ministry is also studying the potential of FTAs with other countries such as Bangladesh and Sri Lanka,” said MITI in response to a question from Tan Sri Abdul Hadi Awang (PN – Marang) regarding the situation surrounding tariffs from the US.

Abdul Hadi had asked about Malaysia’s policies to protect the people’s economy, particularly the lower-income groups, in the face of high tariffs from the US, and how effective ASEAN trade strengthening strategies are in mitigating the negative impacts.

  • The Edge Markets