Kuala lumpur: The implementation of the New Incentive Framework (NIF), which commenced on March 1, is poised to ensure the inflow of high-quality investments, bolstering the nation's shift towards a high-income, innovation-driven economy. Deputy Finance Minister Liew Chin Tong highlighted that the NIF aims to generate more high-income employment opportunities and stimulate development in less developed regions.

According to BERNAMA News Agency, the NIF will enhance compliance and assessment mechanisms, ensuring that companies benefiting from tax incentives meet their commitments through more systematic coordination. The framework's implementation for the manufacturing sector began on March 1, with the services sector slated to follow in the second quarter of the year. Liew was responding to a query from Senator Azahar Hassan regarding the harmonization of financial and tax incentives to lure quality investments and foster high-value job creation.

Liew emphasized that the NIF aligns with the evolving global economic landscape, addressing the need for increased productivity and income among the populace. The government has reevaluated the allocation of financial and tax incentives to be more targeted, impactful, and economically beneficial.

Adjustments have been made to the incentive rate, type, and duration under an outcome-based strategy, utilizing the National Investment Aspirations Scorecard to gauge investor commitment. Key evaluation criteria focus on economic complexity, high-value job creation, fortifying local value chains, developing new and existing clusters, enhancing inclusivity, and environmental, social, and governance practices. This strategic approach ensures that the incentives provided directly support high-quality investments and foster the creation of more high-income jobs for Malaysians.