PUTRAJAYA is set to launch its New Incentive Framework (NIF) on 1 March 2026, a major policy shift designed to strengthen the country’s investment ecosystem and ensure competitiveness, resilience, and sustainability in the face of global economic challenges.
The initiative will first cover the manufacturing sector, followed by services in the second quarter of the year, aligning incentive provision with specific national priorities and measurable outcomes.
In a statement on Thursday, the Ministry of Investment, Trade and Industry (MITI) explained that NIF adopts a tiered, outcome-based approach, guided by the National Investment Aspirations and the New Industrial Masterplan 2030.
“The implementation of NIF marks a significant strategic policy shift in the country’s investment incentives landscape, linking the provision of incentives with specific outcomes to reinforce national economic resilience,” the ministry said.
Under the new framework, companies can choose between two mutually exclusive tax incentives: a Special Tax Rate (STR) for a defined period or an Investment Tax Allowance (ITA) based on qualifying capital expenditure.
Eligibility and incentive allocation will be determined via the NIA Scorecard, a comprehensive tool assessing investments against criteria such as economic value creation, talent development, domestic supply chain strengthening, technology transfer, and sustainability.
MITI clarified that applications under the Investment Promotion Act 1986 (PIA 1986) for manufacturing incentives will close on 28 February 2026 at 3.00 p.m., but existing approved projects will continue under their current terms.
Detailed guidelines, including eligibility, assessment parameters, incentive categories, and application procedures, are available on the official MITI and Malaysian Investment Development Authority (MIDA) portals.
MITI expressed confidence that NIF will attract high-quality strategic investment and support structural economic transformation toward a high-income, sustainable economy.
“MITI and MIDA, in collaboration with the Ministry of Finance, will continue engagement sessions with industry, particularly the services sector, to ensure effective implementation and maximum impact of NIF,” the ministry added.
The ministry underlined that MITI remains the key driver in positioning Malaysia as a preferred destination for quality investment and a globally competitive trading nation. - January 29, 2026
