Kuala lumpur: The New Performance-Based Incentive Framework aims to ensure that rewards are strictly tied to actual achievements, with incentives being granted only upon meeting set performance targets, according to the Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.
According to BERNAMA News Agency, Tengku Zafrul highlighted that the performance metrics under this new framework include the creation of high-skilled jobs and investment in research and development. This approach is designed to enhance the country’s economic complexity. He emphasized the shift from the previous framework, where incentives were provided upfront, to one that rewards based on actual performance. The Minister stressed the government’s intent to foster economic spillovers, particularly through the development of local small and medium enterprises (SMEs) capable of meeting the specified performance metrics.
Tengku Zafrul announced that the Malaysian Investment Development Authority (MIDA) is prepared to implement the new framework for the manufacturing sector by early 2026, and for the services sector by the second quarter of the same year. This initiative aligns with the objectives of the New Industrial Master Plan (NIMP 2030), aiming to attract high-growth activities that generate valuable jobs and reduce regional economic disparities. The framework is expected to ensure high-quality investments and boost wages.
In the Budget 2026, presented by Prime Minister Datuk Seri Anwar Ibrahim, the government committed to offering tax incentives through this new framework. Anwar stated that the focus is on investment that creates high-value jobs while addressing regional economic disparities.
Tengku Zafrul further mentioned the importance of exports in the country’s economic strategy. As part of the Budget 2026, the Malaysia External Trade Development Corporation (MATRADE) will offer a market development grant and allocate RM60 million to aid SMEs in exporting Malaysian-made products to both existing and new markets, including regions such as Africa, Latin America, and Central Asia.
Additionally, the Ministry of Investment, Trade and Industry elaborated that EXIM Bank will provide easy financing options, with a fund totaling RM500 million, to assist companies impacted by global trade tariff tensions. This fund aims to sustain SME exports, and MITI will encourage SME exporters to leverage the existing 18 free trade agreements (FTAs), with expectations for more FTAs to be finalized to further aid SMEs.