Malaysia

Malaysia

Adopts new incentives to attract foreign investment

03 Dec 2024

On 3 December 2024, the Parliament (Dewan Rakyat) of Malaysia approved the 2025 Budget, which includes the Investment Incentive Framework. Under this framework, multinational enterprises (MNEs) can claim double tax deductions on expenses for supply chain resilience initiatives, up to RM2 million (approximately $457,000) annually for three years. Additionally, Malaysia will establish a RM1 billion (approximately $228 million) fund to develop local talent and promote high-value activities. The framework is set to take effect in the third quarter of 2025.