KUALA LUMPUR, February 23 — The Malaysian Investment Development Authority (MIDA) is set to implement the New Incentive Framework (NIF) from March 1, 2026, following the Ministry of Investment, Trade and Industry’s announcement, marking a major shift toward an outcome-based, value-driven investment approach.
Initially applied to the manufacturing sector and extended to services in the second quarter of 2026, the framework links tax incentives to measurable outcomes under the National Investment Aspirations Scorecard, including job quality, technology transfer, supply chain resilience, and sustainability.
MIDA said existing manufacturing approvals will remain unaffected, while new applications from March will be assessed under the NIF, which offers a choice between a special tax rate or an investment tax allowance, reinforcing Malaysia’s focus on attracting high-value, innovation-led and sustainable investments.
