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THE Malaysian government, under its MADANI initiative, is committed to taking proactive steps to ensure both domestic and foreign investments continue to grow.
In response to a parliamentary question today, Deputy Investment, Trade, and Industry Minister Liew Chin Tong emphasised that the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Investment Development Authority (MIDA) are spearheading these efforts.
With regards to the government’s plans to enhance foreign investment in 2025, MITI outlined several key initiatives aimed at attracting and sustaining foreign investments in Malaysia.
During the session in the Dewan Rakyat on Thursday, Liew said one of the most significant strategies is the paradigm shift from the traditional “Made in Malaysia” approach to a new focus on “Made by Malaysia.”
“This shift aims to foster the development of local champions—innovative, homegrown companies capable of competing on a global scale.”
The deputy minister noted that this new approach will play a crucial role in boosting Malaysia’s economic competitiveness and attractiveness as an investment destination.
“To further improve the investment climate, the government is introducing several initiatives designed to attract high-quality foreign investments, particularly those that are high-tech and have a significant economic impact.
These efforts include:
1. Reforming Investment Incentives: As announced in the 2025 Budget, Malaysia will introduce a new investment incentive framework (New Investment Incentive Framework - NIIF) starting in the third quarter of 2025. Unlike the current incentive system, which is product- or activity-based, the new framework will prioritize investments with high value and positive spillover effects for the economy;
2. Aligning with the New Industrial Master Plan (NIMP) 2030: The government’s focus will be on attracting investments that will drive economic complexity, create high-value jobs for the workforce, expand domestic supply chains, and develop new economic clusters. Additionally, the government aims to enhance inclusivity and sustainability by supporting the Environmental, Social, and Governance (ESG) agenda;
3. Leveraging ASEAN Leadership: As Malaysia assumes the chairmanship of ASEAN in 2025, the government plans to use this opportunity to strengthen regional economic cooperation. By promoting ASEAN as a high-impact platform for investment, Malaysia aims to position itself as a preferred investment destination within the region. This will also involve bolstering supply chain ecosystems among ASEAN member states, further facilitating cross-border investments.
Liew reiterated the government’s commitment to increasing investor confidence and improving Malaysia's global competitiveness.
These measures are intended to solidify Malaysia’s standing as a top investment destination and ensure sustained growth in foreign direct investment for 2025 and beyond.
With these initiatives, Malaysia aims to continue attracting foreign investors by offering a robust, forward-looking investment environment and becoming a key player in the global economy. – February 13, 2025
