Kuala lumpur: The Ministry of Investment, Trade and Industry (MITI) is committed to ensuring that the Malaysian Investment Development Authority (MIDA) ecosystem is fully prepared to implement the new Performance-Based Incentive Framework for the manufacturing sector in the early first quarter (1Q) of 2026, followed by the services sector in early 2Q of the same year.
According to BERNAMA News Agency, the ministry stated that the new Performance-Based Incentive Framework aims to balance efforts in attracting high-growth activities that create high-value jobs and help narrow economic disparities between regions. This initiative aligns with the objectives of the New Industrial Masterplan (NIMP 2030).
MITI has expressed support for efforts to streamline investor processes, including the Investor Pass led by MIDA with a Multiple Entry Visa facility of up to 12 months. Additionally, the continuation of the Residence Pass – Talent Fast Track initiative is intended to rapidly attract strategic talent, along with the ASEAN Business Entity (ABE) status. These measures will be backed by the Invest Malaysia Facilitation Centre (IMFC), which MIDA has established in Kuala Lumpur and Johor to facilitate skilled talent mobility and support Malaysian companies’ growth in the ASEAN region.
Furthermore, MITI will continue to encourage industry players and exporters to leverage the 18 existing free trade agreements (FTAs), such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The finalisation of FTA negotiations between Malaysia and South Korea is anticipated to be announced during the ASEAN-South Korea Summit at the end of this month.
During the Budget 2026 presentation, Prime Minister Datuk Seri Anwar Ibrahim announced an allocation of RM1.898 billion to MITI. This allocation supports efforts to position Malaysia as a competitive investment destination, enhance quality investment, and boost exports. Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz stated that the Budget 2026 allocation underscores the importance of investment, industrial development, and trade in bolstering Malaysia’s economic competitiveness and resilience amid various global geo-economic and geopolitical challenges.
He added that MITI prioritises implementation, including reporting project progress and outcomes through the MITI Report Card, presented every three months. The Budget 2026 measures overseen by MITI will be implemented swiftly and effectively to improve quality of life and create more opportunities for SMEs. MITI is also dedicated to ensuring Malaysia remains on a strong footing to achieve its goal of being among the world’s 12 most competitive economies by 2033.