Kuala lumpur: Incentives under the National Industry Investment Framework (NIIF) will vary based on actual outcomes rather than the size of the investment. Outgoing Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz stated that, unlike previously when incentives were tied directly to investment amounts, the NIIF focuses on what the investment delivers.

According to BERNAMA News Agency, Tengku Zafrul emphasized that some sectors may have different outcomes, and it is not about how much one invests, but what the investment achieves. For example, in supply chains and workforce needs, collaboration with universities and investment in research and development will determine the level of incentives.

Tengku Zafrul further mentioned that the NIIF introduces stricter safeguards, particularly concerning foreign labor and the reskilling of local talent. These measures are essential as companies often prefer cheaper labor and are reluctant to invest in workforce training. The NIIF aims to set criteria for incentives when companies invest in new technologies, evaluating the number of local workers employed, the extent of technology transfer, and other spillover benefits to the economy.

Additionally, the NIIF plans to support small and medium enterprises (SMEs) by enhancing their role and capabilities within supply chains. Tengku Zafrul noted that financial support from the government, as well as development and commercial banks, is crucial for the acceptance of smart technology.

The full implementation of the NIIF is scheduled for the manufacturing sector in the first quarter of 2026, with the services sector following in the second quarter of 2026.