Govt to introduce new investment incentive framework, RM1b strategic investment fund - Anwar

KUALA LUMPUR: 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.

Presenting Budget 2025 in Parliament today, Prime Minister Datuk Seri Anwar Ibrahim stated that this 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 (3Q 2025).

“This New Investment Incentive Framework will continue to be supported through inclusive investment facilitation to stimulate balanced economic growth across the country,” Anwar, who is also the Finance Minister, said.

To enhance the diversification of the electrical and electronics (E&E) sector through high-value-added activities, such as integrated circuit (IC) design services and advanced materials, he noted that 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.