KUALA LUMPUR: The government will roll out a New Investment Incentive Framework (NIIF) in the third quarter of this year to attract high-value investments and nurture homegrown technology.
Deputy Investment, Trade and Industry Minister Liew Chin Tong said the initiative aims to shift the focus from “Made in Malaysia” to “Made by Malaysia” by transforming micro, small and medium enterprises (MSMEs) into technology-driven companies with global competitiveness.
“For too long, small businesses and MSMEs have been seen as support players for foreign multinationals,” Liew told the Dewan Rakyat. “We need a mindset shift to recognise their potential to become homegrown, technology-based MNCs that can compete on the world stage.”
Responding to a query from Datuk Seri Dr Wee Jeck Seng (BN–Tanjung Piai) on safeguarding trade, supply chains and SMEs from the impact of US retaliatory tariffs, Liew said the NIIF—developed with the Finance Ministry—will focus on attracting investments that generate quality jobs, develop local ecosystems, and spur technological advancement.
To maximise MSME participation, the government is considering stronger localisation requirements for foreign investors, ensuring local firms gain from spillover effects.
Following the US decision to impose a 19% tariff rate on Malaysia, down from the initially planned 25%, Liew said the ministry and the Malaysia External Trade Development Corporation (MATRADE) have taken steps to diversify export markets. This includes targeting new destinations and expanding Malaysia’s footprint in emerging markets across Central Asia, South Asia, the Middle East, Africa, and Asean.
He added that the government is committed to strengthening national resilience by fostering advanced local technology companies in strategic sectors such as semiconductors, positioning Malaysia as an “indispensable middle power” in global supply chains.
The revised US tariff applies to goods imported for consumption, or removed from warehouses for consumption, effective Aug 8.
