MIDA’s new incentive framework prioritises high-value investments with strong economic spillovers, focusing on technology and quality jobs.

KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA) expects a rise in quality-driven investments under its newly launched New Incentive Framework (NIF).

Chairman Tengku Datuk Seri Zafrul Abdul Aziz stated the framework will prioritise projects delivering meaningful economic spillovers.

Investors must introduce advanced technologies and create high-quality jobs to qualify for enhanced incentives.

“Given the limited resources that we have, I think we need to reward those who are giving the right kind of spillover to the economy,” Tengku Zafrul said.

He reported positive initial feedback from investors since the policy’s announcement weeks ago. The framework was developed over a year based on extensive industry consultation.

Tengku Zafrul does not foresee a slowdown in investment applications. He anticipates growing interest and stronger participation from companies aligning with the NIF’s objectives.

Meanwhile, he identified the digital economy as a key driver for Malaysia’s 2026 quality investment targets. He highlighted data centre development as crucial for building the surrounding digital ecosystem.

This growth is attracting companies from both the service and equipment sectors. “Everybody needs computing power, so that will help (to drive) the digital economy,” he added.

 The Sun Malaysia