Kuala Lumpur, 21 September 2025 — The Ministry of Finance (MoF) has indicated that Budget 2026 will integrate suggestions from international industry players aimed at enhancing Kuala Lumpur’s competitiveness as an international financial centre and a global business hub. The goal is to strengthen policy settings and incentives in key sectors to attract investment, improve regulation, and optimize business infrastructure.
A working session led by Datuk Dr Shahrazat Ahmad, Deputy Secretary General of the Treasury (Investment), convened stakeholders from leading multinational firms. Among those participating were HSBC, Huawei, Prudential Assurance, TNG Digital, Seek Asia, Wahed Technologies, and Intrinsic SEA. The discussions, organized in collaboration with TRX City Sdn Bhd, focused on identifying policy levers needed to boost Kuala Lumpur’s appeal to fintech, finance, investment, and business services sectors.
One of the strategic anchors for this effort is the Tun Razak Exchange (TRX), which the MoF sees as central to anchoring Kuala Lumpur’s role in global finance. Inputs will likely include proposals for regulatory reforms, incentives, infrastructure improvements, digital finance innovation, and perhaps tax or licensing enhancements to make KL more attractive for global capital and business operations.
What This Could Mean
- Regulatory & Incentive Reforms: Expect measures in Budget 2026 to streamline approvals, improve ease of doing business, particularly in financial services and fintech.
- Digital & Infrastructure Investment: Likely focus on enhancing financial technology infrastructure, possibly including digital payment systems, data governance, and fintech licensing.
- Strengthening TRX & Financial District Capabilities: TRX will likely receive more support—both in physical infrastructure and policy backing—to host global financial institutions, perhaps with more tax or operational incentives.
- Attracting Global Players: By engaging firms like HSBC, Huawei, and others, Malaysia signals its intention to compete regionally with other financial hubs, such as Singapore, Hong Kong, or Dubai.
Challenges & Considerations
- Competition from Other Financial Centres: Malaysia must ensure policies keep up with international standards—tax, regulation, intellectual property protection, and compliance expectations will be scrutinised.
- Balancing Stability & Innovation: The reforms must navigate the tension between ensuring regulatory risk is minimised, while still being agile enough to enable fintech and global business operations to flourish.
- Implementation & Follow-Through: Even well-designed policies require effective implementation, adequate resourcing, and strong interagency coordination.
Source: Bernama
