Budget offers incentives to drive competitiveness, attract quality investments: MIDA  

Budget offers incentives to drive competitiveness, attract quality investments: MIDA  

23 Oct 2024

The 2025 Budget features  many incentives to enhance business competitiveness and attract high-quality investments.

This aligns with the government’s goal to make Malaysia a preferred investment destination in Southeast Asia, said the Malaysian Investment Development Authority (MIDA).

Its chief execuyive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the budget is a crucial step towards realising the goals of the Madani Economic Framework.

“MIDA remains dedicated to supporting a fresh investment climate for investors and the business community to drive our country’s economic growth and prosperity,” he added.

MIDA welcomed the implementation of the 15 per cent Global Minimum Tax (GMT) under Base Erosion and Profit Shifting (BEPS) Pillar 2 from January 2025.

This will ensure the country’s tax system aligns with international standards without discouraging existing investments, it said.

MIDA also said the supply chain resilience initiative can help local companies to participate in global markets as the tax deduction and investment funds will foster collaboration between multinational enterprises (MNEs) and local suppliers.

The initiatives include MNEs receiving double tax deduction of up to RM2 million annually for three years, while joint venture between MNEs and local suppliers will benefit from investment-related tax deductions.

A matching fund of RM100 million, meanwhile, is available for sectors like electronics, specialty chemicals and medical devices.

Source: NST