The Ministry of Investment, Trade and Industry (MITI) formally launched the New Incentive Framework (NIF), which will take effect on March 1. The NIF represents a policy transition from traditional entitlement-based tax incentives to a tiered, outcome-based model, where incentive eligibility is measured by contributions to national development objectives, reflected by the National Investment Aspirations (NIA) scorecard. The NIA scorecard has tiered indicators based on six pillars: advancing economic sophistication, creating high-quality jobs, deepening domestic linkages, cultivating new and existing industrial clusters, fostering economic inclusivity, and strengthening sustainability. Eligible investors can choose between a special tax rate or an investment tax allowance.
During last month’s Malaysia Economic Forum 2026 Outlook, MITI Minister Johari Abdul Ghani underscored that Malaysia seeks investors who will quickly and innovatively deliver high-value industry growth while helping address infrastructural challenges. Aligning tax incentives with economic value creation ensures that fiscal support delivers measurable national benefits and sustains competitiveness. While the NIF framework solely addresses the manufacturing sector at present, services will be incorporated into the scheme in Q2 of 2026.
