DATUK Seri Anwar Ibrahin announced today that the government will introduce an e-commerce bill in the next parliamentary sitting to strengthen accountability among online platforms and sellers, as it moves to protect local businesses from unfair competition by foreign e-commerce companies operating in Malaysia.
The Prime Minister, who also holds the nation’s finance portfolio said the proposed legislation follows concerns from small traders over foreign platforms entering the domestic market without adequate oversight and enforcement.
The government will also examine legal and enforcement measures to protect local micro, small and medium enterprises (MSMEs) and ensure goods purchased by consumers are safe.
At the same time, Budget 2027 will channel billions of ringgit into domestic investment, startup financing and export development as Malaysia seeks to move local companies into higher-value industries.
Approved investments reached RM218.5 billion in the first half of 2026, an increase of 11.7 per cent, putting the country on track to record a third consecutive annual high, according to the government.
Government-linked investment companies (GLICs), through the GEAR-uP initiative, will mobilise RM25 billion in domestic investments to strengthen the economy and build local companies’ capabilities in high-value sectors.
Sime Darby Property, the Employees Provident Fund and the Armed Forces Fund Board have established a RM1.25 billion New Economy Venture Fund to develop data centres and logistics assets in Elmina, Selangor.
Khazanah Nasional and the Retirement Fund (KWAP) will invest RM1.2 billion to help local semiconductor companies move up the value chain, including through a collaboration with the Selangor state government.
For startups, Khazanah’s Jelawang Capital and KWAP’s Dana Perintis will invest RM450 million, while RM2.1 billion across the NIMP Fund, KWAP’s Dana Pemacu and Khazanah’s Dana MTC will support mid-tier companies in sectors including electrical and electronics, digital technology, aerospace and medical devices.
A further RM270 million will be made available through equity crowdfunding and peer-to-peer financing platforms to support SMEs, mid-tier companies and social enterprises.
Cradle Fund will receive RM41 million to implement the Startup Ecosystem Roadmap and provide prototype development and commercialisation grants. The SemiconStart programme under the Malaysian Technology Development Corporation will provide follow-on equity investment for startups in areas such as integrated circuit design and advanced packaging.
The government will also extend income tax exemptions until Dec 31, 2030, for individual investors using equity crowdfunding platforms and angel investors financing early-stage technology startups.
To help local companies access overseas markets, the Malaysia External Trade Development Corporation will receive RM60 million to build exporters’ capabilities and diversify their markets. Bank Pembangunan Malaysia will provide RM1 billion in financing to support local MSMEs seeking to enter export markets.
The government will also allocate RM142 million to strengthen 64 National Information Dissemination Centres (NADI), helping more entrepreneurs use online platforms to grow their businesses. The Jom Malaysia initiative will receive RM10 million to bring rural products and high-value services to digital platforms and international markets.
For the low-altitude economy, the Civil Aviation Authority of Malaysia will invest RM50 million in digital airspace management, national testing sites and safety standards to support the development of drone-related industries.
The government will also establish a RM50 million UNIVC fund with KWAP to commercialise university research, with public funding helping to absorb early-stage risks and encourage private investment.
To attract more global businesses and skilled workers, tax incentives for Global Services Hubs will be revised from Jan 1, 2027.
New qualifying companies will receive a special 5 per cent tax rate on income from eligible hub activities, while existing Principal Hub or Global Services Hub companies will receive the same rate on income exceeding a prescribed baseline.
The incentive period will be renewable every five years, up to a maximum of 30 years. Qualifying treasury and fund management activities will also receive withholding tax exemptions on interest payments and stamp duty exemptions on inter-company loan agreements, including under the Johor-Singapore Special Economic Zone package.
Existing DE Rantau digital nomad pass holders who have reached the two-year limit will be allowed to stay and work remotely in Malaysia for a further two years, subject to conditions.
From Jan 1, 2027, spouses of expatriates holding Category I Employment Passes and Dependant Passes will also be allowed to work in Malaysia, subject to requirements.
A new MyABE status will help Malaysian companies expand across ASEAN, with the Securities Commission and TalentCorp aiming to facilitate preliminary applications for Employment Passes for employees of listed MyABE companies within five working days.
The government is also reviewing the Reinvestment Allowance to make incentives more targeted and improve industrial competitiveness.
Malaysia and Hong Kong securities regulators will cooperate to facilitate dual-market listings by Malaysian companies, with matching grants available to help cover listing costs.
Separately, full income tax exemptions for Malaysian shipping companies will be extended until the 2036 year of assessment. Stamp duty on loans to buy or build Malaysian ships will be fixed at RM2,000 for loans of up to RM100 million and RM5,000 for loans exceeding that amount. - October 9, 2026
